[Today's Guide]
○Guoxuan High-Tech signs contract valued at RMB1 bln again, benefiting growth of lithium-ion equipment industry
○World's biggest zirconium mine suspends exploitation, VR enters home decoration industry
○Visual China joins hands with Getty, China United Travel to invest Rongzhi Xunda to step into VR live telecast
○Heimao Coking to expand main business by private placement, East Group and Sunyard System Engineering propose high share conversion and dividend
[SSN Focus]
○Guoxuan High-Tech signs contract valued at RMB1 bln again, benefiting growth of lithium-ion equipment industry
------
Latest announcement by Guoxuan High-Tech Co., Ltd. (002074.SZ) shows that its fully-owned subsidiary signed the 2016 power battery purchase contract, totaling 1.06 billion yuan per year, with Nanjing Golden Dragon Coach Manufacturing Co., Ltd. Guoxuan High-Tech announced just before the Spring Festival that it inked agreement with Zhongtong Bus Holding Co., Ltd. (000957.SZ) for supplying power battery packs valued at 1.04 billion yuan in 2016.
Comment: Though the output of new energy vehicles in January 2016 dropped from month on month, it is believed that factors, such as reduced policy support, the Ministry of Industry and Information Technology (MIIT)'s investigation into cheat on subsidies and the alteration of subsidies catalogue, have great impact on the production. The industry will still see rapid growth in the long run. Relevant responsible person of national authorities also introduced on Feb. 18 that national public organizations will further efforts in promoting new energy vehicles. Institutions estimate that the power battery capacity of Guoxuan High-Tech has moved to 800 million ah and another 1.1 billion ah will be put into production within 2016. The materialization of capacity will help to release the demand on lithium-ion equipment. Shenzhen Yinghe Technology Co., Ltd. (300457.SZ) and Dalian Zhiyun Automation Co., Ltd. (300097.SZ), as upstream equipment suppliers, all signed goods supply contract with Guoxuan High-Tech recently.
[SSN Selection]
○The General Office of the State Council issues guidelines on accelerating the development of popular entrepreneurship and encouraging the state-established R＆D institutions, universities and colleges to develop popular entrepreneurship centering on their superior fields.
○China's CPI for January 2016 expanded 1.8 percent from year on year, setting a new high in five months. Capacity reduction helps to narrow the drop of PPI.
○China's central bank announces that from now on, open market operation will be developed in every working day in principle.
○Prices of viscose staple fiber (VSF) in China surged around 3 percent again this week. Tightened supply and recovering downstream demand might bring continual price hike.
○Both Shenzhen Zhongheng Huafa Co., Ltd. (000020.SZ) and Maoye Communication and Network Co., Ltd. (000889.SZ) announce that the risk of closing out the position of pledged stocks has been removed and they will resume trading on Feb. 19.
TOP
[Industry Information]
○World's biggest zirconium mine suspends exploitation, benefiting supply-demand structure as claimed by Orient Zirconic Ind Sci and Tech
------
Iluka Resources Limited, an Australian company, announced that the mining and beneficiation at the JACINTH-AMBROSIA of Eucla Basin under the company will suspend for 18 to 24 months from April 16, 2016.
Comment: It is reported that the project is the flagship of Iluka as well as the biggest zirconium mine in the world. It contributes 25-30 percent of global supplies. Guangdong Orient Zirconic Ind Sci and Tech Co., Ltd. (002167.SZ) indicated that the suspension of Iluka will help to improve the supply-demand structure of zirconium products. The company currently owns sufficient zirconium resources and can meet its own demands.
○VR enters home decoration industry, Gold Mantis Construction Decoration to introduce VR function
------
With the gradual maturity of virtual reality (VR) technology, the integration of VR technology and traditional industry is speeding up. Engaged in architectural ornament business recently indicated that it will introduce home decoration business along with VR technology, which will be mainly used for showing virtual sample houses so as to strengthen clients' experience. This will be launched in the first half of this year. The company's stock price surged by the daily limit of 10 percent in last two days.
Comment: It happens that there is a similar case. Suzhou Gold Mantis Construction Decoration Co., Ltd. (002081.SZ) indicated at its interaction platform today that it plans to introduce 3D online design, VR, AR and other functions. The business is under development. It is expected to introduce VR and AR display functions based on sample houses after introducing online design in the first half.
