[Today's Guide]
○ National innovation-driven development strategy released, intelligentization to enjoy priority
○ MIIT holds conference on lithium battery recycling to facilitate industrial development
○ Actual controller of Zhejiang Hailiang plans to increase shareholding, subsidiary of Ganfeng Lithium made great progress in lithium ore exploration
○ Two listed companies involve in the reorganization of Kingray New Materials Science ＆ Technology, Suntront Technology to buy smart energy enterprise
[SSN Focus]
○ National innovation-driven development strategy released, intelligentization to enjoy priority
------
Xinhua News Agency released the full text of the Outline on the National Innovation-Driven Development Strategy issued by the CPC Central Committee and the State Council on May 19. The "development of the new generation of information network technology" enjoys priority in all strategic tasks, which requires setting the digitalized, network, intelligent and green development as technical basis for improving the industrial competitiveness and strengthen the study on artificial intelligence and other technologies. The Outline also proposes to develop disruptive technologies leading the industrial transformation and strives to catch developed countries. Quantum information, intelligent robots and unmanned driving are listed in the Outline.
Comment: With the maturity of computer visual and voice recognition as well as other technologies, global Internet tycoons are increasing the input in the artificial intelligence industry. AlphaGo beat Lee Sel-do, which may mean the surging of artificial intelligence. Among A-share companies, CSG Smart Science ＆ Technology Co., Ltd. (300222.SZ) develops the integrated business in the vehicle industrial robots and the intelligent logistics industry. Ningbo Cixing Co., Ltd. (300307.SZ) introduced a robot for children's services in April.
◆ The artificial intelligence is the theme of the Google I/O 2016 annual developer conference held on May 18. The newly-released "Google assistant" will be integrated in the system of Google, which can identify and deal with natural voices and solve actual problems of users.
[SSN Selection]
○ The Ministry of Finance announced on May 19 that the central government has arranged special awards and subsidies with 27.6 billion yuan to support the cutting of excessive capacities in the iron ＆ steel and coal industries.
○ The spokesperson of the Ministry of Foreign Affairs indicated that a U.S. surveillance aircraft reached the airspace over Hainan Island on May 17. Chinese military aircraft followed and monitored it according to relevant laws and regulations.
○ Miao Wei, Minister of the Ministry of Industry and Information Technology (MIIT), indicated that he wishes that Apple can expand its business in China and deepen cooperation in research and development and industrial chains when meeting Apple CEO Tim Cook.
○ Four ministries including the National Development and Reform Commission jointly released a circular on May 19, requiring that China will make plans on key software and integrated circuit design.
○ Shanghai Disney Resort has received about 960,000 tourists as at May 18. Shanghai Shendi (Group) Co., Ltd. indicated that it will determine the time for the second phase based on the operation of the first phase.
TOP
[Industry Information]
○ MIIT holds conference on lithium battery recycling to facilitate industrial development
------
The Ministry of Industry and Information Technology (MIIT) disclosed on its website on May 19 that the seminar on the policies on the recycling of power batteries for new energy vehicles was held in Beijing recently to promote the recycling of batteries for new energy vehicles. The MIIT introduced relevant management policies on the recycling of batteries and made proposals and suggestions on the management of the cycling.
Comment: With the rapid development new energy vehicles, it is estimated that 120,000 to 170,000 tons of power batteries for new energy vehicles will retire and the market enjoys huge potential. Meanwhile, with the surging prices of raw materials of lithium batteries, it is economical and urgent to recycle lithium batteries. In terms of listed companies, Zhejiang Narada Power Source Co., Ltd. (300068.SZ) and GEM Co., Ltd. (002340.SZ) indicated in their 2015 interim reports that the recycling of lithium batteries will bring new profits in the future.
TOP
[Announcement Interpretation]
○ Actual controller of Zhejiang Hailiang plans to increase shareholding
------
Actual controller of Zhejiang Hailiang Co., Ltd. (002203.SZ) plans to increase holding of no less than 16.71 million shares (1 percent of the total share capital) and no more than 83.57 million shares (5 percent of the total share capital) in the company in the coming month. Controlling shareholder of China Shipbuilding Industry Group Power Co., Ltd. (600482.SH) on May 18 increased holding 0.43 million shares of the company, and proposes to increase shareholding ranging from 100 million yuan to 1.8 billion yuan in the company in the next six months.
