PetroChina Invites Private Capital
PetroChina Co (NYSE: PTR, SHA: 601857, HKG: 0857), the nation's largest oil and gas explorer, said it will open more than 100 projects to the private sector as the Chinese government urged private capital to invest in the energy industry. The projects will involve domestic and overseas exploitation, petrochemical refining and distribution of refined oil. However, market watchers say lucrative or prospective projects will by no means be accessible to private investors.
China Telecom to Buy CDMA Network from Parent
China Telecom Corp (NYSE: CHA, HKG: 0728) said it plans to purchase CDMA networks from its parent to cut costs renting them, without revealing how much it is going to spend. The company also said non-voice services would represent half of its total revenue this year after it was authorized by Apple Inc (Nasdaq: APPL) to sell the iPhone 4S in mainland China in March.
7 Days Plans 300 Openings in 2012
7 Days Group Holdings Ltd (NYSE: SVN), a Chinese budget hotel chain, said it plans to open 300 hotels this year, two-thirds of which will be franchises. 7 Days said 60% of its existing hotels are franchises as opening a franchise is less costly than a directly-run location. 7 Days continued to post earnings in Q1 2012 as opposed to loss-making rivals such as Home Inns & Hotels Management Inc (Nasdaq: HMIN) and China Lodging Group Ltd (Nasdaq: HTHT), which favor the directly-run approach.
Expenses Hurt Taomee Earnings
Taomee Holdings Ltd (NYSE: TAOM), a children's entertainment and media company in China, posted $10.4 million in revenues and $1.6 million in net profits for Q1 2012, down 15.9% and 82.2% respectively from the same period a year ago. Increases in ad spending, research costs and employee perks were ascribed to the worse performance. Taomee's active users hit a record 42 million as of the end of March.
Cash-Strapped Sany Said to Restart HK IPO
Sany Heavy Industry Co (SHA: 600031), China's largest construction equipment manufacturer, has restarted its Hong Kong IPO and lodged its application with the city's stock exchange, people familiar with matter said. It plans to raise $2 billion, well below the $3.3 billion it sought in the original plan that was halted in September due to plummeting Asian stock markets. Sany posted ¥14.68 billion in revenues and ¥2.8 billion in net profits for Q1 2012, up just 4.9% and 5.3% respectively year on year.
$1 = ¥6.34