Resources: Aluminium Corporation of China (2600 HK) recorded a net loss of 3.522 billion yuan for the first half, dragged down by the decrease in the demand of aluminium product. Losses per share were 0.26 yuan. The company proposes no interim dividend. The company said the demand of aluminium product, especially in the automobile and property industry, has dropped owing to the economic recession. The producer expects the demand of aluminium product to rise next year. Sinopec (386 HK) will focus on increasing its upstream capital expenditures in order to boost its exploration and production segment. Its annual capital expenditures for 2010 and 2011 would be 120 billion yuan. Sinopec Corp may also buy some of the Addax Petroleum assets from its parent. China Resources Power (836 HK) recorded its net profit of 2.27 billion yuan for the first half, rose 1.26 times from a year earlier. Earnings per share were 0.0527 yuan. The company proposes an interim dividend of 0.06 yuan. Sinopec Yizheng Chemical Fibre (1033 HK) recorded a first-half net profit of 310 million yuan, boosted by the rise in the international crude oil price. No interim dividend was declared. Jiangxi Copper Company (358 HK) reported a 59 per cent decline in first-half net profit to 1.271 billion yuan. The company said the net profit is attributable to the copper hedging and it will continue to reduce operating costs and raise its efficiency in order to pass the recession. No interim dividend was declared.
Properties: Beijing Capital Land (2868 HK), its net profit for the first half dropped 2.6 per cent to 245 million yuan. An interim dividend of 0.012 was declared. The company plans to issue A shares in mainland stock markets but it is still waiting for the approval from the regulator.
Banks: China Construction Bank (939 HK) has confirmed the possibility of lifting the capital adequacy ratio to tighten its lending. The lender was responding to a recent industry report regarding the requirements set by China Banking Regulatory, that all bank have to deduct their current holdings of subordinated or hybrid debts sold by other banks from their supplementary capital. CCB is now studying the issue and its impact on its CAR ratios and it says there is no need for share placement to replenish capital in the near term. Hang Seng China of Hang Seng Bank (11HK) has its Shenzhen branch opened yesterday, increasing its spots to 35 in China. Mrs Xie Guan Yanping, chair of Hang Seng China, says Shenzhen is one of the four main focuses of their development plan, the new branch helps to expand their financial management business in Shenzhen and Zhujiang Delta.
Consumer: China Green (904 HK) posts an interim profit of 454.93 million yuan for the year ended April 30, down 3.4 per cent compared with a year ago. The company attributes the drop to added tax categories and interest paid to bonds. Earnings per share were 0.515 yuan. A final dividend of HK$0.073 per share was declared. The company has spent HK$549 million to increase reserves of rental land, production line and transport facilities this year. Want Want China Holdings (151 HK) the country’s largest maker of rice cakes and flavoured milk, said first-half profit fell 6.4 per cent as income last year was inflated by exchange gains and the sale of properties. Net income in the six months to June dropped to US$121 million from US$129 million.
Citic Pacific (267 HK) has agreed to pay 1.52 billion yuan for Jiangyin Special Steel Mill through buying out the equity interest in Approach Well, Perfect Future, the PRC Company and the related shareholder’s loans. The above companies are the operating companies of the Jiangyin special steel mill.
CLP Power (2HK) managing director Betty Yuen So Siu-mai has taken leave to undergo treatment for an early stage of breast cancer. Chief operating officer Richard Lancaster will stand in as managing director for the Hong Kong business, while corporate development director Chan Siu-hung will be responsible for the nuclear operations. The company says Betty’s leave would not affect company’s operation.
Dah Chong Hong (1828 HK) recorded a net profit of HK$270 million for the first, down 6.57 per cent compared with a year ago. Earnings per share were 15.02 HK cents. An interim dividend of 4.51 HK cents per share was declared. The company says the government is promoting the use of electric vehicles and believes the company will be benefited as it is one of the resellers of Japanese -made electric vehicles.
Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard
