[Today's Guide]
> Silicon substrate technology to win national reward for science and technology to establish Chinese LED standards
> NDRC to loosen parking charging policies to boost construction of relevant facilities
> Sanmao Industrial to acquire Zhongzhi Chips Technology, Sinonet ＆ xinlong Science ＆ technology to invest drone
> Goldenmax International Technology to acquire PCTX Technology Development, several companies propose high share conversion and dividend
[SSN Focus]
○Silicon substrate technology to win national reward for science and technology to establish Chinese LED standards
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According to past practices, the national rewards for science and technology for 2015 will be presented in early January in the Great Hall of the People. SSN has confirmed the first prize for technological invention will go to the high-optical-efficiency GaN-based blue LED on silicon substrate developed by Nanchang University. Data shows that there are three types of mainstream blue LED technologies: LED on sapphire substrate developed by Japanese company Nichia Corporatio, LED on silicon substrate developed by the U.S. Cree Company and LED on silicon substrate developed by China. The main contributors of the first two technologies have respectively won the top technological awards in their countries. China's silicon substrate technology can be comparable to that of international-level companies in terms of its performance, and even have lower cost and higher production efficiency.
Comment: To bring the brand of "manufactured in China" into the world, Chinese standards should go globe firstly. The silicon substrate technology has broken technical barriers set by western countries and posted opportunities for the LED industry. Director of the Commission of Industry and Information Technology of Jiangxi Province has proposed to raise the industrialization of LED on silicon substrate to a national strategy. Among A-share companies, Jiangxi Lianchuang Opto-electronic Science ＆ technology Co., Ltd. (600363.SH) once cooperated with Nanchang University in LED development and industrialization. Small-cap listed LED companies, such as Xiamen Changelight Co., Ltd. (300102.SZ) Shenzhen Jufei Optoelectronics Co., Ltd. (300303.SZ) and CNLIGHT Co., Ltd. (002076.SZ), are expected to take their own advantages to transform to new technologies.
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[SSN Selection]
○The Central Economic Working Conference proposed various measures to reduce house inventories and allow migrant workers and other non-residents to register household in cities where they work.
○The revised Law of Population and Family Planning of the People's Republic of China (Draft) today will take effect from January 1. 2016, which will encourage all couples to have two children.
○Bloomberg reported that the People's Bank of China, the nation's central bank, is conducting researches on the feasibility of canceling deposit-reserve ratio to make interest rates more market-driven.
○The freight of coal in coastal China almost doubled in the recent month. The cold weather and other factors will post opportunities for coal prices to rebound.
○Sunning Group announces its take-over of Jiangsu Guoxin Sainty Football Club. Jiangsu Suning Football Club will be officially set up.
[Industry Information]
○NDRC to loosen parking charging policies to boost construction of relevant facilities
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The National Development and Reform Commission (NDRC) issued the guidance on further improving the charging policies on vehicles parking services on Dec. 21. The guidance proposes to deregulate the charging of parking facilities and services with competition conditions and gradually narrow the range of government pricing regulation and encourage the construction of parking facilities with social capitals. For the newly established parking facilities with social capitals, the charging criteria will be made by the operators according to laws.
Comment: With the rapid growth in vehicles, the insufficient parking facilities and inefficient resources allocation and other problems are increasingly growing. The deregulation on the charging of parking facilities and services with competition conditions will attract social capitals to the construction of parking facilities and is expected to boost relevant investments. Among A-share companies, Shenzhen Jieshun Science And Technology Industry Co., Ltd. (002609.SZ) is a leader in the domestic export and import controlling and management industry. Anhui Honglu Steel Construction (group) Co., Ltd. (002541.SZ) plans to raise 1.2 billion yuan by issuing shares through private placement and the proceeds will be invested in intelligent and three-dimensional parking facilities.
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○Online education favored by capitals, listed companies actively develop
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Online education platform juesheng.com recently announced that it obtained more than 200 million yuan in the third round of financing. Previously, ke.qq.com announced its plan to invest 10 million yuan to help 100 online education institutions in 2016. The interest showed by the three largest Internet companies, Baidu, Alibaba, Tencent and industrial capitals in online education is expected to draw the market's attention in this field.
Comment: With the advance of the "Internet plus" strategy in the education sector, more and more listed companies have accelerated investment in the sector. In early December, Anhui Xinhua Media Co., Ltd (601801.SH) announced its plan on raising no more than 2 billion yuan through private placement to invest in the construction of intelligent learning media platform, thus expanding its footprint in online education. Shanghai Xin Nanyang Co., Ltd. (600661.SH) announced in late October that it would raise 1 billion yuan by issuing shares through private placement to invest in K12 education and vocational education businesses.
○USTC develops new catalyst for photolysis of water hydrogen production to boost fuel-cell vehicles
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The Ministry of Science and Technology discloses on its website on Dec. 21 that the University of Science and Technology of China (USTC) has designed the cocatalyst with shell structure and atomic accuracy, which will reduce the consumption of the precious metal platinum cocatalyst and greatly improve the performance of photolysis of water hydrogen production. The results have been published in the Angewandte Chemie International Edition, an internationally well-known chemical periodical. It is reported that the design replaces the platinum with the relatively cheaper palladium core, reducing the cost of the materials by over one third.
