Pacific Securities sees 2009 profit up 162%
Pacific Securities, a national comprehensive securities company of China, on Friday forecast its net profit in 2009 would grow 162 percent from a year ago.
In a statement to the Shanghai Stock Exchange, Pacific Securities said its net profit for last year would tally around 405.35 million yuan ($59.44 million), and earnings per share would be about 0.27 yuan.
The rise in the corporation’s profit was attributed to the economic rebound thanks to the country’s stimulus package, plus a recovery in capital market.
Shares of Pacific Securities opened lower at 16.56 yuan per share on Friday compared with the previous closing of 16.67 yuan per share despite the profit gains forecast.
McDonald’s to invest 25% more capital in China
McDonald’s Corp, the world’s largest hamburger chain, said it expects to boost its capital investment in China by about a quarter this year to tap the growth of the world’s third-largest economy.
“We expect to increase our capital investment by 25 percent over last year,” said Kenneth Chan, McDonald’s China CEO, during the launch of a new marketing campaign on Friday.
“We continue to be extremely bullish about our business in China and will continue to invest in opening new restaurants,” Chan said, but declined to disclose the investment amount for 2009 or 2010.
McDonald’s, which competes with Yum Brands’ KFC in the US and China, was planning to open 150 to 175 restaurants in China in 2010, which would lead to the creation of 10,000 new jobs, he added.
The company said it had 1,135 stores in Chinese mainland as of the end of 2009.
McDonald’s is launching a new brand concept called “Make Room for Happiness” to mark the 20th anniversary of the opening of its first restaurant in Shenzhen.
Last week, McDonald’s posted a profit for the fourth-quarter of 2009 of $1.22 billion, up from $985.3 million a year earlier, helped by strength in Europe and a small rise in December sales in the US. It said same-store sales gained 1 percent in December after two months of declines in the United States, where high unemployment and rampant discounting are straining results.
December same-store sales in Europe topped forecasts with a 5.1 percent gain, while the Asia-Pacific, Middle East and Africa region missed analyst calls and were up just 1 percent. Globally, same-store sales rose 2.7 percent for December and 2.3 percent for the quarter, the company said.
Shanghai Zhenhua Heavy Industry profit drops
Shanghai Zhenhua Heavy Industry Co, China’s biggest port equipment maker, said its net profit in 2009 slumped 60 percent to 70 percent due to weak demand brought about by the global economic downturn.
A decrease in the financial assets income last year also contributed to the losses, said the company in a brief statement filed to the Shanghai Stock Exchange Friday.
The company said the result had not been audited, and it would announce specific figures in the annual business report.
The share price of the Shanghai Zhenhua Heavy Industry opened 0.94 percent lower at 9.5 yuan ($1.4) Friday morning.
Hainan Airlines returns to black in 2009
Hainan Airlines Co, one of China’s major airlines, Friday forecast its 2009 profits would return to the black.
In a statement filed to the Shanghai Stock Exchange, Hainan Airlines gave no exact figure of its net profits in 2009.
Hainan Airlines suffered losses of 1.4 billion yuan ($206 million) in 2008, with earning-per-share at minus 0.4 yuan.
The company, based in south China’s Hainan Island, said profit turnaround in 2009 was attributable to recovery of China’s civil aviation industry, falling oil prices and the government’s supportive policies.
Despite its profit rise forecast, Hainan Airlines opened at 6.93 yuan Friday, down 1 percent from the previous close.
BoCom launches insurance business
Bank of Communications Co Ltd (BoCom), the county’s fifth-largest lender by assets, launched its insurance business yesterday, as part of its goal of becoming a full-service financial conglomerate.
The new enterprise, entitled BoCommLife Insurance Co, makes BoCom the first domestic lender to invest in the mainland’s insurance sector.
BoCom will hold a 51 percent stake in the new company while the Commonwealth Bank of Australia will control the remaining shares. HSBC Holdings PLC holds a 19 percent stake in BoCom.
