[Today's Guide]
○Executive meeting of State Council advances ecological environment protection, investment demand in environmental protection to release
○13th five-year plan for circulation of domestic trade released, growth of e-commerce to continue
○MOST inspects new energy vehicle technologies, intelligent interconnected industry to see development potential
○ J＆R Optimum Energy to acquire overseas mineral assets, Sunwin Intelligent achieves series of major contracts
[SSN Focus]
○Executive meeting of State Council advances ecological environment protection, investment demand in environmental protection to release
------
The executive meeting of the State Council held on Nov. 15 approved the 13th five-year plan for ecological environment protection with multiple tasks determined. It is decided to strictly control the source, obsolete products with severe pollution and accelerate the development of the energy conservation and environment protection industry; make great efforts in the control and prevention of air, water and soil pollution, and carry out special treatment over the pollution and emission of 15 key industries with papermaking and building materials included; reinforce the supervision and enforcement of environmental protection, and begin to collect taxes over environmental protection at proper timing.
Comment: Fog and haze frequently attack the north part of China since winter comes. Beijing will release its first orange alarm on heavy air pollution in 2016 at 0:00, Nov. 17. Institutions believe that the launch of policies like environmental protection tax in the future will force enterprises to invest more in environment protection, while the promotion of Public-Private-Partnership model will release more investment demand. Q3 reports show that the profit of segmented sectors of environmental protection, such as air and monitoring, suggests a high growth of over 30 percent. Gross profit margin is maintained at a high level and the soil restoration industry is rising.
[SSN Selection]
○China's President Xi Jinping delivered video keynote speech at the opening ceremony of the third World Internet Conference on Nov. 16. It is proposed to deepen international cooperation in cyberspace.
○The State Council on Nov. 16 issued a circular proposing further implementation of strategies to revitalize the regions in Northeast China.
○China's central bank on Nov. 16 pumped 302 billion yuan into the market via medium-term lending facility (MLF), resulting in a net input of over 400 billion yuan into the market since this week.
○The second asset management company (AMC) in Jiangsu province is nodded to be established in Suzhou city. Shareholders of the AMC include Soochow Securities Co., Ltd. (601555.SH) and Suzhou New District Hi-Tech Industrial Co., Ltd. (600736.SH).
○Zhuhai Gree Electric Appliances, Inc. (000651.SZ) terminates its planning of acquiring assets by issuing shares and promises no planning for major asset reorganization in at least one month.
TOP
[Industry Information]
○13th five-year plan for circulation of domestic trade released, growth of e-commerce to continue
------
10 ministries and commissions, with the Ministry of Commerce and the National Development and Reform Commission (NDRC) included, recently jointly rolled out the 13th five-year development plan for the circulation of domestic trade. It is proposed that by 2020, circulation cost is further declined and efficiency is greatly improved; the trading volume of e-commerce reaches 43.8 trillion yuan and annual growth averages to around 15 percent. Online retail sales reach 9.6 trillion yuan and annual growth averages to around 20 percent. The real commerce moves faster in transformation; online business and offline business deeply integrate with each other; proportion of service consumption and green consumption expands; the informatization, standardization and intensification levels of circulation greatly enhances.
Comment: Chinese e-commerce giant Alibaba Group Holding Ltd. reported on-the-day sales of 120.7 billion yuan on Nov. 11, indicating a year-on-year growth of 32.25 percent and further proving that e-commerce is still experiencing high-speed development. Institutions believe that "e-commerce Internet celebrities live streaming new technologies" together with offline experience might point the general development trend of retail sales. Nanji E-commerce Co., Ltd. (002127.SZ) first creates a brand-new e-commerce service model and builds an ecosphere constituted by "brand/category/IP channel content service tools"; Qingdao Kingking Applied Chemistry Co., Ltd. (002094.SZ) proposes to fully control Hangzhou Uco Cosmetics Co., Ltd. and the latter is a leading company in operating cosmetics e-commerce for other companies.
TOP
○MOST inspects new energy vehicle technologies, intelligent interconnected industry to see development potential
------
The Ministry of Science and Technology (MOST) on Nov. 16 disclosed on its website that MOST minister Wan Gang held a symposium on intelligent interconnected vehicle technologies, fuel battery-driven vehicle technologies and other hot topics with the group of experts on new energy vehicles. It introduced the latest development of intelligent interconnected vehicle technologies and the development in China and made proposals to the strategic development focus of China in the following period. Wan indicated that it should make plans on new energy vehicle technologies and attach importance to the mutual support of various technologies to guarantee the advancement of technologies.
