China Corporate News: Sinopec, Basf to Build Huge Plant in Guangdong; Lenovo Teams Up with EMC on Storage Services

Sinopec, Basf to Build Huge Plant in Guangdong
Sinopec Corp (NYSE: SNP, SHA: 600028, HKG: 0386) said it has signed a memorandum of understanding with German chemical company Basf SE to build a world-class factory in Guangdong province. The 50:50 factory will manufacture isopropyl alcohol, a chemical compound used as a solvent for coatings or other industrial processes. A feasibility study on the project is due to be completed by the end of this year. China imports almost all of its isopropyl alcohol needs. Sinopec and Basf run another joint venture in China, Basf-YPC Co, a petrochemical firm based in Nanjing, Jiangsu province.

Huaneng Power 1H Earnings Jump 87%
Huaneng Power International Inc (NYSE: HNP, SHA: 600011, HKG: 0902), China's largest listed electricity producer, said its net profit surged 87% year on year to ¥2.21 billion in 1H 2012 thanks to the power price markups late last year. Its revenue was up 4.9% to ¥67.18 billion for the past six months.

Lenovo Teams Up with EMC on Storage Services
Lenovo Group Ltd (HKG: 0992), China's biggest personal computer maker, and data-storage provider EMC Corp (NYSE: EMC) will cooperate on developing and retailing servers and network storage, the Wall Street Journal reported, citing a joint announcement from both firms. Lenovo and EMC are also forming a joint venture to provide network-attached storage to small and midsized companies. A person familiar with the matter said Lenovo will hold a 51% stake in the venture and EMC 49%. The move will expand EMC's distribution channels for its data-storage business in China and other developing markets, while helping Lenovo to expand its server sales.

Everbright Securities Plans ¥7b Rights Offer
Everbright Securities Co (SHA: 601788) said it plans to raise ¥7.04 billion through a private placement to fund its business expansion, such as stock index futures and private equity investment. The brokerage plans to place 600 million new shares to no more than 10 investors, including its second largest shareholder, China Everbright Ltd (HKG: 0165). Separately, Everbright Securities said its 1H net profit fell 26.6% year on year to ¥829 million in 1H 2012 as a result of a bearish stock market. Its total assets gained 18% over the past six months to ¥51.18 billion as of the end of June.

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