[Today's Guide]
○ National Power Battery Innovation Center established, technical breakthroughs to made
○ China Unicom demonstrates intelligent parking technology, Internet of Things application to speed up
○ Fresh food e-business market enjoys huge potential, cold-chain logistics enterprises to see more competitions
○ Biolight Meditech proposes to raise fund to buy equities of two hemodialysis companies, Hexing Packaging Printing indirectly acquire part of International Paper's assets
[SSN Focus]
○ National Power Battery Innovation Center established, technical breakthroughs to made
------
The National Power Battery Innovation Center, the first innovation center in the manufacturing industry in China, was officially established on June 30. Guolian Automotive Power Battery Academy will be a key partner of the center and FAW Car Co., Ltd. (000800.SZ), Dongfeng Motor Co., Ltd., BAIC Motor Corporation Ltd. and other large automotive groups will cooperate with the center. The National Power Battery Innovation Center will effectively promote making breakthroughs in power battery technologies through coordinating technology, talents, capitals and other resources and smoothing the supply of technical research and development and commercialization chains, indicated Miao Wei, Minister of the Ministry of Industry and Information Technology (MIIT), at the symposium on the strategic development of power battery held on the same day.
Comment: Power battery is the heart of electric vehicles. Despite the rapid development of the power battery industry in China in recent years, it still lags behind the internationally advanced level. Based on the categories of enterprises of the fourth Regulation and Conditions of Power Battery Industry for Automotives released recently, 32 enterprises were on the list, more than the total of the first three batches. Institutes are rosy that the new energy vehicles will continue to see rapid development in the second half. The performance of the power battery industry will continue to improve. Ternary lithium battery and other materials with high energy density may see short supply. Public information shows that the shareholders of Guolian Automotive Power Battery Academy include the General Research Institute for Nonferrous Metals and Tianjin Lishen Battery Joint-Stock Co., Ltd.
[SSN Selection]
○ The central bank defuses media reports about substantial drops of RMB's exchange rate on June 30, indicating that China has no intention of devaluating the yuan to gain an advantage in global trade.
○ Nine documents on state-owned enterprises reform are under relevant procedures and the preparation of all relevant ancillary documents will be completed soon, indicated Xiao Yaqing, head of the State-owned Assets Supervision and Administration Commission.
○ The Ministry of Industry and Information Technology (MIIT) released the new regulations and conditions on the rare earth industry on June 30, which makes requirements on the establishment conditions and size of the projects for the development of rare earth.
○ The MIIT publishes the draft of the general criteria for 15 military and civil integrated circuits for seeking opinions, which will support the IT application in military troops.
○ China Innovation Alliance of the Graphene Industry releases a study report on the grapheme industry, expecting that the market size of the global grapheme industry will reach 100 billion yuan by 2020.
○ China Resources and Baoneng denied acting in concert. Baoneng indicated that it wishes excellent management can remain their positions in China Vanke Co., Ltd. (000002.SZ).
○ The Jilin Branch of the China Securities Regulatory Commission (CSRC) issued a letter of warning to FAW Car Co., Ltd. (000800.SZ), requiring disclosing specific compensation measures on unperformed commitments and earnestly performing them.
TOP
[Industry Information]
○ China Unicom demonstrates intelligent parking technology, Internet of Things application to speed up
------
Xinhua News Agency reported that China United Network Communications Limited (China Unicom, 600050.SH) its narrow-band Internet of Things intelligent parking technology based on 4G network at the Mobile World Congress (MWC) 2016 held recently. Through the establishment of the narrow-band Internet of Things base station and installing vehicle detectors with 4.5G narrow-band Internet of Things chips and earth induction chips on parking spaces, the information data about parking spaces can be transmitted to intelligent parking servers. Users can check, book, navigate, make payment and manage the parking lot through the App on mobile phones. It can achieve the networking of the whole area and separate the properties, making it easier to maintain and manage.
Comment: Industrial experts believe that with the maturity of the 4G network and technologies, the intelligent life will gradually connect all things. With increasing difficulties in parking, the intelligent parking is expected to be an important app in the Internet of Things. Beijing eGOVA Co., Ltd. (300075.SZ) has set the intelligent parking as a key development direction. Institutes estimate that the company will closely cooperate with large commercial property developers. The intelligent cloud parking program of Guangdong Anjubao Digital Technology Co., Ltd. (300155.SZ) cooperates with WeChat and is promoting across the whole country.
