[Today's Guide]
○ MWC to kick off, 5G and e-sports to become highlights
○ Shaoxing takes hard efforts in dyeing industry, industrial patter expected to improve
○ Zhongjin Lingnan Nonfemet to conduct private placement for industrial upgrading, Keyvia Electric to develop rail transit power supply
○ Tonghua Grape Wine and Nanning Department Store see shareholding increases, Honggao Creative Construction Design proposes high share conversion and dividend
[SSN Focus]
○ MWC to kick off, 5G and e-sports to become highlights
------
The 2016 Mobile World Congress (MWC) will be held in Barcelona from Feb. 22 to 25. The MWC is the most influential exhibition in global communication field. Technology firms will display their latest achievements in mobile communication. The organizer disclosed that 5G will become one of the six exhibition themes on the congress. The organizer will also hold e-sports championships during the period with the world's largest e-sports company.
Comment: Considering that China just launched research experiment of 5G in January, the 5G industry is expected to see rapid development. Enterprises engaged in 5G equipment and design, such as Fiberhome Telecommunication Technologies Co., Ltd. (600498.SH) and Datang Telecom Technology Co., Ltd. (600198.SH), will benefit from the news. The China Mobile E-Sports Games organized by the General Administration of Sport of China will publish shortlisted project candidates later on February. Institutes are optimistic that China should keep up with South Korea in the e-sports industry. Zhejiang Daily Media Group Co., Ltd. (600633.SH) and Zhejiang People Culture Co., Ltd. (600576.SH) have developed in the e-sports industry.
[SSN Selection]
○ Renminbi loans increased 2.51 trillion yuan to all-time high in January. It is estimated that the data will make monetary policy remain in observation period.
○ The China Securities Regulatory Commission (CSRC) approved of the IPO applications of 9 companies on Jan. 16. Relevant prospectuses will be published gradually.
○ China's central bank and seven other ministries and commissions issued a document to strengthen financial supports for industry and encourage to properly reduce the down payment for new-energy vehicles and used cars.
○ Data from Baichuan Information shows that a great number of manufacturers have lifted quoted prices of epoxypropane for three consecutive days. Calcium carbide method PVC enterprises also hiked their prices on Feb. 16.
○ Saudi Arabia, Russia, Qatar and Venezuela agreed in a recent meeting to freeze oil output at Jan 11 levels in order to cope with an oversupplied market.
○ Searainbow Holding Corp. (000503.SZ), Yunnan Tin Co., Ltd. (000960.SZ) and Zhejiang Great Southeast Co., Ltd. (002263.SZ) announced that there is no more risks for their pledged stocks being closed. The former two companies will resume trading on Feb. 17.
TOP
[Industry Information]
○ Shaoxing takes hard efforts in dyeing industry, industrial patter expected to improve
------
SSN learnt that the Shaoxing People's Government has issued the circular on the work plan for accelerating in promoting ecological environment optimization in the dyeing industry. The circular proposes to complete local standards for the dyeing industry before the end of Match , set up industry funds and increase supports for the transformation and upgrading of the dyeing industry. By the end of the 13th Five-Year Plan period, it should strive to cultivate 5 leading dying companies with an output of over 5 billion yuan so that the dyeing industry will achieve a qualitative leap.
Comment: Shaoxing City and Xiaoshan District, Hangzhou City in Zhejiang Province account for one third of China's overall production capacity of printing and dyeing industries. Considering G20 Summit of 2016 will be held in Hangzhou City this year, such industries with heavy pollution will be the focuses of regulation. Driven by supply-side reform, leading enterprises in printing and dyeing industries are likely to gain more market share and enjoy enhanced bargaining power. They will also have more flexibility when dealing with rise in price of upper stream dye. Zhejiang Hangmin Co., Ltd. (600987.SH) is a leading printing and dyeing player in the Chinese market with production capacity of 1 billion meters; Zhejiang Longsheng Group Co., Ltd. (600352.SH) and Zhejiang Runtu Co., ltd. (002440.SZ) are leading dye enterprises in China.
○ Huge potential of music industry yet to be explored, listed companies start to deploy
------
AliMusic announced lately that it will form sole strategic cooperative partner with S.M. Entertainment, a famous South Korean entertainment company. Alibaba Group will invest about 195 million yuan for 4 percent shareholding of S.M. Entertainment. The latter has famous idol group such as TVXQ and Girls' Generation. Through cooperation with S.M. Entertainment, Alibaba Group will obtain quality copyright resources. Alibaba Group also intends to introduce the advanced fan operation model in South Korean entertainment industry into China.
