[Today's Guide]
○ Third FTZs to establish, Shaanxi and Hubei prepared for official establishment
○ Tencent introduces new red envelope game, Tungsten concentrate prices rise slightly
○ Controlling shareholder of Chang Jiang Shipping Group Phoenix transfers all of its equity, Shenda to buy overseas assets at USD300 mln
○ Longwei Culture Media invests in Zhejiang Wanjia, Saimo Electric and others propose high share conversion and dividend
[SSN Focus]
○ Third FTZs to establish, Shaanxi and Hubei prepared for official establishment
------
SSN learnt that the third batch of pilot free trade zones (FTZs) will be released soon. Shaanxi and Hubei have initiated the preparation for the official establishment of FTAs. The official establishment of Shaanxi FTZ has been initiated, indicated Zhao Runmin, director of the Department of Commerce Shaanxi Province. Local media reported that the leading group on the China (Hubei) Pilot Free Trade Zone held the first meeting on Jan. 10, making arrangements on the preparation of the establishment of Hubei FTZ and advancing the construction of the FTZ.
Comment: China determined to establish the third batch of FTZs last August. Based on past experiences, it takes months from the approval of the establishment of FTZs by the State Council to the official establishment. Shaanxi FTZ will focus on aerospace, trade logistics, cultural tourism and energy and finance. Xi'an Tourism Co., Ltd. (000610.SZ) is developing full industrial chains in tourism. Hubei FTZ is positioned as a base for strategically emerging and high-tech industries. Wuhan East Lake High Technology Group Co., Ltd. (600133.SH) is engaged in the development of technical industrial parks.
○ XPCC to support listed companies with continuous losses
------
Xinjiang Production and Construction Corps (XPCC) held a work conference on development and reform on Jan. 10. SSN learnt that the XPCC will actively assist listed companies with difficulties and continuous losses in consolidating quality assets through financial channels. It will also promote certain listed companies to conduct industrial adjustment and asset reorganizations.
[SSN Selection]
○ The executive meeting of the State Council held on Jan. 11 defined the measures to develop regional equity market in a standardized way, and qualified investor system will be implemented.
○ The State Council held a video and telephone conference for national safety production on Jan. 11, requiring enhancing the support of safety technology and the ability to dispose accidents.
○ The National Development and Reform Commission (NDRC) released the 13th five-year plan for the construction of national major technology infrastructure, proposing to prioritize the construction of 10 projects with high-precision foundation timing system included.
○ The National Development and Reform Commission (NDRC) and the Ministry of Industry and Information Technology (MIIT) recently issued guidance on boosting healthy development of food industry, proposing to perfect the logistics construction and operation standards of food cold-chain.
○ The northbound trading of the Shanghai-Hong Kong Stock Connect saw a net inflow of 793 million yuan on Jan. 11, and it was the first net inflow in past dozens of trading days.
TOP
[Industry Information]
○ Tencent introduces "LBS AR Red Packet", relevant enterprises to benefit from explosive growth of "AR LBS" industry
------
On Jan. 11, Tencent introduced how to play QQ red envelopes during the Spring Festival in 2017, including "LBS AR Red Packet". The red envelopes will be distributed by merchants, stars and individuals. Based on LBS technology, merchants and stars will distribute cash or coupons prepared by them at millions of geographical locations in the country. As long as people are within 120 meters of the places where the "red envelopes" are placed, they can click on the red envelope, switch on the camera automatically and get the chance to draw money from one of the three red envelopes.
Comment: Institutes believe that AR red envelope is a new AR LBS technology-based marketing model that has great potential. Leading companies that have advantages in technology research and development and made investment in online and offline traffic entrance are expected to benefit from the explosive growth of the AR LBS industry. Hi-Target Navigation Tech Co., Ltd. (300177.SZ) says on its interactive platform that its 3D laser and indoor positioning technology can be applied in the field of panoramic information and AR. Svg Optronics Co., Ltd. (300331.SZ) has developed nanometer waveguide optical-field lens for AR use.
○ Tungsten concentrate prices rise slightly on fewer supplies
------
SSN leant that tungsten concentrate prices increased slightly on Jan. 11. The price of black tungsten concentrate rose by 500 yuan per tonne to 71,000 yuan to 73,000 yuan per tonne. The price of APT also rose slightly. Most APT manufacturers are likely to shut down for overhaul before the latter half of the month. As the operation rate and productivity reduced remarkably, APT supply decreases.
