[Today's Guide]
○ Executive meeting of State Council advances construction of Beijing technology innovation center, local industrial parks to play important role
○ Baidu Technology Innovation Conference kicks off with AI technology highlighted, Great attention paid to inclusive finance
○ Controlling stake of Letong Chemical transferred with premium, Gree Electric Appliances to step in new energy automobile field
○ Shareholders of Hna-caissa Travel issue shareholding increase plan, Guangxin Agrochemical to raise RMB1.4 bln through private placement for main businesses
[SSN Focus]
○ Executive meeting of State Council advances construction of Beijing technology innovation center, local industrial parks to play important role
------
The executive meeting of the State Council held on Sept. 1 made arrangement for the construction of the national technology innovation center in Beijing. It was proposed to build a coordinated innovation community in Beijing-Tianjin-Hebei area, introduce talents, technologies and capital, and pool together global innovation resources; promote the reform measures adopted by the Zhongguancun National Demonstration Zone, break down system barriers and perfect the service system for innovation and entrepreneurship. The executive meeting of the State Council also finalized policy measures for boosting the development of entrepreneurship and investment. It will enrich the players and models of entrepreneurship and investment, give full scope to the functions of the main boards, the ChiNext board and local equity exchanges, and make the exit channels for entrepreneurship and investment unimpeded.
Comment: The construction of technology innovation center will help to sharpen national innovation ability and boost middle and high-end economy. Hi-tech parks incubate technology innovation and might play an important role in future commercialization of research findings. For local listed companies, Beijing Centergate Technologies (Holding) Co., Ltd. (000931.SZ) controls several subsidiaries with Beijing Centek Venture Capital Co., Ltd. included; Beijing Airport High-Tech Park Co., Ltd. (600463.SH) is the main constructor of Tianzhu Airport Economic Development Zone. Most of the enterprises located in the park are hi-tech ones. The new industrial city model of China Fortune Land Development Co., Ltd. (600340.SH) is quite advanced, and the area in Beijing entrusted to the company exceeds 2,000 square kilometers.
[SSN Selection]
○ China's manufacturing purchasing managers' index (PMI) came in at 50.4 in August, setting a new high in 22 months, while the PMI of China's service industry rose for the third consecutive month, according to the National Bureau of Statistics (NBS).
○ Liu Shiyu, chairman of the China Securities Regulatory Commission, attended the international forum for the governance of listed companies on Sept.1. Liu vowed to perfect the governance structure of listed companies in China.
○ The Ministry of Industry and Information Technology (MIIT) releases special action plan for the management of power demand side in the industrial field and encourages utilization of new technologies.
○ Pan Jianwei, an academician at the Chinese Academy of Sciences, indicated that the "Micius" quantum communication satellite is in good status now and will start relevant scientific experiments from middle September.
○ JD.com, Inc. (NASDAQ: JD) launches the first unmanned distribution vehicle in China with technologies like visual sensor, radar and satellite positioning utilized.
○ Giti Tire Corporation (600182.SH) releases specification for equity splitting reform. Shareholders of tradable shares will get 11.11353 new shares for every 10 shares.
TOP
[Industry Information]
○ Baidu Technology Innovation Conference kicks off with AI technology highlighted
------
The Baidu Technology Innovation Conference kicked off on Sept. 1. The accuracy of the Baidu brain voice identification reaches 97 percent and can identify users' questions and make appropriate answers, which has beaten the human identification on voices, indicated by Li Yanhong, head of Baidu. Li also introduced technologies like face recognition, machine translation and self-driving.
Comment: With the maturity of deep learning algorithm, artificial intelligence (AI) technologies such as machine vision and natural voice treatment are embracing rapid breakthroughs. In the three-year action plan on Internet plus AI released by the National Development and Reform Commission (NDRC), it is proposed to build the market of AI application into a market worth 100 billion yuan by 2018. In terms of listed companies, Shenzhen JT Automation Equipment Co., Ltd. (300400.SZ) sees rapid growth in its machine vision products in the first half. CSG Smart Science ＆ Technology Co., Ltd. (300222.SZ) is actively developing intelligent vehicles manufacturing industry through exogenous mergers.