Comment: last December, the State Administration of Radio Film and Television (SARFT) issued certain opinions on vigorously promote the development of China's music industry, and put forward to achieve the goal of realizing total output value of 300 billion yuan for the whole music industry by the end of the 13th "Five-Year" plan period. As internet giant started to attach greater importance to the music industry, consumers' acceptance towards paid content gradually improved, thus the music industry is expected to embrace new opportunities after it has been impacted by the internet for years. In listed companies, Beijing Enlight Media Co., Ltd. (300251.SZ) in January announced to buy shares of duomi.com and kibey.com in succession, for the purpose of deploying digital music sector; Beijing Hualu Baina Film＆TV Inc. (300291.SZ) established a joint venture with the famous musician Han Hong, focusing on the pan-entertainment industry with music as the core.
TOP
[Announcement Interpretation]
○ Zhongjin Lingnan Nonfemet conduct private placement for industrial upgrading
------
Shenzhen Zhongjin Lingnan Nonfemet Co., ltd. (000060.SZ) proposes to issue 213 million shares at no less than 9.16 yuan per share through private placement to raise 1.95 billion yuan, which will be used for comprehensive recycling of tailing resources and environment management and development project, new material direction, non-ferrous metal products quotation and online trading platform construction project, as well as supplement working capital. Comprehensive recycling of tailing resources project is an important measure for the company to extend from resource exploitation to environment protection and develop recycling economy. After reached the designed capacity, the company will see an extra annual net profits of 84,580,000 yuan.
○ Keyvia Electric to acquire rail transit power supply assets
------
Tianjin Keyvia Electric Co., Ltd. (300407.SZ) proposes to establish Keyvia Germany, a wholly-owned subsidiary, in Germany through backdoor listing and will also acquire 100 percent equities of RPS held by BBR, 49 percent equities of Tianjin Baofu and 100 percent equities of BB Signal held by BICC. The consideration for the transaction is 13.25 million euros (equivalent to 96.43 million yuan). RPS is a wholly-owned subsidiary of Balfour Beatty Rail GmbH with overhead lines and power supply system as core businesses. BB Signal is principally engaged in the design and installment of wayside signal devices, wayside detectors and 50Hz power supply system.
TOP
○ Tonghua Grape Wine and Nanning Department Store see shareholding increases
------
Yin Bing, the actual controller of Tonghua Grape Wine Co., Ltd. (600365.SH) and Yin's concerted actor Jixiang Jiade Investment Co., Ltd. increased the shareholding in the company with over 20 million shares from Feb. 21 to 25, accounting for 5 percent of its total shares, as they are rosy about the prospects of the company. It is possible that Yin and his concerted actors may reorganize or consolidate the business of the company in the following 12 month.
Nanning Department Store Co., Ltd. (600712.SH) announced that as at Feb. 15, Hong Wanling holds 27.25 million shares of the company, accounting for over 5 percent of the company. Hong failed to perform the obligation of disclosing the information. The company was bought by Qian Hai Life Insurance Co., Ltd. through secondary market acquisition to the 5 percent limit twice previously.
○ Baling Technology to introduce employee shareholding plan
------
Nanning Baling Technology Co., Ltd. (002592.SZ) intends to raise 200 million yuan from its directors, supervisors, senior management and core staff to establish an employee shareholding plan. The plan intends to fully acquire the ordinary shares in the assets management plan with a leveraged proportion of 1.5:1 and the total size of the assets management plan will be no more than 500 million yuan. Based on the latest closing price, the plan can acquire about 5.55 percent of its total shares.
○ Substantial shareholder increases shareholding in Hefei Department Store Group
------
Hefei Construction Investment and Holding Co., Ltd., the controlling shareholder of Hefei Department Store Group Co., Ltd. (000417.SZ), increased the shareholding in the company with 6.36 million share from Jan. 28 to Feb. 15, accounting for 0.82 percent of its total shares, with an average price of 7.52 yuan per share. The company previously announced that Hefei Construction Investment and Holding will increase the shareholding in the company with 10 million shares if its stock price falls below 7.64 yuan. As at the date of the announcement, Hefei Construction Investment and Holding totally holds 7.38 million shares of the company and will continue to increase its shareholding in the company.
[Financial Reports Express]
○ Honggao Creative Construction Design proposes high share conversion and dividend
------
The controlling shareholder of Beijing Honggao Creative Construction Design Co., Ltd. (002504.SZ) proposes a 15-for-10 conversion of capital surplus into shares combined with 1.5 yuan dividend for every 10 shares according to its annual report.
○ Lead Intelligent Equipment expects high growth in Q1
------
Wuxi Lead Intelligent Equipment Co., Ltd. (300450.SZ) expects its performance to surge 122 percent and proposes a 20-for-10 conversion of capital surplus into shares combined with 5.5 yuan dividend for every 10 shares according to its annual report. It expects an increase of 78 to 106 percent in the first quarter thanks to sales growth.
