China :: Business :: Deals

Rumor: China Mobile to Merge Mobile Internet Businesses Sina Tech, 6/29/11 China Mobile (NYSE: CHL; 0941.HK) will reportedly merge its various mobile internet properties such as its Monternet WAP portal, Fetion mobile IM software, 139.com "Shuike" microblogging service, and the Mobile Market app store under the management of Guangdong Mobile, according to an industry source. Guangdong Mobile has experience with the mobile internet business, having developed Mobile Market, and also hosts China Mobile's South China base, which has space and facilities to accommodate China Mobile's various mobile internet businesses.

Tom Initiates Large-scale Layoffs Sina Tech, 6/29/11 Chinese-language media conglomerate Tom Group (2383.HK) initiated another round of large-scale layoffs yesterday, offering downsized employees N+1 severance packages plus an additional RMB 2,000. The company is reportedly working on plans to dissolve its website division. Most heavily affected in this round of layoffs was Tom Online's Sports channel, the company's largest channel and one of only three channels that Tom Online operates itself. According to a source inside the company, the Sports channel employed between 60 and 70 people before the layoffs, and now employs fewer than 20. At least 70% of the channel's employees were laid off. Tom Online's Entertainment and Automobiles channels were affected less severely, as Tom Online previously had a round of layoffs at the Entertainment channel last year, while the Automobiles channel team is relatively small. Some reports, however, say that the Automobiles channel wa...

Nationz Estimates H1 2011 Profit Down 40-50% Shenzhen Stock Exchange, 6/28/11 Chinese information security and telecommunications chip maker Nationz Technologies (300077.SZ) said in a public filing today that it predicts net profits of between RMB 52 mln and 63 mln for the period from January 1, 2011 to June 30, 2011, a drop of between 40% and 50% from H1 2010's RMB 105.6 mln. The company said that the drop in net profits for H1 2011 was the result of developments in the mobile payment services industry. The filing was based on an initial review of unaudited figures by Nationz's finance department. Editor's Note: In mid-May, Chinese telecom equipment and terminals manufacturer ZTE Corporation (0763.HK; 000063.SZ) announced that it would divest itself of its stake in Nationz. Subsequently, between May 24 and June 22, ZTE disposed of over 17.5 mln shares of Nationz, reducing its stake in Nationz from 20% (54.4 mln shares) to 13.55% (36.85 mln shares).

Shanghai Automotive Info Puts 19% Stake in SiTV on Market LMTW, 6/27/11 Shanghai Automotive Information Systems recently put its 19% stake in cable DTV operator Shanghai Interactive TV (SiTV) up for sale on the Shanghai United Assets and Equity Exchange for RMB 25 mln. SiTV's major shareholder Shanghai Media Group (SMG) has made clear that it will not attempt to purchase the shares, and industry scuttlebutt predicts that a Shanghai-based broadcasting company is likely to acquire them.

Source : Reuters BEIJING (Reuters) - Students returning from abroad and frequent international travellers will keep China's coffee consumption at 15 to 20 percent annual growth by patronising new domestic outlets selling high-priced versions of the brew, industry watchers said. Participants at the Beijing International Coffee Fair at the weekend said China remains a frontier for high-end coffee sales, with domestic and international firms looking at major expansion despite roadblocks such as high taxes. Starbucks Coffee International said last month that the world's largest coffee chain plans to more than triple its cafes in mainland China, from 450 currently to 1,500 by 2015, and bean traders are taking note. "With more and more Chinese students returning from abroad, China's coffee (consumption) will improve a lot in five years," said Yang Ke, the general manager of Shanghai Walton Concepts Economic & Trading Co., a coffee trader. PRODUCTION, CONSUMPTION But...

AU Optronics to Acquire 49% Stake in Longfei Optical PJ Time, 6/24/11 The Taiwanese government approved display maker AU Optronics' (AUO) USD 796.25 mln purchase of a 49% stake in Jiangsu-based Kunshan Longfei Optical yesterday. AUO reached a private business agreement with Longfei under which AUO will send a team to oversee management of Longfei, with the right to appoint managers. AUO will also hold more seats on the company board than Longfei itself, guaranteeing AUO the ability to direct company management. Editor's Note: The ownership structure of Longfei Optical will shift, with AUO holding 49% of the company and the Kunshan municipal government holding 51%.

