[Today's Guide]
○Ten SOEs reform pilots to launch soon, scope of pilot central SOEs likely to expand
○Senior management stresses on dealing with aging population, two-child policy likely to become key point
○Liaoning Cheng Da invests in insurance industry, Lepu Medical Technology to invest in cardiovascular treatment
○Great Southeast and Zhonghe conduct cooperation, Lummy Phar. and Billions Chemicals propose high share conversion
[SSN Focus]
○Ten SOEs reform pilots to launch soon, scope of pilot central SOEs likely to expand
------
Officers at the State-owned Assets Supervision and Administration Commission (SASAC) indicated in the state-owned enterprises and assets reform seminar held on Feb. 23 that pilots should be firstly carried out this year and ten reform pilots focusing on key points and difficulties will be implemented. The chairman of State Development ＆ Investment Corp. (SDIC) indicated that it will actively transform and upgrade through ways including industrial integration, acquisition ＆ merging as well as capital operation; the number of pilot enterprises will continue to increase this year and the authorization scope will be enlarged. According to the Securities Daily, a list covering the second batch of pilot central SOEs is likely to be released in the first half year.
Comment: As the "1 N" document system takes shape, policies for the SOEs reform will be implemented this year. More attentions should be paid to the central SOEs whose management is active in carrying out reform. A-share companies with small market value under the SDIC include China National Complete Plant Import ＆ Export Corp., Ltd. (000151.SZ) and SDIC Zhonglu Fruit Juice Co., Ltd. (600962.SH). China Chengtong Holdings Group Ltd. once mentioned in its annual working meeting that it will make every effort to become a pilot for state-owned capital operation, and its subsidiaries cover Guangdong Guanhao High-Tech Co., Ltd. (600433.SH) and Yueyang Forest ＆ Paper Co., Ltd. (600963.SH).
◆Both China International Travel Service Corporation Limited (601888.SH) and CTS International Logistics Corporation Limited (603128.SH) announced that their actual controllers, CITS Group Corporation and China National Travel Service (HK) Group Corporation, are planning for strategic restructuring, but such scheme does not involve the said two listed companies.
[SSN Selection]
○Chinese President Xi Jinping recently made important instruction on deeply pushing the construction of new-type urbanization, focusing on improving the urbanization ratio of registered population.
○Survey by SSN shows that some securities companies attract the clients for financing through adjusting and maintaining indicators, such as guarantee proportion, conversion rate of individual stock and etc.
○Last week, the proportion of A-share accounts participating in transactions greatly increased to 15.17 percent, up by 2.03 percentage points, and position-holding accounts have declined for 10 weeks in a row.
○Shanghai Stock Exchange issued its first inquiry letter on annual report in Shanghai stock market, paying close attentions to listed companies' industrial information disclosure and rationality of high dividend.
○The Ministry of Agriculture requires promoting industrialized development of potato as staple food grain, and proposes to expand the planting areas and improve potato's consumption proportion in staple food.
TOP
[Industry Information]
○Senior management stresses on dealing with aging population, two-child policy likely to become key point
------
According to the Xinhua News Agency, Chinese President Xi Jinping recently made important instructions on reinforcing aging work. He stressed that effectively dealing with China's aging population is crucial to national development and hundreds of millions of people on the whole. We should stay firmly rooted in the present while looking ahead to the future, reinforce the top design, improve major policies and systems, such as childbearing, employment and pension, and deal with these matters on time, scientifically and comprehensively, which should be arranged in the significant agenda, deployed and implemented during the period of 13th Five-year Plan.
Comment: Comprehensive two-child policy is likely to become a key point in dealing with the aging issue. Previously, the National Health and Family Planning Commission once clearly pointed out that full implementation of two-child policy will help to optimize population structure, increase labor supply, and ease the aging population pressure. It is expected that, along with improvement and implementation of the supporting childbearing policies in the future, influence of comprehensive two-child policy is likely to appear gradually, and bring market opportunities for relevant companies. In terms of listed companies, Ningbo David Medical Device Co., Ltd. (300314.SZ) produces infant care equipment; Beingmate Baby ＆ Child Food Co., Ltd. (002570.SZ) is a leading brand for infant food in China; Top Choice Medical Investment Co., Inc. (600763.SH) sets the institutions for assisted reproduction.