TOP
○ Fresh food e-business market enjoys huge potential, cold-chain logistics enterprises to see more competitions
------
The China International Cold Chain Equipment and Technology Exhibition 2016 will kick off on July 1. Its theme is "playing the role of cold-chain technologies and create cold-chain logistics value". It will be built into professional cold-chain industry exhibition with the integration of products demonstration and technology forum and promote the application of globally advanced cold-chain technologies. It is likely to further promote the development of the cold-chain market in China.
Comment: The size of the fresh food market in China was about 2.5 trillion yuan in 2015 while the size of the fresh food e-business market is only about 50 billion yuan with a penetration rate of only 2 percent. Institutes believe that the establishment of cold-chain logistics will see competitions in the future. It is expected that the size of the cold-chain market in China will reach 470 billion yuan in 2020. Dongxing Securities Co., Ltd. believes that the products of Dalian Refrigeration Co., Ltd. (000530.SZ) cover the whole process of cold chains. Shanghai Hanbell Precise Machinery Co., Ltd. (002158.SZ) can provide one-stop services from the installment and integration of cold-chain equipment to the after-sale maintenance.
TOP
[Announcement Interpretation]
○ Biolight Meditech proposes to raise fund to buy equities of two hemodialysis companies
------
Guangdong Biolight Meditech Co., Ltd. (300246.SZ) proposes to issue 17 million shares through private placement to raise 270 million yuan, which will be used for the acquisition of 40 percent and 60 percent equities of Zhixin Hongda and Changzhou Huayue respectively, as well as the industrialization construction project of Tianjin hemodialysis consumables, industrialization construction project of Nanchang hemodialysis consumables and supplementing working capital. Zhixin Hongda and Changhzou Huayue are all engaged in the manufacturing and sales of hemodialysis concentrate and hemodialysis powder. The committed net profits of the former deducted of non-recurring profits or losses are 8.3 million yuan and 10 million yuan respectively for 2016 and 2017, and that for the latter are 8.1 million yuan, 10.9 million yuan and 14.8 million yuan from 2016 to 2018. Upon completion of the acquisition, Zhixin Hongda will be a wholly owned subsidiary of the company.
○ Hexing Packaging Printing indirectly acquire part of International Paper's assets
------
The first phase of fundraising of nearly 600 million yuan of Jiaqiao Hexing, an industry mergers and acquisitions fund jointly established by Xiamen Hexing Packaging Printing Co., Ltd. (002228.SZ), has completed. At the same time, the company has completed corresponding equity deliver matters on June 30 related to the acquisition of International Paper's corrugated box business in China and Southeast Asia. The acquisition was conducted through Jiaqiao Hexing. The company has obtained the entire equities of four companies in Southeast Asia and 15 companies in China under International Paper.
International Paper has about 20 paper box production lines in China. International Paper and Hexing Packaging Printing are the two largest companies in China with the broadest layout of paper packing production lines. This acquisition will enhance Hexing Packaging Printing's weak market presence in north and northeast China and penetrate in other five cities, including Shanghai. The company's leading position in China will be consolidated.
○ Furi Electronics proposes to acquire part of Xunrui Communications' equities
------
Zhongnuo Tongxun, wholly owned subsidiary of Fujian Furi Electronics Co., Ltd. (600203.SH) proposes to buy part of the equities of Shenzhen Xunrui Communications. Xunrui Communications is a mobile device and phone solution provider, primarily engaged in the ODM service and complete machine integration for mobile communication equipment, and committed to the R＆D of mobile devices. In 2013, the company was accredited as a software company and national high-tech enterprise in 2013.
○ CITIC Guoan Information Industry proposes to participate in top U.S. VR enterprise with 20mln U.S. dollars
------
CITIC Guoan Information Industry Co., Ltd. (000839.SZ) proposes to acquire 3,947,000 Grade B preferred shares issued by an U.S. company CITICNextVR at 5.06 U.S. dollars per share. Upon completion of the transaction, the company will held 2.27 percent shares of NextVR. The overall valuation of NextVR is about 800 million U.S. dollars at present, 775 million yuan higher than the net book value, representing an appreciation rate of 3122.38 percent. NextVR is the best VR live broadcasting company in the world, possessing considerable sport intellectual property rights. The company has conducted various live broadcastings in the U.S., including NBA and presidential candidates' debate.