○MIIT and State Oceanic Administration support marine economy to develop ocean engineering equipment first
------
The Ministry of Industry and Information Technology (MIIT) signed an agreement with the State Oceanic Administration at the strategic cooperation symposium on promoting marine economic development held in Beijing on Feb. 18. This marks that the cooperation between industry and informatization and oceanic field has entered a new stage. Focusing on exploitation of oceanic mineral resources, comprehensive utilization of seawater, development of oceanic renewable energy sources and other fields, the two commissions will devote themselves to improving the quality and technology of China's ships and ocean engineering equipment supply and developing new economic growth points.
Comment: Miao Wei, minister of the MIIT, stated that China needs to become strong in high-end equipment used in the ocean when developing marine economy. Made in China 2025 includes ocean engineering equipment and high-tech ships in the top 10 development fields. Among listed firms, CSSC Steel Structure Engineering Co., Ltd. (600072.SH) is going to acquire China Shipbuilding NDRI Engineering Co., Ltd., which is leading in planning and design field of China's shipbuilding industry. After CSSC Offshore ＆ Marine Engineering (Group) Company Limited (600685.SH) finished restructuring, its products cover ships for military and civilian uses, which further strengthens the business capability in ocean engineering equipment and special ships.
TOP
[Announcement Interpretation]
○Visual China joins hands with Getty, Thunder Software partners with Qualcomm (Guizhou) Investment
------
Visual China Group Co., Ltd. (000681.SZ) plans to have cooperation in regional markets with Getty Images through equity investment at no more than 100 million U.S. dollars. Getty Images is one of the world's biggest providers of creative pictures, editable pictures and video materials.
Thunder Software Technology Co., Ltd. (300496.SZ) cooperates with Qualcomm (Guizhou) Investment Co., Ltd., and both parties jointly provide capital to establish Chongqing Chuangtong Lianda Intelligent Technology Co., Ltd. In the field of intelligent hardware, such as unmanned aerial vehicle, VR/AR and IP Camera, the joint venture will provide intelligent modular product of chip operation system core algorithm based on Qualcomm chip platform for the clients.
○China United Travel to invest Rongzhi Xunda to step into VR live telecast
------
China United Travel Co., Ltd. (600358.SH) proposes to invest Beijing Rongzhi Xunda Technology Co., Ltd. with 9 million yuan to acquire 5 percent equity. Rongzhi Xunda focuses on shoot equipment and content share platform for VR live telecast, having two products related to mobile internet based interactive application, such as "Yixiuba" and "Rexiu", and its VR omni-directional camera is expected to be pushed out in the market with volume production. Rongzhi Xunda committed that VR camera sales will be no less than 10,000 within 12 months after investment, realizing a sales revenue of no less than 11 million yuan; annual sales revenue of its main business will be no less than 11.85 million yuan.
TOP
○Heimao Coking to raise RMB2.5 bln to expand main business, with great support from controlling shareholder
------
Shaanxi Heimao Coking Co., Ltd. (601015.SH) proposes to raise 2.5 billion yuan through private placement with a bottom price of 7.96 yuan. Its controlling shareholder, Huanghe Mining, proposes to subscribe the private placement with over 0.5 billion yuan and less than 1 billion yuan. The raised capital will be used for Coking Transformation Demonstration Project I, which will expand capacity of methyl alcohol and liquefied natural gas greatly.
○Senior management of Xi'An Catering increase shareholdings
------
Some directors, supervisors and senior managers of Xi'An Catering Co., Ltd. (000721.SZ) on Feb. 18 bought 525,700 shares of the company at 5.83 yuan to 5.95 yuan, and the last closing price was 5.88 yuan.
[Financial Report Express]
○East Group and Sunyard System Engineering propose high share conversion and dividend
------
East Group Co., Ltd. (300376.SZ) gained a performance growth of 61 percent in its annual report, and its board of directors approved the preplan of a 10-for-10 conversion of capital surplus into shares combined with 2.6 yuan dividend. It reported a growth forecast of 20 percent to 50 percent in the first quarterly report, mainly as its photovoltaic business gains a rapid growth. Guo Hua, actual controller of Sunyard System Engineering Co., Ltd. (600571.SH), strongly suggested the company carry out profit allocation preplan of a 10-for-10 conversion of capital surplus into shares combined with cash dividend in the annual report.
