China :: Business :: Deals

Perfect World Acquires Cryptic Studios from Atari PR Newswire Asia, 5/31/11 Chinese online game developer and operator Perfect World (Nasdaq: PWRD) today announced that it has acquired a 100% equity interest in Cryptic Studios, a California-based online game developer, from global game developer and publisher Atari. Under the stock purchase agreement, Perfect World will pay an aggregate purchase price of approximately EUR 35.0 mln in cash, subject to working capital and other adjustments as provided in the agreement. Cryptic Studios previously developed MMORPGs City of Heroes, Champions Online, and Star Trek Online. In addition to supporting Champions Online and Star Trek Online with new updates and content, Cryptic is now developing Neverwinter Nights and other unannounced projects

Tencent to Officially Launch QQ Open Platform in July Oriental Morning Post, 5/31/11 Tencent (0700.HK) CTO Jeff Xiong said today that the Shenzhen-based internet company would officially launch its Q+ open platform in July, and would have several dozen partner companies at launch. Xiong said that Tencent would evaluate prospective third-party partners' capabilities, including carrying out stress tests and security tests, before allowing them to connect to Q+. Several hundred companies have contacted Tencent to express interest in the platform. When asked about the company's profit model for Q+, Xiong said that Tencent would gradually explore possible models. According to incomplete figures from Tencent, there are more than 1,000 third-party applications available through the company's various open platforms. The greatest amount of revenues any partner has realized in a single month reportedly surpassed RMB 10 mln. Editor's Note: For more information on this topic, pleas...

Beijing Telecom Offers RMB 3 Per Month Mobile Calling Plan Sina Tech, 5/30/11 Beijing Telecom recently announced the launch of the new RMB 3 pre-paid E-Surfing UIM card and calling plan package. For RMB 3 per month, subscribers will get local calling rates of RMB 0.11 per minute, and long-distance rates of RMB 0.14 per minute, with free local incoming calls. For a RMB 20 fee, subscribers receive a UIM card with RMB 20 worth of talk time. The offer is only open to new subscribers at present; existing pre-paid accounts can not be transferred to the RMB 3 plan.

What's Happening AB InBev to increase Chinese investment Tainted sports drink scandal hits beverage companies in Taiwan Taiwan beverages recalled in China over DEHP scandal Diageo Wants China to Order a Scotch Noodles And Teas Hutchison unit enters China's premium infant milk market Nestle plans expansion in China Analysis: World craves ever more coffee despite soaring price Coffee maker Illy banks on China Chinese wine in numbers Chinese wine market an awakening giant China Resources says eyes overseas assets acquisition China's state liquor producer to open five offices abroad

Source : Macau Daily Times The Chinese are increasingly replacing beer with wine on their dining tables and are learning how to appreciate the taste of wine, said the head of wine for China Simon Tam at auction house Christies. The current annual per capita wine consumption in China is a mere 0.35 litres, however the Chinese domestic wine market is projected to become the largest in the world in a few decades. In anticipation of the optimistic business prediction, Christies appointed Tam early this year as its first ever head of wine for China to tap into the new market. The primary role of the head of wine is to educate and nurture Chinese wine lovers and provide them with information so that they can understand the differences between wines and more importantly the pricing, now, tomorrow and perhaps also in the future, the Hong Kong wine expert said on the TDM Talk Show. Its very important to see how much the wine costs today versus tomorrow and future trends in order to make some pr...

Taobao Mall Launches Home Furnishings Store in Beijing BiaNews, 5/27/11 Hangzhou-based C2C & B2C e-commerce site Taobao's Taobao Mall has opened its first "Ai Feng Chao" offline home furnishing experience store in Beijing. The interior of the store was furnished using goods available in Taobao Mall's furniture channel, and the building itself was constructed by Taobao partner Beijing Aifengchao Technology. Local delivery and installation service will be provided by a third-party company. The store currently occupies 25,000 sqm, and contains 270 separate sample and display rooms. All furniture and other decorations on display in each sample room come from different Taobao Mall furniture channel vendors, who in turn source their goods from nearly 300 manufacturers. Once visitors make their selections from within the Taobao Mall furniture channel, they can experience the goods in person at the store. When visitors are ready to make their purchase, they can log in at ...

Qihoo 360 to Offer Cloud Computing Services Sina Tech, 5/27/11 Zhou Hongyi, chairman of Chinese online security software developer Qihoo 360 (Nasdaq: QIHU), recently disclosed that the company plans to release new services, including cloud computing services, to boost revenues. Zhou said Qihoo 360 is in the process of developing a cloud-based data storage service, but gave no specific launch date for the service. He added that Qihoo 360 has begun offering technical support and maintenance services to PC users.

China's Jan-Apr 2011 Software Industry Revenue Up 28% MIIT, 5/25/11 China's Ministry of Industry and Information Technology (MIIT) has released software industry statistics for the January to April period of 2011, with total national software industry revenue up 27.9% YoY to reach USD 482.2 bln. Total industry revenue for April rose 30.7% YoY to RMB 136.8 bln. Jan-Apr 2011 Software Industry Revenue Industry Revenue (RMB/Blns) YoY Change Data Processing and Operations 62.8 43.3% Software Products 175.6 29.0% IT Consulting 43.4 32.6% IC Design 17.7 11.7% Embedded Systems Software 80.0 23.2% Systems Integration 102.8 23.0% Jan-Apr 2011 Software Exports Industry Exports (USD/Bln) YoY Change Software Products 8.85 23.2% ...

Rumor: State Council Approves Convergence Trial Draft Plans Beijing Morning Post, 5/26/11 China's State Council's network convergence leading group has approved draft plans for convergence trials in 12 cities, according to an industry source, although further changes will be made before the plans are publicly announced. The plans still have yet to resolve several problems, including the most fundamental issue of balancing the interests of both telecom and cable TV operators. The source said that Beijing could launch IPTV services as early as October 2011. Editor's Note: For more information on this topic, please see "SARFT: Convergence Trial Draft Plans Still Await Approval," MD 3/23/11 issue.

Rumor: Hanvon Execs Sold 1.2 Mln Shares in Insider Trading Netease Tech, 5/25/11 Nine senior executives at Chinese e-reader and handwriting input peripherals manufacturer Hanvon (002362.SZ) are suspected of insider trading for selling off 1.2 mln of their own shares on March 21, although Hanvon's 2010 annual report neglected to disclose that Hanvon expected major losses in Q1 2011. The nine executives made the sale the first day the shares became eligible for trading. One deputy general manager sold 25% of his stake, the maximum a senior executive is allowed to sell in a single year for an A-share listed company, according to the China Securities Regulatory Commission (CSRC). Hanvon chairman Liu Yingjian responded to the allegations by saying that the senior executives in question are all founding employees who have reached middle age and are facing domestic financial pressures, such as their children's tuition fees.

Laid Off Ku6 Employees Seek Government Intervention National Business Daily, 5/24/11 According to a former employee of Shanda Interactive's (Nasdaq: SNDA) online video subsidiary Ku6 (Nasdaq: KUTV), recently dismissed staff have requested that the Haidian District Labor Bureau in Beijing investigate Ku6's recent round of layoffs. The impact of the layoffs has also begun to affect Ku6 operations, reportedly leading several advertisers to begin questioning Ku6's stability and even go so far as to terminate contracts and demand compensation. On May 22, approximately 70 former and current Ku6 employees organized a press conference in Beijing, at which they alleged that Ku6 began withholding medical insurance, social security, and other benefits earlier this year. In response to these allegations, Ku6 HR director Yu Peng said that CEO Zhu Haifa, who was appointed in March this year, moved to remedy the situation after he discovered payments were being withheld. Further, Ku6 empl...

The9 Invests in US Social Game Developer Sina Tech, 5/24/11 Shanghai-based online game developer and operator The9 (Nasdaq: NCTY) today announced that it has participated in first-round funding totaling USD 23 mln for US social game developer and operator Crowdstar, alongside Intel Capital, Time Warner and NV Investments. The9 CEO Zhu Jun said that the company's investment in Crowdstar follows its key strategic investments in online game developer Red 5 Studios and California-based mobile game developer and platform operator Aurora Feint. Zhu added that The9 is in serious discussions with Crowdstar to introduce Crowdstar's most successful Facebook social games to the China market, and to cooperate with Crowdstar on mobile social games.

