[Today's Guide]
○MIIT raises threshold for power battery capacity to speed up industrial shuffle
○R＆D for solid-state battery makes progress to show advantage of high-energy density
○Southern Publishing And Media buy equity of its subsidiary, Energy Investment and Techcent Environment gain shareholding increase by substantial shareholders
○Dongguan Securities see progress in IPO with Golden Dragon Development and Dongguan Development (Holdings) joining in
[SSN Focus]
○ MIIT raises threshold for power battery capacity to speed up industrial shuffle
------
Ministry of Industry ＆ Information Technology (MIIT) on Nov. 22 issued Industrial Standard ＆ Condition for Automobile Power Battery (2017 exposure draft) to support automobile power battery enterprises to become larger and stronger. This draft has proposed a series of requirements on enterprises' capacity, production condition, technological capability, and product quality, including that "the annual output of a single lithium-ion battery enterprise shall not be less than 8 billion watt hour". However, this indicator in a document released in 2015 was only 200 million watt hour.
Comment: The raised threshold will speed up the industrial shuffle, and incent the outstanding development of the leading magnates. Among the listed companies, BYD Company Limited (002594.SZ) has already reached a annual power battery output of 10 billion watt hour in 2015, which is expected to have 16 billion watt hour in 2016; Fang Jianhua, director of the board in Guoxuan High-Tech Co., Ltd. (002074.SZ), also indicated that the company will reach the annual output of 8 billion watt hour in 2017. For the whole industrial chain of new energy automobile, the large-scaled production will benefit production cost reduction to promote the popularity of new energy automobile.
[SSN Selection]
○ The central bank on Nov. 22 issued the document, and clearly specified issues related to trading interconnection mechanism between mainland and Hong Kong stock markets.
○ State-owned Assets Supervision and Administration Commission on Nov. 22 released a notice to propose priority support for equity ＆ dividend incentive measures of the central state-owned enterprises mainly engaged in science ＆ technology.
○ Last week, the number of newly-added investors increased 10.2 percent month to month, with net outflow of 29.7 billion yuan in stock-bank transaction.
○ Agricultural Bank Of China Limited (601288.SH) proposes to establish debt-to-equity swap business under its asset department with 10 billion yuan. China Construction Bank Corporation (601939.SH) also plans to intentionally build up a department to carry out debt-to-equity swap.
○ China Communications Construction Company Ltd. has finished the pilot scheme for a state-owned capital investment company, with e-scheme submitted to State-owned Assets Supervision and Administration Commission, yicai.com reported.
○ Wanda Group indicated that it has not carried out formal negotiation with Beijing Soft Rock Investment Group Corporation (000609.SZ) regarding to Wanda commercial restructuring. It is also talking about backdoor listing with other potential targets, foreign media reported.
TOP
[Industry Information]
○ R＆D for solid-state battery makes progress to show advantage of high-energy density
------
Its Qingdao Institute of Bioenergy and Bioprocess Technology has made progress in a research on solid-state battery with high-energy density; the researchers innovatively propose solution of "in-situ self-forming solid-state electrolyte" regarding to a bottleneck problem that solid-solid interface impedance is over big in the solid-state battery development; this can effectively reduce the interface impedance and improve comprehensive performance of the battery, the website of Chinese Academy of Science on Nov. 22 revealed. Currently, the said institute has already developed ternary solid-state lithium battery with high capacity of 6Ah, which features in high-energy density, long cycle life, high safety and other advantages.
Comment: Solid-state battery is an important development direction for power battery to improve energy density and security and will see rapid development driven by technological progress and enterprises. The United States Patent and Trademark Office released a new patent related to charging technology of solid-state battery of Apple Inc. As for Chinese listed companies, Hengdian Group DMEGC Magnetics Co., Ltd. (002056.SZ) indicated in a recent survey that it will conduct research ＆ development on solid-state battery and it has put its product ternary power battery into pilot production in August. Shenzhen Jiawei Photovoltaic Lighting Co., Ltd. (300317.SZ) yesterday released solid-state lithium battery and lithium battery with fast charging, which were the first case in the world, and announced that base for preparing graphene material has been put into operation.
TOP
[Announcement Interpretation]
○Southern Publishing And Media buy equity of its subsidiary
------
Southern Publishing And Media Company Limited (601900.SH) plans to purchase 45.19 percent equity of its subsidiary Guangdong Xinhua Issuing Group Co., Ltd. at 1.188 billion yuan by issuing shares at a price of 14.96 yuan per share through private placement and paying in cash. Once the transaction is done, it will hold 99.97 percent equity in the company. Besides, it will raise supporting funds of 650 million yuan at most by issuing shares at a price of 14.96 yuan per share through private placement. Xinhua Issuing Group is engaged in total circulation, wholesales, retail and chain-store operation of publication and its net profit registers 59.23 million yuan in the first half of this year.
