Tag Archives: Geely

Read Geely latest Business & Financial news from Doug Young, the Expert on Chinese High Tech Market, (former Journalist and Chief editor at Reuters)

NEW ENERGY: Geely Dumps EVs, BYD Wins Back Shenzhen

Bottom line: Geely’s sale of its EV joint venture stakes to its parent company, and BYD’s reinstatement of a major electric bus order from its hometown government, underscore how reliant the industry is on government support for its survival.

Shenzhen reinstates big electric bus order for BYD

A couple of electric vehicle (EV) stories are in the headlines, spotlighting just how dependent the sector is on government subsidies for its survival in China. I’ve written about this over-reliance on state-support frequently, including just last week when a government report said the sector had become bloated with mediocre players without any chance for commercial success. (previous post) Both of the latest headlines reinforce that theme, including one from smaller player Geely (HKEx: 175) and the other from stalwart BYD (HKEx: 1211; Shenzhen: 002594). Read Full Post…

China News Digest: July 26, 2016

The following press releases and news reports about China companies were carried on July 26. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════

  • Baidu (Nasdaq: BIDU) Says Group Withdraws Offer to Acquire iQiyi (PRNewswire)
  • Wanda’s AMC (NYSE: AMC) Raises Bid for Carmike (Nasdaq: CKEC) to $1.2 Bln (Chinese article)
  • Chinese Dealmaker Sonny Wu Said to Lead Takeover of AC Milan (English article)
  • Huawei H1 Revenue Rises 40 Pct, Profit Margin Falls to 12 Pct (Chinese article)
  • Geely (HKEx: 175) Sells 2 EV Joint Ventures to Parent for 1.35 Bln Yuan (HKEx announcement)
  • Latest calendar for Q2 earnings reports (Earnings calendar)

CONSUMER: Midea Cements Kuka Ties, Bumpy Road Ahead

Bottom line: A new marriage between Midea and Kuka may get off to a rocky start due to cultural differences, but could ultimately do well and see the formation of a joint venture to sell industrial robots in China. 

Midea and Kuka tie the knot

After a tense 2 months, a controversial tie-up between Chinese home appliance maker Midea (Shenzhen: 000333) and German robotics firm Kuka (Frankfurt: KU2) has just taken a major step forward, with the former sharply boosting its stake in the latter. Midea took the $1.3 billion step after providing numerous assurances to Berlin, including guarantees that it didn’t plan to relocate German jobs to China or take over Kuka’s management.

The step forward looks like a big victory for free trade, as it shows that governments like Germany won’t meddle in market-driven M&A and other cross-border tie-ups even when they involve cutting-edge technology. But this new cross-border marriage is just beginning, and I suspect there will be many bumps in the road ahead as this pair from very different cultural backgrounds gets to know each other. Read Full Post…

News Digest: November 19, 2015

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

  • Tongwei Group Plans World’s Biggest Solar-Cell Plant in Sichuan (English article)
  • Ctrip (Nasdaq: CTRP) Reports Unaudited Q3 Financial Results (PRNewswire)
  • Kee Everbright Abandons Acquisition of Changyou (Nasdaq: CYOU) Unit 7Road (English article)
  • Weibo (Nasdaq: WB) Reports Q3 Results (GlobeNewswire)
  • Geely (HKEx: 175) Aims for 90 Pct of Sales to be Green Energy Cars by 2020 (English article)
  • Latest calendar for Q3 earnings reports (Earnings calendar)

News Digest: October 15, 2015

The following press releases and media reports about Chinese companies were carried on October 15. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════

  • Huawei Biggest China Smartphone Brand in Q3, Xiaomi Finishes Second (Chinese article)
  • 3 China Telcos Complete Sale of Towers to China Tower (HKEx announcement)
  • Online Loan Search Platform Rong360 Lands 1 Bln Yuan Series D Funding (English article)
  • LeTV (Shenzhen: 300104) in Product Delivery Scandal After Sept 19 Promotion (Chinese article)
  • Geely (HKEx: 175) Said to Plan Research Center for London Black Cabs in UK (English article)

News Digest: March 28-30, 2015

The following press releases and media reports about Chinese companies were carried on March 28-30. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════