Comment: Recently, Tungsten Industry Association of Ganzhou City released MSRP for January of 2017 with prices of various products all increasing slightly when compared with those in December last year. At present, sales prices of manufacturers stand high. Supply and demand situation of tungsten products are expected to see improvement due to few supply from the market.
TOP
[Announcement Interpretation]
○ Controlling shareholder of Chang Jiang Shipping Group Phoenix transfers all of its equity
------
Tianjin Shun Hang Marine Transportation Co., Ltd., controlling shareholder of Chang Jiang Shipping Group Phoenix Co., Ltd. (000520.SZ), plans to transfer all of its 181 million stocks of the listed company (accounting for 17.89 percent of total share capital of the listed company) to Guangdong Wenhua Furui Investment Co., Ltd. The transfer price is provisionally set at 1.9 billion yuan, namely stock price set at about 10.50 yuan per share with a premium of over 30 percent compared with the price before trading suspension. With the transfer done, the company's actual controller will be changed into Chen Wenjie. Guangdong Wenhua Furui Investment has registered capital of 30 million yuan and 95 percent of equity is held by Chen. Business of the company covers investment and management, automobile components and parts, automobile decoration, mechanical and electrical products, metal material and chemical products.
○ Shenda to buy overseas assets at USD300 mln
------
Shanghai Shenda Co., Ltd. (600626.SH) plans to purchase 70 percent equity of companies related to ST＆A business of LACG SA through paying in cash. The consideration is estimated to be 310.8 million US dollars. After the deal is finished, Shenda will gain huge global customer base, which will further enlarge its market share in automobile interior business and develop itself into a global ST＆A supplier.
TOP
○ Longwei Culture Media invests RMB 3.06 bln in Zhejiang Wanjia，actress Zhao Wei becomes actual controller
------
Wanjia Group, the largest shareholder of Zhejiang Wanjia Co., Ltd. (600576.SH), entered into a share transfer agreement with Tibet Longwei Culture Media Co., Ltd. The latter proposes to use 3.06 billion yuan fundraising to buy 29.135 percent equities of the listed company. Upon completion of the transaction, Longwei Culture Media will become the new largest shareholder of the listed company. The well-known actress Zhao Wei holds 95 percent equities of Longwei Culture Media, thus she will become the new actual controller of the listed company. Zhejiang Wanjia indicates that Zhao Wei as famous actress has rich experience in running various culture companies. She will bring benefits to the company in terms of both market influence and industrial resources.
○ Flowers King Ecological Engineering Co., Ltd. (603007.SH) won the bid for the Engineering Procurement Construction project of wetland restoration and protection for Linhe District, Bayannur City in Inner Mongoli. The contract sum of the project is 989 million yuan.The total revenue of the company in 2015 was 539 million yuan.
○ Controlling shareholder increase holding in Zhongtai Bridge Steel Structure
------
Controlling shareholder of Jiangsu Zhongtai Bridge Steel Structure Co., Ltd. (002659.SZ) from Jan. 10 to Jan. 11 in total increased holding 4.98 million shares in the company. Controlling shareholder of Xiwang Foodstuffs Co., Ltd. (000639.SZ) from Jan. 6 to Jan.11 in total increased holding 1.41 million shares of the company. Controlling shareholder of Suzhou Hesheng Special Material Co., Ltd. (002290.SZ) from Dec. 26, 2016 to Jan. 11, 2017 in total increased holding 1.4 million shares of the company. Controlling shareholder of Suzhou New District Hi-Tech Industrial Co., Ltd. (600736.SH) from Dec. 26, 2016 to Jan. 11, 2017 in total increased holding 4.92 million shares in the company.
[Financial Reports Express]
○ Saimo Electric, Transtek Medical Electronics, Kaiser (China) Culture and Emperor Technology propose high share conversion and dividend
------
Saimo Electric Co., Ltd. (300466.SZ) announces growth forecast of 85 to 105 percent according to its annual report, and its actual controller proposes a 20-for-10 conversion of capital surplus into shares combined with 0.3 yuan dividend for every 10 shares; growth forecast of 60 percent for Guangdong Transtek Medical Electronics Co., Ltd. (300562.SZ), with its controlling shareholder proposing a 22-for-10 conversion of capital surplus into shares combined with 2 yuan dividend; growth forecast of 72 to 122 percent and a 20-for-10 conversion of capital surplus into shares combined with 0.5 yuan dividend for Kaiser (China) Culture Co., Ltd. (002425.SZ); growth forecast of 10 to 16 percent and a 15-for-10 conversion of capital surplus into shares combined with 5 yuan dividend for Shenzhen Emperor Technology Company Limited (300546.SZ).