○ Great attention paid to inclusive finance, small-loan companies play important role
------
Yi Gang, vice-governor of the People's Bank of China, pointed out on Sept. 1 that China has always attached great importance to the development of inclusive finance. Inclusive finance aims at strengthening the inclusiveness of financial services and guaranteeing that people in remote and rural areas and those with low income can get access to basic financial service. Yi believes that developing inclusive finance can effectively support economic growth, play an important role in improving employment, shaking off poverty, education and etc. as well as help to promote social equity. Therefore, the development of inclusive finance is of great importance.
Comment: Institutions believe that small-loan companies, designed to support issues of agriculture, farmer and rural area, ease financing difficulties faced by small and medium-sized enterprises, improve the transparency of private lending and stimulate local economic development, are now performing the duties of inclusive finance. It is expected that the market will expand to 1 trillion yuan soon. As to listed companies, both Zhejiang Bangjie Digital Knitting Share Co., Ltd. (002634.SZ) and Zhejiang Jiaxin Silk Corp., Ltd. (002404.SZ) have small-loan companies under them.
TOP
[Announcement Interpretation]
○ Controlling stake of Letong Chemical transferred with premium to actual controller of Dasheng Times Cultural Investment
------
Liu Qiuhua, controlling shareholder of Letong Chemical Co., Ltd. (002319.SZ), proposes to transfer 26 million shares of the company, accounting for 13 percent of the company's total share capital, to Shenzhen Dasheng Assets Management Co., Ltd., at 700 million yuan. The transaction will be done at about 26.92 yuan per share, representing a premium of 55.8 percent when compared with the company's latest stock price.
99 percent equities of Dasheng Assets is held by Zhou Zhenke, actual controller of Dasheng Times Cultural Investment Co., Ltd. (600892.SH), and Zhou will also become the actual controler of Letong Chemical after equity alteration. After investing in Letong Chemical, Dasheng Assets plans to improve its operations and comprehensive competitiveness, and meanwhile, it also proposes to expand new businesses at propor time.
○ Gree Electric Appliances to acquire Yinlong New Energy for RMB13 bln to step in new energy automobile field
------
Gree Electric Appliances, Inc.of Zhuhai (000651.SZ) plans to issue 835 million shares to all shareholders of Zhuhai Yinlong New Energy Co, Ltd. at 15.57 yuan per share to acquire 100 equities of the said company, with a transaction price of 13 billion yuan. Meanwhile, the listed company also proposes to raise the supporting funds of 9.7 billion yuan through private placement from eight targets with the same price, including Gree Group, employment shareholding plan of Gree Electric Appliances and so on, the raised funds will be invested in lithium battery production line of Hebei Yinlong whose annual output is 1,426 million Ah, energy storage module production base with annual output of 200MWh, e-car refit production base of Hebei Guangtong with annual output of 32,000 cars.
Yinlong New Energy is mainly engaged in R＆D, production and sales of lithium titanate materials, lithium titanate power battery, core components of e-cars, and it will gain actual net profit of no less than 720 million, 1,000 million and 1,400 million yuan for 2016, 2017 and 2018 respectively based on its commitment.
TOP
○ Shareholders of Hna-caissa Travel issue shareholding increase plan
------
Caissa Sega, the second shareholder of Hna-caissa Travel Group Co., Ltd. (000796.SZ), and the person acting in concert plan to increase the shareholdings in the listed company with an amount no less than 1 percent of the total equity but no more than 2 percent within 12 months from May 16, 2016, as they admire the listed company's long-term investment value and are all confident in its future development. Caissa Sega increased 237,400 shareholdings on May 16 and 17, taking up 0.0296 percent of the total equity.
○ Guangxin Agrochemical to raise RMB1.4 bln through private placement for main businesses
------
Anhui Guangxin Agrochemical Co., Ltd. (603599.SH) plans to issue 88,233,900 shares at 16.31 yuan per share through private placement to raise 1.4 billion yuan, so as to invest in pyraclostrobin project with annual output of 3,000 tons, famoxadone project with annual output of 1,200 tons, o-phenylenediamine clean production technological improvement project with annual output of 15,000 tons, combined heat and power generation project with annual output of 24MW, wharf engineering project and Guangxin Agrochemical R＆D Center project. These said investments meet the requirements of national agriculture policies focusing on new pesticides which are high-effective, low-toxicity, and environmental protection.