TOP
○Guoxuan High-Tech signs contract valued at RMB1 bln again, benefiting growth of lithium-ion equipment industry
○World's biggest zirconium mine suspends exploitation, VR enters home decoration industry
○Visual China joins hands with Getty, China United Travel to invest Rongzhi Xunda to step into VR live telecast
○Heimao Coking to expand main business by private placement, East Group and Sunyard System Engineering propose high share conversion and dividend
[SSN Focus]
○Guoxuan High-Tech signs contract valued at RMB1 bln again, benefiting growth of lithium-ion equipment industry
------
Latest announcement by Guoxuan High-Tech Co., Ltd. (002074.SZ) shows that its fully-owned subsidiary signed the 2016 power battery purchase contract, totaling 1.06 billion yuan per year, with Nanjing Golden Dragon Coach Manufacturing Co., Ltd. Guoxuan High-Tech announced just before the Spring Festival that it inked agreement with Zhongtong Bus Holding Co., Ltd. (000957.SZ) for supplying power battery packs valued at 1.04 billion yuan in 2016.
Comment: Though the output of new energy vehicles in January 2016 dropped from month on month, it is believed that factors, such as reduced policy support, the Ministry of Industry and Information Technology (MIIT)'s investigation into cheat on subsidies and the alteration of subsidies catalogue, have great impact on the production. The industry will still see rapid growth in the long run. Relevant responsible person of national authorities also introduced on Feb. 18 that national public organizations will further efforts in promoting new energy vehicles. Institutions estimate that the power battery capacity of Guoxuan High-Tech has moved to 800 million ah and another 1.1 billion ah will be put into production within 2016. The materialization of capacity will help to release the demand on lithium-ion equipment. Shenzhen Yinghe Technology Co., Ltd. (300457.SZ) and Dalian Zhiyun Automation Co., Ltd. (300097.SZ), as upstream equipment suppliers, all signed goods supply contract with Guoxuan High-Tech recently.
[SSN Selection]
○The General Office of the State Council issues guidelines on accelerating the development of popular entrepreneurship and encouraging the state-established R＆D institutions, universities and colleges to develop popular entrepreneurship centering on their superior fields.
○China's CPI for January 2016 expanded 1.8 percent from year on year, setting a new high in five months. Capacity reduction helps to narrow the drop of PPI.
○China's central bank announces that from now on, open market operation will be developed in every working day in principle.
○Prices of viscose staple fiber (VSF) in China surged around 3 percent again this week. Tightened supply and recovering downstream demand might bring continual price hike.
○Both Shenzhen Zhongheng Huafa Co., Ltd. (000020.SZ) and Maoye Communication and Network Co., Ltd. (000889.SZ) announce that the risk of closing out the position of pledged stocks has been removed and they will resume trading on Feb. 19.
TOP
[Industry Information]
○World's biggest zirconium mine suspends exploitation, benefiting supply-demand structure as claimed by Orient Zirconic Ind Sci and Tech
------
Iluka Resources Limited, an Australian company, announced that the mining and beneficiation at the JACINTH-AMBROSIA of Eucla Basin under the company will suspend for 18 to 24 months from April 16, 2016.
Comment: It is reported that the project is the flagship of Iluka as well as the biggest zirconium mine in the world. It contributes 25-30 percent of global supplies. Guangdong Orient Zirconic Ind Sci and Tech Co., Ltd. (002167.SZ) indicated that the suspension of Iluka will help to improve the supply-demand structure of zirconium products. The company currently owns sufficient zirconium resources and can meet its own demands.
○VR enters home decoration industry, Gold Mantis Construction Decoration to introduce VR function
------
With the gradual maturity of virtual reality (VR) technology, the integration of VR technology and traditional industry is speeding up. Engaged in architectural ornament business recently indicated that it will introduce home decoration business along with VR technology, which will be mainly used for showing virtual sample houses so as to strengthen clients' experience. This will be launched in the first half of this year. The company's stock price surged by the daily limit of 10 percent in last two days.
Comment: It happens that there is a similar case. Suzhou Gold Mantis Construction Decoration Co., Ltd. (002081.SZ) indicated at its interaction platform today that it plans to introduce 3D online design, VR, AR and other functions. The business is under development. It is expected to introduce VR and AR display functions based on sample houses after introducing online design in the first half.
