[Today's Guide]
○ Coal indirect liquefaction project of Shenhua Ningxia Coal Industrial formally put in production, going to guarantee energy security
○ Distributed energy resource sees multi-policy promotion, PV as one of development highlights
○Marine engineering equipment technology industrial alliance established to boost development towards marine power
○TongLing Zonfa Trinity Technology sees shareholding increase by its actual controller, Haixin Group to vitalize existing land resources
[SSN Focus]
○ Coal indirect liquefaction project of Shenhua Ningxia Coal Industrial formally put in production, going to guarantee energy security
------
Coal indirect liquefaction demonstration project with annual production of 4 million tons under Shenhua Ningxia Coal Industrial Group Co., Ltd. has been formally put in production on Dec. 28, breaking long term monopoly of foreign coal-to-liquids chemical engineering technologies. The total investment is around 55 billion yuan for the said project, which is a chemical engineering project with the biggest one-time investment and construction scale in the petrochemical ＆ coal chemical industry worldwide, it introduced. The compound oil products will boost China's oil products upgrading, with features of ultralow sulfur, low arene, high cetane number, and low ash specification; these indicators are all better than National V Code and European V Code to effectively lower the urban air pollution.
Comment: China is rich in coal, poor in oil, and rare in gas. 60 percent of oil used in China relies on import, but this project can play a significant role in enriching China's oil gas resource, balancing the energy structure, reducing foreign-trade dependence, and guaranteeing national energy security. China National Chemical Engineering Co., Ltd. (601117.SH) once signed general contract for coal-to-oil project of Yitai Energy valuing at 4.7 billion yuan. Hangzhou Hangyang Co., Ltd. (002430.SZ) once announced that it won the large air separation plant order for coal-to-oil project of Shenhua Ningxia Coal Industrial Group. Shandong Sunway Petrochemical Engineering Co., Ltd. (002469.SZ) provides sulfur recovery units for this project.
[SSN Selection]
○ General Office of the State Council issued Opinions on Further Promoting Processing industrial Development for Agricultural Products to encourage enterprises to create whole-industrial chain.
○ National Railway Administration will boost the modernization of railway equipment technology, so as to promote structural reform of railway supply side.
○ China's first national aero-engine research institute has been established on Dec. 28, and development of domestic aero-engine sees new opportunities.
○ The slightly tight supply ＆ demand relationship on Dec. 28 in the market pushed cobaltosic oxide to increase nearly 3 percent, and the growth rate of the latest month accumulated at 18 percent.
○ Leshi Internet Information ＆ Technology Corp., Beijing (300104.SZ) stated in its latest announcement that it will introduce strategic investors, and trading scale is expected to surpass 10 billion yuan.
TOP
[Industrial Information]
○ Distributed energy resource sees multi-policy promotion, PV as one of development highlights
------
Distributed energy resource will become mainstream of electric power development during the "13th Five-Year Plan" period, and distributed PV, wind power and others will be the main direction, Yu Chunping, managing director of China Energy Research Society, on Dec. 28 indicated. Compared to disadvantages of concentrated pattern, including blocked power transmission channel, distributed pattern is advanced in flexible energy distribution, high-effective energy and other features.
Comment: Related policies have been released recently to focus more on distributed pattern. National Development and Reform Commission recently announced power price adjustment of PV power station and onshore wind power; it commonly lowers the benchmark power price of new energy in 2017, but subsidy standard of distributed PV power has not been adjusted. Additionally, "13th Five-Year Plan" for Power Development and other documents also clearly propose to enhance distributed PV power station. Research report of securities company pointed out, distributed PV installing scale is expected to gain the annual growth of 12GW roughly in next four years. As monocrystalline silicon piece producer, Xi'an Longi Silicon Materials Corp. (601012.SH) benefits from distributed PV development. Jiangsu Linyang Energy Co., Ltd. (601222.SH) positively expands construction and operation of distributed PV power station.
TOP
○Marine engineering equipment technology industrial alliance established to boost development towards marine power
------
Deep Sea and Marine Engineering Equipment Technology Industrial Alliance is established in Beijing on Dec. 28 by 7 major marine engineering equipment manufacturers including COSCO Shipping Heavy Industry Co., Ltd., which will boost integration of the whole chain of production-university-research cooperation and technical progress and industrialization of marine equipment. Liang Yanfeng, general manager of COSCO Shipping Heavy Industry, indicates that marine engineering equipment is material and technological basis of implementing oceanic strategy and developing China into a marine power.