○ Zqgame stops restructuring, plans to acquire Powerleader Internet Technology with RMB500 mln in cash
------
Shenzhen Zqgame Co., Ltd. (300052.SZ) stopped its major assets restructuring, and plans to acquire the 100 percent equities of Powerleader Internet Technology Co., Ltd. with cash. The transaction price is 500 million yuan. Powerleader Internet Technology is subsidiary of Powerleader Science ＆ Technology Group Ltd. (08236.HK), H-share platform under Shenzhen Powerleader Investment Holding Co., Ltd., mainly engaged in professional IDC and CDN businesses, and it is a leading neutral data center and cloud service provider in China. Shareholders of Powerleader Internet Technology promise that the net profit after deduction will be no less than 110 million yuan in 2017, 2018 and 2019.
After this transaction, Zqgame will add investment to build up data center room, sales data center business and provide related maintenance service based on online games, going to benefit the deployments for industrial chain of "games cloud".
○ Digital China Information Service approved for restructuring
------
Restructuring of Digital China Information Service Company Ltd. (000555.SZ) has been unconditionally approved by China Securities Regulatory Commission.
[Trading Trends]
○ Rongji Software bought through two institutional seats
------
The trading volume ranking list on Sep. 1 shows that Fujian Rongji Software Co., Ltd. (002474.SZ) was bought through two institutional seats with a total of 155 million yuan, accounting for 24.15 percent of its intraday turnover.
Comment: Internet of Things sector performs well on Sep. 1. China United Network Communications Limited (600050.SH) will pilot NB-IoT for commercial use to promote rapid development of Internet of Things, according to SSN information on August 31. Rongji Software owns the operational right for public support platform of Fujian provincial Internet of Things. The listed company and Fujian CMCC preliminarily have cooperative intention regarding NB-IoT business.
[Trading Alarms]
○ Wondertek Software and Advanced Digital Technology to issue new shares
------
Shanghai Wondertek Software Corporation Limited. (603189.SH) will issue new shares at 7.26 yuan per share, with P/E ratio of 23 times and upper subscription limit of 22,000 shares, which is mainly engaged in multi-media software based on mobile internet. Beijing Advanced Digital Technology Co., Ltd. (300541.SZ) will issue new shares at 11.07 yuan per share, with P/E ratio of 23 times and upper subscription limit of 12,000 shares, which is mainly engaged in IT services.
TOP
○ Executive meeting of State Council advances construction of Beijing technology innovation center, local industrial parks to play important role
○ Baidu Technology Innovation Conference kicks off with AI technology highlighted, Great attention paid to inclusive finance
○ Controlling stake of Letong Chemical transferred with premium, Gree Electric Appliances to step in new energy automobile field
○ Shareholders of Hna-caissa Travel issue shareholding increase plan, Guangxin Agrochemical to raise RMB1.4 bln through private placement for main businesses
[SSN Focus]
○ Executive meeting of State Council advances construction of Beijing technology innovation center, local industrial parks to play important role
------
The executive meeting of the State Council held on Sept. 1 made arrangement for the construction of the national technology innovation center in Beijing. It was proposed to build a coordinated innovation community in Beijing-Tianjin-Hebei area, introduce talents, technologies and capital, and pool together global innovation resources; promote the reform measures adopted by the Zhongguancun National Demonstration Zone, break down system barriers and perfect the service system for innovation and entrepreneurship. The executive meeting of the State Council also finalized policy measures for boosting the development of entrepreneurship and investment. It will enrich the players and models of entrepreneurship and investment, give full scope to the functions of the main boards, the ChiNext board and local equity exchanges, and make the exit channels for entrepreneurship and investment unimpeded.
Comment: The construction of technology innovation center will help to sharpen national innovation ability and boost middle and high-end economy. Hi-tech parks incubate technology innovation and might play an important role in future commercialization of research findings. For local listed companies, Beijing Centergate Technologies (Holding) Co., Ltd. (000931.SZ) controls several subsidiaries with Beijing Centek Venture Capital Co., Ltd. included; Beijing Airport High-Tech Park Co., Ltd. (600463.SH) is the main constructor of Tianzhu Airport Economic Development Zone. Most of the enterprises located in the park are hi-tech ones. The new industrial city model of China Fortune Land Development Co., Ltd. (600340.SH) is quite advanced, and the area in Beijing entrusted to the company exceeds 2,000 square kilometers.
[SSN Selection]
○ China's manufacturing purchasing managers' index (PMI) came in at 50.4 in August, setting a new high in 22 months, while the PMI of China's service industry rose for the third consecutive month, according to the National Bureau of Statistics (NBS).