Comment: Based on the plan, it will actively develop intelligent interconnected vehicles and the market share of new vehicles with ancillary driving functions will reach 50 percent during the 13th Five-year Plan period. Institutes believe that the intelligent interconnected vehicle enjoys huge potential. The ADAS, night vision devices and other ancillary systems will see rapid development with a potential market of 100 billion yuan. Zhejiang Vie Science ＆ Technology Co., Ltd. (002590.SZ) is developing the ADAS industry. The sales of the night vision devices of Jiangsu Protruly Vision Technology Group Co., Ltd. (600074.SH) have been increasing.
TOP
[Announcement Interpretation]
○ J＆R Optimum Energy to acquire overseas mineral assets with over RMB200 mln
------
Shaanxi J＆R Optimum Energy Co., Ltd. (300116.SZ) proposes to subscribe 306 million shares of Altura, a listed Australian company, with 41.616 million Australian Dollars (equal to around 214 million yuan). After transaction, it will hold 19.9 percent equities of Altura, making it the biggest shareholder. Altura has many coal, iron and lithium mineral projects in Indonesia and Australia, and especially, its Pilgangooralithium mineral project located in the western region of Australia has high-purity mine, meeting the material requirements of automobile power battery, which will be put in pilot operation in the third quarter of 2017, and formal operation in the fourth quarter of the same year.
○ Sunwin Intelligent achieves series of major contracts
------
Shenzhen Sunwin Intelligent Co., Ltd. (300044.SZ) jointly with others has won the PPP project for parking lot construction, comprehensive urban ＆ housing lot reconstruction, and also real estate management in Jishou city, with a total investment of 1.95 billion yuan. Meanwhile, it is expected to win smart Jishou PPP project, with an estimated investment of 978 million yuan. It also signs data center construction ＆ equipment purchase ＆ service contract with Shenzhen Yinde honded warehouse, with a total amount of 280 million yuan. The said projects total at over 3.2 billion yuan, and the total revenue of the company in 2015 was 665 million yuan.
Additionally, Focused Photonics (Hangzhou), Inc. (300203.SZ) jointly with others has signed a PPP project for comprehensive treatment engineering of Puxi River in Huangshan city, with a total price of 1.25 billion yuan, 68 percent of the company's total revenue in 2015. Suzhou Kelida Building ＆ Decoration Co., Ltd. (603828.SH) wins a PPP project for PE ＆ Culture ＆ Innovation Center construction in medical hi-tech new zone of Taizhou. Wuxi Taiji Industry Company Ltd. (600667.SH) achieves EPC project for solar power industrialization engineering IV with 1,054 million yuan, and its revenue was 4.4 billion yuan in 2015. Shenzhen Wenke Landscape Co., Ltd. (002775.SZ) signs an engineering ＆ construction contract in Suiyang county, with a total amount of 360 million yuan, and its revenue was 1.05 billion yuan in 2015.
○ Kangde Xin Composite Material Group launches employee shareholding plan
------
Kangde Xin Composite Material Group Co., Ltd. (002450.SZ) launches employee shareholding plan, and also proposes to subscribe the trust plan with no more than 600 million yuan. The said funds will be injected into three trust plans based on the proportion of 40 percent, 30 percent and 30 percent, and its employee shareholding plan will raise the fund no more than 200 million yuan from its employees. Such trust plans will set priority and second shares based on a ratio of 2:1.
○ Some senior managers of Chengdu Santai Holding Group Co., Ltd. (002312.SZ) plan to increase 2.30 million shareholdings in the company before June 30, 2017. Directors, supervisors and senior managers of GoerTek Inc. (002241.SZ) increased 1.88 million shareholdings in the company through trust plan on Nov. 16. The controlling shareholder of Fujian Cosunter Pharmaceutical Co., Ltd. (300436.SZ) increased 154,600 shareholdings in the company on Nov. 15 and 16, accounting for 0.1 percent equity.
[Trading Alarms]
○ Zhongzhuang Construction and Keda Technology to issue new shares on Nov. 17
------
The offering price of Shenzhen Zhongzhuang Construction Group Co., Ltd. (002822.SZ) is 10.23 yuan per share, with upper subscription limit of 30,000 shares; it is mainly engaged in architectural decoration ＆ finishing engineering. That for Suzhou Keda Technology Co., Ltd. (603660.SH) is 8.03 yuan per share, with upper subscription limit of 25,000 shares; it is mainly engaged in video meeting and monitoring system.