○BGI introduces new product, promoting development of gene sequencing industry
------
Beijing Genomics Institute (BGI) recently announced that the domestic beta version of the BGI Online, a service product of the company on the Aliyun cloud computing platform, was officially introduced. It is the first large-scale biological information analysis platform completely deployed on Aliyun. Users can visit their own data on BGI Online to obtain standard analysis results, and they can also make individualized data analysis plans and authorize other users to share data and results.
Comment: China is mulling plans on precision medical treatment, which is expected to be listed in key special technical programs during the 13th Five-year Plan period. It is expected that China will invest 60 billion yuan in precision medical treatment before 2030 to promote the development of the industry. As an integral part of precision medical treatment, gene sequencing will see raid development with a market potential of 10 billion yuan. In terms of listed companies, Da An Gene Co., Ltd. of Sun Yat-Sen University (002030.SZ) is actively advancing the development of gene sequencing businesses. Its products have been applied in prenatal screening diagnosis. Beijing Beilu Pharmaceutical Co., Ltd. (300016.SZ) is also actively developing gene sequencing businesses.
○ITU initiates evaluation for 5G technology, pushing 5G to key development stage
------
The 23th meeting of the Working Party 5D, Radio-communication Sector of the International Telecommunication Union (ITU-R WP5D) was held in Beijing on Feb. 23 to fully kick off the evaluation and research of 5G technology. Liu Lihua, vice-minister of Industry and Information Technology, indicated on the meeting that China will continue to get involved in the R＆D of 5G technology and the formulation of international standard. The R＆D experiment for 5G technology has been initiated in January 2016 to provide support for the R＆D of key 5G technology, the improvement of technical schemes and the formulation of international standard.
Comment: As the evaluation and research of 5G technology go in full swing, the industry will usher in key development stage. Since the whole world is now working hard on the R＆D of 5G technology, institutions expect that the industry will embrace quickened development this year. As to listed companies, ZTE Corporation (000063.SZ; 00763.HK) issued new-type 5G high-frequency prototype on the Mobile World Congress held recently; Datang Telecom Technology Co., Ltd. (600198.SH) also owns abundant technical reserve in 5G technology area.
[Companies Hotspot]
○Metalico's performance improves, Yechiu Metal Recycling (China) interested in by institutions
------
SSN learnt that Yechiu Metal Recycling (China) Ltd. (601388.SH) is investigated by dozens of institutions on Feb. 23. It is learnt that the investigation mainly focuses on the operation status of Metalico, Inc., an U.S. company to be acquired by the company, and the synergistic effect brought by the reorganization.
Metalico is principally engaged in the recycling, dismantling and processing of scrap metal as well as the storage management of other coproducts. It is learnt that Metalico sees a gradual recovery of its capacity utilization and asset turnover ratio as all pressure on liability with interest and financial cost are dismissed. Institutions believe that there will be 11 million scrapped cars in China by 2020 with an output value of over 100 billion yuan. With the utilization of Metalico's experience and technology, the company will see a bright prospect in integrating the domestic automotive dismantling market.
TOP
[Announcement Interpretation]
○Liaoning Cheng Da invests around RMB5.4 bln in insurance industry, actual controller and Shi Yuzhu subscribe private placement
------
Liaoning Cheng Da Co., Ltd. (600739.SH) proposes to raise 5.38 billion yuan through private placement by issuing 320 million shares at 16.82 yuan per share. All raised fund will be used to acquire 19.595 percent equities of China Insurance Holding Co., Ltd. Liaoning State-owned Assets Operation Co., Ltd. under the actual controller of Liaoning Cheng Da, Giant Investment Co., Ltd. under Shi Yuzhu, Fubon Life Insurance Co., Ltd. and etc. will be involved in subscribing the private placement. Liaoning Cheng Da announced in December 2015 that it acquired 3 billion shares of China Insurance Holding, accounting for 19.595 percent of the total share capital, with 8.2 billion yuan.
