Home Inns Falls into Losses in Q1
Home Inns & Hotels Management Inc (Nasdaq: HMIN), a leading budget hotel operator in China, posted ¥1.26 billion in revenues and ¥103.2 million in net losses for Q1 2012. The revenue jumped 66% from the same period a year ago, while the losses stood in stark contrast to a ¥32.52 million net profit made during the same quarter last year. The losses were attributed to a travel slow season, new openings and the acquisition of Motel 168, which lost ¥53.2 million between January and March. Home Inns was operating 1,479 locations and building 218 hotels as of the end of March.
AsiaInfo-Linkage to Open European HQ
AsiaInfo-Linkage Inc (Nasdaq: ASIA), a Chinese provider of telecommunications software solutions and services, said it plans to open its European headquarters in Cambridge, England as part of an ongoing push to expand its operations across international markets. AsiaInfo-Linkage has an established leadership position in China with more than a 50% share of the telecommunications billing, CRM, and business intelligence markets. In 2009, it began expanding in Southeast Asia. It is now targeting broader expansion in Europe, the Middle East and Africa.
Tencent Invests in 17u.cn
Tencent Holdings Ltd (HKG: 0700), a leading Chinese internet firm, has invested tens of millions of yuan in 17u.cn, an online travel service provider, 17u CEO Wu Zhixiang said, while declining to reveal the exact amount. The site will take advantage of Tencent's B2C Buy.qq.com to sell air tickets and offer room booking services. 17u.cn is preparing to list at ChiNext, China's Nasdaq-style board.
Norinco Signs ¥8b Iran Subway Contract
Norinco International Cooperation Ltd (SHE: 000065), a Chinese contractor of engineering projects, said it won a ¥7.87 billion deal to build a subway line for the Iranian capital of Tehran. The contract will be carried out within four years. Norinco also warned of uncertainties and risks associated with Iran's tensions with the West over its nuclear program.
Dongfang Electric Signs ¥3b Deal
Dongfang Electric Corp Ltd (SHA: 600875) said it signed a ¥3 billion contract to supply combustion engines for a project operated by CNOOC Ltd (NYSE: CEO, HKG: 0883), China's biggest offshore energy explorer. The amount is equivalent to 7% of its revenue in 2011.
State Construction Post 17% Rise in Property Sales Volume
China State Construction Engineering Corp's (SHA: 601668) property division sold 2.45 million m2 in floor space valued at ¥267.3 billion in the first four months of 2012, up 17.2% and 7.3% respectively from the same period a year ago. Its land reserves increased by 2.75 million m2 to 64.69 million m2 as of the end of April.
$1 = ¥6.32