[Today's Guide]
○UnionPay releases standards for QR code payment, development of mobile payment to accelerate
○Output and sales of automobiles in November record new high, the strong might always strong in CDN industry
○Zhonghang Heibao buys equity of Shenyang Aircraft Industry Group, China Enterprise Company to buy Zhongxing Group at RMB18.5 bln
○Tibet Urban Development and Investment to invest more in commercial real estate industry, actual controller of O-film Tech proposes high share conversion and dividend
[SSN Focus]
○UnionPay releases standards for QR code payment, development of mobile payment to accelerate
------
China UnionPay officially released the standards for QR code payment on Dec. 12 and will introduce supporting business rules and product plans later. Unlike the QR code payment already promoted and applied by some institutions in the market, the background account under UnionPay's standards is still based on real bank card, avoiding possible financial risks brought by capital in virtual account. Meanwhile, UnionPay's standards are compatible with international standards, leaving room for technical extension. It is learnt that KuaiQian Payment and Settlement Service Co., Ltd. is among the first batch of payment institutions supporting UnionPay's standards.
Comment: QR code payment is featured with advantages like low threshold for merchants, convenient operation and being suitable for daily small transactions. The Standards for Barcode Payment Business, released by the Payment ＆ Clearing Association of China in August this year, means that the market position of QR code payment has been approved by regulators. Several third-party payment platforms and traditional banks all throw themselves into mobile payment market. As to listed companies, Fujian Newland Computer Co., Ltd. (000997.SZ) is now engaged in the whole industrial chain covering POS terminals, scanning payment, merchant service system and big data operation; SZZT Electronics Co., Ltd. (002197.SZ) has entered into cooperation agreement with ZTE Corporation (000063.SZ) in areas like payment, Internet-based finance and etc.
[SSN Selection]
○The General Office of the State Council on Dec. 12 issued a circular proposing to set up and improve a series of systems for protecting and restoring wetlands.
○Jiang Yang, vice chairman of China Securities Regulatory Commission (CSRC), indicated on Dec. 12 that for the next step, the CSRC will continue to support industrial integration and structure upgrading through merger ＆ acquisition and reorganization.
○According to the latest announcement made by China Securities Regulatory Commission (CSRC), the IPO applications of 10 companies will be reviewed on Dec. 16.
○The executive meeting of Shanghai government held on Dec. 12 studied the work of building Chongming Island into a world-class eco-island. 147 projects are proposed in the three-year action plan.
○The price adjustment of refined oil products in China is expected to come again at 24:00 on Dec. 14. The price adjustment is expected to be the largest one within 2016.
TOP
[Industry Information]
○Output and sales of automobiles in November record new high, eye-catching data to continue in December
------
According to data released by the China Association of Automobile Manufacturers (CAAM) on Dec. 12, 3.011 million automobiles were produced and 2.939 million automobiles were sold in November in China, representing a month-on-month growth of 16.4 percent and 10.9 percent and a year-on-year growth of 17.8 percent and 16.6 percent, respectively. Both the output and sales of automobiles record new high in history. Research from WAYS Consulting Co., Ltd. shows that driven by rapid expansion of automobile market, the transaction price of passenger vehicles at terminals also hiked 550 yuan on the whole in November from a month earlier. The transaction price also rose by 3.1 percent from a year earlier.
Comment: Research report by CITIC Securities held that benefited from consumption in advance resulted from the favorable policy on car purchase tax and the earlier-than-usual Spring Festival in 2017, automobile data in December is expected to remain eye-catching. SAIC Motor Corporation Limited (600104.SH) sees great profit flexibility in the future. Institutions expect that the company's rising valuation is supported by fundamentals. Star car products of Great Wall Motor Company Limited (601633.SH) sell well continuously. Strategic car products are gradually recognized by the market. The company's product structure keeps improving.
○CDN industry requires license, the strong might always strong in future
------
The Ministry of Industry and Information Technology (MIIT) on Dec. 12 officially licensed Wangsu Science ＆ Technology Co., Ltd. (300017.SZ) and AliCloud, a subsidiary of Alibaba Group, with CDN business operation permit, marking that license is now required in China's CDN industry. It also marks that companies engaged in CDN business must get licensed first before providing business externally. SSN learnt that relevant technology standards and supporting supervision measures for the CDN business will be rolled out in succession later.
Comment: Industry insiders believe that enterprises with no license will be exposed to the risks of unlicensed business activity and operation beyond scope. As supervision measures improve, newcomers will see higher threshold for entering into the area. As the first obtainers of the license, leading enterprises enjoy greater right of speech in CDN area hands down. After years of accumulation, the whole CDN market will see greater scale effect. The strong might always be strong in the future.