China Insurance Holding, a comprehensive insurance financial group integrating property insurance, life insurance and asset management, recorded a net profit of 1,848 million yuan in 2014. Latest stock price of Liaoning Cheng Da closed at 15.62 yuan per share.
○Lepu Medical Technology raises funds through private placement to invest in cardiovascular treatment
------
Lepu Medical Technology (Beijing) Co., Ltd. (300003.SZ) plans to raise 992 million yuan through private placement. The offering price will be benchmarked against the first issuing day of the private placement. If with a price of 36.70 yuan per share, the company will issue 27,026,800 shares. The fundraising will be used to acquire 40 percent equities of Lepu Pharmaceuticals, invest in Lepu cardiovascular network hospital and establish O2O marketing network system. After the acquisition, Lepu Pharmaceuticals will be a wholly-owned subsidiary of Lepu Medical Technology.
The company will acquire 100 percent equities of the Sixth People's Hospital of Luoyang and increase investment worth 70 million yuan in Sichuan Ruijian Medical Technology Company. In addition, it will also invest 11 million U.S. dollars in a U.S. firm Quanterix Corporation to acquire 5.35 percent equities of the company. Quanterix Corporation can diagnose tumor, infectious disease, neurological disease and other diseases through testing various kinds of protein in blood.
TOP
○Great Southeast and Zhonghe conduct cooperation in lithium battery material field
------
Zhejiang Great Southeast Co., Ltd. (002263.SZ) signed strategic cooperation framework agreement with Zhonghe Co., Ltd. (002070) to conduct cooperation in lithium battery material field. Great Southeast indicated that this move will significantly reduce the cost of buying ternary cathode materials so as to increase profits and will boost sales of Zhonghe. The company also announced it adjusted the pricing benchmark of its original private placement proposal.
○Haoxiangni Jujube to acquire Hemusi Food through private placement, employee shareholding plan to get involved
------
Haoxiangni Jujube Co., Ltd. (002582.SZ) plans to propose a private placement specific to four objects including Hangzhou Haohong Investment Management Co., Ltd. and Hangzhou Yuequn Investment Consultancy Partnership at a price of 16.11 yuan per share. Besides issuing shares, the company will pay in cash to acquire 100 percent equities of Hangzhou Hemusi Food Co., Ltd. at a total cost of 960 million yuan. It plans to raise supporting funds from investors of its phase I employee shareholding plan. It promised that net profits of Hemusi Food will be 55 million yuan, 85 million yuan and 110 million yuan during 2016 and 2018, respectively.
○Everfine Photo-E-Info to acquire Wellcom Science and Technology at RMB1 bln to develop biological recognition
------
Hangzhou Everfine Photo-E-Info Co., Ltd. (300306.SZ) intends to purchase 100 percent equities of Zhejiang Wellcom Science and Technology Co., Ltd. at a cost of 1.02 billion yuan through private placement and payment in cash and raise 300 million yuan supporting funds from its actual controller Pan Jiangen and others. The issuing price for shares of the private placement is 15.14 yuan per share but issuing price for the shares of supporting funds is not set. Stock price of the company was 18.67 yuan per share before trading suspension. It is noteworthy that Hundsun Technologies Inc. (600570.SH), the second largest shareholder of Wellcom Science and Technology, will obtain 56.99 million yuan of cash and 8,783,500 shares of Everfine Photo-E-Info.
Wellcom Science and Technology is a provider of information security product, intelligent information system and service based on biological recognition technology. Its net profits are promised to be 68 million yuan, 80 million yuan and 95 million yuan during 2016 and 2018 respectively.
