After a spectacular run that saw its stock quadruple last year, cellphone chip designer Spreadtrum (Nasdaq: SPRD) is looking to smartphones for some new excitement to keep its fading growth story alive. Just two weeks after reporting first-quarter earnings that showed sharply slowing growth (results announcement), this dynamic company is trying to wow investors and cellphone makers once more with its roll-out of two new chipsets to cater to the high and low ends of the red-hot smartphone market. (announcement 1; announcement 2)  The move is a shrewd one by CEO Leo Li, who is largely responsible for the company’s huge rally last year as revenue grew by triple digits and margins improved significantly under his team’s new management. Much of the excitement has faded this year, with Spreadtrum’s stock mostly trading sideways as its margin improvement and revenue growth have both tapered off sharply. So, will this new gambit work? In my view, it’s certainly a move in the right direction as most people see the future in smartphones. Of course, the big issue is competition as other, much bigger, companies like Marvell Technology (Nasdaq: MRVL) discovered this space much earlier. Still, Spreadtrum’s ability to move quickly and its home base in China — where many new smartphones are designed, manufactured and ultimately consumed — could work to its advantage. The next quarter or two should tell the story, but I’d bet the company should be able to recapture some, though probably not all, of the growth that made it such a hot ticket in 2010.

Bottom line: Spreadtrum’s gambit on smartphones will bring back some excitement to its stagnating top line, though it will face strong competition from chipmakers already in the space.

手机芯片制造商展讯去年在股市表现超群，股价增加了三倍。如今展讯打算进军智能手机市场，寻找新的增长点，寻求东山再起。两个星期前，展讯公布了傲人的一季度财报。如今这家公司推出了两款新的芯片，以满足高端和低端智能手机市场的需求。这是展讯首席执行官李力游的明智之举。今年展讯股价趋於低迷，因此大家不免猜测，新动作会不会有成效？在我看来，这显然是明智之举，因为大多数人都看好智能手机市场。当然问题在於，像Marvell公司<MRVL.O>这样的竞争者早就发现了这个商机。但展讯具有迅速行动能力，且大本营在中国，这都是优势。究竟结果如何，未来一两个季度将见分晓。但我估计展讯可以重现其在2010年造就的部分辉煌，当然也可能完全不会。

一句话：展讯进军智能手机市场有助於扩大营收，但当然也面临市场中已有竞争者的强劲挑战。

Related postings 相关文章:

◙ Unicom Calls on BlackBerry – Finally! 联通推出黑莓业务 可望後来居上

◙ Baidu-Powered Cellphones? I Don’t Think So 百度也想做手机？恐怕没戏

◙ Wo! China Unicom OS Stumbles Onto the Wire

The following press releases and media reports about Chinese companies were carried on May 21-23. To view a full article or story, click on the link next to the headline.

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◙ Youku (NYSE: YOKU) Announces Pricing of Follow-on Public Offering of Its ADSs (PRNewswire)

◙ LDK Solar (NYSE: LDK) Reiterates Guidance and Announces Date for Q1 Results Report (PRNewswire)

◙ Yingli Green Energy (NYSE: YGE) Reports Q1 Results (PRNewswire)

◙ Dangdang (NYSE: DANG) Announces Q1 Results (PRNewswire)

◙ Camelot Information Systems (NYSE: CIS) Announces Q1 Unaudited Financial Results (PRNewswire)

The cash clock appears to be ticking down for struggling LDK Solar (NYSE: LDK), which has just announced it’s aborting a previous debt raising plan, citing adverse market conditions (company announcement) Indeed, shares of leading solar companies like Trina (NYSE: TSL) and Suntech (NYSE: STP) haven’t fared all that well lately, with both companies’ stock down around 25 percent over the last 3 months, compared with a flat performance for the S&P 500. But LDK’s stock was already down an even steeper 40 percent over that period, and sank another 4 percent after this latest development. My sources have said the company, which already suffers from other issues, needs cash soon, even though its latest announcement says it “still expects to generate sufficient operating cash flow to support our business plan.” With another plan to raise cash through an IPO of its polysilicon assets apparently on hold for the moment, one wonders how long this company will be able to weather its current cash crunch before it’s forced to do something more desperate — perhaps the sale of some assets at a steep discount or perhaps even something more drastic. Stay tuned for more news on this developing saga in the months ahead.