TOP
[Announcement Interpretation]
○Zhonghang Heibao buys equity of Shenyang Aircraft Industry Group
------
Zhonghang Heibao Co., Ltd. (600760.SH) plans to buy 100 percent equity of Shenyang Aircraft Industry Group at a cost of 7.311 billion yuan from Aviation Industry Corporation of China (AVIC) and China Huarong Asset Management Co., Ltd. by issuing 909 million shares at a price of 8.04 yuan per share. At the same time, the company will also sell all its assets and liabilities excluding 66.61 percent equity of Shanghai Aviation Special Vehicle Manu. Co., Ltd. in cash to Jincheng Corporation. The value is estimated to be 543 million yuan. In addition, the company will raise 1.668 billion yuan from AVIC, FATO Mechanical And Electrical Equipment Group Co., Ltd and AVIC Electromechanical Systems Co., Ltd. by issuing 200 million shares at a price of 8.34 yuan per share.
Shenyang Aircraft Industry Group is a core aviation manufacturing enterprise under the AVIC and its aviation defense equipment is mainly fighter. After the reorganization is finished, principal business of the listed company will change from special vehicle, mini truck and hydraulic component business to aviation products manufacturing.
○China Enterprise Company to buy Zhongxing Group at RMB18.5 bln
------
China Enterprise Company Limited (600675.SH) plans to purchase 100 percent equity of Shanghai Zhongxing Group Co., Ltd. from its controlling shareholder Shanghai Land (Group) Co., Ltd. by issuing stocks and paying in cash. The value is estimated to be 18.522 billion yuan with estimated appreciation rate of about 174.54 percent. 15 percent of the consideration will be paid in cash and the rest of 85 percent will be paid through issuing stocks. It will issue about 3.01 billion stocks at a price of 5.23 yuan per share. Besides, the company will also raise 9.5 billion yuan of supporting funds by issuing shares at the same price through private placement. Zhongxing Group is a professional real estate enterprise with level-1 qualification for national real estate development.
TOP
○Tibet Urban Development and Investment to invest more in commercial real estate industry
------
Tibet Urban Development and Investment Co., Ltd. (600773.SH) plans to acquire 100 percent equity of Shanghai Tibet Development and Investment, 14.99 percent equity of Quanzhou Shangshi Property Co., Ltd. and 41.21 percent equity of Shaanxi Guoneng Lithium Co., Ltd. at a total price of 1.198 billion yuan by issuing shares at a price of 12.92 yuan per share through private placement and paying in cash. Besides, it will raise 1.165 billion yuan of supporting fund by issuing shares at a floor price of 14.52 yuan per share through private placement. The company indicates that this acquisition will enable itself to expand business in commercial real estate field and generate stable cash flow.
○Join In (Holding) sees change in actual controller
------
Join In Group, former controlling shareholder of Join In (Holding) Co., Ltd. (600745.SH), signs equity transfer agreement with Zhang Xuezheng, director and president of the company. The former plans to transfer 37 million shares of the company (accounting for 5.81 percent of the company's total share capital) at a price of 21.93 yuan per share to Zhang. The total cost will be about 811 million yuan. After the deal is done, the total shareholding proportion of Join In Group and its persons acting in concert Gao Jianrong and Feng Feifei will decrease from 31.79 percent to 25.98 percent. Zhang and the company's person acting in concert Wen Tianxia will totally hold 29.96 percent equity in the company, making Zhang as the new actual controller of the company and Wen the biggest shareholder of the company.
○Originwater Technology and others see shareholding increase
------
Controlling shareholder of Beijing Originwater Technology Co., Ltd. (300070.SZ) plans to buy shares worth 1-1.1 billion yuan of the company in next six months from Dec. 13 on. Controlling shareholder and actual controller of Aier Eye Hospital Group Co., Ltd. (300015.SZ) plans to increase shareholding in the company at no more than 300 million yuan in next six months. Actual controller of Zhejiang Canaan Technology Co., Ltd. (300412.SZ) intends to buy no more than 3 million shares of the company within one year from Dec. 12, accounting for 2.31 percent of the total share capital of the company.