○Jingneng Power gains coal power assets worth RMB7 bln
------
Beijing Jingneng Power Co., Ltd. (600578.SH) plans to issue 1,139 million shares at a price of 5.21 yuan per share through private placement and pay 1 billion yuan in cash to acquire 100 percent equities of Beijing Jingneng Coal-based Power Assets Management Co., Ltd. held by its controlling shareholder Beijing Energy Investment Holding Co., Ltd. Meanwhile, it intends to raise a supporting fund of 3 billion yuan through private placement by issuing shares at no less than 5.21 yuan per share. Net profits of Jingneng Coal-based Power Assets Management were 445 million yuan and 775 million yuan in 2014 and 2015, respectively. This restructuring was promised by the company's substantial shareholder.
[Financial Reports Express]
○3 companies propose high share conversion and dividend
------
Qiu Yu, actual controller of Chongqing Lummy Pharmaceutical Co., Ltd. (300006.SZ), proposes a 26-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares in the company's annual report. Chairman and deputy chairman of Henan Billions Chemicals Co., Ltd. (002601.SZ) propose a 25-for-10 conversion of capital surplus into shares combined with 3.5 yuan dividend for every 10 shares in the company's annual report. Net profit of Shandong Laiwu Jinlei Wind Power Technology Co., Ltd. (300443.SZ) grew by 59 percent in 2015 according to its annual report and the company proposes a 10-for-10 conversion of capital surplus into shares combined with 5.2 yuan dividend for every 10 shares.
[Trading Alarms]
○Qianhe Condiment and Food to launch IPO on Feb. 24
------
Qianhe Condiment and Food Co., Ltd. (603027.SH) will launch IPO at 9.19 yuan per share with an up-limit of 16,000 shares per single account. The P/E ratio is 23 times. Investors who succeed in subscribing the new share must ensure that enough funds have been placed in their accounts to pay for the subscription on Feb. 26.
TOP
○Ten SOEs reform pilots to launch soon, scope of pilot central SOEs likely to expand
○Senior management stresses on dealing with aging population, two-child policy likely to become key point
○Liaoning Cheng Da invests in insurance industry, Lepu Medical Technology to invest in cardiovascular treatment
○Great Southeast and Zhonghe conduct cooperation, Lummy Phar. and Billions Chemicals propose high share conversion
[SSN Focus]
○Ten SOEs reform pilots to launch soon, scope of pilot central SOEs likely to expand
------
Officers at the State-owned Assets Supervision and Administration Commission (SASAC) indicated in the state-owned enterprises and assets reform seminar held on Feb. 23 that pilots should be firstly carried out this year and ten reform pilots focusing on key points and difficulties will be implemented. The chairman of State Development ＆ Investment Corp. (SDIC) indicated that it will actively transform and upgrade through ways including industrial integration, acquisition ＆ merging as well as capital operation; the number of pilot enterprises will continue to increase this year and the authorization scope will be enlarged. According to the Securities Daily, a list covering the second batch of pilot central SOEs is likely to be released in the first half year.
Comment: As the "1 N" document system takes shape, policies for the SOEs reform will be implemented this year. More attentions should be paid to the central SOEs whose management is active in carrying out reform. A-share companies with small market value under the SDIC include China National Complete Plant Import ＆ Export Corp., Ltd. (000151.SZ) and SDIC Zhonglu Fruit Juice Co., Ltd. (600962.SH). China Chengtong Holdings Group Ltd. once mentioned in its annual working meeting that it will make every effort to become a pilot for state-owned capital operation, and its subsidiaries cover Guangdong Guanhao High-Tech Co., Ltd. (600433.SH) and Yueyang Forest ＆ Paper Co., Ltd. (600963.SH).
◆Both China International Travel Service Corporation Limited (601888.SH) and CTS International Logistics Corporation Limited (603128.SH) announced that their actual controllers, CITS Group Corporation and China National Travel Service (HK) Group Corporation, are planning for strategic restructuring, but such scheme does not involve the said two listed companies.
