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Geely first-half profits exceed expectations

Geely Automobile Holdings Ltd, the Hong Kong-listed affiliate of Volvo Cars Corp, reported profits that exceeded analysts' estimates after deliveries outside of China tripled.

First-half net income rose 8.7 percent to 1.02 billion yuan ($160 million), or 0.12 yuan a share, compared with 937.6 million yuan, or 0.11 yuan, a year earlier, Geely said in a statement to Hong Kong's Stock Exchange on Wednesday.

The stock rose as much as 2.9 percent in Hong Kong trading after the reported profit was 11 percent higher than the average analyst estimate compiled by Bloomberg. While exports helped offset a slump in Chinese sales during the first six months of the year, the company forecast a "more challenging" second half as competition intensifies.

Fair to highlight trade between Beijing, Macao

The first Beijing Macao Economic and Trade Exchange Symposium will take place from Sept 27 to 30 in Beijing.

The event will feature the Chinese capital's trade and investment cooperation with Macao and Portuguese-speaking countries.

During the event, seminars, investment promotions, "Made in Macao" productions display and investment project signing ceremonies will be held.

Statistics indicated that by the end of June, Macao had set up 158 companies in Beijing with an actually utilized investment of $388.51 million.

ZTE to sell 4G smartphone with China Mobile

ZTE Corp, China's second-largest maker of phone equipment, will sell its first fourth-generation handset through China Mobile Ltd's Hong Kong unit as it works toward a goal of doubling its smartphone sales this year.

ZTE will announce plans to sell the Grand X LTE (T82) through the carrier as early as next week, Cynthia Chan, a spokeswoman for China Mobile Hong Kong, said by phone on Monday.

ZTE, based in Shenzhen, wants to "transform" itself from a supplier of wireless-network gear by focusing more on mobile devices, Executive Director He Shiyou said in April. It became the world's fourth-largest mobile-device seller in the fourth quarter behind Nokia Oyj, Samsung Electronics Co and Apple Inc, and the company's smartphone sales may double this year as it gains market share in Europe, North America, Brazil and Japan.

China Telecom profit beats analysts' estimates

China Telecom Corp, the country's biggest fixed-line carrier, posted a second-quarter profit that beat analysts' estimates as the introduction of Apple Inc's iPhone lured new users to its wireless unit. The stock climbed.

Net income fell 10 percent to 4.55 billion yuan ($716 million) from a restated 5.05 billion yuan a year earlier, the Beijing-based company said in a statement on Wednesday. That exceeded the 4.4 billion yuan median of seven analysts' estimates in a Bloomberg News survey.

China Telecom began offering subsidized iPhone sales on March 9, giving it a new weapon in its battle for smartphone subscribers with larger rival China Mobile Ltd and boosting usage. China Telecom expects the Apple Inc device will enhance its long-term growth with "short-term pressure" on profit margins as it accounts for subsidies on the device up front, instead of spreading them over the life of a service contract.

Zhongwang bets on aluminum use in autos

China Zhongwang Holdings Ltd, Asia's largest maker of extruded aluminum products, said demand is increasing as carmakers use more of the lightweight metal in place of steel.

"Aluminum use in cars has changed noticeably in the past year," Executive Director Lu Changqing said in an interview in Hong Kong. "Growth will be driven by the transportation sector."

Aluminum producers globally are betting on regulations to cut carbon emissions and improve fuel efficiency in the US and Europe will prompt carmakers to use more aluminum. Jaguar Land Rover plans to start selling its first all-aluminum Range Rover sport utility vehicle next month, reducing the car's weight by 39 percent, while Daimler AG's Mercedes is using the metal for its 93,534 euro ($116,599) SL model.

China's industrial aluminum extrusion market will expand at least 12 percent this year to 4 million metric tons, Lu said. The Liaoning-based Zhongwang on Wednesday announced its first-half profit more than doubled after it shifted its focus to the domestic market.

Qihoo profit drops as rising costs erode ad sales

Qihoo 360 Technology Co, the maker of China's most-popular Web browser, said second-quarter profit fell 37 percent as the company boosted spending on new services such as a search engine, eroding higher advertising sales.