“The move was a critical step forward for BoCom in our efforts to become a financial conglomerate,” Niu Ximing, executive director of the Shanghai-based lender, said yesterday.
According to Guan Huanfei, the newly appointed general manager of BoCommLife Insurance Co, BoCom will increase its capital in the joint venture to 500 million yuan ($73.24 million) from the initial registered capital of 200 million yuan, making it a nationwide insurer.
In addition to Shanghai, BoCommLife will set up branches in Beijing as well as Jiangsu, Zhejiang and Guangdong provinces.
“By sharing the bank’s resources, including its networks, client base, sales channels and IT systems, we will enjoy strong growth potential,” Guan was quoted as saying to Reuters. “We will become part of BoCom’s wealth management strategy,” he said.
Apart from BoCom, other Chinese banks including Bank of China and Bank of Beijing have also obtained approval to invest in insurance firms as part of a broader push by lenders to expand their business portfolios.
China Life forecasts more than 50% profit rise in 2009
China Life, the nation’s largest life insurer, said on Thursday night its net profit is estimated to grow at least 50 percent in 2009 from a year ago.
The sharp increase is boosted by strong gains in investment thanks to the bullish capital market last year, the company said in a preliminary report posted on the website of the Shanghai Stock Exchange before its annual report release.
Panasonic staff continues protest
More than 200 employees blocked the gate of a factory belonging to Panasonic Corporation of China for the fourth day yesterday in a desperate attempt to secure a better severance deal.
Factory managers and the disgruntled workers sat down at the negotiating table at 4 pm yesterday in the hope of finding a solution. At press time, no deal had been reached.
The workers said the action at the factory, which is close to the international airport, would continue. Neither side would predict when the situation might end.
Workers gather outside the Panasonic factory building in Beijing yesterday. [China Daily]
Panasonic Electronic Devices (Beijing) Company runs two production lines at the facility that have manufactured capacitors since 1996. The company told workers it planned to move one of the production lines to Guangdong province because of the high cost of producing parts in Beijing.
The workers were told about the move on Jan 15 and decided to block the gate on Monday as factory managers began asking members of the workforce to volunteer to leave the company.
Posters on the gate said workers were united and demanded the same severance package as the company offered other workers at other factories.
“They did not tell us they were looking for volunteers because they had decided to fire most of us,” said a worker who had been at the factory for 13 years.
He claimed the word “volunteer” was being used but in reality the factory would fire all workers and offer only a small severance package.
“We have worked here for more than 10 years and spent our youth here. Now the factory wants to dismiss us with only 50,000 yuan ($7,323.75),” he said.
The workers stayed at the main gates around the clock and senior executives, including four Japanese managers inside a building, did not visit to talk with them, he said.
“We are not preventing them from leaving. As long as they can give us a clear explanation, they can leave any time,” he said.
The man said workers were worried that, if managers left and the factory was closed, they would not be heard.
“Our demand is reasonable. We want the factory to give us the same severance package as the other two factories which also belonged to Panasonic,” a female worker said.
She said workers at the other factories got 120,000 yuan when the company closed other lines, but Panasonic Electronic Devices (Beijing) Company was only offering 50,000 yuan to workers at the Beijing factory.
She said workers’ salaries of 1,200 yuan a month, in return for 12-hour working days, had not been raised for years.
“We don’t want to lose our jobs, but if we can get money, at least it will be a consolation to us and our families,” she said.
You Nan, a public relations official with Panasonic Corporation of China said the decision to close the production line was made for business reasons.
“It is a normal business change and we are sincere in wanting to talk with the workers,” You said.
She emphasized that workers were not being dismissed but were being asked to volunteer to leave the company.
The initiative will end on Jan 29 and factory managers will consider their next step, You said.
She said the size of the severance package was in line with the law.
“The severance package should be fixed according to the years they worked,” said Wang Fang, director of Zhicheng legal aid and research center for migrant workers.