Bottom line: LDK’s aborted debt raising is a sign of a company in need of quick money, with a more dire cash-raising exercise likely in coming months if its prospects don’t quickly improve.

看样子，近况不佳的江西赛维LDK太阳能<LDK.N>很快就会囊中羞涩了。这家公司刚宣布放弃债券融资计划，称市场环境恶劣。的确，天合光能<TSL.N>和尚德电力<STP.N>等行业领先者的股价最近也表现欠佳，过去三个月来都下跌了25%左右，而标普500指数在此期间大致持平。而同样在过去三个月里，LDK的股价跌幅更大，达40%。公司最新做出上述决定後，股价又跌了4%。消息人士称，这家问题缠身的公司很快就会急需现金，尽管公司在最新声明中称它“仍预计能产生足够的运营现金流来支持企业发展”。由於该公司将其多晶硅资产上市的计划目前显然已经搁浅，一切都不免让人担心这家公司在当前的现金危机面前还能撑多久。当然它还可以殊死一搏，比如以深度折让价格出售资产，甚至是更大的动作。未来几个月，请继续关注这场大戏如何发展。

一句话：江西赛维LDK太阳能放弃债务融资计划意味着这家公司即将出现现金短缺，未来几个月有可能被迫作出更激进的融资举措。

Related postings 相关文章:

◙ LDK Looking for Cash as Sales Dry Up 赛维LDK太阳能公司销量下滑 现金接近枯竭

◙ Italian Cloud Casts Shadow on Solar Sector, Pressures Beijing 意大利阴云笼罩中国太阳能产业

◙ LDK Needs More Than Hype to Brighten Its Bottom Line 赛维LDK：光靠作秀是不够的

Despite seemingly long odds against it due to resistance from local interests, China looks determined to force consolidation of its fragmented cable TV industry in a bid to create a viable force to promote  development of digital technologies and more offerings for content- and application-hungry consumers and businesses. Nearly half a year after launching the latest consolidation effort, the top man at China’s TV regulator is being quoted by local media as recently saying consolidation at the provincial level should be completed within 2 years, and a new national player will emerge shortly thereafter. (English article) I’ve seen a number of reports saying consolidation is underway in various provinces, though it’s always hard to tell if this is really happening or just wishful thinking. I previously pegged the chances for success of this latest initiative at 30-40 percent (previous post) but I might have to revise that figure upward to 50-50 in light of this new determination, following failure of a similar effort 5 years ago. From a business standpoint, such consolidation would benefit everyone, providing a big boost for programming makers like Huayi Brothers (Shenzhen: 300027) and video streamers like Youku (NYSE: YOKU). That, in turn, would create new business for not only the new national cable operator, but also China Telecom (HKEx: 728; NYSE: CHT) and China Mobile (HKEx: 941; NYSE: CHL), which are also working on digital TV offerings. Again, the major stumbling block is entrenched local interests that may try anything to avoid giving up their hold on local cable franchises.

Bottom line: Cable TV consolidation is gaining momentum, reflecting the government’s determination to make it happen, and now stands a 50-50 chance of success.