○ China Fangda Group, Xinke New Materials and others announce growth forecast
------
China Fangda Group Co., Ltd. (000055.SZ) announces growth forecast of 506 to 562 percent in its annual report, mainly due to greatly grown sales revenue; growth forecast of 400 to 520 percent for Anhui Xinke New Materials Co., Ltd. (600255.SH), mainly due to growth in film ＆ TV ＆ culture business and investment yields; growth forecast of around 461 percent for Ningbo Marine Company Limited (600798.SH), mainly due to soared profit of holding subsidiaries.
Sichuan Jinlu Group Co., Ltd. (000510.SZ) announces growth forecast of 291 to 341 percent in its annual report, mainly due to constantly rebounding prices of its main products PVC resin and caustic soda; growth forecast of 100 percent for Shenzhen Capchem Technology Co., Ltd. (300037.SZ), mainly due to booming production and sales of lithium products. Zhejiang Satellite Petrochemical Co., Ltd. (002648.SZ) increases its growth forecast rate to 157 to 180 percent, mainly due to product price uptrend.
[Trading Alarms]
○ IPOs of Zhangjiagang Rural Commercial Bank, Jlu Communication Design Institute and Jiyou New Materials on Jan. 12
------
Jiangsu Zhangjiagang Rural Commercial Bank Co., Ltd. (002839.SZ) is mainly engaged in banking and financial business, with an offering price of 4.37 yuan per share and upper subscription limit of 54,000 shares; 5.53 yuan per share and 24,000 shares for Jilin Jlu Communication Design Institute Co., Ltd. (300597.SZ) mainly engaged in communication engineering projects; 15 yuan per share and 17,000 shares for Anhui Jiyou New Materials Co., Ltd. (732429.SH) mainly engaged in cigarette fitter paper.
TOP
○ Third FTZs to establish, Shaanxi and Hubei prepared for official establishment
○ Tencent introduces new red envelope game, Tungsten concentrate prices rise slightly
○ Controlling shareholder of Chang Jiang Shipping Group Phoenix transfers all of its equity, Shenda to buy overseas assets at USD300 mln
○ Longwei Culture Media invests in Zhejiang Wanjia, Saimo Electric and others propose high share conversion and dividend
[SSN Focus]
○ Third FTZs to establish, Shaanxi and Hubei prepared for official establishment
------
SSN learnt that the third batch of pilot free trade zones (FTZs) will be released soon. Shaanxi and Hubei have initiated the preparation for the official establishment of FTAs. The official establishment of Shaanxi FTZ has been initiated, indicated Zhao Runmin, director of the Department of Commerce Shaanxi Province. Local media reported that the leading group on the China (Hubei) Pilot Free Trade Zone held the first meeting on Jan. 10, making arrangements on the preparation of the establishment of Hubei FTZ and advancing the construction of the FTZ.
Comment: China determined to establish the third batch of FTZs last August. Based on past experiences, it takes months from the approval of the establishment of FTZs by the State Council to the official establishment. Shaanxi FTZ will focus on aerospace, trade logistics, cultural tourism and energy and finance. Xi'an Tourism Co., Ltd. (000610.SZ) is developing full industrial chains in tourism. Hubei FTZ is positioned as a base for strategically emerging and high-tech industries. Wuhan East Lake High Technology Group Co., Ltd. (600133.SH) is engaged in the development of technical industrial parks.
○ XPCC to support listed companies with continuous losses
------
Xinjiang Production and Construction Corps (XPCC) held a work conference on development and reform on Jan. 10. SSN learnt that the XPCC will actively assist listed companies with difficulties and continuous losses in consolidating quality assets through financial channels. It will also promote certain listed companies to conduct industrial adjustment and asset reorganizations.
[SSN Selection]
○ The executive meeting of the State Council held on Jan. 11 defined the measures to develop regional equity market in a standardized way, and qualified investor system will be implemented.
○ The State Council held a video and telephone conference for national safety production on Jan. 11, requiring enhancing the support of safety technology and the ability to dispose accidents.
