There’re quite a few news bits coming from the solar sector today, with more downbeat news from struggling LDK Solar (NYSE: LDK) even as 2 western panel makers make important new inroads to the China market. Meantime, Canadian Solar (Nasdaq: CSIQ) is also getting some good news in the form of new financing from a major western commercial lender for a new solar power project in Canada.
Baidu on the Downtrack? 百度在滑落？
Excitement over the first serious challenge to Baidu’s (Nasdaq: BIDU) longtime supremacy in online search seems to be getting a bit overblown, with investors jumping on just about any excuse to punish Baidu and reward fast-rising challenger Qihoo 360 (NYSE: QIHU). Some may find it a bit odd that I’m defending Baidu at this juncture, since I’ve been a regular critic of this company that has abused its dominant position in online search for years to squelch potential rivals. But all I’m really saying is that it’s far too early to write a death notice for Baidu, which still has plenty of fight left in it as it tries to defend its dominant position that has seen it control more than 70 percent of China’s lucrative online search market for years.
News Digest: December 4 报摘： 2012年12月4日
The following press releases and media reports about Chinese companies were carried on December 4. To view a full article or story, click on the link next to the headline.
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- Ernst & Young to Pay $117.6 Million to Settle Sino-Forest Shareholder Suit (English article)
- Strategic Materials Advisory Council Lauds A123 Sale Congressional Opposition (Businesswire)
- CNZZ: Baidu (Nasdaq: BIDU) Search Traffic Share Down Slightly in November (English article)
- LDK Solar (NYSE: LDK) Reports Financial Results for Q3 of Fiscal 2012 (PRNewswire)
- China’s Wanda In Talks With “Well-Known” Hotels For US Buys (English article)
Xiaomi Ties With Kingsoft in Cloud 小米斥资百万美元购买金山云股权
High profile smartphone maker Xioami is making headlines with word that it has purchased a stake in a unit of software maker Kingsoft (HKEx: 3888), in what could be the first in a new wave of tie-ups for this fast-rising company that aspires to be like global tech giant Apple (Nasdaq: AAPL). I have to admit that I’m not exactly sure what Xiaomi hopes to do with this new tie-up, which has it purchasing around 10 percent of Kingsoft Cloud Group, which is Kingsoft’s cloud computing unit. (Chinese article) The purchase price is quite modest, with Xioami paying just $1.82 million for its 10 percent stake. There’s not much other information in the report, though it does point out that Xioami’s charismatic co-founder Lei Jun is a major stakeholder in Kingsoft.
Yum’s China Salad Days In the Past? 百胜集团在中国的高速扩张终结？
KFC and Pizza Hut owner Yum Brands (NYSE: YUM) has banked on the China story for much of its growth over the last decade, building itself into one of the world’s biggest China plays by deriving more than half of its revenue from the fast-growing market. So it was almost inevitable that the company would take a big hit when the China market started to stall, which is exactly what has happened in Yum’s latest earnings report. That report saw Yum make the somewhat shocking announcement that its China same-store sales to fall around 4 percent in the fourth quarter from year-ago levels. (English article)
China 48th To Get iPhone 5 中国成为第48个发售iPhone 5的国家
Some 2 and a half months after the rest of the world got its first chance to buy the newest iPhone, Chinese consumers will finally get their chance to buy Apple’s (Nasdaq: AAPL) latest smartphone starting in mid December. Apple formally announced the iPhone 5 will officially be available in the world’s largest mobile market starting December 14, marking the end of a long and convoluted odyssey that saw the country receive its iPhones months behind the rest of the world. No reason has been given for the huge delay, but the signs indicate the big amount of extra time was created by a massive Chinese bureaucracy and ineptitude by the nation’s 2 carriers who will formally offer the iPhone 5, China Unicom (HKEx: 762; NYSE: CHU) and China Telecom (HKEx: 728; NYSE: CHA).
News Digest: December 1 报摘： 2012年12月1日
The following press releases and media reports about Chinese companies were carried on December 1. To view a full article or story, click on the link next to the headline.
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- Apple’s (Nasdaq: AAPL) iPad mini & iPhone 5 Arrive in China in December (Businesswire)
- Yum (NYSE: YUM) Warns Of China Q4 Sales Drop As Macro-Economy Bites (English article)
- China Approves Wanxiang Plan To Buy US Battery Maker A123 (English article)
- ReneSola (NYSE: SOL) Announces Q3 Results (PRNewswire)
- Xiaomi Invests $1.8 Mln To Buy 10 Pct of Kingsoft (HKEx: 3888) Cloud Unit (Chinese article)
China Tries New Resource M&A Approach 中国转变全球资源并购策略
New reports from Down Under are saying that China’s leading power distributor State Grid Corp has made a major purchase in Australia, a move that initially looks controversial but could actually mark the start of a smarter approach by Chinese firms to global M&A in the sensitive resource and energy sectors. State Grid, which has been on a global buying spree over the last year, has announced it is acquiring 41 percent of ElectraNet, a grid operator in the Australian state of Queensland, from a local government entity. (English article) No value of the purchase was given, but Australian media had previously reported that State Grid would pay A$500 million for the stake, equal to about $523 million.
Baidu’s Video Play, Qihoo’s Music 百度奇虎明争暗斗
New music and video moves by Baidu (Nasdaq: BIDU) and Qihoo 360 (NYSE: QIHU) reflect the intensifying competition between China’s dominant search engine and a fast-rising challenger, providing an interesting new form of entertainment for industry watchers. Media are reporting that Baidu has just acquired a video search and recommendation website called Jinwankansha, whose Chinese name means “What Are You Watching Tonight?” If true, the acquisition would be one of a series of recent signals that indicate Baidu is preparing to make a serious play for the online video market, potentially challenging more established players like Youku Tudou (NYSE: YOKU) and Sohu (Nasdaq: SOHU). Meantime, Qihoo 360 has also formally launched its own music service tied to its fast-rising search business, in what looks like a direct shot at rival services operated by Baidu.
Youku Tudou Off To Bumpy Start 优酷土豆合并后艰难开始
Leading video sharing site Youku Tudou (NYSE: YOKU) has just released its first earnings report since its formation through the merger of the nation’s top 2 players, and the results aren’t impressing anyone too much. The numbers themselves are a bit messy, which is often the case with a newly merged company where accounting differences need to be resolved and year-ago comparisons are difficult. (results announcement) But what these results seem to show is that Youku may have overpaid significantly for Tudou. What’s more, the results also show that Youku Tudou remains highly dependent on advertising for the big bulk of its revenue, a bad sign as China’s ad market shows signs of significant slowing.
News Digest: November 30 报摘： 2012年11月30日
The following press releases and media reports about Chinese companies were carried on November 30. To view a full article or story, click on the link next to the headline.
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- Prudential Financial (NYSE: PRU), Fosun Int’l (HKEx: 656) Launch China Life Insurance JV (Businesswire)
- Bank of China (HKEx: 3988) Completes Issue of 39 Bln Yuan in Subordinated Bonds (HKEx announcement)
- Qihoo 360 (NYSE: QIHU) Debuts Music Search Service (English article)
- Baidu (Nasdaq: BIDU) Acquires Video Search Company Jinwan Kan Shenme – Source (Chinese article)
- Youku Tudou (NYSE: YOKU) Announces Q3 Unaudited Financial Results (PRNewswire)