TOP
○Executive meeting of State Council advances ecological environment protection, investment demand in environmental protection to release
○13th five-year plan for circulation of domestic trade released, growth of e-commerce to continue
○MOST inspects new energy vehicle technologies, intelligent interconnected industry to see development potential
○ J＆R Optimum Energy to acquire overseas mineral assets, Sunwin Intelligent achieves series of major contracts
[SSN Focus]
○Executive meeting of State Council advances ecological environment protection, investment demand in environmental protection to release
------
The executive meeting of the State Council held on Nov. 15 approved the 13th five-year plan for ecological environment protection with multiple tasks determined. It is decided to strictly control the source, obsolete products with severe pollution and accelerate the development of the energy conservation and environment protection industry; make great efforts in the control and prevention of air, water and soil pollution, and carry out special treatment over the pollution and emission of 15 key industries with papermaking and building materials included; reinforce the supervision and enforcement of environmental protection, and begin to collect taxes over environmental protection at proper timing.
Comment: Fog and haze frequently attack the north part of China since winter comes. Beijing will release its first orange alarm on heavy air pollution in 2016 at 0:00, Nov. 17. Institutions believe that the launch of policies like environmental protection tax in the future will force enterprises to invest more in environment protection, while the promotion of Public-Private-Partnership model will release more investment demand. Q3 reports show that the profit of segmented sectors of environmental protection, such as air and monitoring, suggests a high growth of over 30 percent. Gross profit margin is maintained at a high level and the soil restoration industry is rising.
[SSN Selection]
○China's President Xi Jinping delivered video keynote speech at the opening ceremony of the third World Internet Conference on Nov. 16. It is proposed to deepen international cooperation in cyberspace.
○The State Council on Nov. 16 issued a circular proposing further implementation of strategies to revitalize the regions in Northeast China.
○China's central bank on Nov. 16 pumped 302 billion yuan into the market via medium-term lending facility (MLF), resulting in a net input of over 400 billion yuan into the market since this week.
○The second asset management company (AMC) in Jiangsu province is nodded to be established in Suzhou city. Shareholders of the AMC include Soochow Securities Co., Ltd. (601555.SH) and Suzhou New District Hi-Tech Industrial Co., Ltd. (600736.SH).
○Zhuhai Gree Electric Appliances, Inc. (000651.SZ) terminates its planning of acquiring assets by issuing shares and promises no planning for major asset reorganization in at least one month.
TOP
[Industry Information]
○13th five-year plan for circulation of domestic trade released, growth of e-commerce to continue
------
10 ministries and commissions, with the Ministry of Commerce and the National Development and Reform Commission (NDRC) included, recently jointly rolled out the 13th five-year development plan for the circulation of domestic trade. It is proposed that by 2020, circulation cost is further declined and efficiency is greatly improved; the trading volume of e-commerce reaches 43.8 trillion yuan and annual growth averages to around 15 percent. Online retail sales reach 9.6 trillion yuan and annual growth averages to around 20 percent. The real commerce moves faster in transformation; online business and offline business deeply integrate with each other; proportion of service consumption and green consumption expands; the informatization, standardization and intensification levels of circulation greatly enhances.
Comment: Chinese e-commerce giant Alibaba Group Holding Ltd. reported on-the-day sales of 120.7 billion yuan on Nov. 11, indicating a year-on-year growth of 32.25 percent and further proving that e-commerce is still experiencing high-speed development. Institutions believe that "e-commerce Internet celebrities live streaming new technologies" together with offline experience might point the general development trend of retail sales. Nanji E-commerce Co., Ltd. (002127.SZ) first creates a brand-new e-commerce service model and builds an ecosphere constituted by "brand/category/IP channel content service tools"; Qingdao Kingking Applied Chemistry Co., Ltd. (002094.SZ) proposes to fully control Hangzhou Uco Cosmetics Co., Ltd. and the latter is a leading company in operating cosmetics e-commerce for other companies.
TOP
○MOST inspects new energy vehicle technologies, intelligent interconnected industry to see development potential
------
The Ministry of Science and Technology (MOST) on Nov. 16 disclosed on its website that MOST minister Wan Gang held a symposium on intelligent interconnected vehicle technologies, fuel battery-driven vehicle technologies and other hot topics with the group of experts on new energy vehicles. It introduced the latest development of intelligent interconnected vehicle technologies and the development in China and made proposals to the strategic development focus of China in the following period. Wan indicated that it should make plans on new energy vehicle technologies and attach importance to the mutual support of various technologies to guarantee the advancement of technologies.