Download this podcast Length 12:42 Download audio file (20110621_luxury.mp3) It may take some getting used to, but Chinas luxury market is making its way into affordable luxury items. This trend to meet the needs of the growing middle, and upper middle class consumers and is creating opportunities larger number of brands, domestic and foreign. We are working with a womens fashion accessory company to launch a product line this year and the early research shows some surprising aspects of the affordable luxury brand purchasing among Chinas consumers. The Chinese buy brands for similar reasons as consumers from other economies, however, there is a sense of a dynamic in this market, compared to the same group of luxury brand consumers in other markets. My analysis of Chinas increasing aspirational consumer is setting up a niche market that is under the top price points, but significantly above the price of average products. This is driven by the rise in income and employment status of ...

Taobao Mall Pharmacy "Only Provides Information" China Business News, 6/22/11 Yan Qiao, a spokesperson for Hangzhou-based B2C e-commerce platform Taobao Mall, has responded to rumors that Taobao is not legally licensed to sell pharmaceuticals online, emphasizing that Taobao Mall merely displays pharmaceutical information and offers technical support to authorized pharmaceutical e-commerce companies. He added that as Taobao Mall plays no role at any point in transactions, there is no question of illegal activity. Yan said that Taobao Mall receives a share of revenues from each order made through its pharmacy channel, but its pharmaceutical e-commerce partners are responsible for logistics and delivery. Editor's Note: For more information on this topic, please see "Taobao Mall Launches Pharmacy Channel," MD 6/20/11 issue.

Alibaba Group Begins Major HR Restructuring Tencent Tech, 6/20/11 In an internal company e-mail on June 18, Jack Ma, CEO of Chinese B2B e-commerce company Alibaba, said that Alibaba would undertake a massive personnel restructuring, beginning today. Three specific personnel adjustments are currently known: - Wang Shuai, chief marketing officer for B2C and C2C site Taobao, will return to the Alibaba Group, where he will also serve as chief marketing officer and will report directly to Jack Ma. - Shao Xiaofeng, former GM of the China Business Unit at B2B site Alibaba.com (1688.HK), will return to the Alibaba Group as secretary general, where he will report directly to Jack Ma. - Zhang Yu, former GM of local search engine Koubei, will serve as GM of the wireless division of Alibaba cloud computing subsidiary AliCloud, where he will report to AliCloud president Wang Jian.

Qihoo 360 Partners with German Anti-Virus Firm Sina Tech, 6/20/11 Chinese online security software developer Qihoo 360 (Nasdaq: QIHU) has partnered with German IT security software provider Avira to share anti-virus technology and conduct joint R&D. Qihoo 360's 360 Anti-Virus product will incorporate Avira's "Little Red Umbrella" anti-virus engine. Qihoo 360 president Qi Xiangdong said the two companies will cooperate on anti-virus technology research, virus signature exchange, and product quality improvement. Qi added that in addition to its existing partnerships with Avira and Romanian anti-virus developer BitDefender, Qihoo 360 plans to cooperate with additional overseas anti-virus technology partners in the future.

Source : Xinhua GUANGZHOU - Authorities in South China's Guangdong province said Monday that they have sealed 5,069 cans of green tea powder, which sample tests have revealed is tainted with the industrial chemical DEHP. As of Sunday, the Jiangmen Goody's Food Co, Ltd, which produced the powder, had recalled 2,899 cans, said a spokesman with the government information office in Jiangmen city, where the Taiwanese company is based. The raw materials were produced by a tea company in East China's Zhejiang province, said the spokesman. The tea powder, along with a bread yeast enhancer produced by Taiwanese-funded Jhan Wang Food Co, Ltd in Jiangmen, are among the eight products found to be tainted with the chemical on the Chinese mainland, according to the State Food and Drug Administration. Jiangmen city had sealed up all raw materials stocked by Goody's Food Co and Jhan Wang Food Co, said the administration. The Chinese mainland has halted imports of 948 produces made in T...