○ The National Development and Reform Commission (NDRC) released the 13th five-year plan for the construction of national major technology infrastructure, proposing to prioritize the construction of 10 projects with high-precision foundation timing system included.
○ The National Development and Reform Commission (NDRC) and the Ministry of Industry and Information Technology (MIIT) recently issued guidance on boosting healthy development of food industry, proposing to perfect the logistics construction and operation standards of food cold-chain.
○ The northbound trading of the Shanghai-Hong Kong Stock Connect saw a net inflow of 793 million yuan on Jan. 11, and it was the first net inflow in past dozens of trading days.
TOP
[Industry Information]
○ Tencent introduces "LBS AR Red Packet", relevant enterprises to benefit from explosive growth of "AR LBS" industry
------
On Jan. 11, Tencent introduced how to play QQ red envelopes during the Spring Festival in 2017, including "LBS AR Red Packet". The red envelopes will be distributed by merchants, stars and individuals. Based on LBS technology, merchants and stars will distribute cash or coupons prepared by them at millions of geographical locations in the country. As long as people are within 120 meters of the places where the "red envelopes" are placed, they can click on the red envelope, switch on the camera automatically and get the chance to draw money from one of the three red envelopes.
Comment: Institutes believe that AR red envelope is a new AR LBS technology-based marketing model that has great potential. Leading companies that have advantages in technology research and development and made investment in online and offline traffic entrance are expected to benefit from the explosive growth of the AR LBS industry. Hi-Target Navigation Tech Co., Ltd. (300177.SZ) says on its interactive platform that its 3D laser and indoor positioning technology can be applied in the field of panoramic information and AR. Svg Optronics Co., Ltd. (300331.SZ) has developed nanometer waveguide optical-field lens for AR use.
○ Tungsten concentrate prices rise slightly on fewer supplies
------
SSN leant that tungsten concentrate prices increased slightly on Jan. 11. The price of black tungsten concentrate rose by 500 yuan per tonne to 71,000 yuan to 73,000 yuan per tonne. The price of APT also rose slightly. Most APT manufacturers are likely to shut down for overhaul before the latter half of the month. As the operation rate and productivity reduced remarkably, APT supply decreases.
Comment: Recently, Tungsten Industry Association of Ganzhou City released MSRP for January of 2017 with prices of various products all increasing slightly when compared with those in December last year. At present, sales prices of manufacturers stand high. Supply and demand situation of tungsten products are expected to see improvement due to few supply from the market.
TOP
[Announcement Interpretation]
○ Controlling shareholder of Chang Jiang Shipping Group Phoenix transfers all of its equity
------
Tianjin Shun Hang Marine Transportation Co., Ltd., controlling shareholder of Chang Jiang Shipping Group Phoenix Co., Ltd. (000520.SZ), plans to transfer all of its 181 million stocks of the listed company (accounting for 17.89 percent of total share capital of the listed company) to Guangdong Wenhua Furui Investment Co., Ltd. The transfer price is provisionally set at 1.9 billion yuan, namely stock price set at about 10.50 yuan per share with a premium of over 30 percent compared with the price before trading suspension. With the transfer done, the company's actual controller will be changed into Chen Wenjie. Guangdong Wenhua Furui Investment has registered capital of 30 million yuan and 95 percent of equity is held by Chen. Business of the company covers investment and management, automobile components and parts, automobile decoration, mechanical and electrical products, metal material and chemical products.
○ Shenda to buy overseas assets at USD300 mln
------
Shanghai Shenda Co., Ltd. (600626.SH) plans to purchase 70 percent equity of companies related to ST＆A business of LACG SA through paying in cash. The consideration is estimated to be 310.8 million US dollars. After the deal is finished, Shenda will gain huge global customer base, which will further enlarge its market share in automobile interior business and develop itself into a global ST＆A supplier.
TOP
○ Longwei Culture Media invests RMB 3.06 bln in Zhejiang Wanjia，actress Zhao Wei becomes actual controller
------
Wanjia Group, the largest shareholder of Zhejiang Wanjia Co., Ltd. (600576.SH), entered into a share transfer agreement with Tibet Longwei Culture Media Co., Ltd. The latter proposes to use 3.06 billion yuan fundraising to buy 29.135 percent equities of the listed company. Upon completion of the transaction, Longwei Culture Media will become the new largest shareholder of the listed company. The well-known actress Zhao Wei holds 95 percent equities of Longwei Culture Media, thus she will become the new actual controller of the listed company. Zhejiang Wanjia indicates that Zhao Wei as famous actress has rich experience in running various culture companies. She will bring benefits to the company in terms of both market influence and industrial resources.
