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 ...