[Today's Guide]
○ Package of key projects for tourism and entertainment announced, development of tourism products to accelerate
○ Environmental protection threshold for secondary lead industry raised, benefiting leading companies
○ China Robot Industrial Promotion Conference held, series of supporting policies to issue
○ Sugarcane Chemical Factory to hold Zhitong Biological Pharmaceutical, Lifan Industry to gain RMB400 mln as land acquisition compensation
[SSN Focus]
○Package of key projects for tourism and entertainment announced, development of tourism products to accelerate
------
On Dec. 14, the National Development and Reform Commission (NDRC) and the National Tourism Administration (NTA) issued a circular on constructing key projects for tourism and entertainment, proposing that the direct investment in tourism to maintain an annual average increase of 20 percent and the total investment in tourism to reach 2 trillion yuan by 2020. The tourism consumption will reach 7 trillion yuan and the contribution of the tourism industry to national economic growth will exceed 10 percent. Accelerating the development of tourism products is an important part of the package of key projects.
Comment: Industry insiders believe that China's tourism industry now still sees "short supply" and quality tourism products are urgently needed by the public. Though scarce tourism resources like well-known mountains and rivers cannot be duplicated, quality tourism products see huge growth potential. Large-scale tourism complex projects have become new highlights of tourism investment in China, and giants like Wanda Group and Fantawild Holdings Inc. make arrangement in theme parks one after another. As to listed companies, Wuhan Sante Cableway Group Co., Ltd. (002159.SZ) has acquired some resources of first-tier tourist destinations. Controlling shareholder of the company keeps increasing shareholding, and the equities held by controlling shareholder and its parties acting in concert total 20.55 percent; Yunnan Tourism Co., Ltd. (002059.SZ) has introduced Shenzhen Overseas Chinese Town Co., Ltd. (000069.SZ) as its shareholder. Institutions are rosy about the prospect of the integration of cultural and tourism resources.
[SSN Selection]
○China's total social financing, a broad measure of credit and liquidity in the economy, rose sharply to 1.74 trillion yuan in November, beating market expectation. The figure is mainly contributed by non-standard financing like entrusted loans and credit loans.
○A reduction of 382.7 billion yuan is seen in the funds outstanding for foreign exchange in November, the biggest single-month drop since January this year.
○The regulations on approving and record filing of enterprises' investment projects are officially released on Dec. 14, ensuring enterprises' autonomy in making investments.
○Henan Province Development and Reform Commission announces that in 2017, 2.5 million yuan will be awarded for every closure of coal mines; Hubei Provincial Safety Production Supervision Authority requires all coal mines in the province to stop production for consolidation.
○The US Federal Reserve will announce its decision on interest rates and the meeting statement in early morning of Dec. 15 (Beijing Time). An interest hike of 25 basis points is widely expected by the surveyed economists.
TOP
[Industry Information]
○Environmental protection threshold for secondary lead industry raised, benefiting leading companies
------
The Ministry of Industry and Information Technology (MIIT) recently released the standards for the secondary lead industry, requiring that the pretreatment projects for waste lead acid battery should process over 100,000 tons per year and above 60,000 tons secondary lead should be processed from pretreatment-smelting projects annually. Compared with the conditions for the access to the secondary lead industry released in September 2012, the new standards propose higher requirement on the standards for environmental protection, equipment and technology, production scale, energy consumption, comprehensive utilization of resources and etc.
Comment: Analysts point out that in China, illegal secondary lead capacity still exists, and relevant enterprises are small and dispersive. The new standards will help to standardize industrial development and promote capacity integration and upgrading. Institutions estimate that in next three years, the number of enterprises engaged in secondary lead might be cut from 200 to less than 10. Leading companies in the industry will see benefit. Institutions are rosy about Henan Yuguang Gold ＆ Lead Co., Ltd. (600531.SH) and Camel Group Co., Ltd. (601311.SH) due to their advantages in channels.