○ Flowers King Ecological Engineering Co., Ltd. (603007.SH) won the bid for the Engineering Procurement Construction project of wetland restoration and protection for Linhe District, Bayannur City in Inner Mongoli. The contract sum of the project is 989 million yuan.The total revenue of the company in 2015 was 539 million yuan.
○ Controlling shareholder increase holding in Zhongtai Bridge Steel Structure
------
Controlling shareholder of Jiangsu Zhongtai Bridge Steel Structure Co., Ltd. (002659.SZ) from Jan. 10 to Jan. 11 in total increased holding 4.98 million shares in the company. Controlling shareholder of Xiwang Foodstuffs Co., Ltd. (000639.SZ) from Jan. 6 to Jan.11 in total increased holding 1.41 million shares of the company. Controlling shareholder of Suzhou Hesheng Special Material Co., Ltd. (002290.SZ) from Dec. 26, 2016 to Jan. 11, 2017 in total increased holding 1.4 million shares of the company. Controlling shareholder of Suzhou New District Hi-Tech Industrial Co., Ltd. (600736.SH) from Dec. 26, 2016 to Jan. 11, 2017 in total increased holding 4.92 million shares in the company.
[Financial Reports Express]
○ Saimo Electric, Transtek Medical Electronics, Kaiser (China) Culture and Emperor Technology propose high share conversion and dividend
------
Saimo Electric Co., Ltd. (300466.SZ) announces growth forecast of 85 to 105 percent according to its annual report, and its actual controller proposes a 20-for-10 conversion of capital surplus into shares combined with 0.3 yuan dividend for every 10 shares; growth forecast of 60 percent for Guangdong Transtek Medical Electronics Co., Ltd. (300562.SZ), with its controlling shareholder proposing a 22-for-10 conversion of capital surplus into shares combined with 2 yuan dividend; growth forecast of 72 to 122 percent and a 20-for-10 conversion of capital surplus into shares combined with 0.5 yuan dividend for Kaiser (China) Culture Co., Ltd. (002425.SZ); growth forecast of 10 to 16 percent and a 15-for-10 conversion of capital surplus into shares combined with 5 yuan dividend for Shenzhen Emperor Technology Company Limited (300546.SZ).
○ China Fangda Group, Xinke New Materials and others announce growth forecast
------
China Fangda Group Co., Ltd. (000055.SZ) announces growth forecast of 506 to 562 percent in its annual report, mainly due to greatly grown sales revenue; growth forecast of 400 to 520 percent for Anhui Xinke New Materials Co., Ltd. (600255.SH), mainly due to growth in film ＆ TV ＆ culture business and investment yields; growth forecast of around 461 percent for Ningbo Marine Company Limited (600798.SH), mainly due to soared profit of holding subsidiaries.
Sichuan Jinlu Group Co., Ltd. (000510.SZ) announces growth forecast of 291 to 341 percent in its annual report, mainly due to constantly rebounding prices of its main products PVC resin and caustic soda; growth forecast of 100 percent for Shenzhen Capchem Technology Co., Ltd. (300037.SZ), mainly due to booming production and sales of lithium products. Zhejiang Satellite Petrochemical Co., Ltd. (002648.SZ) increases its growth forecast rate to 157 to 180 percent, mainly due to product price uptrend.
[Trading Alarms]
○ IPOs of Zhangjiagang Rural Commercial Bank, Jlu Communication Design Institute and Jiyou New Materials on Jan. 12
------
Jiangsu Zhangjiagang Rural Commercial Bank Co., Ltd. (002839.SZ) is mainly engaged in banking and financial business, with an offering price of 4.37 yuan per share and upper subscription limit of 54,000 shares; 5.53 yuan per share and 24,000 shares for Jilin Jlu Communication Design Institute Co., Ltd. (300597.SZ) mainly engaged in communication engineering projects; 15 yuan per share and 17,000 shares for Anhui Jiyou New Materials Co., Ltd. (732429.SH) mainly engaged in cigarette fitter paper.
TOP
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