Net income declined to $7 million in the three months ended June 30, from $11.1 million a year earlier, Beijing-based Qihoo said in a statement on Wednesday. Profit missed the $10.1 million average of seven analysts' estimates compiled by Bloomberg. Revenue more than doubled to $72.8 million.

Qihoo is working to gain sufficient users for its search engine in China, challenging market leader Baidu Inc, to generate advertising revenue from sales of keywords. Qihoo will see "cost pressure" as the company increases spending on product development and networks, said Co-Chief Financial Officer Alex Xu.

CBRC sets up bureau to protect consumers

The China Banking Regulatory Commission, the banking industry watchdog, has set up a bureau to protect the rights of financial services consumers, China Securities Journal reported on Monday.

The CBRC has also approved the establishment of branches of the bureau in various locations, said Yan Qingmin, assistant chairman of the CBRC.

The establishment of the bureau is part of the government's efforts to improve the commission's supervision system.

The government aims to boost risk control supervision, urging commercial banks to consolidate capital management, enhance consumer rights protection and accelerate the construction of information systems, Yan said.

Mengniu to expand milk beverage production

China Mengniu Dairy Co Ltd said on Wednesday that it will expand its output of milk beverages, in a move to further improve its competitiveness and profit margin.

Mengniu, the country's largest dairy producer, opened two factories in Hebei on Wednesday to produce milk and milk beverages. The total investment in the two plants was 2.4 billion yuan ($380 million). The new products will be distributed to Beijing, Tianjin and other areas in northern China.

"Mengniu will build high-quality product lines and push forward its branding and optimize its product structure," said Sun Yiping, the company's newly appointed chief executive director.

"The product line enhancement is in line with the strategy of COFCO Corp, Mengniu's largest shareholder, which aims to complete the whole industry chain," said Gong Bo, an industry analyst with Beijing United Innovation Capital Ltd.

"The move will also benefit Mengniu's market competitiveness and profit margin via producing milk powder to other higher-value dairy products, such as beverages."

Cell phone users set to reach 1.1 billion this year

Mobile phone accounts in China are expected to surpass the 1.1 billion mark by the end of the year, according to a report from Beijing-based research company Analysys International.

By June, the total number of mobile phone users in China reached 1.05 billion, an increase of 1.08 percent year-on-year, the report said.

One out of every six Chinese mobile phone users currently subscribes to 3G network services, the report estimated. It predicted the penetration rate could be more than 20 percent by the end of the year.

Liu Lihua, vice-minister of industry and information technology, said on Tuesday that China had 184 million 3G users by July. The total mobile phone accounts were 1.062 billion in the same period. Liu made the remarks at the 2012 International Mobile Internet Conference in Beijing.

Sinopec invests more than $95b across the globe

China Petrochemical Corp, or Sinopec, Asia's biggest refiner, has made total investments of more than 600 billion yuan ($95 billion) in sectors including trading and engineering services in 55 countries and regions, said Fu Chengyu, the company's chairman, on Wednesday at the China Overseas Investment Summit held in Hong Kong.

He said Sinopec's overseas assets had increased from 10.6 percent of its total assets in 2005 to 36.6 percent last year. The company's profits in overseas markets accounted for 0.2 percent of the total in 2005, growing to 18.7 percent in 2011.

"Global economic changes have brought both challenges and opportunities to international companies," said Fu. "Chinese companies which expand their business in foreign markets have to adjust to global operating styles and management."

Sprite, Coca Cola popular among college students

A survey released by Staffers, a magazine of China Business Journal, shows Sprite and Coca Cola holding the first two spots among beverage brands favored by Chinese college students.

In its most recent survey of 6,000 students from more than 300 colleges, the survey found that 18.9 percent of students gave their votes to Sprite, which featured Los Angeles Lakers' Kobe Bryant and hip-hop superstar Jay Chou in its new TV commercial.

Bai Changbo, Coca-Cola's vice-president in China, said the company aims to promote the "Stand Out" spirit and lifestyle among young adults.

China Daily-Agencies

(China Daily 08/23/2012 page14)