[Financial Reports Express]
○ Dehua TB New Decoration Material upwardly revised its performance forecast in interim results
------
Dehua TB New Decoration Material Co., Ltd. (002043.SZ) has upwardly revised its predicted 180 percent to 210 percent growth in the interim report to 250 percent to 280 percent, primarily due to better-than-expected revenue. Guangzhou Hongli Opto-Electronic Co., Ltd. (3002198.SZ) expects 130 percent to 150 percent growth in its interim report, primarily due to the transfer of equity of a subsidiary Xinquan Guangdian. Hunan Er-Kang Pharmaceutical Co., Ltd. (300267.SZ) expects 80 percent to 103 percent growth in its interim report, primarily due to substantial growth in sales. Zhejiang Shenghua Biok Biology Co., Ltd. (600226.SH) expect 50 percent to 90 percent growth in its interim report, primarily due to increase in investment yield.
○ Changsha Jingjia Microelectronics proposes high share conversion and dividend
------
Actual controller of Changsha Jingjia Microelectronics Co., ltd. (300474.SZ) proposes 10-for-10 conversion of capital surplus into shares combined with 1.8 yuan dividend in its interim profit distribution plan.
[Trading Trends]
○ Sunline Tech bought through three institutional seats
------
The trading volume ranking list on June 30 shows that Shenzhen Sunline Tech Co., ltd. (300348.SZ) was bought by three institutional seats with a total of 197 million yuan, accounting for 27.76 percent of intraday turnover.
Comment: institutions believe the company is a leading enterprise with respect to core banking business system. The company has a very optimistic prospect, as it has researched and developed the new generation of core business system, and fully unfolded its layout in non-banking financial informatization sectors. Besides, the company on June 1 announced that it will sell 31.63 percent equities of China Union Loyalty, and the expected earnings will be no less than 21.24 million yuan, while the company's net profits for the first half year is just 3.2 million yuan.
TOP
○ National Power Battery Innovation Center established, technical breakthroughs to made
○ China Unicom demonstrates intelligent parking technology, Internet of Things application to speed up
○ Fresh food e-business market enjoys huge potential, cold-chain logistics enterprises to see more competitions
○ Biolight Meditech proposes to raise fund to buy equities of two hemodialysis companies, Hexing Packaging Printing indirectly acquire part of International Paper's assets
[SSN Focus]
○ National Power Battery Innovation Center established, technical breakthroughs to made
------
The National Power Battery Innovation Center, the first innovation center in the manufacturing industry in China, was officially established on June 30. Guolian Automotive Power Battery Academy will be a key partner of the center and FAW Car Co., Ltd. (000800.SZ), Dongfeng Motor Co., Ltd., BAIC Motor Corporation Ltd. and other large automotive groups will cooperate with the center. The National Power Battery Innovation Center will effectively promote making breakthroughs in power battery technologies through coordinating technology, talents, capitals and other resources and smoothing the supply of technical research and development and commercialization chains, indicated Miao Wei, Minister of the Ministry of Industry and Information Technology (MIIT), at the symposium on the strategic development of power battery held on the same day.
Comment: Power battery is the heart of electric vehicles. Despite the rapid development of the power battery industry in China in recent years, it still lags behind the internationally advanced level. Based on the categories of enterprises of the fourth Regulation and Conditions of Power Battery Industry for Automotives released recently, 32 enterprises were on the list, more than the total of the first three batches. Institutes are rosy that the new energy vehicles will continue to see rapid development in the second half. The performance of the power battery industry will continue to improve. Ternary lithium battery and other materials with high energy density may see short supply. Public information shows that the shareholders of Guolian Automotive Power Battery Academy include the General Research Institute for Nonferrous Metals and Tianjin Lishen Battery Joint-Stock Co., Ltd.
[SSN Selection]
○ The central bank defuses media reports about substantial drops of RMB's exchange rate on June 30, indicating that China has no intention of devaluating the yuan to gain an advantage in global trade.