Controlling shareholder of Jiangsu Nonghua Intelligent Agriculture Technology Co., Ltd. (000816.SZ) on May 19 increased holding of 2.81 million shares in the company. Actual controller and vice president of Shenzhen Tempus Global Business Service Holding Ltd. (300178.SZ) on May 18 continued to increase holding of 0.38 million shares of the company. Controlling shareholders of Guangzhou Pearl River Industrial Development Co., Ltd. (600684.SH) on May 18 increased holding 0.89 million shares of the company.
○ Subsidiary of Ganfeng Lithium made great progress in lithium ore exploration
------
RIM, an Australia company and a joint-stock company whose 43.1 percent shareholding is owned by Jiangxi Ganfeng Lithium Co., Ltd. (002460.SZ), has explored significant reserve of pegmatite containing spodumene deep underground. The mine in average has 1.83 percent grade of lithium oxide. Exploration work at the current stage has already completed, while the estimation work of mine resource and ore reserve is still in progress.
TOP
○ Kingray New Materials Science ＆ Technology to reorganize, two listed companies involved
------
Kingray New Materials Science ＆ Technology Co., ltd. (600390.SH) proposes to buy the entire shareholding of Minmetals Capital Holdings Limited held by Minmetals Development Co., Ltd. (600058.SH), by issuing additional shares to the latter at 10.15 yuan per share. Besides, Kingray New Materials Science ＆ Technology also plans to issue shares to Qinghai Huading Industrial Co., Ltd. (600243.SH), to buy relevant equity assets. Upon completion of the share issuance, Kingray New Materials Science ＆ Technology will wholly own Minmetals Capital Holdings Limited, and indirectly hold 67.86 percent equity of Minmetals International Trust Co., Ltd, 99.76 percent equities of Minmetals Securities Co., Ltd. and 99 percent equities of Minmetals＆ Jingyi Futures Co., Ltd through Minmetals Capital Holdings Limited. The valuation of the transaction is 18.3 billion yuan. Minmetals Capital Holdings Limited posted a revenue of 14.3 billion yuan in 2015, with net profits of 2.03 billion yuan. At the same time, Kingray New Materials Science ＆ Technology also proposes to raise supporting fund of 15 billion yuan by issuing shares to China Shipping Container Lines Company Limited (601866.SH) at 10.15 yuan per share. China Shipping Container Lines will subscribe with 1.5 billion yuan for 148 million shares.
The main products of Kingray New Materials Science ＆ Technology primarily include positive electrodes for lithium battery. The company will not resume trading immediately. During the period of trading suspension, lithium concept stocks surged.
○ Suntront Technology to control smart energy enterprise
------
Suntront Technology Co., Ltd. (300259.SZ) proposes to buy 51 percent equities of Zhengzhou Wonder Electrical Power Corp. with 102 million yuan. Wonder Electrical Power is a new third board listed company specializing in the research and manufacturing of power simulation equipment and power metrological verification device. Net profits of the company for 2014 and 2015 were 16.89 million yuan and 18.45 million yuan respectively. The counterparty expects that net profits of the company for 2016-2018 will be no less than 20 million yuan, 22 million yuan and 25 million yuan respectively.
○ Reorganizations of Qingshuiyuan Technology and others approved
------
Henan Qingshuiyuan Technology Co., ltd. (300437.SZ) and Ningbo Port Company Limited (601018.SH) have applied to the China Securities Regulatory Commission (CSRC) for the purchase of assets by share issuance, and the CSRC has approved conditionally; and the same application of Pci-suntek Technology Co., ltd. (600728.SH) has been approved unconditionally.
[Trading Trends]
○ Valiant was bought through three institutional seats
------
The trading volume ranking list on May 19 showed that Valiant Co., Ltd. (002643.SZ) was bought by three institutional seats with a total of 218 million yuan, accounting for 28.6 percent of intraday turnover; another institution sold 48.31 million yuan.
Comment: institutions indicated that the company has already formed three main businesses: display material, environment protection material and medical treatment and health. The second phase of the Feishi environment protection project will be put into operation in succession during the year, which will be a growth point for the company. In addition, the company has expanded into the OLED material sector in advance for years, and it is now the second largest OLED manufacturer in China. As the market space of OLED gradually releases, this business will become an important support for the company's profit growth in the future.