La Miu Completes USD 40 Mln in Second-Round Funding Wabei, 5/20/11 Chinese lingerie e-commerce site La Miu recently announced that it has finished securing USD 40 mln in second-round funding. La Miu CEO Tong Lu said that this round of funding will be used primarily to broaden product categories, improve customer experience and backend technology, and to perfect the company's logistics system. In the three years in which La Miu has operated in China, the company has accrued more than 1 mln customers. According to Tong, "Among the investors this round were several returned first-round investors, as well as several new American VCs with an interest in La Miu's growth." La Miu angel investor and Rakuten founder, Hiroshi Mikitani, also took part in this round of funding. Editor's Note: For more information on this topic, please see "Rumor: Lingerie B2C Site La Miu to Obtain 3rd-Round Funding " MD 4/01/11 issue.

What's Happening Diageo Takes On Chivas, Cognac With Johnnie Walker in Shanghai The Incredible Shrinking Bottle Status in a bottle, whisky takes off in China Wine Firm Ramps Up Its Chinese Operations China Foods Seeks More Overseas Buys Asia Pacific Breweries opens Guangzhou brewery China Resources Enterprise reports 78% plunge in Q1 net profit SkyPeople Fruit Juice Reports First Quarter 2011 Financial Results GLG Life Tech Corporation Announces First Quarter Fiscal Year 2011 Results Nutrastar Announces First Quarter 2011 Results Starbucks to increase presence in China by 2015 China's Bright Food to expand abroad through acquisitions Ministry says milk now mela! mine-fre e Lipton Green Tea campaign debuts with Pirates of the Caribbean

Source: PRNewswire XI'AN, China, May 16, 2011-- SkyPeople Fruit Juice, Inc., a processor and manufacturer of kiwifruit, apple, pear and other concentrated specialty fruit juices and manufacturer of Hedetang-branded fruit beverages, announced record financial results for its first quarter ended March 31, 2011. First Quarter 2011 Highlights Total revenue grew 10% to $19.4 million year-over-year Gross profit margin expanded 390 basis points to 44.3% year-over-year Fruit beverages revenue increased 156% year-over-year Net income was $5.7 million, up 185% year-over-year Cash flows from operations increased 123% to $13.5 million year-over-year; $65.7 million cash and cash equivalents at March 31, 2011 Yonkue Xue, Chief Executive Officer of SkyPeople Fruit Juice explained, "Our diversified product portfolio produced respectable growth in the first quarter despite weather effects on the harvest seasons for apple and pear over the last six months. Sales of our Hedetang and Qian Mei Du...

Netease Q1 2011 Profit Up 63% YoY PR Newswire Asia, 5/19/11 Chinese internet company Netease (Nasdaq: NTES) today announced its unaudited financial results for the first quarter ended March 31, 2011. Total revenues for Q1 2011 were RMB 1.54 bln compared to RMB 1.19 bln for Q1 2010, an increase of 28.7% YoY. Net income for the first quarter of 2011 rose 63.0% YoY to reach RMB 737.4 mln. Revenues from online games increased 27.7% YoY to reach RMB 1.39 bln and revenues from advertising services were RMB 126.83 mln, up 38.5% YoY. Revenues from wireless value-added services (WVAS) and other business lines increased 42.2% YoY to reach RMB 25.68 mln. CEO William Ding said a new expansion pack for self-developed 3D MMORPG Tianxia II was released in April 2011, and Netease plans to launch an advanced version of the game in the third quarter of 2011. Ding added that Netease is currently on schedule to release the next expansion packs for self-developed MMORPGs Heroes of Tang Dynasty and Westward...

Ku6 Lays Off 20% of Workforce Sina Tech, 5/18/11 Shanda Interactive's (Nasdaq: SNDA) online video subsidiary, Ku6 (Nasdaq: KUTV), today announced that the company plans to reduce its total staff by approximately 20%, entirely from the sales department, over the next two weeks. Following the layoffs, Ku6 plans to maintain a smaller but more efficient sales team and take various steps to improve its sales performance, including outsourcing advertising to third-party advertising companies and seeking more effective sales channels. Ku6 expects to record its restructuring charge in Q2 2011, possibly affecting Ku6's Q2 and Q3 results.