[SSN Selection]
○Chinese President Xi Jinping recently made important instruction on deeply pushing the construction of new-type urbanization, focusing on improving the urbanization ratio of registered population.
○Survey by SSN shows that some securities companies attract the clients for financing through adjusting and maintaining indicators, such as guarantee proportion, conversion rate of individual stock and etc.
○Last week, the proportion of A-share accounts participating in transactions greatly increased to 15.17 percent, up by 2.03 percentage points, and position-holding accounts have declined for 10 weeks in a row.
○Shanghai Stock Exchange issued its first inquiry letter on annual report in Shanghai stock market, paying close attentions to listed companies' industrial information disclosure and rationality of high dividend.
○The Ministry of Agriculture requires promoting industrialized development of potato as staple food grain, and proposes to expand the planting areas and improve potato's consumption proportion in staple food.
TOP
[Industry Information]
○Senior management stresses on dealing with aging population, two-child policy likely to become key point
------
According to the Xinhua News Agency, Chinese President Xi Jinping recently made important instructions on reinforcing aging work. He stressed that effectively dealing with China's aging population is crucial to national development and hundreds of millions of people on the whole. We should stay firmly rooted in the present while looking ahead to the future, reinforce the top design, improve major policies and systems, such as childbearing, employment and pension, and deal with these matters on time, scientifically and comprehensively, which should be arranged in the significant agenda, deployed and implemented during the period of 13th Five-year Plan.
Comment: Comprehensive two-child policy is likely to become a key point in dealing with the aging issue. Previously, the National Health and Family Planning Commission once clearly pointed out that full implementation of two-child policy will help to optimize population structure, increase labor supply, and ease the aging population pressure. It is expected that, along with improvement and implementation of the supporting childbearing policies in the future, influence of comprehensive two-child policy is likely to appear gradually, and bring market opportunities for relevant companies. In terms of listed companies, Ningbo David Medical Device Co., Ltd. (300314.SZ) produces infant care equipment; Beingmate Baby ＆ Child Food Co., Ltd. (002570.SZ) is a leading brand for infant food in China; Top Choice Medical Investment Co., Inc. (600763.SH) sets the institutions for assisted reproduction.
○BGI introduces new product, promoting development of gene sequencing industry
------
Beijing Genomics Institute (BGI) recently announced that the domestic beta version of the BGI Online, a service product of the company on the Aliyun cloud computing platform, was officially introduced. It is the first large-scale biological information analysis platform completely deployed on Aliyun. Users can visit their own data on BGI Online to obtain standard analysis results, and they can also make individualized data analysis plans and authorize other users to share data and results.
Comment: China is mulling plans on precision medical treatment, which is expected to be listed in key special technical programs during the 13th Five-year Plan period. It is expected that China will invest 60 billion yuan in precision medical treatment before 2030 to promote the development of the industry. As an integral part of precision medical treatment, gene sequencing will see raid development with a market potential of 10 billion yuan. In terms of listed companies, Da An Gene Co., Ltd. of Sun Yat-Sen University (002030.SZ) is actively advancing the development of gene sequencing businesses. Its products have been applied in prenatal screening diagnosis. Beijing Beilu Pharmaceutical Co., Ltd. (300016.SZ) is also actively developing gene sequencing businesses.
○ITU initiates evaluation for 5G technology, pushing 5G to key development stage
------
The 23th meeting of the Working Party 5D, Radio-communication Sector of the International Telecommunication Union (ITU-R WP5D) was held in Beijing on Feb. 23 to fully kick off the evaluation and research of 5G technology. Liu Lihua, vice-minister of Industry and Information Technology, indicated on the meeting that China will continue to get involved in the R＆D of 5G technology and the formulation of international standard. The R＆D experiment for 5G technology has been initiated in January 2016 to provide support for the R＆D of key 5G technology, the improvement of technical schemes and the formulation of international standard.