TOP
○ National innovation-driven development strategy released, intelligentization to enjoy priority
○ MIIT holds conference on lithium battery recycling to facilitate industrial development
○ Actual controller of Zhejiang Hailiang plans to increase shareholding, subsidiary of Ganfeng Lithium made great progress in lithium ore exploration
○ Two listed companies involve in the reorganization of Kingray New Materials Science ＆ Technology, Suntront Technology to buy smart energy enterprise
[SSN Focus]
○ National innovation-driven development strategy released, intelligentization to enjoy priority
------
Xinhua News Agency released the full text of the Outline on the National Innovation-Driven Development Strategy issued by the CPC Central Committee and the State Council on May 19. The "development of the new generation of information network technology" enjoys priority in all strategic tasks, which requires setting the digitalized, network, intelligent and green development as technical basis for improving the industrial competitiveness and strengthen the study on artificial intelligence and other technologies. The Outline also proposes to develop disruptive technologies leading the industrial transformation and strives to catch developed countries. Quantum information, intelligent robots and unmanned driving are listed in the Outline.
Comment: With the maturity of computer visual and voice recognition as well as other technologies, global Internet tycoons are increasing the input in the artificial intelligence industry. AlphaGo beat Lee Sel-do, which may mean the surging of artificial intelligence. Among A-share companies, CSG Smart Science ＆ Technology Co., Ltd. (300222.SZ) develops the integrated business in the vehicle industrial robots and the intelligent logistics industry. Ningbo Cixing Co., Ltd. (300307.SZ) introduced a robot for children's services in April.
◆ The artificial intelligence is the theme of the Google I/O 2016 annual developer conference held on May 18. The newly-released "Google assistant" will be integrated in the system of Google, which can identify and deal with natural voices and solve actual problems of users.
[SSN Selection]
○ The Ministry of Finance announced on May 19 that the central government has arranged special awards and subsidies with 27.6 billion yuan to support the cutting of excessive capacities in the iron ＆ steel and coal industries.
○ The spokesperson of the Ministry of Foreign Affairs indicated that a U.S. surveillance aircraft reached the airspace over Hainan Island on May 17. Chinese military aircraft followed and monitored it according to relevant laws and regulations.
○ Miao Wei, Minister of the Ministry of Industry and Information Technology (MIIT), indicated that he wishes that Apple can expand its business in China and deepen cooperation in research and development and industrial chains when meeting Apple CEO Tim Cook.
○ Four ministries including the National Development and Reform Commission jointly released a circular on May 19, requiring that China will make plans on key software and integrated circuit design.
○ Shanghai Disney Resort has received about 960,000 tourists as at May 18. Shanghai Shendi (Group) Co., Ltd. indicated that it will determine the time for the second phase based on the operation of the first phase.
TOP
[Industry Information]
○ MIIT holds conference on lithium battery recycling to facilitate industrial development
------
The Ministry of Industry and Information Technology (MIIT) disclosed on its website on May 19 that the seminar on the policies on the recycling of power batteries for new energy vehicles was held in Beijing recently to promote the recycling of batteries for new energy vehicles. The MIIT introduced relevant management policies on the recycling of batteries and made proposals and suggestions on the management of the cycling.
Comment: With the rapid development new energy vehicles, it is estimated that 120,000 to 170,000 tons of power batteries for new energy vehicles will retire and the market enjoys huge potential. Meanwhile, with the surging prices of raw materials of lithium batteries, it is economical and urgent to recycle lithium batteries. In terms of listed companies, Zhejiang Narada Power Source Co., Ltd. (300068.SZ) and GEM Co., Ltd. (002340.SZ) indicated in their 2015 interim reports that the recycling of lithium batteries will bring new profits in the future.
TOP
[Announcement Interpretation]
○ Actual controller of Zhejiang Hailiang plans to increase shareholding
------
Actual controller of Zhejiang Hailiang Co., Ltd. (002203.SZ) plans to increase holding of no less than 16.71 million shares (1 percent of the total share capital) and no more than 83.57 million shares (5 percent of the total share capital) in the company in the coming month. Controlling shareholder of China Shipbuilding Industry Group Power Co., Ltd. (600482.SH) on May 18 increased holding 0.43 million shares of the company, and proposes to increase shareholding ranging from 100 million yuan to 1.8 billion yuan in the company in the next six months.