Comment: According to China's Marine Economic Development Report 2016, gross ocean product (GOP) of China recorded 6,466.9 billion yuan last year, accounting for 9.4 percent of GDP. It is reported by media that the 13th Five-year Plan for shipping industry is expected to be introduced very soon, which proposes that market share of major products of core technologies of high-tech shipping and marine equipment should be more than 30 percent in international market by 2020.
TOP
[Announcement Interpretation]
○TongLing Zonfa Trinity Technology sees shareholding increase by its actual controller
------
TongLing Zonfa Trinity Technology Co., Ltd. (600520.SH) received a circular that its actual controller increased shareholding in the company via many subsidiaries by 7,921,400 shares at a price ranging from 18.6 yuan per share to 23.66 yuan per share during June 30 and Dec. 27, accounting for 5 percent of total share capital of the company. With this, the actual controller holds 25 percent equity in the company. TongLing Zonfa Trinity Technology recently just announced that its shares were bought by Tsinghua Unigroup to 5 percent limit through secondary market acquisition for 3 times.
○Haixin Group to promote development of industrial park and vitalize existing land resources
------
Shanghai Haixin Group Co., Ltd. (600851.SH) singed strategic cooperation agreement with the People's Government of Dongjing town of Shanghai municipality and Shanghai Lingang Holdings Corporation Limited (600848.SH). They plan to jointly propel development and construction, operation management and supporting services of industrial park in Songjiang district with core in Dongjing town, including vitalizing existing land resource; acquire projects under construction which are ripe for development; and conduction operation to gain additional lands.
○Heungkong Holding and other firms see shareholding increase
------
Persons acting in concert of actual controller of Shenzhen Heungkong Holding Co., Ltd. (600162.SH) increased shareholding by 11,746,700 shares at an average price of 3.97 yuan per share on Dec. 28, accounting for 0.42 percent of the company's total share capital. And it will buy shares of the company at no more than 4 percent of total share capital in next 6 months. Spouse and son of actual controller of JPMF Guangdong Co., Ltd. (002600.SZ) increased shareholding by 2,917,600 shares at an average price of 10.19 yuan per share from Dec. 26 to 28. Actual controller of Qingdao Hengshun Zhongsheng Group Co., Ltd. (300208.SZ) increased shareholding by 1,331,200 shares at an average price of 17.487 yuan per share on Dec. 27. Director and his spouse of Dalian Yi Qiao Sea Cucumber Co., Ltd. (002447.SZ) increased shareholding by 119,000 shares at an average price of 9.84 yuan per share on Dec. 27.
[Financial Reports Express]
○DHC Software and Leo Group propose high share conversion and dividend
------
DHC Software Co., Ltd. (002065.SZ) proposes a 10-for-10 conversion of capital surplus into shares combined with 1.5 yuan dividend for every 10 shares in its annual report. Substantial shareholder and actual controllers of Leo Group Co., Ltd. (002131.SZ) propose a 25-for-10 conversion of capital surplus into shares combined with 0.37 yuan dividend for every 10 shares in its annual report and some of its directors and senior managers intend to sell 5.9 million shares at most in next 6 months.
○Profits of Bluefocus Communication Group expected to increase significantly
------
Profits of Bluefocus Communication Group Co., Ltd. (300058.SZ) is expected to grow by 10 times to 11.6 times in 2016 as mobile Internet business keeps rapid growth and return on investment which were previously made in some projects are determined.
[Trading Alarms]
○3 new companies including Rongtai Health Technology to launch IPOs on Dec. 29
------
Shanghai Rongtai Health Technology Corporation Limited is going to launch IPO at a price of 44.66 yuan per share with an upper limit of 17,000 shares for each account. It is engaged in massage apparatus. Clenergy International Co., Ltd. is going to launch IPO at a price of 5.57 yuan per share with an upper limit of 27,000 shares for each account. It is engaged in solar photovoltaic power station. Queclink Wireless Solutions Co., Ltd. is going to launch IPO at a price of 18.48 yuan per share with an upper limit of 20,000 shares for each account. It is specialized in tracking communication products.