○ Nine documents on state-owned enterprises reform are under relevant procedures and the preparation of all relevant ancillary documents will be completed soon, indicated Xiao Yaqing, head of the State-owned Assets Supervision and Administration Commission.
○ The Ministry of Industry and Information Technology (MIIT) released the new regulations and conditions on the rare earth industry on June 30, which makes requirements on the establishment conditions and size of the projects for the development of rare earth.
○ The MIIT publishes the draft of the general criteria for 15 military and civil integrated circuits for seeking opinions, which will support the IT application in military troops.
○ China Innovation Alliance of the Graphene Industry releases a study report on the grapheme industry, expecting that the market size of the global grapheme industry will reach 100 billion yuan by 2020.
○ China Resources and Baoneng denied acting in concert. Baoneng indicated that it wishes excellent management can remain their positions in China Vanke Co., Ltd. (000002.SZ).
○ The Jilin Branch of the China Securities Regulatory Commission (CSRC) issued a letter of warning to FAW Car Co., Ltd. (000800.SZ), requiring disclosing specific compensation measures on unperformed commitments and earnestly performing them.
TOP
[Industry Information]
○ China Unicom demonstrates intelligent parking technology, Internet of Things application to speed up
------
Xinhua News Agency reported that China United Network Communications Limited (China Unicom, 600050.SH) its narrow-band Internet of Things intelligent parking technology based on 4G network at the Mobile World Congress (MWC) 2016 held recently. Through the establishment of the narrow-band Internet of Things base station and installing vehicle detectors with 4.5G narrow-band Internet of Things chips and earth induction chips on parking spaces, the information data about parking spaces can be transmitted to intelligent parking servers. Users can check, book, navigate, make payment and manage the parking lot through the App on mobile phones. It can achieve the networking of the whole area and separate the properties, making it easier to maintain and manage.
Comment: Industrial experts believe that with the maturity of the 4G network and technologies, the intelligent life will gradually connect all things. With increasing difficulties in parking, the intelligent parking is expected to be an important app in the Internet of Things. Beijing eGOVA Co., Ltd. (300075.SZ) has set the intelligent parking as a key development direction. Institutes estimate that the company will closely cooperate with large commercial property developers. The intelligent cloud parking program of Guangdong Anjubao Digital Technology Co., Ltd. (300155.SZ) cooperates with WeChat and is promoting across the whole country.
TOP
○ Fresh food e-business market enjoys huge potential, cold-chain logistics enterprises to see more competitions
------
The China International Cold Chain Equipment and Technology Exhibition 2016 will kick off on July 1. Its theme is "playing the role of cold-chain technologies and create cold-chain logistics value". It will be built into professional cold-chain industry exhibition with the integration of products demonstration and technology forum and promote the application of globally advanced cold-chain technologies. It is likely to further promote the development of the cold-chain market in China.
Comment: The size of the fresh food market in China was about 2.5 trillion yuan in 2015 while the size of the fresh food e-business market is only about 50 billion yuan with a penetration rate of only 2 percent. Institutes believe that the establishment of cold-chain logistics will see competitions in the future. It is expected that the size of the cold-chain market in China will reach 470 billion yuan in 2020. Dongxing Securities Co., Ltd. believes that the products of Dalian Refrigeration Co., Ltd. (000530.SZ) cover the whole process of cold chains. Shanghai Hanbell Precise Machinery Co., Ltd. (002158.SZ) can provide one-stop services from the installment and integration of cold-chain equipment to the after-sale maintenance.
TOP
[Announcement Interpretation]
○ Biolight Meditech proposes to raise fund to buy equities of two hemodialysis companies
------
Guangdong Biolight Meditech Co., Ltd. (300246.SZ) proposes to issue 17 million shares through private placement to raise 270 million yuan, which will be used for the acquisition of 40 percent and 60 percent equities of Zhixin Hongda and Changzhou Huayue respectively, as well as the industrialization construction project of Tianjin hemodialysis consumables, industrialization construction project of Nanchang hemodialysis consumables and supplementing working capital. Zhixin Hongda and Changhzou Huayue are all engaged in the manufacturing and sales of hemodialysis concentrate and hemodialysis powder. The committed net profits of the former deducted of non-recurring profits or losses are 8.3 million yuan and 10 million yuan respectively for 2016 and 2017, and that for the latter are 8.1 million yuan, 10.9 million yuan and 14.8 million yuan from 2016 to 2018. Upon completion of the acquisition, Zhixin Hongda will be a wholly owned subsidiary of the company.
