China :: Business :: Deals

ChinaBio Today submits: John Lechlieter, CEO of Lilly (NYSE: LLY ), said China currently accounts for just 2% of the companys revenues, a figure that equates to about $230 million. But he believes the opportunities in China are great as the country becomes the second largest market for pharmaceuticals in the world. For that reason, Lilly is investing heavily in China. According to Lechleiter, there are around 3000 pharmaceutical firms in China, none of whom currently holds more than a 2% share of the market. Multinational pharmas claim just 30% of Chinas drug revenues, he said. Lechleiter made his comments in a CNBC interview (see video clip ), following a month-long visit to China. The trip gave him time, said Lechleiter, to visit Chinas smaller cities, including new hospitals that have been built since China committed $125 billion to increasing healthcare coverage. He expects Chinas progress in implementing healthcare reforms will be a step-wise process. Complete Story...

IPOdesktop submits: On Friday, April 1, 2011 Qihoo 360 Technologys ( QIHU ) closing market cap was $3.5 billion, up 159% from the price range mid-point market cap on Monday of $1.35 billion, at an $11.50 share price. On Wednesday, QIHU IPOd at $14.50 and later in the day almost touched $36. The stock closed Friday at $29.50 Perhaps QIHU will ask how their underwriters could make such a big pricing error. The answer is supply and demand, of course. Moonshots seldom, if ever happen, with IPOs in the $500 million and higher range. Thats because with larger IPOs, investment bankers can more easily judge institutional demand. QIHUs IPO on Monday, at the price range mid-point, was only $139 million, on the smaller side. Three previous China deals are still trading below their IPO prices, Zuoan Fashion Ltd. ( ZA ), Trunkbow International Holdings Ltd. ( TBOW ) and BCD Semiconductor Manufacturing Ltd. ( BCDS ). Plus, there have been Complete Story

jurvetsonDST is the Russian internet venture capital funding group that backed Facebook. Now this firm is joining a group of other investors in committing hundreds of millions of dollars to China's largest online retailer, 360buy.com. This is the Chinese company's third round of funding, and includes investment form several other companies like Walmart. A stock market listing for the company is also likely in the next few years. VC investors see the vast opportunity for online commerce in China, and 360buy is well positioned to capitalize on this growth. The company began by selling electronics online, but has since expanded into a wide range of products. They have recently launched an online group-buying channel that is similar to Groupon. DST is led by Russian billionaires Yuri Milner and Alisher Usmanov, and the firm already owns large stakes in Facebook, Groupon and Zynga.

Redbaby 2010 Revenue Reaches RMB 1.5 Bln Tencent Tech, 4/02/11 Redbaby CEO Xu Peixin said today that the Chinese B2C baby care and maternity products site had seen combined revenues of RMB 1.5 bln from its online and catalogue sales businesses in 2010, and predicted that the company's new online fashion shopping platform Binggo.com would pass its target of RMB 1 bln this year, with revenues from other businesses essentially maintaining parity with last year. According to the company's latest figures, Redbaby had online revenues of RMB 600 mln last year, and catalogue sales revenues of RMB 900 mln. Maternal care and childcare products accounted for RMB 960 mln in revenues, while non-maternal and childcare products accounted for RMB 540 mln. According to the plans that the company revealed late last year, Redbaby will make its website the core of its business while maintaining a dual catalogue/online business model. Redbaby's third-party open platform plan is also under devel...

What's Happening Tea-loving China warms to coffee Nice brews come at a cost Investors get picky about rare, exotic teas Licensing to ensure dairy standards Dairy 'house-cleaning' will force out smaller producers Wal-Mart Considers Buying More Land to Build China Stores China Resources Could Buy Jiangxi Retail Asset, Accelerates Development of Retail Business Tsingtao eyes expansion, M&A targets Dynasty Fine Wine Earns HK$160M In 2010 SkyPeople Fruit Juice Reports Record 2010 Financial Results Nutrastar Announces Record 2010 Performance and Revenue Guidance for 2011 Burgundy, Asias Queen Among Wines, Goes to Auction Icewine is a drink coming in from the cold

Source : CapitalVue March 30 Dynasty Fine Wine Group Limited (0828.HK) generated 2010 net profits of 159 million HK dollars, up two percent, reports 163.com, citing a company filing. Sales revenues in 2010 rose nine percent from last year to 1.62 billion HK dollars. The company expanded its sales network beyond eastern China by offering a higher rebate to distributors. It sold a total of 63.2 million bottles of wine, up 10 percent from 57.4 million yuan in 2009. The companys Dynasty brand includes 100 wines, of which red wines contributed 82 percent of total revenue. The firms new production and research facility in Tianjin, completed in October 2010, raised annual capacity from 50,000 tons to 70 million tons.

Chimin Sang submits: Chinese stocks are controversial these days. In the Reverse Takeover space, also known as RTO space, every day a Chinese company imploded on fraud charges. Yesterday it was Advanced Batteries ( ABAT ), and Thursday it was Chinese Electronic Motor ( CELM ). In the IPO space, we just had a star performer, Qihoo ( QIHU ), which went up 134% on this first trading day. Investors decided to value this company at $4.2b, 72x its 2010 revenue and 490x its 2010 net income. I wont comment on if Qihoo is a bubble but the capital market loves bubbles. The majority of the market participants love holding bubbles It is like good ol' days before 2008 except when the bubbles eventually and inevitably pop. Well, without further due, I am going to show you a bubble that is going to burst soon. Yes, it is Youku ( YOKU ). I wrote about it in January, pointing Complete Story