Tudou Refiles IPO, CEO Settles Divorce Lawsuit SEC, 6/16/11 Chinese online video site operator Tudou Holdings Limited has filed an amended IPO with the US Securities and Exchange Commission (SEC) to list American Depositary Shares on the Nasdaq Global Market under the ticker symbol "TUDO." Net revenues increased by 166.6% to RMB 79.4 mln (USD 12.1 mln) for the three months ended March 31, 2011 from RMB 29.8 mln for the same period in 2010. Net loss was RMB 38.0 mln and RMB 336.0 mln (USD 51.3 mln) for the three months ended March 31, 2010 and 2011, respectively. Net revenues from online advertising services increased to RMB 70.2 mln (USD 10.7 mln) for the three months ended March 31, 2011 from RMB 29.3 mln for the same period in 2010. In addition, Tudou began generating revenues from mobile video services in January 2010. For the year ended December 31, 2010 and the three months ended March 31, 2010 and 2011, net revenues from mobile video services amounted to RMB 19.1 mln, R...

Rovio to Open China Office, Stores Beijing Morning Post, 6/16/11 Rovio, Finnish developer of the mobile device game Angry Birds, has revealed that it is plans to open an office in China to develop games for the domestic market and explore partnership opportunities. Rovio also plans to open a flagship store in China by the end of the year selling branded products including clothing and stationery. A spokesperson for Rovio China predicted that within the next three years, the company will open up to 200 stores across China. Since Rovio began selling Angry Birds merchandise online last year, it has sold a total of 3 mln of its plush toys alone, and global revenue from sales of various spin-off merchandise has surpassed GBP 50 mln. In China, unlicensed "Angry Bird"-themed mobile phone cases and protective screen covers, clutch pillows, t-shirts and many other similar products have been available for purchase on Hangzhou-based C2C & B2C e-commerce site Taobao for quite some ti...

Hu'ai Raises Eight-Digit RMB Second-Round Funding DoNews, 6/15/11 Huang Jian, president of Beijing-based social game developer and operator Hu'ai Technology, has revealed the company has completed first-round funding and recently began raising several tens of millions of RMB in second-round funding. Hu'ai's self-developed social game Hulai Sanguo debuted on Tencent's (0700.HK) SNS Pengyou in late 2010, and then launched on Qzone in March 2011. The game is expected to reach over 10 mln active users in H1 2011. The company's development team comprises more than 100 people. According to an industry source, Tencent has highlighted Hulai Sanguo as one of the applications on its SNS open platform that has a monthly revenue share of more than RMB 10 mln.

Qihoo 360 Products Integrate Renren SNS Features Sina Tech, 6/13/11 Chinese online security software developer Qihoo 360 (Nasdaq: QIHU) and Beijing-based social networking site operator Renren (NYSE: RENN) jointly announced yesterday that they would form a strategic partnership under which Qihoo will work to implement common user accounts between its service and Renren's, and will integrate Renren web apps like notifications, Renren radio, and Renren games into its Qihoo 360's 360 Safe Guard desktop suite. Qihoo 360 has already added Renren Share to its 360 Safe Browser, allowing users to share content with their friends on Renren without having to log in to the website. In the future, 360 Safe Browser will also add one-click notifications, allowing users to see whether or not friends have sent them a message within the browser UI.

US Social Game Developer Kabam to Enter China in 2011 Netease Tech, 6/11/11 Mike Li, CTO of Asia operations for U.S.-based Facebook social game developer Kabam, recently said that the company plans to formally enter the China market in Q3 or Q4 2011, and that preliminary partnership talks are now underway with Chinese SNS firms Renren (NYSE: RENN) and Kaixin001 as well as internet giant Tencent (0700.HK). Kabam opened an office in Beijing last year, Kabam Software (Beijing) Co., Ltd., to begin R&D of new social and mobile game products. Kabam's presence in China currently consists of a team of more than 80 who oversee several game development projects. Li predicted that the team will expand to 200 before the end of this year. In response to earlier rumors that Kabam seeks to acquire Chinese social game R&D teams, Li confirmed that such a plan was underway, and that while talks with several potential teams remain underway, no agreements have been finalized. Li said that Kaba...