○MIIT and State Oceanic Administration support marine economy to develop ocean engineering equipment first
------
The Ministry of Industry and Information Technology (MIIT) signed an agreement with the State Oceanic Administration at the strategic cooperation symposium on promoting marine economic development held in Beijing on Feb. 18. This marks that the cooperation between industry and informatization and oceanic field has entered a new stage. Focusing on exploitation of oceanic mineral resources, comprehensive utilization of seawater, development of oceanic renewable energy sources and other fields, the two commissions will devote themselves to improving the quality and technology of China's ships and ocean engineering equipment supply and developing new economic growth points.
Comment: Miao Wei, minister of the MIIT, stated that China needs to become strong in high-end equipment used in the ocean when developing marine economy. Made in China 2025 includes ocean engineering equipment and high-tech ships in the top 10 development fields. Among listed firms, CSSC Steel Structure Engineering Co., Ltd. (600072.SH) is going to acquire China Shipbuilding NDRI Engineering Co., Ltd., which is leading in planning and design field of China's shipbuilding industry. After CSSC Offshore ＆ Marine Engineering (Group) Company Limited (600685.SH) finished restructuring, its products cover ships for military and civilian uses, which further strengthens the business capability in ocean engineering equipment and special ships.
TOP
[Announcement Interpretation]
○Visual China joins hands with Getty, Thunder Software partners with Qualcomm (Guizhou) Investment
------
Visual China Group Co., Ltd. (000681.SZ) plans to have cooperation in regional markets with Getty Images through equity investment at no more than 100 million U.S. dollars. Getty Images is one of the world's biggest providers of creative pictures, editable pictures and video materials.
Thunder Software Technology Co., Ltd. (300496.SZ) cooperates with Qualcomm (Guizhou) Investment Co., Ltd., and both parties jointly provide capital to establish Chongqing Chuangtong Lianda Intelligent Technology Co., Ltd. In the field of intelligent hardware, such as unmanned aerial vehicle, VR/AR and IP Camera, the joint venture will provide intelligent modular product of chip operation system core algorithm based on Qualcomm chip platform for the clients.
○China United Travel to invest Rongzhi Xunda to step into VR live telecast
------
China United Travel Co., Ltd. (600358.SH) proposes to invest Beijing Rongzhi Xunda Technology Co., Ltd. with 9 million yuan to acquire 5 percent equity. Rongzhi Xunda focuses on shoot equipment and content share platform for VR live telecast, having two products related to mobile internet based interactive application, such as "Yixiuba" and "Rexiu", and its VR omni-directional camera is expected to be pushed out in the market with volume production. Rongzhi Xunda committed that VR camera sales will be no less than 10,000 within 12 months after investment, realizing a sales revenue of no less than 11 million yuan; annual sales revenue of its main business will be no less than 11.85 million yuan.
TOP
○Heimao Coking to raise RMB2.5 bln to expand main business, with great support from controlling shareholder
------
Shaanxi Heimao Coking Co., Ltd. (601015.SH) proposes to raise 2.5 billion yuan through private placement with a bottom price of 7.96 yuan. Its controlling shareholder, Huanghe Mining, proposes to subscribe the private placement with over 0.5 billion yuan and less than 1 billion yuan. The raised capital will be used for Coking Transformation Demonstration Project I, which will expand capacity of methyl alcohol and liquefied natural gas greatly.
○Senior management of Xi'An Catering increase shareholdings
------
Some directors, supervisors and senior managers of Xi'An Catering Co., Ltd. (000721.SZ) on Feb. 18 bought 525,700 shares of the company at 5.83 yuan to 5.95 yuan, and the last closing price was 5.88 yuan.
[Financial Report Express]
○East Group and Sunyard System Engineering propose high share conversion and dividend
------
East Group Co., Ltd. (300376.SZ) gained a performance growth of 61 percent in its annual report, and its board of directors approved the preplan of a 10-for-10 conversion of capital surplus into shares combined with 2.6 yuan dividend. It reported a growth forecast of 20 percent to 50 percent in the first quarterly report, mainly as its photovoltaic business gains a rapid growth. Guo Hua, actual controller of Sunyard System Engineering Co., Ltd. (600571.SH), strongly suggested the company carry out profit allocation preplan of a 10-for-10 conversion of capital surplus into shares combined with cash dividend in the annual report.
TOP
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