TOP
○ MWC to kick off, 5G and e-sports to become highlights
○ Shaoxing takes hard efforts in dyeing industry, industrial patter expected to improve
○ Zhongjin Lingnan Nonfemet to conduct private placement for industrial upgrading, Keyvia Electric to develop rail transit power supply
○ Tonghua Grape Wine and Nanning Department Store see shareholding increases, Honggao Creative Construction Design proposes high share conversion and dividend
[SSN Focus]
○ MWC to kick off, 5G and e-sports to become highlights
------
The 2016 Mobile World Congress (MWC) will be held in Barcelona from Feb. 22 to 25. The MWC is the most influential exhibition in global communication field. Technology firms will display their latest achievements in mobile communication. The organizer disclosed that 5G will become one of the six exhibition themes on the congress. The organizer will also hold e-sports championships during the period with the world's largest e-sports company.
Comment: Considering that China just launched research experiment of 5G in January, the 5G industry is expected to see rapid development. Enterprises engaged in 5G equipment and design, such as Fiberhome Telecommunication Technologies Co., Ltd. (600498.SH) and Datang Telecom Technology Co., Ltd. (600198.SH), will benefit from the news. The China Mobile E-Sports Games organized by the General Administration of Sport of China will publish shortlisted project candidates later on February. Institutes are optimistic that China should keep up with South Korea in the e-sports industry. Zhejiang Daily Media Group Co., Ltd. (600633.SH) and Zhejiang People Culture Co., Ltd. (600576.SH) have developed in the e-sports industry.
[SSN Selection]
○ Renminbi loans increased 2.51 trillion yuan to all-time high in January. It is estimated that the data will make monetary policy remain in observation period.
○ The China Securities Regulatory Commission (CSRC) approved of the IPO applications of 9 companies on Jan. 16. Relevant prospectuses will be published gradually.
○ China's central bank and seven other ministries and commissions issued a document to strengthen financial supports for industry and encourage to properly reduce the down payment for new-energy vehicles and used cars.
○ Data from Baichuan Information shows that a great number of manufacturers have lifted quoted prices of epoxypropane for three consecutive days. Calcium carbide method PVC enterprises also hiked their prices on Feb. 16.
○ Saudi Arabia, Russia, Qatar and Venezuela agreed in a recent meeting to freeze oil output at Jan 11 levels in order to cope with an oversupplied market.
○ Searainbow Holding Corp. (000503.SZ), Yunnan Tin Co., Ltd. (000960.SZ) and Zhejiang Great Southeast Co., Ltd. (002263.SZ) announced that there is no more risks for their pledged stocks being closed. The former two companies will resume trading on Feb. 17.
TOP
[Industry Information]
○ Shaoxing takes hard efforts in dyeing industry, industrial patter expected to improve
------
SSN learnt that the Shaoxing People's Government has issued the circular on the work plan for accelerating in promoting ecological environment optimization in the dyeing industry. The circular proposes to complete local standards for the dyeing industry before the end of Match , set up industry funds and increase supports for the transformation and upgrading of the dyeing industry. By the end of the 13th Five-Year Plan period, it should strive to cultivate 5 leading dying companies with an output of over 5 billion yuan so that the dyeing industry will achieve a qualitative leap.
Comment: Shaoxing City and Xiaoshan District, Hangzhou City in Zhejiang Province account for one third of China's overall production capacity of printing and dyeing industries. Considering G20 Summit of 2016 will be held in Hangzhou City this year, such industries with heavy pollution will be the focuses of regulation. Driven by supply-side reform, leading enterprises in printing and dyeing industries are likely to gain more market share and enjoy enhanced bargaining power. They will also have more flexibility when dealing with rise in price of upper stream dye. Zhejiang Hangmin Co., Ltd. (600987.SH) is a leading printing and dyeing player in the Chinese market with production capacity of 1 billion meters; Zhejiang Longsheng Group Co., Ltd. (600352.SH) and Zhejiang Runtu Co., ltd. (002440.SZ) are leading dye enterprises in China.
○ Huge potential of music industry yet to be explored, listed companies start to deploy
------
AliMusic announced lately that it will form sole strategic cooperative partner with S.M. Entertainment, a famous South Korean entertainment company. Alibaba Group will invest about 195 million yuan for 4 percent shareholding of S.M. Entertainment. The latter has famous idol group such as TVXQ and Girls' Generation. Through cooperation with S.M. Entertainment, Alibaba Group will obtain quality copyright resources. Alibaba Group also intends to introduce the advanced fan operation model in South Korean entertainment industry into China.