I often get calls from companies that want to get their product into China or increase sales there. Many times, they are under the false impression that they have two choices: go it alone or form a joint venture with a Chinese company. Entering into a distributorship relationship with a Chinese company (or companies) is another option. From a strictly legal perspective, distribution relationships between foreign and Chinese companies are actually fairly straightforward and are far easier and generally less risky than joint venture deals and typically far less costly and time consuming than going it alone. - Dan Harris , China Law Blog Here at Technomic Asia we do a lot of work for companies entering China (or already in China and seeking new channels, strategies and consumers) to sell their products and services. On the product side of things finding, vetting, working closely with and sharing the responsibilities with a distributor, or several of them, is a key to successfully marke...

I often get calls from companies that want to get their product into China or increase sales there. Many times, they are under the false impression that they have two choices: go it alone or form a joint venture with a Chinese company. Entering into a distributorship relationship with a Chinese company (or companies) is another option. From a strictly legal perspective, distribution relationships between foreign and Chinese companies are actually fairly straightforward and are far easier and generally less risky than joint venture deals and typically far less costly and time consuming than going it alone. - Dan Harris , China Law Blog Here at Technomic Asia we do a lot of work for companies entering China (or already in China and seeking new channels, strategies and consumers) to sell their products and services. On the product side of things finding, vetting, working closely with and sharing the responsibilities with a distributor, or several of them, is a key to successfully marke...

China Digital TV Holding Q1 2011 Profit Up 39% YoY China Digital TV PR, 5/16/11 China Digital TV Holding (NYSE: STV), provider of conditional access systems to China's digital television market, today announced its unaudited financial results for the first quarter ended March 31, 2011, with net revenue up 37.7% YoY, but down 41.2% QoQ to USD 19.3 mln. Net income attributable to China Digital TV in the first quarter of 2011 was USD 7.9 mln, an increase of 38.5% from the same period in 2010 but down 9.4% QoQ. Revenues from smart cards and related products were USD 18.4 mln in the first quarter of 2011, an increase of 39.9% from the same period in 2010, but fell 41.1% QoQ. The year-over-year increase was primarily due to an increase in the volume of smart card shipments, which was partially offset by a decrease in the average selling price (ASP) of smart cards. The quarter-over-quarter decrease was primarily due to usual seasonality associated with the Chinese New Year holiday. Additi...

Tencent Launches QQ Open Platform DoNews, 5/16/11 Shenzhen-based internet company Tencent (0700.HK) unveiled its "Q+" desktop interface (im.qq.com/qplus) today, officially launching its QQ Open Platform. With Q+, third-party developers will be able to share QQ user resources as partners of Tencent. After logging in to QQ Instant Messenger, users will be able to switch from their regular operating system to the Q+ interface with a single click. Users can then run third-party applications in the Q+ desktop interface. In the future, Tencent will experiment providing third-party developers with access to various Q+ modules, including content sharing, document upload, and voice and video chat, allowing developers to incorporate these features into new products aimed at QQ users. Editor's Note: According to the official promotional video on Tencent's Q+ webpage, Q+ is an interface overlay on top of the OS desktop with a customizable toolbar for various Tencent and third-par...

What's Happening Coca-Cola savors 125th anniversary Diageo Pushes Whisky in China China: mad about whisky Moet aims to quench Asia's growing thirst for bubbly with Chinese winery Wine culture starting to take hold in China Yum Plans Little Sheep Buyout Valuing Restaurant Operator at $862 Million McDonald's China makes 500% mark-up on drinks: Xinhua Coke sizes down to avoid rising costs NDRC talks with foreign milk powder manufacturers on price Rt-Mart Eyes USD1 Billion From IPO In Hong Kong Jiangsu Suguo Achieved Sales Of CNY11 Billion In Q1 2011 Packets should list all additives: ministry