Controlling shareholder of Jiangsu Nonghua Intelligent Agriculture Technology Co., Ltd. (000816.SZ) on May 19 increased holding of 2.81 million shares in the company. Actual controller and vice president of Shenzhen Tempus Global Business Service Holding Ltd. (300178.SZ) on May 18 continued to increase holding of 0.38 million shares of the company. Controlling shareholders of Guangzhou Pearl River Industrial Development Co., Ltd. (600684.SH) on May 18 increased holding 0.89 million shares of the company.
○ Subsidiary of Ganfeng Lithium made great progress in lithium ore exploration
------
RIM, an Australia company and a joint-stock company whose 43.1 percent shareholding is owned by Jiangxi Ganfeng Lithium Co., Ltd. (002460.SZ), has explored significant reserve of pegmatite containing spodumene deep underground. The mine in average has 1.83 percent grade of lithium oxide. Exploration work at the current stage has already completed, while the estimation work of mine resource and ore reserve is still in progress.
TOP
○ Kingray New Materials Science ＆ Technology to reorganize, two listed companies involved
------
Kingray New Materials Science ＆ Technology Co., ltd. (600390.SH) proposes to buy the entire shareholding of Minmetals Capital Holdings Limited held by Minmetals Development Co., Ltd. (600058.SH), by issuing additional shares to the latter at 10.15 yuan per share. Besides, Kingray New Materials Science ＆ Technology also plans to issue shares to Qinghai Huading Industrial Co., Ltd. (600243.SH), to buy relevant equity assets. Upon completion of the share issuance, Kingray New Materials Science ＆ Technology will wholly own Minmetals Capital Holdings Limited, and indirectly hold 67.86 percent equity of Minmetals International Trust Co., Ltd, 99.76 percent equities of Minmetals Securities Co., Ltd. and 99 percent equities of Minmetals＆ Jingyi Futures Co., Ltd through Minmetals Capital Holdings Limited. The valuation of the transaction is 18.3 billion yuan. Minmetals Capital Holdings Limited posted a revenue of 14.3 billion yuan in 2015, with net profits of 2.03 billion yuan. At the same time, Kingray New Materials Science ＆ Technology also proposes to raise supporting fund of 15 billion yuan by issuing shares to China Shipping Container Lines Company Limited (601866.SH) at 10.15 yuan per share. China Shipping Container Lines will subscribe with 1.5 billion yuan for 148 million shares.
The main products of Kingray New Materials Science ＆ Technology primarily include positive electrodes for lithium battery. The company will not resume trading immediately. During the period of trading suspension, lithium concept stocks surged.
○ Suntront Technology to control smart energy enterprise
------
Suntront Technology Co., Ltd. (300259.SZ) proposes to buy 51 percent equities of Zhengzhou Wonder Electrical Power Corp. with 102 million yuan. Wonder Electrical Power is a new third board listed company specializing in the research and manufacturing of power simulation equipment and power metrological verification device. Net profits of the company for 2014 and 2015 were 16.89 million yuan and 18.45 million yuan respectively. The counterparty expects that net profits of the company for 2016-2018 will be no less than 20 million yuan, 22 million yuan and 25 million yuan respectively.
○ Reorganizations of Qingshuiyuan Technology and others approved
------
Henan Qingshuiyuan Technology Co., ltd. (300437.SZ) and Ningbo Port Company Limited (601018.SH) have applied to the China Securities Regulatory Commission (CSRC) for the purchase of assets by share issuance, and the CSRC has approved conditionally; and the same application of Pci-suntek Technology Co., ltd. (600728.SH) has been approved unconditionally.
[Trading Trends]
○ Valiant was bought through three institutional seats
------
The trading volume ranking list on May 19 showed that Valiant Co., Ltd. (002643.SZ) was bought by three institutional seats with a total of 218 million yuan, accounting for 28.6 percent of intraday turnover; another institution sold 48.31 million yuan.
Comment: institutions indicated that the company has already formed three main businesses: display material, environment protection material and medical treatment and health. The second phase of the Feishi environment protection project will be put into operation in succession during the year, which will be a growth point for the company. In addition, the company has expanded into the OLED material sector in advance for years, and it is now the second largest OLED manufacturer in China. As the market space of OLED gradually releases, this business will become an important support for the company's profit growth in the future.
TOP
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