Comment: Based on the plan, it will actively develop intelligent interconnected vehicles and the market share of new vehicles with ancillary driving functions will reach 50 percent during the 13th Five-year Plan period. Institutes believe that the intelligent interconnected vehicle enjoys huge potential. The ADAS, night vision devices and other ancillary systems will see rapid development with a potential market of 100 billion yuan. Zhejiang Vie Science ＆ Technology Co., Ltd. (002590.SZ) is developing the ADAS industry. The sales of the night vision devices of Jiangsu Protruly Vision Technology Group Co., Ltd. (600074.SH) have been increasing.
TOP
[Announcement Interpretation]
○ J＆R Optimum Energy to acquire overseas mineral assets with over RMB200 mln
------
Shaanxi J＆R Optimum Energy Co., Ltd. (300116.SZ) proposes to subscribe 306 million shares of Altura, a listed Australian company, with 41.616 million Australian Dollars (equal to around 214 million yuan). After transaction, it will hold 19.9 percent equities of Altura, making it the biggest shareholder. Altura has many coal, iron and lithium mineral projects in Indonesia and Australia, and especially, its Pilgangooralithium mineral project located in the western region of Australia has high-purity mine, meeting the material requirements of automobile power battery, which will be put in pilot operation in the third quarter of 2017, and formal operation in the fourth quarter of the same year.
○ Sunwin Intelligent achieves series of major contracts
------
Shenzhen Sunwin Intelligent Co., Ltd. (300044.SZ) jointly with others has won the PPP project for parking lot construction, comprehensive urban ＆ housing lot reconstruction, and also real estate management in Jishou city, with a total investment of 1.95 billion yuan. Meanwhile, it is expected to win smart Jishou PPP project, with an estimated investment of 978 million yuan. It also signs data center construction ＆ equipment purchase ＆ service contract with Shenzhen Yinde honded warehouse, with a total amount of 280 million yuan. The said projects total at over 3.2 billion yuan, and the total revenue of the company in 2015 was 665 million yuan.
Additionally, Focused Photonics (Hangzhou), Inc. (300203.SZ) jointly with others has signed a PPP project for comprehensive treatment engineering of Puxi River in Huangshan city, with a total price of 1.25 billion yuan, 68 percent of the company's total revenue in 2015. Suzhou Kelida Building ＆ Decoration Co., Ltd. (603828.SH) wins a PPP project for PE ＆ Culture ＆ Innovation Center construction in medical hi-tech new zone of Taizhou. Wuxi Taiji Industry Company Ltd. (600667.SH) achieves EPC project for solar power industrialization engineering IV with 1,054 million yuan, and its revenue was 4.4 billion yuan in 2015. Shenzhen Wenke Landscape Co., Ltd. (002775.SZ) signs an engineering ＆ construction contract in Suiyang county, with a total amount of 360 million yuan, and its revenue was 1.05 billion yuan in 2015.
○ Kangde Xin Composite Material Group launches employee shareholding plan
------
Kangde Xin Composite Material Group Co., Ltd. (002450.SZ) launches employee shareholding plan, and also proposes to subscribe the trust plan with no more than 600 million yuan. The said funds will be injected into three trust plans based on the proportion of 40 percent, 30 percent and 30 percent, and its employee shareholding plan will raise the fund no more than 200 million yuan from its employees. Such trust plans will set priority and second shares based on a ratio of 2:1.
○ Some senior managers of Chengdu Santai Holding Group Co., Ltd. (002312.SZ) plan to increase 2.30 million shareholdings in the company before June 30, 2017. Directors, supervisors and senior managers of GoerTek Inc. (002241.SZ) increased 1.88 million shareholdings in the company through trust plan on Nov. 16. The controlling shareholder of Fujian Cosunter Pharmaceutical Co., Ltd. (300436.SZ) increased 154,600 shareholdings in the company on Nov. 15 and 16, accounting for 0.1 percent equity.
[Trading Alarms]
○ Zhongzhuang Construction and Keda Technology to issue new shares on Nov. 17
------
The offering price of Shenzhen Zhongzhuang Construction Group Co., Ltd. (002822.SZ) is 10.23 yuan per share, with upper subscription limit of 30,000 shares; it is mainly engaged in architectural decoration ＆ finishing engineering. That for Suzhou Keda Technology Co., Ltd. (603660.SH) is 8.03 yuan per share, with upper subscription limit of 25,000 shares; it is mainly engaged in video meeting and monitoring system.
TOP
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