Comment: last December, the State Administration of Radio Film and Television (SARFT) issued certain opinions on vigorously promote the development of China's music industry, and put forward to achieve the goal of realizing total output value of 300 billion yuan for the whole music industry by the end of the 13th "Five-Year" plan period. As internet giant started to attach greater importance to the music industry, consumers' acceptance towards paid content gradually improved, thus the music industry is expected to embrace new opportunities after it has been impacted by the internet for years. In listed companies, Beijing Enlight Media Co., Ltd. (300251.SZ) in January announced to buy shares of duomi.com and kibey.com in succession, for the purpose of deploying digital music sector; Beijing Hualu Baina Film＆TV Inc. (300291.SZ) established a joint venture with the famous musician Han Hong, focusing on the pan-entertainment industry with music as the core.
TOP
[Announcement Interpretation]
○ Zhongjin Lingnan Nonfemet conduct private placement for industrial upgrading
------
Shenzhen Zhongjin Lingnan Nonfemet Co., ltd. (000060.SZ) proposes to issue 213 million shares at no less than 9.16 yuan per share through private placement to raise 1.95 billion yuan, which will be used for comprehensive recycling of tailing resources and environment management and development project, new material direction, non-ferrous metal products quotation and online trading platform construction project, as well as supplement working capital. Comprehensive recycling of tailing resources project is an important measure for the company to extend from resource exploitation to environment protection and develop recycling economy. After reached the designed capacity, the company will see an extra annual net profits of 84,580,000 yuan.
○ Keyvia Electric to acquire rail transit power supply assets
------
Tianjin Keyvia Electric Co., Ltd. (300407.SZ) proposes to establish Keyvia Germany, a wholly-owned subsidiary, in Germany through backdoor listing and will also acquire 100 percent equities of RPS held by BBR, 49 percent equities of Tianjin Baofu and 100 percent equities of BB Signal held by BICC. The consideration for the transaction is 13.25 million euros (equivalent to 96.43 million yuan). RPS is a wholly-owned subsidiary of Balfour Beatty Rail GmbH with overhead lines and power supply system as core businesses. BB Signal is principally engaged in the design and installment of wayside signal devices, wayside detectors and 50Hz power supply system.
TOP
○ Tonghua Grape Wine and Nanning Department Store see shareholding increases
------
Yin Bing, the actual controller of Tonghua Grape Wine Co., Ltd. (600365.SH) and Yin's concerted actor Jixiang Jiade Investment Co., Ltd. increased the shareholding in the company with over 20 million shares from Feb. 21 to 25, accounting for 5 percent of its total shares, as they are rosy about the prospects of the company. It is possible that Yin and his concerted actors may reorganize or consolidate the business of the company in the following 12 month.
Nanning Department Store Co., Ltd. (600712.SH) announced that as at Feb. 15, Hong Wanling holds 27.25 million shares of the company, accounting for over 5 percent of the company. Hong failed to perform the obligation of disclosing the information. The company was bought by Qian Hai Life Insurance Co., Ltd. through secondary market acquisition to the 5 percent limit twice previously.
○ Baling Technology to introduce employee shareholding plan
------
Nanning Baling Technology Co., Ltd. (002592.SZ) intends to raise 200 million yuan from its directors, supervisors, senior management and core staff to establish an employee shareholding plan. The plan intends to fully acquire the ordinary shares in the assets management plan with a leveraged proportion of 1.5:1 and the total size of the assets management plan will be no more than 500 million yuan. Based on the latest closing price, the plan can acquire about 5.55 percent of its total shares.
○ Substantial shareholder increases shareholding in Hefei Department Store Group
------
Hefei Construction Investment and Holding Co., Ltd., the controlling shareholder of Hefei Department Store Group Co., Ltd. (000417.SZ), increased the shareholding in the company with 6.36 million share from Jan. 28 to Feb. 15, accounting for 0.82 percent of its total shares, with an average price of 7.52 yuan per share. The company previously announced that Hefei Construction Investment and Holding will increase the shareholding in the company with 10 million shares if its stock price falls below 7.64 yuan. As at the date of the announcement, Hefei Construction Investment and Holding totally holds 7.38 million shares of the company and will continue to increase its shareholding in the company.
[Financial Reports Express]
○ Honggao Creative Construction Design proposes high share conversion and dividend
------
The controlling shareholder of Beijing Honggao Creative Construction Design Co., Ltd. (002504.SZ) proposes a 15-for-10 conversion of capital surplus into shares combined with 1.5 yuan dividend for every 10 shares according to its annual report.
○ Lead Intelligent Equipment expects high growth in Q1
------
Wuxi Lead Intelligent Equipment Co., Ltd. (300450.SZ) expects its performance to surge 122 percent and proposes a 20-for-10 conversion of capital surplus into shares combined with 5.5 yuan dividend for every 10 shares according to its annual report. It expects an increase of 78 to 106 percent in the first quarter thanks to sales growth.
TOP
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