Comment: The technology will effectively reduce the cost for the production of hydrogen and promote the development of fuel-cell vehicles. In terms of listed companies, Lanzhou Great Wall Electrical Co., Ltd. (600192.SH) holds 9 percent equities of Dalian Sunrise Power Co., Ltd., which is principally engaged in the development and production of proton exchange membrane fuel batteries. Shanghai Tongji Science ＆ Technology Industrial Co., Ltd. (600846.SH) holds 36.23 percent equities of Shanghai TL Chemical Co., Ltd., principally engaged in the research and development of key materials for proton exchange membrane fuel batteries.
[Announcement Interpretation]
○Sanmao Industrial to acquire Zhongzhi Chips Technology with RMB620 mln
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Lanzhou Sanmao Industrial Co., Ltd. (000779.SZ) intends to issue 45,465,000 shares at 13.73 yuan per share to MPRC Micro System Technology Co., Ltd. through private placement to acquire 100 percent equities of Beijing Zhongzhi Chips Technology Co., Ltd. held by it. The price of the subject assets is 620 million yuan. Meanwhile, the company plans to raise 600 million yuan by issuing shares at the same price to Tibet Haorong Investment Management Co., Ltd. through private placement. The proceeds will be invested in the research and development center for homemade proprietary CPU chips and systems with high performance and the base for homemade proprietary computers industrialization.
Zhongzhi Chips Technology is engaged in the design, manufacturing and sale of CPU chips for personal computers and complete computers. It owns the capacity for the design of homemade proprietary CPU chips and systems. MPRC will become the biggest shareholder of the company and the company will have no actual controllers after the transaction.
○Sinonet ＆ xinlong Science ＆ technology to invest drone
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Anhui Sinonet ＆ xinlong Science ＆ technology Co., Ltd. (002298.SZ) proposes to issue 88,760,000 shares through private placement at 16.90 yuan per share to raise 1,500 million yuan. 500 million yuan will be used for public security and anti-terrorism robots or drone industrialization project. 300 million yuan will be used for self-adapted automobile intelligent charging construction projects based on cable/wireless transmission. 250 million yuan will be used for intelligent tele-control (high-speed railway) power supply system production line construction. The remaining 450 million yuan will be used for repayment of borrowings.
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○Goldenmax International Technology to acquire PCTX Technology Development, deploy mobile communication
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Goldenmax International Technology Ltd. (002636.SZ) proposes to acquire the entire equity of Shenzhen PCTX Technology Development CO., Ltd. at the valuation 2,208 million yuan, which will be paid through issuance of 84,920,000 shares at 22.10 yuan per share and cash. At the same time, the company plans to issue shares at no less than 25.55 yuan per share to raise matching fund of 961 million yuan. PCTX Technology Development is a leading wireless communication products provider and Internet Plus service provider in China, as well as the distributor of Huawei mobile broadband products in Chinese market. The counterparty committed that net profits of PCTX Technology Development from 2016 to 2018 to be 208 million yuan, 270 million yuan and 352 million yuan respectively. Goldenmax International Technology closed at 22.10 yuan before suspension of trading.
○Anbang bought the shares of several companies through secondary market acquisition to the 5 percent limit again
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Chang Chun Eurasia Group Co., Ltd. (600697.SH) disclosed that as of Dec. 18, Anbang Insurance Group ("Anbang") has bought aggregate 10 percent of shares of the company on the secondary market through Anbang Life Insurance Co., Ltd., Hexie Insurance and Anbang Annuity Insurance. Anbang first bought shares of Eurasia Group to the 5 percent limit on Dec. 10. Meanwhile, Dashang Co., Ltd. (600694.SH) disclosed that as of Dec.18, two companies under Anbang has altogether hold 10 percent shares of the company, and first bought the shares of the company to the 5 percent limit on Dec. 10. The above two target companies are all commercial chains with good performance and sufficient cash flows, as well as highly fragmented shareholding.
○Jilin Forest Industry spins off baggage assets
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Jilin Forest Industry Co., Ltd. (600189.SH) proposes to contribute to Artificial Board Group under its controlling shareholder China Jilin Forest Industry Group with assets and liabilities related to artificial board business held by it. Relevant assets include 51 equity of Jilin Chemical Industrial Company Limited, 75 percent equity of Baishan Artificial Board, etc. The assets contribution is estimated to be 1,547 million yuan in value; and the predicted valuation of the intended investee Artificial Board Group is 2,313 million yuan. Upon completion of the transaction, the company will hold 40.08 percent equity in Artificial Board Group, and change its operation of artificial board business from self-operated to participation, in an effort to turn losses in artificial board business into profits.
[Financial Reports Express]
○Several companies propose high share conversion and dividend
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Yonker Environmental Protection Co., ltd. (300187.SZ) proposes a 20-for-10 conversion of capital suplus into shares combined with 0.3 yuan dividend for every 10 shares according to its annual report. Actual controller of Shenzhen Grandland Decoration Group Co., Ltd. (002482.SZ) proposes the following profits distribution plan: to allocate no less than 15 percent of distributable profits in 2015 for cash dividend, and a 15-for-10 conversion of capital surplus into shares.
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