China Corporate News: Zhongpin Q2 Profit Falls 43% on Fiercer Competition, Higher Costs

Zhongpin Q2 Profit Falls 43% on Fiercer Competition, Higher Costs
Zhongpin Inc (Nasdaq: HOGS), a Chinese pork processor, posted $408.2 million in revenues and $11 million in net profits for Q2 2012, up 11.4% and down 43% respectively from Q2 2011. The higher revenue was achieved on higher tonnage at lower average prices, while continuing intense competition due to the ongoing industry consolidation and higher costs have reduced earnings, the company said.

Green Light Given to Shenhua's ¥7.7b Chongqing Power Plant
China Shenhua Energy Co (SHA: 601088, HKG: 1088), the nation's biggest coal producer, said it has received regulatory approval for the establishment of a ¥7.74 billion power plant in Chongqing, a provincial level metropolis of 32 million residents in southwestern China. Shenhua said 76% of the money will be funded through bank loans.

Suning.com Plans More Special Offers
Suning Appliance Co (SHE: 002024), China's largest chain store by revenue, said its e-commerce site, Suning.com, will step up discounts and improve after-sale services to achievement 70% quarterly rise in revenue in 2H 2012 and the annual target of ¥20 billion. The site's revenue was ¥5 billion in 1H.

Poly Posts Strong Figures for Jul
Poly Real Estate Group Co (SHA: 600048), China's second largest property developer by market value, said it sold 773,000m2 in residential space valued at ¥9.1 billion in July, up 65.6% and 79.7% respectively from a year earlier. Between January and July, it sold 5.15 million m2 fetching ¥59.39 billion, up 32.9% and 33.4% respectively from the same period of last year.

CNR Seals ¥1.2b Deals
China CNR Corp (SHA: 601299), a leading train maker, said it has signed ¥1.16 billion worth of contracts with a number of companies, including a ¥91 million deal with Siemens AG (NYSE: SI). The total amount is equivalent to 1.3% of its revenue in 2011.

Faw Car to Build ¥4.3b Clean Car Plant
Faw Car Co (SHE: 000800), a leading compact car maker, said it plans to spend ¥4.35 billion building a workshop making clean energy-powered vehicles. The plant is expected to take 22 months to build and the cost is expected to be recouped in 7.2 years.

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