Source : The China Post | Photo: AFP President Ma Ying-jeou said yesterday (June 8)that government health units have launched the nation's largest-ever action to secure food safety by checking up to 16,000 food makers and outlets and removing from sales stands over 20,000 food and beverage items suspected of being contaminated with toxic plasticizer DEHP. Ma said the large-scale investigation campaign came after over 900 food and beverage products, supplied by more than 400 mid- and downstream food and beverage companies, were suspected to be contaminated with DEHP. Ma made the remarks when meeting with Cabinet officials in a national security meeting to plan the next moves to halt the worsening food scare in Taiwan. He continued that the meeting was held to review the investigation's actions and results, publicize the entire campaign process, and to seek effective measures to prevent the recurrence of similar food safety incidents. The meeting came a day after the Department o...

ZTE Files TD-LTE IPR Infringement Suit Against Huawei Zqrb.com.cn, 6/10/11 A source within ZTE's (0763.HK; 000063.SZ) securities department confirmed today that the Chinese telecom equipment manufacturer has filed a patent suit against rival Huawei in Shenzhen, adding that the court has accepted the suit and has begun legal proceedings. Huawei confirmed the report. In its lawsuit, ZTE calls for the court to order Huawei to immediately cease the manufacture and use of its TD-LTE systems equipment, and to forbid Huawei from conducting large-scale TD-LTE technology trials. Industry rumor had previously alleged that China's Ministry of Industry and Information Technology (MIIT) had attempted to mediate the dispute between the two companies. A source close to the case revealed that the MIIT had become involved in hopes of effecting a quiet resolution to the matter and keeping the two companies from seeking legal recourse in their patent battle. Editor's Note: For more background...

China Industrial Bank Join Alipay's Quick Pay Tencent Tech, 6/09/11 Chinese e-commerce conglomerate Alibaba Group and the China Industrial Bank (CIB) announced today that CIB has connected its systems to Alibaba payment subsidiary Alipay's Quick Pay online payment-by-credit-card service. The service allows CIB account holders who have not signed up for internet banking to use Quick Pay to complete transactions using their CIB debit or credit cards. Quick Pay currently supports 108 banks. In addition to working with Alibaba on Quick Pay, the CIB will also join with Alipay and Taobao to launch a co-branded CIB/Taobao credit card, for which Alipay will provide billing history services. Holders of the card will be able to log into Alipay to check their monthly billing history under the "Credit/Cash-Back" tab of the Alipay interface, and request cash-back services through Alipay. The CIB has also tied its credit card points system to Taobao's reward points system for o...

China Mobile to Test IPv6 TD-LTE Data Cards in H2 2011 Sina Tech, 6/09/11 At yesterday's Symposium on IPv6 Promotion in Beijing, Duan Xiaodong, deputy director of the China Mobile (NYSE: CHL; 0941.HK) Research Institute's Department of Network Technology, said that China Mobile's TD-LTE 4G standard would support a smooth transition to IPv6, adding that the operator would begin testing TD-LTE data cards supporting IPv6 in H2 of this year. According to Duan, China Mobile has a three-stage plan for IPv6: in the first stage (2011-2013), it will ensure industry chain support for IPv6 and set up test networks on a large scale. In the second stage (2014-2015), China Mobile will launch commercial trials of IPv6. In the third ("application") stage (2016-2020), it will begin to develop its user base on a large scale and promote services and applications that make use of IPv6's capabilities. Duan revealed that China Mobile has developed its first device prototype featuri...

Samsung, RTS, SMG Partner on Internet TV Content Delivery Yesky, 6/07/11 Samsung, together with Radio and Television Shanghai (RTS) and its subsidiary Shanghai Media Group (SMG), signed a strategic cooperation agreement today to jointly build a "smart" online platform to deliver copyrighted audiovisual content and other internet value-added services to Samsung TV set owners. SMG subsidiary Shanghai BesTV will oversee partnership operations with Samsung. SMG VP Zhang Dazhong said that the partnership with Samsung will not be limited to television, but will also encompass services for multiple platforms including PCs, mobile phones, and tablet computers.

HP China Recalls 79K Notebooks Due to Faulty Batteries Sohu IT, 6/04/11 Hewlett-Packard China recently submitted a report notifying China's General Administration of Quality Supervision, Inspection and Quarantine of its decision to recall all HP Pavilion, Compaq Presario, HP Compaq and other HP series notebooks manufactured between July 2007 and May 2008. The decision entails recalling 78,740 notebooks, and stems from their use of battery cells manufactured by LG Electronics. As a result of the manufacturing process, cells used in the batteries in question have been found to overheat and melt or burn the battery casing, which can lead to spontaneous combustion.