TOP
○ China Robot Industrial Promotion Conference held, series of supporting policies to issue
------
China Robot Industrial Promotion Conference was held on Dec. 14. Policies on three aspects will be released to promote the robot industrial development: 1) formulating overall standards, improving product ＆ standard systems, and guiding enterprises for self-discipline; 2) constructing national inspection ＆ assessment center and third-party inspection ＆ certification work based on requirements of National Development and Reform Commission, Ministry of Industry ＆ Information Technology (MIIT), and Standardization Administration; 3) MIIT will issue two important document called as Guidelines on Promoting Sound and Order Development of Robot Industry and Standardization Conditions for Robot Industry, according to Song Xiaogang, executive director general and also secretary general of China Robot Industry Alliance (CRIA).
Additionally, Song also revealed that China will release robot industrial white paper, robot standard system framework and other important documents in the future. In the said conference, CRIA released three standards for welding robot, filling robot and etc., SSN learnt.
TOP
[Announcement Interpretation]
○ Sugarcane Chemical Factory to hold Zhitong Biological Pharmaceutical with RMB673 mln
------
Jiangmen Sugarcane Chemical Factory (Group) Co., Ltd. (000576.SZ) proposes to acquire 51 percent equities of Hebei Zhitong Biological Pharmaceutical Limited by Share Ltd. through private placement and cash, with transaction price of 673 million yuan; and meanwhile, it also plans to raise 100 million yuan as supporting fund from Hu Yihuang, son of its actual controller, through private placement, and the offering prices are all 12.97 yuan per share.
Zhitong Biological Pharmaceutical promises to gain a net profit of 55 million, 75 million, 100 million, 130 million, and 169 million yuan for 2016 to 2020. Currently, Sugarcane Chemical Factory is mainly engaged in LED production, biochemical industry and paper trade, and it will realize its strategic deployment in the pharmaceutical industry after restructuring.
○ Lifan Industry to gain RMB400 mln as land acquisition compensation
------
Lifan Automobile Co., Ltd., a subsidiary held by Lifan Industry (Group) Co., Ltd. (601777.SH), has a lot of land acquired by local government, and this land is located at No. 27 Liyuan Village, Beipei District of Chongqing. The compensation totals at 400 million yuan roughly, which is expected to contribute around 250 million yuan to the listed company's profit before tax. Lifan Industry achieved a net profit of 186 million yuan for the first three quarters in 2016.
○ Senior management increased shareholdings in Jiahua Energy Chemical Industry and others
------
The controlling shareholder of Zhejiang Jiahua Energy Chemical Industry Co., Ltd. (600273.SH) increased 3.01 million shareholdings on Dec. 14. Some senior managers and core leaders of Qingdao Haili Metal One Co., Ltd. (002537.SZ) increased 4.99 million shareholdings from Nov. 17 to Dec. 13. Controlling shareholder of Jiangsu Linyang Energy Co., Ltd. (601222.SH) increased 1.25 million shareholdings on Dec. 14. Chairman of Shanghai 2345 Network Holding Group Co., Ltd. (002195.SZ) on Dec. 14 increased 1 million shareholdings. Wen Jianping, controlling shareholder of Beijing Originwater Technology Co., Ltd. (300070.SZ), increased 56.2824 million shareholdings through block trade. The controlling shareholder of Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (600196.SH) continued to increase 590,000 shareholdings on Dec. 13.
○ Yunnan Yuntou Ecology and Environment Technology Co., Ltd. (002200.SZ) signs three construction project agreements for Chuxiong development zone, with a contracting fund of 718 million yuan, accounting for 85.15 percent of its revenue in 2015.
[Trading Alarms]
○ Ganso and Tvt Digital Technology to issue new shares on Dec. 15
------
Ganso Co., Ltd. (603886.SH) is mainly engaged in baking food, with offering price of 10.16 yuan per share and upper subscription limit of 24,000 shares; these two figures are 12.34 yuan per share and 10,500 shares for Shenzhen Tvt Digital Technology Co., Ltd. (002835.SZ), which is mainly engaged in a series of video surveillance products.