TOP
○ Coal indirect liquefaction project of Shenhua Ningxia Coal Industrial formally put in production, going to guarantee energy security
○ Distributed energy resource sees multi-policy promotion, PV as one of development highlights
○Marine engineering equipment technology industrial alliance established to boost development towards marine power
○TongLing Zonfa Trinity Technology sees shareholding increase by its actual controller, Haixin Group to vitalize existing land resources
[SSN Focus]
○ Coal indirect liquefaction project of Shenhua Ningxia Coal Industrial formally put in production, going to guarantee energy security
------
Coal indirect liquefaction demonstration project with annual production of 4 million tons under Shenhua Ningxia Coal Industrial Group Co., Ltd. has been formally put in production on Dec. 28, breaking long term monopoly of foreign coal-to-liquids chemical engineering technologies. The total investment is around 55 billion yuan for the said project, which is a chemical engineering project with the biggest one-time investment and construction scale in the petrochemical ＆ coal chemical industry worldwide, it introduced. The compound oil products will boost China's oil products upgrading, with features of ultralow sulfur, low arene, high cetane number, and low ash specification; these indicators are all better than National V Code and European V Code to effectively lower the urban air pollution.
Comment: China is rich in coal, poor in oil, and rare in gas. 60 percent of oil used in China relies on import, but this project can play a significant role in enriching China's oil gas resource, balancing the energy structure, reducing foreign-trade dependence, and guaranteeing national energy security. China National Chemical Engineering Co., Ltd. (601117.SH) once signed general contract for coal-to-oil project of Yitai Energy valuing at 4.7 billion yuan. Hangzhou Hangyang Co., Ltd. (002430.SZ) once announced that it won the large air separation plant order for coal-to-oil project of Shenhua Ningxia Coal Industrial Group. Shandong Sunway Petrochemical Engineering Co., Ltd. (002469.SZ) provides sulfur recovery units for this project.
[SSN Selection]
○ General Office of the State Council issued Opinions on Further Promoting Processing industrial Development for Agricultural Products to encourage enterprises to create whole-industrial chain.
○ National Railway Administration will boost the modernization of railway equipment technology, so as to promote structural reform of railway supply side.
○ China's first national aero-engine research institute has been established on Dec. 28, and development of domestic aero-engine sees new opportunities.
○ The slightly tight supply ＆ demand relationship on Dec. 28 in the market pushed cobaltosic oxide to increase nearly 3 percent, and the growth rate of the latest month accumulated at 18 percent.
○ Leshi Internet Information ＆ Technology Corp., Beijing (300104.SZ) stated in its latest announcement that it will introduce strategic investors, and trading scale is expected to surpass 10 billion yuan.
TOP
[Industrial Information]
○ Distributed energy resource sees multi-policy promotion, PV as one of development highlights
------
Distributed energy resource will become mainstream of electric power development during the "13th Five-Year Plan" period, and distributed PV, wind power and others will be the main direction, Yu Chunping, managing director of China Energy Research Society, on Dec. 28 indicated. Compared to disadvantages of concentrated pattern, including blocked power transmission channel, distributed pattern is advanced in flexible energy distribution, high-effective energy and other features.
Comment: Related policies have been released recently to focus more on distributed pattern. National Development and Reform Commission recently announced power price adjustment of PV power station and onshore wind power; it commonly lowers the benchmark power price of new energy in 2017, but subsidy standard of distributed PV power has not been adjusted. Additionally, "13th Five-Year Plan" for Power Development and other documents also clearly propose to enhance distributed PV power station. Research report of securities company pointed out, distributed PV installing scale is expected to gain the annual growth of 12GW roughly in next four years. As monocrystalline silicon piece producer, Xi'an Longi Silicon Materials Corp. (601012.SH) benefits from distributed PV development. Jiangsu Linyang Energy Co., Ltd. (601222.SH) positively expands construction and operation of distributed PV power station.
TOP
○Marine engineering equipment technology industrial alliance established to boost development towards marine power
------
Deep Sea and Marine Engineering Equipment Technology Industrial Alliance is established in Beijing on Dec. 28 by 7 major marine engineering equipment manufacturers including COSCO Shipping Heavy Industry Co., Ltd., which will boost integration of the whole chain of production-university-research cooperation and technical progress and industrialization of marine equipment. Liang Yanfeng, general manager of COSCO Shipping Heavy Industry, indicates that marine engineering equipment is material and technological basis of implementing oceanic strategy and developing China into a marine power.