Wang said, according to the law, the factory should pay workers who worked for 13 years salary for 13 months.
LiuGong Machinery forecasts soaring profit in 2009
LiuGong Machinery, China’s leading manufacturer of crane and construction equipment, edged up 0.87 percent to close at 19.68 yuan ($2.88) per share on Wednesday after forecasting a 137-percent jump in annual net profits last year.
In a statement filed to the Shenzhen Stock Exchange earlier in the day, LiuGong Machinery said it expected last year’s net profit to be around 805 million yuan, and earnings per share to be about 0.72 yuan.
The profit rise was attributable to an increase in sales revenue and lower costs of raw materials in 2009, it said.
Nine Dragon forecasts 800% profit growth in 2009
Shares in Shanghai Nine Dragon Co Ltd, a Shanghai-based real estate company, dipped 2.97 percent to close at 8.23 yuan ($1.21) on Wednesday despite a forecast jump in annual net profits last year.
In a statement filed to the Shenzhen Stock Exchange, Nine Dragon said it expected last year’s net profit to jump more than 800 percent from 27.7 million yuan in 2008.
The profit rise was attributable to increase of home sales and prices in the last quarter in 2009, the statement said.
Panasonic staff continues protest
Workers gather outside the Panasonic factory building in Beijing yesterday. [China Daily]
More than 200 employees blocked the gate of a factory belonging to Panasonic Corporation of China for the fourth day yesterday in a desperate attempt to secure a better severance deal.
Factory managers and the disgruntled workers sat down at the negotiating table at 4 pm yesterday in the hope of finding a solution. At press time, no deal had been reached.
The workers said the action at the factory, which is close to the international airport, would continue. Neither side would predict when the situation might end.
Panasonic Electronic Devices (Beijing) Company runs two production lines at the facility that have manufactured capacitors since 1996. The company told workers it planned to move one of the production lines to Guangdong province because of the high cost of producing parts in Beijing.
The workers were told about the move on Jan 15 and decided to block the gate on Monday as factory managers began asking members of the workforce to volunteer to leave the company.
Posters on the gate said workers were united and demanded the same severance package as the company offered other workers at other factories.
“They did not tell us they were looking for volunteers because they had decided to fire most of us,” said a worker who had been at the factory for 13 years.
He claimed the word “volunteer” was being used but in reality the factory would fire all workers and offer only a small severance package.
“We have worked here for more than 10 years and spent our youth here. Now the factory wants to dismiss us with only 50,000 yuan ($7,323.75),” he said.
The workers stayed at the main gates around the clock and senior executives, including four Japanese managers inside a building, did not visit to talk with them, he said.
“We are not preventing them from leaving. As long as they can give us a clear explanation, they can leave any time,” he said.
The man said workers were worried that, if managers left and the factory was closed, they would not be heard.
“Our demand is reasonable. We want the factory to give us the same severance package as the other two factories which also belonged to Panasonic,” a female worker said.
She said workers at the other factories got 120,000 yuan when the company closed other lines, but Panasonic Electronic Devices (Beijing) Company was only offering 50,000 yuan to workers at the Beijing factory.
She said workers’ salaries of 1,200 yuan a month, in return for 12-hour working days, had not been raised for years.
“We don’t want to lose our jobs, but if we can get money, at least it will be a consolation to us and our families,” she said.
You Nan, a public relations official with Panasonic Corporation of China said the decision to close the production line was made for business reasons.
“It is a normal business change and we are sincere in wanting to talk with the workers,” You said.
She emphasized that workers were not being dismissed but were being asked to volunteer to leave the company.
The initiative will end on Jan 29 and factory managers will consider their next step, You said.
She said the size of the severance package was in line with the law.
“The severance package should be fixed according to the years they worked,” said Wang Fang, director of Zhicheng legal aid and research center for migrant workers.
Wang said, according to the law, the factory should pay workers who worked for 13 years salary for 13 months.
