CCSC Reports ¥7m Loss Despite 37% Rise in Revenue
Country Style Cooking Restaurant Chain Co (NYSE: CCSC), a Chinese quick service restaurant chain, posted ¥1 billion in revenues and ¥7 million in net losses for 2011; revenue was up 36.7% from the year before. Increased costs to certain items, a discount program and negative press coverage regarding sanitary conditions in one of its restaurants were blamed for the losses.
Shenhua Energy to Buy ¥3.5b Assets from Parent
China Shenhua Energy Co (SHA: 601088, HKG: 1088), the nation's biggest coal producer, said it plans to spend ¥3.45 billion purchasing assets of four power and coal producers from its parent, Shenhua Group Corp. Shenhua Energy said all the money for the acquisitions will be drawn from the funds it raised from its Shanghai initial public offering in 2007. Shenhua Energy raised ¥66 billion from the IPO, and said it would use ¥33.3 billion of these funds for strategic acquisitions. It had taken ¥13.9 billion from the amount as of June 30, 2011.
Tencent Said to Have Taken Over Zam Network
Zam Network (Zam.com), a European gaming site and community operator, said it was acquired by Tencent Holdings Ltd (HKG: 0700), a leading Chinese internet company, in early February for an undisclosed amount. Zam reportedly receives 400 million visitor per month. Tencent declined to comment.
Shuanghui's Net Profit Slumps on Costlier Hogs, Tainted Products
Henan Shuanghui Investment & Development Co (SHA: 000895), a leading Chinese pork processor, posted ¥37.6 billion in revenues and ¥485 million in net profits for 2011, up 3.6% and down 55% respectively from the year before. Rising hog prices and a scandal involving illegal chemicals found in the company's products were blamed for the sharp decline in earnings.
Beiqi Foton Earnings Dented by Slow Sales
Beiqi Foton Motor Co (SHA: 600166), a leading Chinese truck maker, posted ¥51.65 billion in revenues and ¥1.15 billion in net profits for 2011, down 3.5% and 30% respectively from the year before. Increased raw material costs and lower-than-expected sales volume amid a slack auto market were blamed for the worse performance. The company sold 640,000 trucks last year, meeting 89% of its target and down 6.2% from 2010.
$1 = ¥6.3