○Energy Investment and Techcent Environment gain shareholding increase by substantial shareholders
------
Yunnan Provincial Energy Investment Group Co., Ltd., controlling shareholder of Yunnan Energy Investment Co., Ltd. (002053.SZ), buys 1,970,800 shares of the listed company on Nov. 22, accounting for 0.35 percent of total share capital. The share is traded at an average price of 17.65 yuan per share and the deal costs a total of 34,779,100 yuan. Yunnan Provincial Energy Investment Group plans to buy more shares at proper time in next 12 months, which will take up less than 2 percent of the company's share capital. Latest stock price of the company is 17.65 yuan per share.
Actual controller of Chengdu Techcent Environment Co., Ltd. (300362.SZ) has purchased 4,897,100 shares of the company during Nov. 8 and 22, accounting for 1.15 percent of the company's total share capital. The share is traded at an average price of 23.7 yuan per share and the deal costs 116 million yuan. Latest stock price of the company is 23.65 yuan per share.
TOP
○Dongguan Securities see progress in IPO with Golden Dragon Development and Dongguan Development (Holdings) joining in
------
Dongguan Securities, in which Guangdong Golden Dragon Development Inc. (000712.SZ) and Dongguan Development (Holdings) Co., Ltd. (000828.SZ) hold stake, received feedback on IPO from China Securities Regulatory Commission (CSRC). Dongguan Securities will carry out follow-up work in compliance with relevant regulations and requirements of CSRC.
○Reorganization proposal of Shaanxi Xinghua Chemistry Co., Ltd. (002109.SZ) was approved by China Securities Regulatory Commission, which will be valid in 12 months.
[Trading Alarms]
○HuaAn Securities and Anche Technologies to launch IPOs on Nov. 23
------
HuaAn Securities Co., Ltd. is going to launch IPO at a price of 6.41 yuan per share with upper subscription limit of 240,000 shares for each account. The company is engaged in securities brokerage business. Anche Technologies Co., Ltd. is going to launch IPO at a price of 13.79 yuan per share with upper subscription limit of 16,500 shares for each account. The company is specialized in detecting system of motor vehicle.
TOP
○MIIT raises threshold for power battery capacity to speed up industrial shuffle
○R＆D for solid-state battery makes progress to show advantage of high-energy density
○Southern Publishing And Media buy equity of its subsidiary, Energy Investment and Techcent Environment gain shareholding increase by substantial shareholders
○Dongguan Securities see progress in IPO with Golden Dragon Development and Dongguan Development (Holdings) joining in
[SSN Focus]
○ MIIT raises threshold for power battery capacity to speed up industrial shuffle
------
Ministry of Industry ＆ Information Technology (MIIT) on Nov. 22 issued Industrial Standard ＆ Condition for Automobile Power Battery (2017 exposure draft) to support automobile power battery enterprises to become larger and stronger. This draft has proposed a series of requirements on enterprises' capacity, production condition, technological capability, and product quality, including that "the annual output of a single lithium-ion battery enterprise shall not be less than 8 billion watt hour". However, this indicator in a document released in 2015 was only 200 million watt hour.
Comment: The raised threshold will speed up the industrial shuffle, and incent the outstanding development of the leading magnates. Among the listed companies, BYD Company Limited (002594.SZ) has already reached a annual power battery output of 10 billion watt hour in 2015, which is expected to have 16 billion watt hour in 2016; Fang Jianhua, director of the board in Guoxuan High-Tech Co., Ltd. (002074.SZ), also indicated that the company will reach the annual output of 8 billion watt hour in 2017. For the whole industrial chain of new energy automobile, the large-scaled production will benefit production cost reduction to promote the popularity of new energy automobile.
[SSN Selection]
○ The central bank on Nov. 22 issued the document, and clearly specified issues related to trading interconnection mechanism between mainland and Hong Kong stock markets.
○ State-owned Assets Supervision and Administration Commission on Nov. 22 released a notice to propose priority support for equity ＆ dividend incentive measures of the central state-owned enterprises mainly engaged in science ＆ technology.
○ Last week, the number of newly-added investors increased 10.2 percent month to month, with net outflow of 29.7 billion yuan in stock-bank transaction.
○ Agricultural Bank Of China Limited (601288.SH) proposes to establish debt-to-equity swap business under its asset department with 10 billion yuan. China Construction Bank Corporation (601939.SH) also plans to intentionally build up a department to carry out debt-to-equity swap.
