The steady stream of executive departures at the ailing LaShou has reached a new high with the resignation of the company’s CEO, in the latest sign that the end may be near for China’s leading group buying site as it rapidly runs out of cash. I last wrote about LaShou back in late April, when it looked like the company may only have months left to live as it bled cash after a failed New York IPO and the departure of a number of top executives, including its regional managers in Shanghai and Beijing and a vice president. (previous post) Two months later, media are now reporting that company founder Wu Bo is leaving his post as company CEO, even as he retains his position as LaShou’s chairman. (Chinese article)
News Digest: August 7, 2012 报摘： 2012年8月7日
The following press releases and media reports about Chinese companies were carried on August 7. To view a full article or story, click on the link next to the headline.
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- China Mobile (HKEx: 941) Expands TD-LTE Trial to 13 Cities (English article)
- Youku (NYSE: YOKU) Announces Q2 Unaudited Financial Results (PRNewswire)
- Changyou’s (Nasdaq: CYOU) 7Road.com Unit Plans to File for IPO (PRNewswire)
- LaShou’s Wu Bo Reliquishes CEO Title, Remains as Company Chairman (Chinese article)
- Sinopec, ENN Extend Long Stop Date for China Gas Bid to Sept 6 (HKEx announcement)
- Latest calendar for Q2 earnings reports (Earnings calendar)
Sinopec’s China Gas Bid Hit by Greed, Indecision 中石化收购中国燃气料搁浅
As yet another deadline approaches for Sinopec’s (HKEx: 386; Shanghai: 600028; NYSE: SNP) strange hostile takeover bid for natural gas distributor China Gas (HKEx: 384), I’m going to make a prediction that may look bold but also seems increasingly obvious, namely that greed and indecision will ultimately kill this controversial deal. The unsolicited offer by Sinopec and partner ENN Energy (HKEx: 2688) for China Gas will officially expire on Tuesday, though it’s quite possible we might see the pair extend the deadline yet again, following several previous extensions. (English article) But based on the clumsy way Sinopec has handled the deal so far, I see no indication that it’s prepared to raise its offer.
Xiaomi: China’s New Apple? 小米：下一个中国的苹果公司？
The sales and marketing people at smartphone wannabes like ZTE (HKEx: 763; Shenzhen: 000063), Huawei and Lenovo (HKEx: 992) are probably green with envy over the surge in publicity surrounding the upcoming launch of the newest low-cost smartphone by up-and-comer Xiaomi. I’m not usually someone who gets too excited by new product launches, but I have to admit that even I am increasingly intrigued not only by this new phone, Xiaomi’s second following the launch of its first model last fall, but also by Xiaomi itself. The hype looks very similar to the kind of excitement that companies love but often have difficulty generating for their new product launches, with Apple (Nasdaq: AAPL) as one of the few companies that can successfully generate such buzz.
Tudou, Youku Merger Moves Ahead as Growth Slows 随着增长放缓，优酷、土豆合并有进展
News Digest: August 4-6, 2012 报摘： 2012年8月4-6日
The following press releases and media reports about Chinese companies were carried on August 3. To view a full article or story, click on the link next to the headline.
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- Xiaomi to Release 2nd Generation Smartphone on August 16 – Sources (Chinese article)
- China Telecom (HKEx: 728) to Buy Parent’s 3G Assets for Over $19 Bln: Sources (English article)
- Youku (NYSE: YOKU), Tudou to Form Group Company Post-Merger (Chinese article)
- Telefonica Completes Sale of Half of China Unicom (HKEx: 762) Stake (HKEx announcement)
- Endgame Near in Sinopec (HKEx: 386), ENN $2.2 Bln China Gas (HKEx: 384) Bid (English article)
- Latest calendar for Q2 earnings reports (Earnings calendar)
China Resource M&A Set to Slow 中国海外资源并购或将放慢脚步
I previously predicted that 2012 could be a landmark year for Chinese firms to buy global energy and resource assets (previous post), and now the latest signs indicate the buying binge could quickly fizzle in 2013. The reason is simple: After ordering big state-run energy and mining companies to buy global assets to feed China’s expanding economy, Beijing is quickly realizing that rapidly falling prices for commodities like coal, oil and iron ore could render many of those overseas purchases as uneconomical in the very near future.
Solar Trade Wars: Showdown Coming? 中西方太阳能贸易战离摊牌已不远？
A new flurry of noise indicates a showdown may be imminent in the ongoing solar trade wars between Beijing and the west, reflecting the very real possibility that many of China’s top players may be on the brink of bankruptcy due to a prolonged downturn for their sector. The sudden flurry of new noises comes as yet another top manufacturer, Yingli Green Energy (NYSE: YGE), has just pre-announced second-quarter results that show the industry’s long-anticipated recovery may be weaker than expected. (company announcement)
News Digest: August 2, 2012 报摘： 2012年8月2日
The following press releases and media reports about Chinese companies were carried on August 2. To view a full article or story, click on the link next to the headline.
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- Hanlong in Talks to Cut Sundance (Sydney: SDL) Acquisition Price (English article)
- Yingli Green Energy Preannounces Financial Results for Q2 (PRNewswire)
- ZTE (HKEx: 763) Q2 Smartphone Shipments Break Into World Top 5 (Businesswire)
- Baidu-Owned (Nasdaq: BIDU) Travel Site Doubles Sales as Chinese Seek Deals (English article)
- Hisense (Shanghai: 600060) to Build Production Base in South Africa (English article)
- Latest calendar for Q2 earnings reports (Earnings calendar)
Lenovo Waltzes With EMC, Eyes Nokia 联想“牵手”EMC
There are a couple of interesting news bits today on PC giant Lenovo (HKEx: 992), including a smart-looking new tie-up with data storage giant EMC (NYSE: EMC), and rumors that the company is weighing a potentially disastrous bid for struggling cellphone giant Nokia (Helsinki: NOK1V). All this comes as analysts and Lenovo itself are predicting it could overtake struggling Hewlett-Packard (NYSE: HPQ) for the title as the world’s biggest PC maker by the end of this year, becoming the first major Chinese high-tech brand to take such a global title.
Groupon Retreats, Dianping Mobilizes 中国团购业继续整合
The shakeup in China’s online auction space continues, with global pioneer Groupon (Nasdaq: GRPN) effectively retreating from the market just a year and a half after it entered while up-and-comer Dianping passes an important milestone in the mobile space. The shake-up has been going on since the beginning of the year, fueled by rampant competition that has caused many Chinese consumers to rapidly lose interest in group buying deals from companies that look increasingly shaky as many run out of cash and are forced to close or make massive cutbacks. Of course the big really news from this space has yet to come, but could be just a month or 2 away when I predict that cash-challenged giant LaShou will either be forced to shut down or get purchased by one of the industry’s stronger players. But more about that in a moment.