尽管因面临地方利益的抗拒而困难重重，但中国似乎决心对其呈现条块分割的有线电视行业进行强力整合，以推动数字技术的发展，更好地满足消费者需求。最新一轮整合行动进行近半年之後的今天，中国媒体援引行业监管部门领导近期的讲话说，应能在两年之内完成省级整合工作，一个新的国家级有线电视网将随後现身。我已看到一些报导称，多个省份都在进行整合，但很难说是的确有这麽回事，还是大家一厢情愿的想法。我以前曾预计此轮整合计划有三、四成的成功希望，但现在考虑到当局最新表现出的决心，我大概要把这一概率提高到五成了。从商业角度看，整合对各方都有好处，对於华谊兄弟<300027.SZ>和优酷<YOKU.N>等内容制造商来说更是个强心剂。内容提供方的利好消息又将意味着新国家级有线网络运营商和中国电信<0728.HK>和中国移动<CHL.N><0941.HK>等相关企业的新业务机会。当然，主要的绊脚石仍是根深蒂固的地方利益，它们将不计代价地力求保住自己对地方有线电视网的控制权。

一句话：有线电视业整合势头正劲，说明了政府的决心，目前的成功把握有五成。

Related postings 相关文章:

◙ China Makes Up Its Mind: Cable Consolidation 中国终於下决心：有线电视行业整合

◙ Tencent Looks to the Stars to Power Video Dreams 腾讯借力华谊 进军网络视频领域

◙ Tudou Smells Sweet as Video Sharing Purchase　　土豆网秀色可餐

Facebook just can’t take no for an answer. A top company executive has said that Facebook CEO and co-founder Mark Zuckerberg is planning a second trip to China to check out the market (English article; Chinese article), even after Beijing laid down three conditions that essentially told the social networking giant “you’re not wanted here.” (previous post) The executive said there’s no set date for Zuckerberg’s second trip, following a first one in December whiere he met with officials from Baidu (Nasdaq: BIDU), Sina (Nasdaq: SINA) and Alibaba, among others. If he’s really that determined to get to China and avoid Beijing’s three impossible conditions, the only route I see is through an M&A of an existing service. Such a strategy could be interesting, as there are quite a few candidates out there, most notably Sina’s Weibo microblogging service and Kaixin’s more traditional Facebook-like SNS service, that could be strong candidates for such a tie-up. Weibo, China’s equivalent of Twitter, is currently trying to find its way as an independent company after being cut loose from Sina (previous post), and could certainly use Facebook’s expertise. Likewise, Kaixin, which is moving towards its own IPO, is playing catch-up to recently listed Renren (NYSE: RENN), and was even approached by Facebook about an investment a year ago but declined. If Zuckerberg is really serious about China, look for some kind of major tie-up with an existing player perhaps before the end of the year.

Bottom line: Facebook’s determination to be in China could result in a major investment in an existing player, possibly Kaixin or Weibo, by the end of this year.

Facebook 不愿被拒绝。虽然中国政府列出了三个条件，让Facebook知道自己不受欢迎，但一位公司高管说，Facebook首席执行官扎克伯格仍打算再度访华，考察中国市场。这名公司高管说，扎克伯格下一次访华之旅行程还未确定。去年12月扎克伯格曾来到中国，与百度<BIDU.O>、新浪<SINA.O>和阿里巴巴等公司的高层会面。如果他真的一心一意想进军中国，同时绕开北京开出的三个苛刻条件，我认为唯一的途径便是并购一家现成的市场参与者。这种策略蛮有趣，因为确有很多候选者可供选择，尤其是新浪微博和开心网。新浪微博在逐渐摆脱对母公司的依赖後，正寻求成为一家独立公司，而且肯定可以从Facebook那里学到不少东西。开心网虽已在上市步伐方面落後于竞争对手人人网<RENN.N>，但一年前曾获得Facebook的青睐，只是当时拒绝了後者的投资意向。如果扎克伯格真的对中国恋恋不舍，那麽也许年底前我们就会看到Facebook与一家现成的中国市场主要参与者结成某种合作关系。

一句话：Facebook决意进入中国市场，可能会导致年底前它对开心网或新浪微博的大笔投资。

Related postings 相关文章:

◙ Beijing Deals Death Blow to Facebook China Plan – Source 中国宣判Facebook入华计划“死刑”–消息人士