TOP
○ Package of key projects for tourism and entertainment announced, development of tourism products to accelerate
○ Environmental protection threshold for secondary lead industry raised, benefiting leading companies
○ China Robot Industrial Promotion Conference held, series of supporting policies to issue
○ Sugarcane Chemical Factory to hold Zhitong Biological Pharmaceutical, Lifan Industry to gain RMB400 mln as land acquisition compensation
[SSN Focus]
○Package of key projects for tourism and entertainment announced, development of tourism products to accelerate
------
On Dec. 14, the National Development and Reform Commission (NDRC) and the National Tourism Administration (NTA) issued a circular on constructing key projects for tourism and entertainment, proposing that the direct investment in tourism to maintain an annual average increase of 20 percent and the total investment in tourism to reach 2 trillion yuan by 2020. The tourism consumption will reach 7 trillion yuan and the contribution of the tourism industry to national economic growth will exceed 10 percent. Accelerating the development of tourism products is an important part of the package of key projects.
Comment: Industry insiders believe that China's tourism industry now still sees "short supply" and quality tourism products are urgently needed by the public. Though scarce tourism resources like well-known mountains and rivers cannot be duplicated, quality tourism products see huge growth potential. Large-scale tourism complex projects have become new highlights of tourism investment in China, and giants like Wanda Group and Fantawild Holdings Inc. make arrangement in theme parks one after another. As to listed companies, Wuhan Sante Cableway Group Co., Ltd. (002159.SZ) has acquired some resources of first-tier tourist destinations. Controlling shareholder of the company keeps increasing shareholding, and the equities held by controlling shareholder and its parties acting in concert total 20.55 percent; Yunnan Tourism Co., Ltd. (002059.SZ) has introduced Shenzhen Overseas Chinese Town Co., Ltd. (000069.SZ) as its shareholder. Institutions are rosy about the prospect of the integration of cultural and tourism resources.
[SSN Selection]
○China's total social financing, a broad measure of credit and liquidity in the economy, rose sharply to 1.74 trillion yuan in November, beating market expectation. The figure is mainly contributed by non-standard financing like entrusted loans and credit loans.
○A reduction of 382.7 billion yuan is seen in the funds outstanding for foreign exchange in November, the biggest single-month drop since January this year.
○The regulations on approving and record filing of enterprises' investment projects are officially released on Dec. 14, ensuring enterprises' autonomy in making investments.
○Henan Province Development and Reform Commission announces that in 2017, 2.5 million yuan will be awarded for every closure of coal mines; Hubei Provincial Safety Production Supervision Authority requires all coal mines in the province to stop production for consolidation.
○The US Federal Reserve will announce its decision on interest rates and the meeting statement in early morning of Dec. 15 (Beijing Time). An interest hike of 25 basis points is widely expected by the surveyed economists.
TOP
[Industry Information]
○Environmental protection threshold for secondary lead industry raised, benefiting leading companies
------
The Ministry of Industry and Information Technology (MIIT) recently released the standards for the secondary lead industry, requiring that the pretreatment projects for waste lead acid battery should process over 100,000 tons per year and above 60,000 tons secondary lead should be processed from pretreatment-smelting projects annually. Compared with the conditions for the access to the secondary lead industry released in September 2012, the new standards propose higher requirement on the standards for environmental protection, equipment and technology, production scale, energy consumption, comprehensive utilization of resources and etc.
Comment: Analysts point out that in China, illegal secondary lead capacity still exists, and relevant enterprises are small and dispersive. The new standards will help to standardize industrial development and promote capacity integration and upgrading. Institutions estimate that in next three years, the number of enterprises engaged in secondary lead might be cut from 200 to less than 10. Leading companies in the industry will see benefit. Institutions are rosy about Henan Yuguang Gold ＆ Lead Co., Ltd. (600531.SH) and Camel Group Co., Ltd. (601311.SH) due to their advantages in channels.