Tibet Yinbixin Asset Management Co., Ltd., shareholder of Ningbo Sunlight Electrical Appliance Co., Ltd. (002473.SZ) increased his shareholding in the company by 7.8 million shares on Dec. 9, accounting for 4.875 percent of the company's share capital. Controlling shareholder of Sunvim Group Co., Ltd. (002083.SZ) increased shareholding in the company by 9.406 million shares during Nov. 28 and Dec. 12. Controlling shareholder of Henan Senyuan Electric Co., Ltd. (002358.SZ) increased shareholding in the company by 13.19 million shares on Dec. 2 and 12. Substantial shareholder of Shenzhen Hifuture Electric Co., Ltd. (002168.SZ) increased shareholding in the company by 12.02 million shares during Nov. 25 and Dec. 12. Controlling shareholder of Jiangsu Linyang Energy Co., Ltd. (601222.SH) increased shareholding in the company by 1.32 million shares on Dec. 12. Ni Zugen, controlling shareholder of KingClean Electric Co., Ltd. (603355.SH) increased shareholding in the company by 4.01 million shares during Sept. 20 and Dec. 12.
○Beijing Comens New Materials to by Huasen Plastic at over RMB900 mln
------
Beijing Comens New Materials Co., Ltd. (300200.SZ) plans to purchase 100 percent equity of Wuhan Huasen Plastic Co., Ltd. at a price of 910 million yuan, 546 million yuan of which will be paid in cash and the rest of which will be paid by issuing shares at a price of 14.78 yuan per share through private placement. At the same time, the company will also raise 364 million yuan by issuing shares at the same price through private placement via employee shareholding plan. Huasen Plastic is mainly specialized in manufacturing and selling vehicle plastic components. Its clients include Dongfeng Honda, GAC Honda and GAC Toyota, etc. According to performance commitment, its net profit should reach 80 million yuan, 90 million yuan and 100 million yuan during 2016 and 2018 respectively.
[Financial Reports Express]
○Actual controller of O-film Tech proposes high share conversion and dividend
------
Actual controller of Shenzhen O-film Tech Co., Ltd. proposes a 15-for-10 conversion of capital surplus into shares combined with 1.1 yuan dividend for every 10 shares in its annual report.
[Trading Alarms]
○Guizhou Broadcasting ＆ TV Information Network to launch IPO on Dec. 13
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Guizhou Broadcasting ＆ TV Information Network Co., Ltd. is going to launch IPO at a price of 8.92 yuan per share with an upper subscription limit of 63,000 shares for each account. The company is mainly engaged in broadcasting ＆ TV program rating service.
TOP
○UnionPay releases standards for QR code payment, development of mobile payment to accelerate
○Output and sales of automobiles in November record new high, the strong might always strong in CDN industry
○Zhonghang Heibao buys equity of Shenyang Aircraft Industry Group, China Enterprise Company to buy Zhongxing Group at RMB18.5 bln
○Tibet Urban Development and Investment to invest more in commercial real estate industry, actual controller of O-film Tech proposes high share conversion and dividend
[SSN Focus]
○UnionPay releases standards for QR code payment, development of mobile payment to accelerate
------
China UnionPay officially released the standards for QR code payment on Dec. 12 and will introduce supporting business rules and product plans later. Unlike the QR code payment already promoted and applied by some institutions in the market, the background account under UnionPay's standards is still based on real bank card, avoiding possible financial risks brought by capital in virtual account. Meanwhile, UnionPay's standards are compatible with international standards, leaving room for technical extension. It is learnt that KuaiQian Payment and Settlement Service Co., Ltd. is among the first batch of payment institutions supporting UnionPay's standards.
Comment: QR code payment is featured with advantages like low threshold for merchants, convenient operation and being suitable for daily small transactions. The Standards for Barcode Payment Business, released by the Payment ＆ Clearing Association of China in August this year, means that the market position of QR code payment has been approved by regulators. Several third-party payment platforms and traditional banks all throw themselves into mobile payment market. As to listed companies, Fujian Newland Computer Co., Ltd. (000997.SZ) is now engaged in the whole industrial chain covering POS terminals, scanning payment, merchant service system and big data operation; SZZT Electronics Co., Ltd. (002197.SZ) has entered into cooperation agreement with ZTE Corporation (000063.SZ) in areas like payment, Internet-based finance and etc.
[SSN Selection]
○The General Office of the State Council on Dec. 12 issued a circular proposing to set up and improve a series of systems for protecting and restoring wetlands.
○Jiang Yang, vice chairman of China Securities Regulatory Commission (CSRC), indicated on Dec. 12 that for the next step, the CSRC will continue to support industrial integration and structure upgrading through merger ＆ acquisition and reorganization.
○According to the latest announcement made by China Securities Regulatory Commission (CSRC), the IPO applications of 10 companies will be reviewed on Dec. 16.