◙ Facebook’s China Tie Up: No Big Deal Facebook能否入华？

◙ Snaptu: Facebook’s China Back Door? Facebook在中国走“後门”？

The following press releases and media reports about Chinese companies were carried on May 20. To view a full article or story, click on the link next to the headline.
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◙ Facebook CEO Zuckerberg Plans Second China Visit (Chinese article; English article)

◙ GCL-Poly (HKEx: 3800) Can’t Explain Six-Day Stock Slide, Says Business Is ‘Normal’ (English article)

◙ Home Inns (Nasdaq: HMIN) Announces Filing of a Shelf Registration Statement (PRNewswire)

◙ LDK Solar (NYSE: LDK) Announces Postponement of Proposed Offering of Senior Notes (PRNewswire)

◙ ZTE (HKEx: 763) Ranked No. 1 for Most International Patents Application in 1Q (Businesswire)

There’s an interesting story in today’s China Daily that indicates China, as the world’s largest energy consumer, is finally getting serious about trying to integrate itself with global markets rather than sit by and watch while others make the big decisions. According to the article, PetroChina (NYSE: PTR; HKEx: 857; Shanghai: 601857) Chairman Jiang Jiemin says his company, China’s largest oil producer, will open operation centers in Singapore, London and New York, in order to expand its overseas trading “to gain greater influence on the global stage.” (English article) All I can say is, congratulations Beijing and PetroChina for finally deciding to take a more active role in global markets that have such a direct impact on the domestic economy. Up until now, it seems like China has always taken a very passive role in such matters as global oil, metals and agricultural markets, preferring to let others make the big decisions and then only complain afterwards if it doesn’t like those decisions. A more assertive PetroChina should be good not only for the company and China as a whole, but also for global markets as the world’s largest energy consumer helps to rationalize some of these markets that at times can behave very irrationally. Maybe now we’ll start to see China’s other major commodities players start to engage more with the global markets they rely on so heavily.

Bottom line: PetroChina’s move to set up 3 global operations centers signals a new Beijing-backed willingness to engage with global markets, which should benefit both the company and China.

今天的《中国日报》有篇报导很有意思，显示中石油<0857.HK>终於改变观望态度，积极融入全球市场。据报导，中石油董事长蒋杰敏称中石油将在新加坡、伦敦和纽约建立运营中心，扩大海外交易，提升在全球舞台的影响力。我想说，恭喜中国政府和中石油终於决定更积极地融入全球市场了！目前为止，中国在全球石油、金属和农产品市场等问题上采取非常被动的态度，宁愿看着它方作出重大决策，然後如果感到不满再抱怨。中石油如今采取更坚定自信的立场，对该公司以及中国都有利，并且对全球市场也有好处，因为中国是全球最大的能源消费国，其积极参与能够帮助一些市场更理性化。也许未来中国会有更多大宗商品企业加强与全球市场融合。

一句话：中石油决定在海外设立三个运营中心，标志着其在政府支持下，更积极主动地融入全球市场，这对中石油和中国都是好事。

Related postings 相关文章:

◙ Sinopec, PetroChina Fight Back With ‘Pity Me’ Earnings 中石化、中石油上演苦肉计

◙ Sinopec Scandal Points to Big Oil Crackdown 中石化：“天价酒”事件实为敲山震虎？

◙ PetroChina Gets in Bed wtih Saudis to Secure Oil Supplies 中石油的沙特“情缘”