TOP
○ China Robot Industrial Promotion Conference held, series of supporting policies to issue
------
China Robot Industrial Promotion Conference was held on Dec. 14. Policies on three aspects will be released to promote the robot industrial development: 1) formulating overall standards, improving product ＆ standard systems, and guiding enterprises for self-discipline; 2) constructing national inspection ＆ assessment center and third-party inspection ＆ certification work based on requirements of National Development and Reform Commission, Ministry of Industry ＆ Information Technology (MIIT), and Standardization Administration; 3) MIIT will issue two important document called as Guidelines on Promoting Sound and Order Development of Robot Industry and Standardization Conditions for Robot Industry, according to Song Xiaogang, executive director general and also secretary general of China Robot Industry Alliance (CRIA).
Additionally, Song also revealed that China will release robot industrial white paper, robot standard system framework and other important documents in the future. In the said conference, CRIA released three standards for welding robot, filling robot and etc., SSN learnt.
TOP
[Announcement Interpretation]
○ Sugarcane Chemical Factory to hold Zhitong Biological Pharmaceutical with RMB673 mln
------
Jiangmen Sugarcane Chemical Factory (Group) Co., Ltd. (000576.SZ) proposes to acquire 51 percent equities of Hebei Zhitong Biological Pharmaceutical Limited by Share Ltd. through private placement and cash, with transaction price of 673 million yuan; and meanwhile, it also plans to raise 100 million yuan as supporting fund from Hu Yihuang, son of its actual controller, through private placement, and the offering prices are all 12.97 yuan per share.
Zhitong Biological Pharmaceutical promises to gain a net profit of 55 million, 75 million, 100 million, 130 million, and 169 million yuan for 2016 to 2020. Currently, Sugarcane Chemical Factory is mainly engaged in LED production, biochemical industry and paper trade, and it will realize its strategic deployment in the pharmaceutical industry after restructuring.
○ Lifan Industry to gain RMB400 mln as land acquisition compensation
------
Lifan Automobile Co., Ltd., a subsidiary held by Lifan Industry (Group) Co., Ltd. (601777.SH), has a lot of land acquired by local government, and this land is located at No. 27 Liyuan Village, Beipei District of Chongqing. The compensation totals at 400 million yuan roughly, which is expected to contribute around 250 million yuan to the listed company's profit before tax. Lifan Industry achieved a net profit of 186 million yuan for the first three quarters in 2016.
○ Senior management increased shareholdings in Jiahua Energy Chemical Industry and others
------
The controlling shareholder of Zhejiang Jiahua Energy Chemical Industry Co., Ltd. (600273.SH) increased 3.01 million shareholdings on Dec. 14. Some senior managers and core leaders of Qingdao Haili Metal One Co., Ltd. (002537.SZ) increased 4.99 million shareholdings from Nov. 17 to Dec. 13. Controlling shareholder of Jiangsu Linyang Energy Co., Ltd. (601222.SH) increased 1.25 million shareholdings on Dec. 14. Chairman of Shanghai 2345 Network Holding Group Co., Ltd. (002195.SZ) on Dec. 14 increased 1 million shareholdings. Wen Jianping, controlling shareholder of Beijing Originwater Technology Co., Ltd. (300070.SZ), increased 56.2824 million shareholdings through block trade. The controlling shareholder of Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (600196.SH) continued to increase 590,000 shareholdings on Dec. 13.
○ Yunnan Yuntou Ecology and Environment Technology Co., Ltd. (002200.SZ) signs three construction project agreements for Chuxiong development zone, with a contracting fund of 718 million yuan, accounting for 85.15 percent of its revenue in 2015.
[Trading Alarms]
○ Ganso and Tvt Digital Technology to issue new shares on Dec. 15
------
Ganso Co., Ltd. (603886.SH) is mainly engaged in baking food, with offering price of 10.16 yuan per share and upper subscription limit of 24,000 shares; these two figures are 12.34 yuan per share and 10,500 shares for Shenzhen Tvt Digital Technology Co., Ltd. (002835.SZ), which is mainly engaged in a series of video surveillance products.
TOP
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