○ Liu Shiyu, chairman of the China Securities Regulatory Commission, attended the international forum for the governance of listed companies on Sept.1. Liu vowed to perfect the governance structure of listed companies in China.
○ The Ministry of Industry and Information Technology (MIIT) releases special action plan for the management of power demand side in the industrial field and encourages utilization of new technologies.
○ Pan Jianwei, an academician at the Chinese Academy of Sciences, indicated that the "Micius" quantum communication satellite is in good status now and will start relevant scientific experiments from middle September.
○ JD.com, Inc. (NASDAQ: JD) launches the first unmanned distribution vehicle in China with technologies like visual sensor, radar and satellite positioning utilized.
○ Giti Tire Corporation (600182.SH) releases specification for equity splitting reform. Shareholders of tradable shares will get 11.11353 new shares for every 10 shares.
TOP
[Industry Information]
○ Baidu Technology Innovation Conference kicks off with AI technology highlighted
------
The Baidu Technology Innovation Conference kicked off on Sept. 1. The accuracy of the Baidu brain voice identification reaches 97 percent and can identify users' questions and make appropriate answers, which has beaten the human identification on voices, indicated by Li Yanhong, head of Baidu. Li also introduced technologies like face recognition, machine translation and self-driving.
Comment: With the maturity of deep learning algorithm, artificial intelligence (AI) technologies such as machine vision and natural voice treatment are embracing rapid breakthroughs. In the three-year action plan on Internet plus AI released by the National Development and Reform Commission (NDRC), it is proposed to build the market of AI application into a market worth 100 billion yuan by 2018. In terms of listed companies, Shenzhen JT Automation Equipment Co., Ltd. (300400.SZ) sees rapid growth in its machine vision products in the first half. CSG Smart Science ＆ Technology Co., Ltd. (300222.SZ) is actively developing intelligent vehicles manufacturing industry through exogenous mergers.
○ Great attention paid to inclusive finance, small-loan companies play important role
------
Yi Gang, vice-governor of the People's Bank of China, pointed out on Sept. 1 that China has always attached great importance to the development of inclusive finance. Inclusive finance aims at strengthening the inclusiveness of financial services and guaranteeing that people in remote and rural areas and those with low income can get access to basic financial service. Yi believes that developing inclusive finance can effectively support economic growth, play an important role in improving employment, shaking off poverty, education and etc. as well as help to promote social equity. Therefore, the development of inclusive finance is of great importance.
Comment: Institutions believe that small-loan companies, designed to support issues of agriculture, farmer and rural area, ease financing difficulties faced by small and medium-sized enterprises, improve the transparency of private lending and stimulate local economic development, are now performing the duties of inclusive finance. It is expected that the market will expand to 1 trillion yuan soon. As to listed companies, both Zhejiang Bangjie Digital Knitting Share Co., Ltd. (002634.SZ) and Zhejiang Jiaxin Silk Corp., Ltd. (002404.SZ) have small-loan companies under them.
TOP
[Announcement Interpretation]
○ Controlling stake of Letong Chemical transferred with premium to actual controller of Dasheng Times Cultural Investment
------
Liu Qiuhua, controlling shareholder of Letong Chemical Co., Ltd. (002319.SZ), proposes to transfer 26 million shares of the company, accounting for 13 percent of the company's total share capital, to Shenzhen Dasheng Assets Management Co., Ltd., at 700 million yuan. The transaction will be done at about 26.92 yuan per share, representing a premium of 55.8 percent when compared with the company's latest stock price.
99 percent equities of Dasheng Assets is held by Zhou Zhenke, actual controller of Dasheng Times Cultural Investment Co., Ltd. (600892.SH), and Zhou will also become the actual controler of Letong Chemical after equity alteration. After investing in Letong Chemical, Dasheng Assets plans to improve its operations and comprehensive competitiveness, and meanwhile, it also proposes to expand new businesses at propor time.