Comment: According to China's Marine Economic Development Report 2016, gross ocean product (GOP) of China recorded 6,466.9 billion yuan last year, accounting for 9.4 percent of GDP. It is reported by media that the 13th Five-year Plan for shipping industry is expected to be introduced very soon, which proposes that market share of major products of core technologies of high-tech shipping and marine equipment should be more than 30 percent in international market by 2020.
TOP
[Announcement Interpretation]
○TongLing Zonfa Trinity Technology sees shareholding increase by its actual controller
------
TongLing Zonfa Trinity Technology Co., Ltd. (600520.SH) received a circular that its actual controller increased shareholding in the company via many subsidiaries by 7,921,400 shares at a price ranging from 18.6 yuan per share to 23.66 yuan per share during June 30 and Dec. 27, accounting for 5 percent of total share capital of the company. With this, the actual controller holds 25 percent equity in the company. TongLing Zonfa Trinity Technology recently just announced that its shares were bought by Tsinghua Unigroup to 5 percent limit through secondary market acquisition for 3 times.
○Haixin Group to promote development of industrial park and vitalize existing land resources
------
Shanghai Haixin Group Co., Ltd. (600851.SH) singed strategic cooperation agreement with the People's Government of Dongjing town of Shanghai municipality and Shanghai Lingang Holdings Corporation Limited (600848.SH). They plan to jointly propel development and construction, operation management and supporting services of industrial park in Songjiang district with core in Dongjing town, including vitalizing existing land resource; acquire projects under construction which are ripe for development; and conduction operation to gain additional lands.
○Heungkong Holding and other firms see shareholding increase
------
Persons acting in concert of actual controller of Shenzhen Heungkong Holding Co., Ltd. (600162.SH) increased shareholding by 11,746,700 shares at an average price of 3.97 yuan per share on Dec. 28, accounting for 0.42 percent of the company's total share capital. And it will buy shares of the company at no more than 4 percent of total share capital in next 6 months. Spouse and son of actual controller of JPMF Guangdong Co., Ltd. (002600.SZ) increased shareholding by 2,917,600 shares at an average price of 10.19 yuan per share from Dec. 26 to 28. Actual controller of Qingdao Hengshun Zhongsheng Group Co., Ltd. (300208.SZ) increased shareholding by 1,331,200 shares at an average price of 17.487 yuan per share on Dec. 27. Director and his spouse of Dalian Yi Qiao Sea Cucumber Co., Ltd. (002447.SZ) increased shareholding by 119,000 shares at an average price of 9.84 yuan per share on Dec. 27.
[Financial Reports Express]
○DHC Software and Leo Group propose high share conversion and dividend
------
DHC Software Co., Ltd. (002065.SZ) proposes a 10-for-10 conversion of capital surplus into shares combined with 1.5 yuan dividend for every 10 shares in its annual report. Substantial shareholder and actual controllers of Leo Group Co., Ltd. (002131.SZ) propose a 25-for-10 conversion of capital surplus into shares combined with 0.37 yuan dividend for every 10 shares in its annual report and some of its directors and senior managers intend to sell 5.9 million shares at most in next 6 months.
○Profits of Bluefocus Communication Group expected to increase significantly
------
Profits of Bluefocus Communication Group Co., Ltd. (300058.SZ) is expected to grow by 10 times to 11.6 times in 2016 as mobile Internet business keeps rapid growth and return on investment which were previously made in some projects are determined.
[Trading Alarms]
○3 new companies including Rongtai Health Technology to launch IPOs on Dec. 29
------
Shanghai Rongtai Health Technology Corporation Limited is going to launch IPO at a price of 44.66 yuan per share with an upper limit of 17,000 shares for each account. It is engaged in massage apparatus. Clenergy International Co., Ltd. is going to launch IPO at a price of 5.57 yuan per share with an upper limit of 27,000 shares for each account. It is engaged in solar photovoltaic power station. Queclink Wireless Solutions Co., Ltd. is going to launch IPO at a price of 18.48 yuan per share with an upper limit of 20,000 shares for each account. It is specialized in tracking communication products.
TOP
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