Just a month after gaining its independence from parent Sina (Nasdaq: SINA), Weibo, Sina’s popular Weibo microblogging service is taking its first steps in the M&A arena, in what is likely to become a fast and possibly dirty consolidation of this sector crowded with players all hoping to become the Twitter of China. Chinese media are reporting that Weibo is merging with Bula.com, a mobile microblogging  platform operated by a company called 3G.cn. (English article) I’ll be the first to admit I didn’t know anything about Bula.com before reading this article, and details in the reports are scarce. But it sounds like this is a move by Weibo — already China’s most popular microblogging service — to quickly beef up its product offering in the fast-growing mobile Internet space. If that’s the case, then this looks like a smart move by Weibo, which, since receiving its independence from Sina, is no doubt under intense pressure to find a business model that will help it turn a profit quickly and then make an IPO in New York not long afterwards. Before this move, we saw signs last week of the coming consolidation when Baidu officially reorganized its microblogging service, a likely precursor to closing the service in the not-too-distant future. (previous post) We’ll need to see some of Weibo’s financials to know if its strategy is working, but so far I like the direction it’s taking and can imagine a blockbuster IPO for the company by the end of 2012.

Bottom line: Weibo’s acquisition of a mobile microblogging service marks the beginning of a sector consolidation that could  end with a blockbuster Weibo IPO by the end of next year.

新 浪微博从母公司新浪<SINA.O>独立才一个月，已经着手进行并购，可能推动微博领域快速整合。中国媒体报导称，新浪微博将与移动微博平台 Bula.com合并。我得承认，在我读到这篇报导前，我对Bula.com一无所知，并且报导里也缺乏细节。不过此宗交易听起来，像是新浪微博试图加强 在移动网络领域的地位。倘若真是这样，算得上是个高招，因为新浪微博在从母公司独立後，肯定面临巨大压力，需要寻求一个恰当的商业模式，帮助其迅速实现盈 利并在美国进行IPO。上周我就看到了微博领域整合的苗头，上周百度正式宣布对其微博产品–“说吧”进行调整，这或许预示其不远的将来将关闭此项服务。我们还需要看到新浪微博的财务表现，才能判断其战略是否奏效，但目前为止，我对其选定的方向表示赞许，并期待该公司在2012年底前进行轰轰烈烈的IPO。

一句话：新浪微博收购移动微博服务，标志着行业整合的开始，新浪微博可望於明年底以前进行IPO。

Related postings 相关文章:

◙ Sina Gearing Up for Weibo Spin-Off 新浪欲剥离微博

◙ Weibo: Sina Looking at Big Bucks in Micro Packages

◙ Baidu’s Latest Botch: Microblogging 百度“微博”的倒掉

After more than a year of dilly-dallying with its 3G system, I’m finally getting convinced that China Unicom (HKEx: 762; NYSE: CHU), China’s second biggest phone company, is getting serious about finding subscribers for its state-of-the-art high-speed wireless network. The latest sign of its serious intent came this week when Unicom announced it would offer Research in Motion’s (Toronoto: RIMM) popular BlackBerry mobile email devices. (English article; Chinese article) Unicom joined its two rivals, China Mobile (HKEx: 941; NYSE: CHL) and China Telecom (HKEx: 728; NYSE: CHU), which have already been offering BlackBerry service for quite some time. Ironically, Unicom’s 3G network, based on the WCDMA standard, is the best suited for offering  BlackBerry service in China, compared with technologically inferior offerings from the two other companies. Unicom may be late to the BlackBerry party, but its recent behavior indicates it will aggressively promote the service on its 3G network and is likely to quickly surpass both China Mobile and China Telecom in terms of BlackBerry subscribers. Combined with its aggressive promotion of Apple’s (Nasdaq: AAPL) iPhones and other 3G handsets, Unicom could be set to take some significant share from industry heavyweight China Mobile — which controls around 70 percent of the China mobile market — over the next year.

Bottom line: Unicom’s roll-out of BlackBerry service is its latest move to aggressively promote its superior 3G network, which will help it steal market share from China Mobile.

