China Corporate News: Sinopec, MitsuiChem Form JV Rubber Plant; Perfect World Q1 Net Profit Drops 20%

Sinopec, MitsuiChem Form JV Rubber Plant
Sinopec Corp (NYSE: SNP, SHA: 600028, HKG: 0386) and Japan's Mitsui Chemicals will establish a 50:50 venture in China to produce and sell EPDM rubber. The project is expected to cost a total of ¥2 billion and manufacture 75,000 tons of the material annually once operational in Q1 2014.

Perfect World Q1 Net Profit Drops 20%
Perfect World Co (Nasdaq: PWRD), a Chinese online game developer and operator, posted $114 million in revenues and $33.3 million in net profits for Q1 2012. Revenues were unchanged compared to the same period a year ago, while net profits fell 20% as the company failed to retain players after offering no new games during the period.

Shenhua Energy's Coal Berths Plan Cleared
China Shenhua Energy Co (SHA: 601088, HKG: 1088), the nation's biggest coal producer, said it has been given regulatory approval to go ahead with its ¥3.82 billion plan to build three berths for coal shipments in Tianjin, a port city near Beijing. The three berths will be able to carry 35 million tons of coal a year. The Chinese government has eased its scrutiny on infrastructure projects as the economy shows signs of weakening. Shenhua Energy previously said its coal output would rise 2.8% to 289.9 million tons this year.

Air China Eyes Operation in Inner Mongolia
Air China Ltd (SHA: 601111, HKG: 0753), the nation's third biggest carrier by passenger traffic, plans to team up with the provincial government of Inner Mongolia to found a joint venture regional airline. The project is pending regulatory approval. Air China has so far developed partnerships with the local governments of Dalian, Beijing, Shenzhen and Tibet for regional operations.

Shandong Gold Close to Acquiring 105 Tons of Gold Resource
Shandong Gold Mining Co (SHA: 600547) has agreed to acquire as many as 105 tons of gold reserves from two miners based in Laizhou, Shandong province, a person with knowledge of the issue said. The deal will likely help Shandong Gold surpass Zhongjin Gold Co (SHA: 600489) as China's biggest producer of the precious metal. No financial details were disclosed.

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