○The executive meeting of Shanghai government held on Dec. 12 studied the work of building Chongming Island into a world-class eco-island. 147 projects are proposed in the three-year action plan.
○The price adjustment of refined oil products in China is expected to come again at 24:00 on Dec. 14. The price adjustment is expected to be the largest one within 2016.
TOP
[Industry Information]
○Output and sales of automobiles in November record new high, eye-catching data to continue in December
------
According to data released by the China Association of Automobile Manufacturers (CAAM) on Dec. 12, 3.011 million automobiles were produced and 2.939 million automobiles were sold in November in China, representing a month-on-month growth of 16.4 percent and 10.9 percent and a year-on-year growth of 17.8 percent and 16.6 percent, respectively. Both the output and sales of automobiles record new high in history. Research from WAYS Consulting Co., Ltd. shows that driven by rapid expansion of automobile market, the transaction price of passenger vehicles at terminals also hiked 550 yuan on the whole in November from a month earlier. The transaction price also rose by 3.1 percent from a year earlier.
Comment: Research report by CITIC Securities held that benefited from consumption in advance resulted from the favorable policy on car purchase tax and the earlier-than-usual Spring Festival in 2017, automobile data in December is expected to remain eye-catching. SAIC Motor Corporation Limited (600104.SH) sees great profit flexibility in the future. Institutions expect that the company's rising valuation is supported by fundamentals. Star car products of Great Wall Motor Company Limited (601633.SH) sell well continuously. Strategic car products are gradually recognized by the market. The company's product structure keeps improving.
○CDN industry requires license, the strong might always strong in future
------
The Ministry of Industry and Information Technology (MIIT) on Dec. 12 officially licensed Wangsu Science ＆ Technology Co., Ltd. (300017.SZ) and AliCloud, a subsidiary of Alibaba Group, with CDN business operation permit, marking that license is now required in China's CDN industry. It also marks that companies engaged in CDN business must get licensed first before providing business externally. SSN learnt that relevant technology standards and supporting supervision measures for the CDN business will be rolled out in succession later.
Comment: Industry insiders believe that enterprises with no license will be exposed to the risks of unlicensed business activity and operation beyond scope. As supervision measures improve, newcomers will see higher threshold for entering into the area. As the first obtainers of the license, leading enterprises enjoy greater right of speech in CDN area hands down. After years of accumulation, the whole CDN market will see greater scale effect. The strong might always be strong in the future.
TOP
[Announcement Interpretation]
○Zhonghang Heibao buys equity of Shenyang Aircraft Industry Group
------
Zhonghang Heibao Co., Ltd. (600760.SH) plans to buy 100 percent equity of Shenyang Aircraft Industry Group at a cost of 7.311 billion yuan from Aviation Industry Corporation of China (AVIC) and China Huarong Asset Management Co., Ltd. by issuing 909 million shares at a price of 8.04 yuan per share. At the same time, the company will also sell all its assets and liabilities excluding 66.61 percent equity of Shanghai Aviation Special Vehicle Manu. Co., Ltd. in cash to Jincheng Corporation. The value is estimated to be 543 million yuan. In addition, the company will raise 1.668 billion yuan from AVIC, FATO Mechanical And Electrical Equipment Group Co., Ltd and AVIC Electromechanical Systems Co., Ltd. by issuing 200 million shares at a price of 8.34 yuan per share.
Shenyang Aircraft Industry Group is a core aviation manufacturing enterprise under the AVIC and its aviation defense equipment is mainly fighter. After the reorganization is finished, principal business of the listed company will change from special vehicle, mini truck and hydraulic component business to aviation products manufacturing.
○China Enterprise Company to buy Zhongxing Group at RMB18.5 bln
------
China Enterprise Company Limited (600675.SH) plans to purchase 100 percent equity of Shanghai Zhongxing Group Co., Ltd. from its controlling shareholder Shanghai Land (Group) Co., Ltd. by issuing stocks and paying in cash. The value is estimated to be 18.522 billion yuan with estimated appreciation rate of about 174.54 percent. 15 percent of the consideration will be paid in cash and the rest of 85 percent will be paid through issuing stocks. It will issue about 3.01 billion stocks at a price of 5.23 yuan per share. Besides, the company will also raise 9.5 billion yuan of supporting funds by issuing shares at the same price through private placement. Zhongxing Group is a professional real estate enterprise with level-1 qualification for national real estate development.