联通<0762.HK>本周宣布将在中国大陆正式推出宽频码多分址(WCDMA)制式的黑莓手机後，我终於确信联通确实在努力争取3G用户。联通推出黑莓业务的时机落後于中国移动<0941.HK>和中国电信<0728.HK>，但实际上联通基於WCDMA标准的3G网络，是中国最适合提供黑莓服务的网络。联通加入黑莓业务竞争可能有点晚，但近期表现显示该公司将积极推广此项服务，其黑莓用户可能会迅速超越中国移动和中国电信，加之其推销苹果<AAPL.O>iPhone和其他3G手机的经验，未来一年中，联通可能抢走中国移动不少市场份额。

一句话：联通推出黑莓业务，是其大力推广其3G网络的最新举措，将争夺中国移动市场份额。

Related postings 相关文章:

◙ Unicom’s Q1 Results Mask Real Cause for Worry 中国联通：一季度财报掩盖真正忧患

◙ 2011: Year of the Unicom 2011：联通的好运年

◙ Wo! China Unicom OS Stumbles Onto the Wire

The following press releases and media reports about Chinese companies were carried on May 19. To view a full article or story, click on the link next to the headline.

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◙ NetEase.com (Nasdaq: NTES) Reports First Q1 Unaudited Financial Results (PRNewswire)

◙ Longtop Financial (NYSE: LFT) Announces Delay in Q4, FY 2011 Earnings Reporting (PRNewswire)

◙ Ku6 (Nasdaq: KUTV) Lays Off 20 Percent of Workforce (English article)

◙ Baidu (Nasdaq: BIDU) Sued For Aiding China Censorship (English article)

◙ China Mobile (NYSE: CHL, HKEx: 941) to Simplify Package Plans (English article)

China really needs to add some teeth to its legal system for settling corporate disputes, or risk seeing the ecosystem surrounding its most promising private companies degenerate into chaos. My comment comes in response to yet another meaningless judgment against Internet security software maker and troublemaker supreme Qihoo (NYSE: QIHU). In the latest of a series of meaningless judgments against this company, the Chinese courts have fined Qihoo a mere 300,000 yuan, or just $46,000, for its unethical actions that caused a rival product from Kingsoft (HKEx: 3888) to lose 90 percent of its users. (English article; Chinese article) This latest court action follows equally meaningless judgments against Qihoo for similar unethical actions that caused major business disruptions to China’s two biggest net giants, Tencent (HKEx: 700) and Baidu (Nasdaq: BIDU). Investors are clearly getting the message here, that no one needs to fear lawsuits in Chinese courts, with Qihoo shares actually rising 7 percent in New York trading after results of this latest lawsuit were announced. If China doesn’t add some teeth to its legal system soon, it could face the very real danger that others in China’s private sector will begin to engage in similarly unethical behavior to get an edge over their rivals, causing the entire business climate to sink into chaos.

Bottom line: The latest judgment by China’s courts against Qihoo is as toothless as previous ones, boding poorly for the future role of China’s legal system as arbitrator of corporate disputes.

中国应加强解决企业争端的法律体系，否则民营企业生态系统可能恶化，甚至陷入混乱。近日，北京市中级人民法院认定奇虎360<QIHU.N>对金山软件<3888.HK>商品信誉诋毁及卸载等行为构成不正当竞争，判令奇虎停止不正当竞争行为，并赔款30万元。此前奇虎就曾因对百度<BIDU.O>和腾讯<0700.HK>等实施不正当竞争而陆续败诉，但这些判决都没什麽惩戒意义。投资者得到的讯息是：在中国不用怕官司。最新判决结果出来後，奇虎股价甚至还上涨了7%。如果中国不尽快完善法律体系，其他民营企业也会采取类似的不正当竞争行为，导致整个行业陷入混乱。

一句话：法院对奇虎最新判决，跟以前的判决一样没有惩戒意义，法律体系在企业争端解决过程中的作用不容乐观。

Related postings 相关文章:

◙ China Legal System Takes Bite Out of Tencent’s Qihoo Lawsuit 中国法律体系让奇虎在与腾讯的官司中免受重大损失

◙ Qihoo: A Strange Tiger, Indeed 奇虎：真的是头怪虎！

◙ Qihoo: More Controversy from the Year’s Hot-Potato IPO 奇虎再生波澜