Biz scene

MARKET

Steel profit

Hidili Industry International Development Co, a Chinese producer of coal used in steelmaking, said full-year profit surged more than sixfold on higher prices and production.

Net income climbed to 570.3 million yuan, from 89.7 million yuan a year earlier, the Panzhihua-based company said in a statement to the Hong Kong stock exchange yesterday. Sales rose to 1.04 billion yuan from 814.8 million yuan a year earlier.

Bank gains

Shanghai Pudong Development Bank Co said first-quarter profit probably rose more than 180 percent because of improved margins and higher fee income.

The bank also cited a lower tax rate as a reason for the profit growth in a statement to the Shanghai Stock Exchange. It will report first-quarter earnings on April 26.

The bank didn't give a profit figure in the statement. Net income was 980 million yuan in the first quarter of 2007.

GRAPEVINE

Tax allegation

Zong Qinghou, founder and chairman of Hangzhou Wahaha Group, China's leading beverage company, is suspected of being involved in evading personal income tax worth 300 million yuan, said Caijing Magazine.

The report said French Danone Group SA, the world's leading dairy producer, has paid an accumulated salary worth $71 million to Zong's family and the former Party secretary of Wahaha in the name of rewarding and service fees from 1996, when the two companies joined hands, until 2006.

Zong refused to comment on the report, but Danone said the Hangzhou government had visited the company and conducted investigations in November.

Share placement

Caitong Securities, a Chinese brokerage, aims to raise 2.5 billion yuan in a private share placement, the South China Morning Post reported, citing an unidentified source.

The brokerage, owned by the Zhejiang provincial government, seeks to offer 500 million shares at 5 yuan apiece, the report said yesterday. A public flotation of the company is likely to follow in 2009, according to the report.

BIZ UNUSUAL

Games rent

Families from Beijing can make a pile hosting foreign tourists during the Olympics. The Beijing tourism bureau recently kicked off the "Olympics family" project that aims to recruit 1,000-odd local families to accommodate overseas travelers during the Games.

The candidates must meet the criteria set by the bureau, which requires them to be located close to the Olympic venues.

Each family could charge a guest 400 to 600 yuan per day based on the services they provide.

Old is gold

Hong Jiagao has done extremely well with old magazines, which are priced at no more than 4 yuan per kg.

The man, who worked at a market selling old books in Anhui province, in September opened a 10 sq m store in Nanjing, capital of Jiangsu province. His shop only sells back issues of magazines he bought from book stalls, usually dealing with leisure and fashion.

They are very popular, especially among students, making it possible for Hong to earn more than 10,000 yuan a month.

LOCAL

Affordable housing

Shandong province will put in huge investments in the next three years to build 150,000 suits of economically affordable housing tailored for low-income families in the region, according to the provincial construction department.

In 2007 alone, the province injected 9.2 billion yuan into 48,300 suits covering 4.33 million sq m.

Acid gas

China National Petroleum Corp (CNPC) has joined forces with Chevron Corporation, the world's fifth largest energy company, in developing acid gas in Sichuan province.

CNPC and Chevron respectively hold a stake of 51 and 49 percent in the project.

The acid gas area covers 1,969 sq km.

There are great technical challenges in developing the area that contains high hydrogen sulphide, which is poisonous. With the help of Chevron, CNPC will tap the reserves more safely and efficiently.

(China Daily 04/15/2008 page15)