Comment: As the evaluation and research of 5G technology go in full swing, the industry will usher in key development stage. Since the whole world is now working hard on the R＆D of 5G technology, institutions expect that the industry will embrace quickened development this year. As to listed companies, ZTE Corporation (000063.SZ; 00763.HK) issued new-type 5G high-frequency prototype on the Mobile World Congress held recently; Datang Telecom Technology Co., Ltd. (600198.SH) also owns abundant technical reserve in 5G technology area.
[Companies Hotspot]
○Metalico's performance improves, Yechiu Metal Recycling (China) interested in by institutions
------
SSN learnt that Yechiu Metal Recycling (China) Ltd. (601388.SH) is investigated by dozens of institutions on Feb. 23. It is learnt that the investigation mainly focuses on the operation status of Metalico, Inc., an U.S. company to be acquired by the company, and the synergistic effect brought by the reorganization.
Metalico is principally engaged in the recycling, dismantling and processing of scrap metal as well as the storage management of other coproducts. It is learnt that Metalico sees a gradual recovery of its capacity utilization and asset turnover ratio as all pressure on liability with interest and financial cost are dismissed. Institutions believe that there will be 11 million scrapped cars in China by 2020 with an output value of over 100 billion yuan. With the utilization of Metalico's experience and technology, the company will see a bright prospect in integrating the domestic automotive dismantling market.
TOP
[Announcement Interpretation]
○Liaoning Cheng Da invests around RMB5.4 bln in insurance industry, actual controller and Shi Yuzhu subscribe private placement
------
Liaoning Cheng Da Co., Ltd. (600739.SH) proposes to raise 5.38 billion yuan through private placement by issuing 320 million shares at 16.82 yuan per share. All raised fund will be used to acquire 19.595 percent equities of China Insurance Holding Co., Ltd. Liaoning State-owned Assets Operation Co., Ltd. under the actual controller of Liaoning Cheng Da, Giant Investment Co., Ltd. under Shi Yuzhu, Fubon Life Insurance Co., Ltd. and etc. will be involved in subscribing the private placement. Liaoning Cheng Da announced in December 2015 that it acquired 3 billion shares of China Insurance Holding, accounting for 19.595 percent of the total share capital, with 8.2 billion yuan.
China Insurance Holding, a comprehensive insurance financial group integrating property insurance, life insurance and asset management, recorded a net profit of 1,848 million yuan in 2014. Latest stock price of Liaoning Cheng Da closed at 15.62 yuan per share.
○Lepu Medical Technology raises funds through private placement to invest in cardiovascular treatment
------
Lepu Medical Technology (Beijing) Co., Ltd. (300003.SZ) plans to raise 992 million yuan through private placement. The offering price will be benchmarked against the first issuing day of the private placement. If with a price of 36.70 yuan per share, the company will issue 27,026,800 shares. The fundraising will be used to acquire 40 percent equities of Lepu Pharmaceuticals, invest in Lepu cardiovascular network hospital and establish O2O marketing network system. After the acquisition, Lepu Pharmaceuticals will be a wholly-owned subsidiary of Lepu Medical Technology.
The company will acquire 100 percent equities of the Sixth People's Hospital of Luoyang and increase investment worth 70 million yuan in Sichuan Ruijian Medical Technology Company. In addition, it will also invest 11 million U.S. dollars in a U.S. firm Quanterix Corporation to acquire 5.35 percent equities of the company. Quanterix Corporation can diagnose tumor, infectious disease, neurological disease and other diseases through testing various kinds of protein in blood.
TOP
○Great Southeast and Zhonghe conduct cooperation in lithium battery material field
------
Zhejiang Great Southeast Co., Ltd. (002263.SZ) signed strategic cooperation framework agreement with Zhonghe Co., Ltd. (002070) to conduct cooperation in lithium battery material field. Great Southeast indicated that this move will significantly reduce the cost of buying ternary cathode materials so as to increase profits and will boost sales of Zhonghe. The company also announced it adjusted the pricing benchmark of its original private placement proposal.