TOP
○Tibet Urban Development and Investment to invest more in commercial real estate industry
------
Tibet Urban Development and Investment Co., Ltd. (600773.SH) plans to acquire 100 percent equity of Shanghai Tibet Development and Investment, 14.99 percent equity of Quanzhou Shangshi Property Co., Ltd. and 41.21 percent equity of Shaanxi Guoneng Lithium Co., Ltd. at a total price of 1.198 billion yuan by issuing shares at a price of 12.92 yuan per share through private placement and paying in cash. Besides, it will raise 1.165 billion yuan of supporting fund by issuing shares at a floor price of 14.52 yuan per share through private placement. The company indicates that this acquisition will enable itself to expand business in commercial real estate field and generate stable cash flow.
○Join In (Holding) sees change in actual controller
------
Join In Group, former controlling shareholder of Join In (Holding) Co., Ltd. (600745.SH), signs equity transfer agreement with Zhang Xuezheng, director and president of the company. The former plans to transfer 37 million shares of the company (accounting for 5.81 percent of the company's total share capital) at a price of 21.93 yuan per share to Zhang. The total cost will be about 811 million yuan. After the deal is done, the total shareholding proportion of Join In Group and its persons acting in concert Gao Jianrong and Feng Feifei will decrease from 31.79 percent to 25.98 percent. Zhang and the company's person acting in concert Wen Tianxia will totally hold 29.96 percent equity in the company, making Zhang as the new actual controller of the company and Wen the biggest shareholder of the company.
○Originwater Technology and others see shareholding increase
------
Controlling shareholder of Beijing Originwater Technology Co., Ltd. (300070.SZ) plans to buy shares worth 1-1.1 billion yuan of the company in next six months from Dec. 13 on. Controlling shareholder and actual controller of Aier Eye Hospital Group Co., Ltd. (300015.SZ) plans to increase shareholding in the company at no more than 300 million yuan in next six months. Actual controller of Zhejiang Canaan Technology Co., Ltd. (300412.SZ) intends to buy no more than 3 million shares of the company within one year from Dec. 12, accounting for 2.31 percent of the total share capital of the company.
Tibet Yinbixin Asset Management Co., Ltd., shareholder of Ningbo Sunlight Electrical Appliance Co., Ltd. (002473.SZ) increased his shareholding in the company by 7.8 million shares on Dec. 9, accounting for 4.875 percent of the company's share capital. Controlling shareholder of Sunvim Group Co., Ltd. (002083.SZ) increased shareholding in the company by 9.406 million shares during Nov. 28 and Dec. 12. Controlling shareholder of Henan Senyuan Electric Co., Ltd. (002358.SZ) increased shareholding in the company by 13.19 million shares on Dec. 2 and 12. Substantial shareholder of Shenzhen Hifuture Electric Co., Ltd. (002168.SZ) increased shareholding in the company by 12.02 million shares during Nov. 25 and Dec. 12. Controlling shareholder of Jiangsu Linyang Energy Co., Ltd. (601222.SH) increased shareholding in the company by 1.32 million shares on Dec. 12. Ni Zugen, controlling shareholder of KingClean Electric Co., Ltd. (603355.SH) increased shareholding in the company by 4.01 million shares during Sept. 20 and Dec. 12.
○Beijing Comens New Materials to by Huasen Plastic at over RMB900 mln
------
Beijing Comens New Materials Co., Ltd. (300200.SZ) plans to purchase 100 percent equity of Wuhan Huasen Plastic Co., Ltd. at a price of 910 million yuan, 546 million yuan of which will be paid in cash and the rest of which will be paid by issuing shares at a price of 14.78 yuan per share through private placement. At the same time, the company will also raise 364 million yuan by issuing shares at the same price through private placement via employee shareholding plan. Huasen Plastic is mainly specialized in manufacturing and selling vehicle plastic components. Its clients include Dongfeng Honda, GAC Honda and GAC Toyota, etc. According to performance commitment, its net profit should reach 80 million yuan, 90 million yuan and 100 million yuan during 2016 and 2018 respectively.
[Financial Reports Express]
○Actual controller of O-film Tech proposes high share conversion and dividend
------
Actual controller of Shenzhen O-film Tech Co., Ltd. proposes a 15-for-10 conversion of capital surplus into shares combined with 1.1 yuan dividend for every 10 shares in its annual report.
[Trading Alarms]
○Guizhou Broadcasting ＆ TV Information Network to launch IPO on Dec. 13
------
Guizhou Broadcasting ＆ TV Information Network Co., Ltd. is going to launch IPO at a price of 8.92 yuan per share with an upper subscription limit of 63,000 shares for each account. The company is mainly engaged in broadcasting ＆ TV program rating service.
TOP
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