  • HP (NYSE: HPQ) To Sell 51 Pct Of H3C Unit To Tsinghua Unigroup, Seeks $5 Bln (Chinese article)
  • Geely (HKEx: 175) Invests 250 Mln Pounds On British New Energy Taxi Plant (Chinese article)
  • Gome (HKEx: 493) To Open 100,000 Microstores On WeChat (English article)
  • China Construction Bank (HKEx: 939) Announces Annual 2014 Results (HKEx announcement)
  • Telsa (Nasdaq: TSLA) To Localize Production In China In 3 Years: Elon Musk (English article)

NEW ENERGY: BYD Seeks Jump Start With Asset Sale

Bottom line: BYD’s latest asset sale, combined with its new auto finance joint venture, are both aimed at boosting its struggling EV business, but it may have to sell off more assets before the market finally starts to gain some momentum.

BYD sells electronic component unit

Struggling electric car maker BYD (HKEx: 1211; Shenzhen: 002594) is starting to look a bit desperate, announcing a major asset sale just days after it received approval for a stalled finance joint venture aimed at boosting its sputtering sales. The approval this week for its auto finance joint venture comes as rival Geely (HKEx: 175) also has just announced its own approval for a similar stalled joint venture with France’s BNP Paribas (Paris: BNP). That indicates Beijing may be starting to worry about a broader slowdown in China’s car market after several years of breakneck growth.  Read Full Post…

News Digest: February 13, 2015

The following press releases and media reports about Chinese companies were carried on February 13. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════

  • Merger Speculation Sends Chinese Telecom Shares Higher (English article)
  • Metal Trading Site Zhaogang.com Gets $100 Mln In Financing Round (Chinese article)
  • Trina (NYSE: TSL) To Build Photovoltaic Plants With PingAn Trust, Jiuzhou Investment (PRNewswire)
  • US Has Raised Concerns With China About New Cyber Rules: Official (English article)
  • Geely (HKEx: 175) Gets CBRC Approval For Auto Finance JV With BNP Paribas (HKEx announcement)

CARS: SAIC Eyes Indonesia, BYD Tries Finance

Bottom line: SAIC’s foray with GM into Indonesia could stand a moderate chance of success, while BYD’s new auto financing joint venture is unlikely to provide a major boost for its stalling EV campaign.

BYD gets approved for auto finance JV

Two of China’s more innovative automakers are in the headlines today, making interesting moves as each looks to maintain growth as the domestic car market sputters. One move will see domestic leader SAIC (Shanghai: 600104) make a new attempt to move outside China with plans to open an Indonesian factory with US joint venture partner General Motors (NYSE: GM). The second move has the sputtering BYD (HKEx: 1211; Shenzhen: 002594) getting government approval to launch a vehicle finance joint venture, which could potentially help to jump-start its stalling electric vehicle (EV) program. Read Full Post…

News Digest: December 17, 2014

The following press releases and media reports about Chinese companies were carried on December 17. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════

  • Geely (HKEx: 175) 2014 Profit Drops 50 Pct On Forex Loss In Russia (HKEx announcement)
  • Baidu (Nasdaq: BIDU) To Announce $600 Mln Investment In Uber – Source (Chinese article)
  • Insurer Delta Lloyd (Amsterdam: DLL) Sells Belgian Bank To China’s Anbang (English article)
  • Xiaomi Allowed To Resume Sales In India (Chinese article)
  • Qihoo 360 (NYSE: QIHU) Announces Strategic Partnership With Coolpad (HKEx: 2369) (PRNewswire)

IPOs – HK Overtakes NY With Year-End IPO Flurry

Bottom line: Upcoming Hong Kong IPOs for nuclear energy firm CGN Power and real estate developer are likely to do well, while a third listing for car maker BAIC could get a more lukewarm reception.

Dalian Wanda seeks approval for $6 bln HK IPO

New York has posted a banner year for Chinese IPOs, culminating with the record-breaking $25 billion listing for Alibaba (NYSE: BABA) in September. But Hong Kong is showing it still has plenty to offer too, with a flurry of major new listings coming in the final month of 2015. At least 3 major new offerings are bubbling around the headlines as we head into December, led by one for China’s largest nuclear plant builder, CGN Power Co. Meantime, Beijing-based auto maker BAIC and property giant Dalian Wanda are also revving up for what could well be 2 of the biggest listings for the year. Read Full Post…