○Haoxiangni Jujube to acquire Hemusi Food through private placement, employee shareholding plan to get involved
------
Haoxiangni Jujube Co., Ltd. (002582.SZ) plans to propose a private placement specific to four objects including Hangzhou Haohong Investment Management Co., Ltd. and Hangzhou Yuequn Investment Consultancy Partnership at a price of 16.11 yuan per share. Besides issuing shares, the company will pay in cash to acquire 100 percent equities of Hangzhou Hemusi Food Co., Ltd. at a total cost of 960 million yuan. It plans to raise supporting funds from investors of its phase I employee shareholding plan. It promised that net profits of Hemusi Food will be 55 million yuan, 85 million yuan and 110 million yuan during 2016 and 2018, respectively.
○Everfine Photo-E-Info to acquire Wellcom Science and Technology at RMB1 bln to develop biological recognition
------
Hangzhou Everfine Photo-E-Info Co., Ltd. (300306.SZ) intends to purchase 100 percent equities of Zhejiang Wellcom Science and Technology Co., Ltd. at a cost of 1.02 billion yuan through private placement and payment in cash and raise 300 million yuan supporting funds from its actual controller Pan Jiangen and others. The issuing price for shares of the private placement is 15.14 yuan per share but issuing price for the shares of supporting funds is not set. Stock price of the company was 18.67 yuan per share before trading suspension. It is noteworthy that Hundsun Technologies Inc. (600570.SH), the second largest shareholder of Wellcom Science and Technology, will obtain 56.99 million yuan of cash and 8,783,500 shares of Everfine Photo-E-Info.
Wellcom Science and Technology is a provider of information security product, intelligent information system and service based on biological recognition technology. Its net profits are promised to be 68 million yuan, 80 million yuan and 95 million yuan during 2016 and 2018 respectively.
○Jingneng Power gains coal power assets worth RMB7 bln
------
Beijing Jingneng Power Co., Ltd. (600578.SH) plans to issue 1,139 million shares at a price of 5.21 yuan per share through private placement and pay 1 billion yuan in cash to acquire 100 percent equities of Beijing Jingneng Coal-based Power Assets Management Co., Ltd. held by its controlling shareholder Beijing Energy Investment Holding Co., Ltd. Meanwhile, it intends to raise a supporting fund of 3 billion yuan through private placement by issuing shares at no less than 5.21 yuan per share. Net profits of Jingneng Coal-based Power Assets Management were 445 million yuan and 775 million yuan in 2014 and 2015, respectively. This restructuring was promised by the company's substantial shareholder.
[Financial Reports Express]
○3 companies propose high share conversion and dividend
------
Qiu Yu, actual controller of Chongqing Lummy Pharmaceutical Co., Ltd. (300006.SZ), proposes a 26-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares in the company's annual report. Chairman and deputy chairman of Henan Billions Chemicals Co., Ltd. (002601.SZ) propose a 25-for-10 conversion of capital surplus into shares combined with 3.5 yuan dividend for every 10 shares in the company's annual report. Net profit of Shandong Laiwu Jinlei Wind Power Technology Co., Ltd. (300443.SZ) grew by 59 percent in 2015 according to its annual report and the company proposes a 10-for-10 conversion of capital surplus into shares combined with 5.2 yuan dividend for every 10 shares.
[Trading Alarms]
○Qianhe Condiment and Food to launch IPO on Feb. 24
------
Qianhe Condiment and Food Co., Ltd. (603027.SH) will launch IPO at 9.19 yuan per share with an up-limit of 16,000 shares per single account. The P/E ratio is 23 times. Investors who succeed in subscribing the new share must ensure that enough funds have been placed in their accounts to pay for the subscription on Feb. 26.
TOP
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