○ Hexing Packaging Printing indirectly acquire part of International Paper's assets
------
The first phase of fundraising of nearly 600 million yuan of Jiaqiao Hexing, an industry mergers and acquisitions fund jointly established by Xiamen Hexing Packaging Printing Co., Ltd. (002228.SZ), has completed. At the same time, the company has completed corresponding equity deliver matters on June 30 related to the acquisition of International Paper's corrugated box business in China and Southeast Asia. The acquisition was conducted through Jiaqiao Hexing. The company has obtained the entire equities of four companies in Southeast Asia and 15 companies in China under International Paper.
International Paper has about 20 paper box production lines in China. International Paper and Hexing Packaging Printing are the two largest companies in China with the broadest layout of paper packing production lines. This acquisition will enhance Hexing Packaging Printing's weak market presence in north and northeast China and penetrate in other five cities, including Shanghai. The company's leading position in China will be consolidated.
○ Furi Electronics proposes to acquire part of Xunrui Communications' equities
------
Zhongnuo Tongxun, wholly owned subsidiary of Fujian Furi Electronics Co., Ltd. (600203.SH) proposes to buy part of the equities of Shenzhen Xunrui Communications. Xunrui Communications is a mobile device and phone solution provider, primarily engaged in the ODM service and complete machine integration for mobile communication equipment, and committed to the R＆D of mobile devices. In 2013, the company was accredited as a software company and national high-tech enterprise in 2013.
○ CITIC Guoan Information Industry proposes to participate in top U.S. VR enterprise with 20mln U.S. dollars
------
CITIC Guoan Information Industry Co., Ltd. (000839.SZ) proposes to acquire 3,947,000 Grade B preferred shares issued by an U.S. company CITICNextVR at 5.06 U.S. dollars per share. Upon completion of the transaction, the company will held 2.27 percent shares of NextVR. The overall valuation of NextVR is about 800 million U.S. dollars at present, 775 million yuan higher than the net book value, representing an appreciation rate of 3122.38 percent. NextVR is the best VR live broadcasting company in the world, possessing considerable sport intellectual property rights. The company has conducted various live broadcastings in the U.S., including NBA and presidential candidates' debate.
[Financial Reports Express]
○ Dehua TB New Decoration Material upwardly revised its performance forecast in interim results
------
Dehua TB New Decoration Material Co., Ltd. (002043.SZ) has upwardly revised its predicted 180 percent to 210 percent growth in the interim report to 250 percent to 280 percent, primarily due to better-than-expected revenue. Guangzhou Hongli Opto-Electronic Co., Ltd. (3002198.SZ) expects 130 percent to 150 percent growth in its interim report, primarily due to the transfer of equity of a subsidiary Xinquan Guangdian. Hunan Er-Kang Pharmaceutical Co., Ltd. (300267.SZ) expects 80 percent to 103 percent growth in its interim report, primarily due to substantial growth in sales. Zhejiang Shenghua Biok Biology Co., Ltd. (600226.SH) expect 50 percent to 90 percent growth in its interim report, primarily due to increase in investment yield.
○ Changsha Jingjia Microelectronics proposes high share conversion and dividend
------
Actual controller of Changsha Jingjia Microelectronics Co., ltd. (300474.SZ) proposes 10-for-10 conversion of capital surplus into shares combined with 1.8 yuan dividend in its interim profit distribution plan.
[Trading Trends]
○ Sunline Tech bought through three institutional seats
------
The trading volume ranking list on June 30 shows that Shenzhen Sunline Tech Co., ltd. (300348.SZ) was bought by three institutional seats with a total of 197 million yuan, accounting for 27.76 percent of intraday turnover.
Comment: institutions believe the company is a leading enterprise with respect to core banking business system. The company has a very optimistic prospect, as it has researched and developed the new generation of core business system, and fully unfolded its layout in non-banking financial informatization sectors. Besides, the company on June 1 announced that it will sell 31.63 percent equities of China Union Loyalty, and the expected earnings will be no less than 21.24 million yuan, while the company's net profits for the first half year is just 3.2 million yuan.
TOP
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