Source : Globaltimes.cn China's top economic planning organization, the National Development and Reform Commission (NDRC), assembled on Friday to discuss price adjustment plans with six foreign milk powder makers in China, the Guangzhou Daily said Monday. NDRC made inquiries with six foreign dairy manufacturers acting in China about price and production. Enterprises involved included Abbott Laboratories, Nestle SA, Dumex, Wyeth, Enfamil Lipil and Ausnutria Dairy Corp. The move was interpreted by the industry as a thorough enlightenment of NDRC on the firm's price-raising decisions as well as alterations in the market. All the six firms clarified recent market rumors and vowed to maintain market order and not raise prices for the short-term. The talks came after Unilever (China) Co., Ltd. was fined several days ago 2 million yuan ($303,000) by NDRC over statements of planned price hikes that added wood to public fire over inflation and triggered panic buying. NDRC has stepped up...

CBC Launches Mobile Paper Service DVB CN, 5/13/11 National CMMB mobile phone TV operator China Broadcasting Corporation (CBC) launched its new "Jingcai Baozhi" mobile paper service today, signing content partnership agreements with China Daily, China Youth Daily, the Economic Observer, Southern Weekend, and China Soccer. The electronic versions of all five papers will be published simultaneously on the CMMB Jingcai Baozhi service, which will integrate content from traditional newspapers into a more readable format and transmit the news to subscribers' mobile handsets over the CMMB network. There are more than 20 mln CMMB terminals in China at present, with approximately 10 mln paying subscribers. The main services offered over the network are local television content, navigation services, financial information updates, and other data services. The Jingcai Baozhi newspaper service will begin with a commercial trial in Beijing. By the end of this year, Jingcai Baozhi is exp...

Rumor: Sohu to Integrate Group Buy into Online Real Estate BiaNews, 5/12/11 An industry source close to Chinese Internet firm Sohu's (Nasdaq: SOHU) group buy channel, Ai Jia Tuan, said today that a final verdict had been reached for the channel, which will reportedly be folded into Sohu's Focus online real estate service and will focus on offering group buy deals on home furnishings. Once the move is made, the source said, Sohu will abandon its previous attempts at group buy services for food, beverage, and other offerings. Sohu's plan for current Ai Jia Tuan employees calls for "appropriate" employees to be transferred to Focus, where they will continue work on group buy services; "inappropriate" employees will be interviewed for new positions or "dismissed on the spot." The source said, regarding the abandonment of "general service" group buy efforts, that Sohu CEO Charles Zhang was not confident in the project. Sohu has never shown...

China Telecom Opens Mobile Literature Site to Unicom, Mobile Users Beijing Times, 5/10/11 China Telecom (NYSE: CHA; 0728.HK) announced yesterday that it had opened its mobile literature service, E-Surfing Reading, to China Mobile (NYSE: CHL; 0941.HK) and China Unicom (NYSE: CHU; 0762.HK; 600050.SH) subscribers. Any subscriber with WAP access can now log into and use E-Surfing Reading. Previously, the service had been available only to China Telecom subscribers with 189-, 153-, and 133-prefix numbers.

Gome Ex-Chairman Alleges Widespread Supplier Kickbacks Donews, 5/10/11 Chen Xiao, former chairman of Chinese home appliance and consumer electronics retailer Gome (0493.HK), recently alleged that Gome requires suppliers to pay substantial fees to retail their products in Gome stores. He added that the increasing costs of the kickbacks are ultimately passed on to consumers, driving prices higher than those through other channels such as e-commerce and eroding Gome's competitive price advantage. Gome's largest suppliers, such as Haier and Siemens, take approximately 55% of revenue from sales of their products in Gome's stores, while smaller manufacturers such as Zhejiang-based home appliance maker Sacon receive only a 25% revenue share after various fees are deducted. Chen also claimed that in addition to annual contract fees with Gome's headquarters, suppliers pay substantial fees at every layer of the company from regional offices to sales counters. Ordinary sales count...

Ok, which of todays following headlines is real? China imposes Harmony tax on foreign companies Beijing declares talk of Inflation a thought crime When in doubt, blame foreigners China fines Unilever $300,000 for talk of possible price increases The last one is the actual headline but the first three could have been the subheads. Inflation has risen 5.4% in China this year and keeping prices under control is a top priority for 2011. Patrick Chovanec, an economics professor at Tsinghua University in Beijing said today that Chinas leaders are trying to put out fires and the fire of the day is inflation If you were wondering, yes, the government can impose these fines. The only constant in China is finding out how much you dont know, no matter how long you have been here. Under Chinas Price Law companies can be fined for spreading rumors about price increases. Who knew? So Unilever, which only suggested verbally that they might, possibly, are considering, about to mull, perhaps dream...