○ Gree Electric Appliances to acquire Yinlong New Energy for RMB13 bln to step in new energy automobile field
------
Gree Electric Appliances, Inc.of Zhuhai (000651.SZ) plans to issue 835 million shares to all shareholders of Zhuhai Yinlong New Energy Co, Ltd. at 15.57 yuan per share to acquire 100 equities of the said company, with a transaction price of 13 billion yuan. Meanwhile, the listed company also proposes to raise the supporting funds of 9.7 billion yuan through private placement from eight targets with the same price, including Gree Group, employment shareholding plan of Gree Electric Appliances and so on, the raised funds will be invested in lithium battery production line of Hebei Yinlong whose annual output is 1,426 million Ah, energy storage module production base with annual output of 200MWh, e-car refit production base of Hebei Guangtong with annual output of 32,000 cars.
Yinlong New Energy is mainly engaged in R＆D, production and sales of lithium titanate materials, lithium titanate power battery, core components of e-cars, and it will gain actual net profit of no less than 720 million, 1,000 million and 1,400 million yuan for 2016, 2017 and 2018 respectively based on its commitment.
TOP
○ Shareholders of Hna-caissa Travel issue shareholding increase plan
------
Caissa Sega, the second shareholder of Hna-caissa Travel Group Co., Ltd. (000796.SZ), and the person acting in concert plan to increase the shareholdings in the listed company with an amount no less than 1 percent of the total equity but no more than 2 percent within 12 months from May 16, 2016, as they admire the listed company's long-term investment value and are all confident in its future development. Caissa Sega increased 237,400 shareholdings on May 16 and 17, taking up 0.0296 percent of the total equity.
○ Guangxin Agrochemical to raise RMB1.4 bln through private placement for main businesses
------
Anhui Guangxin Agrochemical Co., Ltd. (603599.SH) plans to issue 88,233,900 shares at 16.31 yuan per share through private placement to raise 1.4 billion yuan, so as to invest in pyraclostrobin project with annual output of 3,000 tons, famoxadone project with annual output of 1,200 tons, o-phenylenediamine clean production technological improvement project with annual output of 15,000 tons, combined heat and power generation project with annual output of 24MW, wharf engineering project and Guangxin Agrochemical R＆D Center project. These said investments meet the requirements of national agriculture policies focusing on new pesticides which are high-effective, low-toxicity, and environmental protection.
○ Zqgame stops restructuring, plans to acquire Powerleader Internet Technology with RMB500 mln in cash
------
Shenzhen Zqgame Co., Ltd. (300052.SZ) stopped its major assets restructuring, and plans to acquire the 100 percent equities of Powerleader Internet Technology Co., Ltd. with cash. The transaction price is 500 million yuan. Powerleader Internet Technology is subsidiary of Powerleader Science ＆ Technology Group Ltd. (08236.HK), H-share platform under Shenzhen Powerleader Investment Holding Co., Ltd., mainly engaged in professional IDC and CDN businesses, and it is a leading neutral data center and cloud service provider in China. Shareholders of Powerleader Internet Technology promise that the net profit after deduction will be no less than 110 million yuan in 2017, 2018 and 2019.
After this transaction, Zqgame will add investment to build up data center room, sales data center business and provide related maintenance service based on online games, going to benefit the deployments for industrial chain of "games cloud".
○ Digital China Information Service approved for restructuring
------
Restructuring of Digital China Information Service Company Ltd. (000555.SZ) has been unconditionally approved by China Securities Regulatory Commission.
[Trading Trends]
○ Rongji Software bought through two institutional seats
------
The trading volume ranking list on Sep. 1 shows that Fujian Rongji Software Co., Ltd. (002474.SZ) was bought through two institutional seats with a total of 155 million yuan, accounting for 24.15 percent of its intraday turnover.
Comment: Internet of Things sector performs well on Sep. 1. China United Network Communications Limited (600050.SH) will pilot NB-IoT for commercial use to promote rapid development of Internet of Things, according to SSN information on August 31. Rongji Software owns the operational right for public support platform of Fujian provincial Internet of Things. The listed company and Fujian CMCC preliminarily have cooperative intention regarding NB-IoT business.
[Trading Alarms]
○ Wondertek Software and Advanced Digital Technology to issue new shares
------
Shanghai Wondertek Software Corporation Limited. (603189.SH) will issue new shares at 7.26 yuan per share, with P/E ratio of 23 times and upper subscription limit of 22,000 shares, which is mainly engaged in multi-media software based on mobile internet. Beijing Advanced Digital Technology Co., Ltd. (300541.SZ) will issue new shares at 11.07 yuan per share, with P/E ratio of 23 times and upper subscription limit of 12,000 shares, which is mainly engaged in IT services.
TOP
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