What's Happening Coca-Cola Is in Talks to List Shares on Shanghai Exchange Starbucks Tightens Focus on China China bans hundreds of tainted Taiwan food imports Pernod taps Asian thirst for top spirits Chinese fine wine: 'Our time will come' McDonald's, Yum compete for China market share Juan Valdez Eyes China as Colombia Steers Asians From Tea Wal-Mart Names Senior China Bosses Top China hypermarket operator Sun Holdings plans $1 billion IPO DDB Shanghai turns to Chinese war stratagems for Gatorade Nutrastar Ramps up New Major Beverage Distribution in Anhui Province

Source : Campaign China By Rhandell Rubio SHANGHAI - DDB Shanghai has brought the ancient Chinese military classic 'The 36 stratagems' to the world of street basketball in its new Gatorade campaign, kicking off today (June 3). The campaign consists of a TVC that will run on CCTV5 during the NBA Finals this week and a viral video launching through social media sites including Sina Microblgog, Tom Sports, QQ Sports and Hoop China. The 36 Stratagems is a text akin to the legendary 'Art of War' by Sun Tzu. It describes unorthodox or deceptive ruses used in politics, warfare and civil interaction. The Gatorade campaign leveraged on the well-known Chinese idioms or stratagems from the text and applied them to the competitive, gritty world of Chinese street basketball, where players need every deceptive trick or skill they possess to score the next point. Gatorade partnered with S.K.Y. Streetball Syndicate to engage with its young and sports enthusiasts target market in China....

Download this podcast Length 11:11 Download audio file (20110602_kissinger.mp3) I had the pleasure of listening to Former US Secretary of State, Dr. Henry Kissinger speak this week. He reflected on his new book On China and the 40 years of relationship building with China, some refer to this as the ultimate in Guanxi. OK, I buy that, and its a high standard set by a man who has dined with generations of Chinese leaders, influenced policies in both countries and, through his work, enlighten the societies that were so vastly different when he first set foot in China to secretly meet with officials in July 1971, At Technomic Asia we try to steer clear of politics, but the realities are that opportunities for business are more clearly visible by understanding politics. That was the case 40 years ago as the Chinese and Soviets were at odds, a situation that the US bet provided an opening to plant the seeds of US values. Among those values, the benefits of a capitalist economic model a...

BitAuto Provides Automobile-Content for Baidu Open Search PR Newswire Asia, 6/02/11 Beijing-based automotive website firm Bitauto (NYSE: BITA) today announced that it has signed an agreement with Chinese internet company Baidu (Nasdaq: BIDU) to be the exclusive supplier of auto-related content for Baidu's Aladdin Search Open Platform. Pursuant to the year-long agreement, effective from June 1, 2011, Bitauto will provide selected auto-related content, including auto listings, pictures, reviews, and dealer information to enhance Aladdin-enabled search results, which include real-time, dynamic and interactive content alongside static search results. When Baidu users search for auto-related information, Baidu will exclusively display relevant content provided by Bitauto in the Aladdin-enabled section of the search results page. William Li, chairman and chief executive officer of Bitauto, said Bitauto expects to see two major benefits from this cooperation. First, it will increase traff...

LeTV, Hisense Partner on Internet TV Bianews, 5/31/11 Chinese online video site LeTV (300104.SZ) and Chinese consumer electronics manufacturer Hisense (600060.SH) have released "LeTV.com TV Edition," which allows users to view LeTV content on their Hisense "smart multimedia terminals." An industry source dismissed allegations that LeTV and Hisense were attempting to work around internet TV licensing regulations. LeTV VP Jia Yuemin said that a license application has been filed, but avoided using the term "internet TV," instead describing the product as being for "smart multimedia terminals." While the Hisense manager on the project declined to be interviewed, LeTV VP Jin Jie told the National Business Daily that LeTV's content is broadcast to Hisense TV sets via Hangzhou-based DTV and IPTV operator Wasu Digital TV's internet TV broadcast and control platform, in compliance with regulations. A Wasu executive in charge of internet TV partne...