○ China Communications Construction Company Ltd. has finished the pilot scheme for a state-owned capital investment company, with e-scheme submitted to State-owned Assets Supervision and Administration Commission, yicai.com reported.
○ Wanda Group indicated that it has not carried out formal negotiation with Beijing Soft Rock Investment Group Corporation (000609.SZ) regarding to Wanda commercial restructuring. It is also talking about backdoor listing with other potential targets, foreign media reported.
TOP
[Industry Information]
○ R＆D for solid-state battery makes progress to show advantage of high-energy density
------
Its Qingdao Institute of Bioenergy and Bioprocess Technology has made progress in a research on solid-state battery with high-energy density; the researchers innovatively propose solution of "in-situ self-forming solid-state electrolyte" regarding to a bottleneck problem that solid-solid interface impedance is over big in the solid-state battery development; this can effectively reduce the interface impedance and improve comprehensive performance of the battery, the website of Chinese Academy of Science on Nov. 22 revealed. Currently, the said institute has already developed ternary solid-state lithium battery with high capacity of 6Ah, which features in high-energy density, long cycle life, high safety and other advantages.
Comment: Solid-state battery is an important development direction for power battery to improve energy density and security and will see rapid development driven by technological progress and enterprises. The United States Patent and Trademark Office released a new patent related to charging technology of solid-state battery of Apple Inc. As for Chinese listed companies, Hengdian Group DMEGC Magnetics Co., Ltd. (002056.SZ) indicated in a recent survey that it will conduct research ＆ development on solid-state battery and it has put its product ternary power battery into pilot production in August. Shenzhen Jiawei Photovoltaic Lighting Co., Ltd. (300317.SZ) yesterday released solid-state lithium battery and lithium battery with fast charging, which were the first case in the world, and announced that base for preparing graphene material has been put into operation.
TOP
[Announcement Interpretation]
○Southern Publishing And Media buy equity of its subsidiary
------
Southern Publishing And Media Company Limited (601900.SH) plans to purchase 45.19 percent equity of its subsidiary Guangdong Xinhua Issuing Group Co., Ltd. at 1.188 billion yuan by issuing shares at a price of 14.96 yuan per share through private placement and paying in cash. Once the transaction is done, it will hold 99.97 percent equity in the company. Besides, it will raise supporting funds of 650 million yuan at most by issuing shares at a price of 14.96 yuan per share through private placement. Xinhua Issuing Group is engaged in total circulation, wholesales, retail and chain-store operation of publication and its net profit registers 59.23 million yuan in the first half of this year.
○Energy Investment and Techcent Environment gain shareholding increase by substantial shareholders
------
Yunnan Provincial Energy Investment Group Co., Ltd., controlling shareholder of Yunnan Energy Investment Co., Ltd. (002053.SZ), buys 1,970,800 shares of the listed company on Nov. 22, accounting for 0.35 percent of total share capital. The share is traded at an average price of 17.65 yuan per share and the deal costs a total of 34,779,100 yuan. Yunnan Provincial Energy Investment Group plans to buy more shares at proper time in next 12 months, which will take up less than 2 percent of the company's share capital. Latest stock price of the company is 17.65 yuan per share.
Actual controller of Chengdu Techcent Environment Co., Ltd. (300362.SZ) has purchased 4,897,100 shares of the company during Nov. 8 and 22, accounting for 1.15 percent of the company's total share capital. The share is traded at an average price of 23.7 yuan per share and the deal costs 116 million yuan. Latest stock price of the company is 23.65 yuan per share.
TOP
○Dongguan Securities see progress in IPO with Golden Dragon Development and Dongguan Development (Holdings) joining in
------
Dongguan Securities, in which Guangdong Golden Dragon Development Inc. (000712.SZ) and Dongguan Development (Holdings) Co., Ltd. (000828.SZ) hold stake, received feedback on IPO from China Securities Regulatory Commission (CSRC). Dongguan Securities will carry out follow-up work in compliance with relevant regulations and requirements of CSRC.
○Reorganization proposal of Shaanxi Xinghua Chemistry Co., Ltd. (002109.SZ) was approved by China Securities Regulatory Commission, which will be valid in 12 months.
[Trading Alarms]
○HuaAn Securities and Anche Technologies to launch IPOs on Nov. 23
------
HuaAn Securities Co., Ltd. is going to launch IPO at a price of 6.41 yuan per share with upper subscription limit of 240,000 shares for each account. The company is engaged in securities brokerage business. Anche Technologies Co., Ltd. is going to launch IPO at a price of 13.79 yuan per share with upper subscription limit of 16,500 shares for each account. The company is specialized in detecting system of motor vehicle.
TOP
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