Netmovie to IPO in US by H1 2012 Sina Tech, 5/06/11 Li Feng, founder of Beijing-based digital content distributor Netmovie, said today that Netmovie will IPO on a U.S. stock exchange in H2 2011 or H1 2012. According to Li, Netmovie's primary source of revenue at present is digital distribution, through which it derives revenues from partnerships with telecom operators on distributing content to hotels, theaters, digital stations, and websites. Netmovie reportedly has annual revenues totaling several hundred mln RMB. As early as 2008, there were reports that Netmovie was preparing to IPO, but the company's plans were put on hold by the global financial crisis. Netmovie also has a subsidiary, iMovie, dedicated to setting up physical audiovisual centers throughout the country. The iMovie centers distinguish themselves from traditional theaters by offering on-demand viewing of films in small private rooms, similar to those available in karaoke parlors, in which people can watch fil...

What's Happening Carlsberg aims to double profits worldwide Coke's 20/20 vision for China Tsingtao in market for Foster's beer division Kirin Expands In Chinas Soft Drinks Market Through Joint Ventures Diageo, Pernod Sales Beat Estimates as Distillers Grow in Emerging Markets 53 officials punished for melamine milk scandals Nutrastar Expands Distribution of Its Beverage Line China Fines Unilever for Price Comments Unilever to expand production in China Brown-Forman appoints Managing Director for China

Source : By Li Woke (China Daily) TIANJIN - Unilever Plc will build one of its largest production bases in the Chinese municipality of Tianjin, the company announced on Friday. The move is part of a strategy to increase the presence of the global consumer products giant in the world's second-largest economy. The facility will be located in the Binhai New Area of Tianjin, and will have an area of 53.33 hectares and annual production capacity of 100,000 tons, the company said. "Unilever is very committed to China and we have a very fast-growing business here," said Harish Manwani, president of the company's Asian and African divisions. The new production base will produce items such as washing liquid and toothpaste for the Chinese market and for export to Northeast Asian countries. "Investment in the first phase of this site will reach $100 million, and I hope this will only be the beginning," said Manwani. The maker of Lipton's tea and Dove soaps has busi...

NetQin Raises USD 89 Mln in IPO PR Newswire Asia, 5/05/11 Chinese mobile security provider NetQin (NYSE: NQ) raised USD 89.13 mln in its first day of trading yesterday, with American Depositary Shares (ADSs) closing at USD 9.3, down 19.1% from an initial IPO price of USD 11.50. NetQin issued 7,750,000 American depositary shares (ADSs), each representing five Class A common shares of the company. Piper Jaffray & Co. acted as sole bookrunner and Oppenheimer & Co. and Canaccord Genuity acted as co-managers for the offering. The underwriters have been granted a 30-day option to purchase up to 1,162,500 additional ADSs to cover over-allotments.

Lekutian Begins Online Book Sales Tencent Tech, 5/03/11 Chinese online e-commerce site Lekutian.com, operated by Chinese internet company Baidu (Nasdaq: BIDU) and Japanese e-commerce retailer Rakuten, recently began offering books, with 20 bookstores opening storefronts on the platform. According to an industry source, Xinhua Winshare Publishing and Media (0811.HK) and Chaoyang Bookstore are among the twenty bookstores, with delivery services provided by 12 express delivery firms approved by Lekutian. Lekutian will receive user payments via online payment platforms such as Alibaba Group's Alipay or Baidu's (Nasdaq: BIDU) Baifubao, take a revenue share and transfer the remaining amount to the vendor. Each bookstore must pay a RMB 15,000 deposit to Lekutian, and Lekutian will take a RMB 1.5 commission for every 100 units sold. Chinese B2C e-commerce site Dangdang (NYSE: DANG) currently holds a 50% share of the book e-commerce market, and more than 20% of the combined online and o...