B2 Companies & Finance FRIDAY, SEPTEMBER 18, 2009 SOUTH CHINA MORNING POST

THE INFORMER

Events
BYD aims to speed past Toyota by 2025
Today: Hong Kong General Chamber of
Commerce luncheon: “How will the EU
...................................................... also thinking of expanding to over- Whether BYD will succeed in 246,881 cars, just ahead of domestic sales exceeding 10 million by 2025, get of 3,000 to 4,000 units this year.
Associated Press and staff reporter
fare in 2009, and how will this impact seas markets,” Huang said, confirm- meeting stringent US and European rival Chery Automobile, which re- Wang told the China Daily. The US brokerage estimated BYD
businesses in the Far East?” Fast-growing mainland battery and ing similar comments by BYD deputy standards for safety and quality, as ported sales of 240,275 vehicles, ac- BYD was founded in 1995 and would sell 150 of the cars this year,
carmaker BYD is thinking big – really general manager Wang Jianjun, well as customer expectations for cording to the China Association of only branched into carmaking in re- noting that its cost of about 170,000
Australian Chamber of Commerce big. It aims to overtake Toyota Motor quoted in the China Daily. comfort and performance, remains Automobile Manufacturers. cent years. It has won backing from yuan (HK$193,001) was nearly qua-
luncheon: “Talent management in the Corp to become the global car leader Like other up-and-coming Chi- to be seen. But General Motors led sales in billionaire investor Warren Buffett, druple that of a petrol-driven model.
new Asia”. Island Shangri-La. in less than two decades. nese carmakers, BYD has set its sights Chinese carmakers remain reliant China in the first half of the year at whose MidAmerican Energy Hold- Earlier this month, JP Morgan put
“It’s our company’s long-term on breaking into major markets such on mostly foreign technology and de- 814,442 vehicles, followed by Volks- ings, the utility division of his flagship an “underweight” on BYD because it
American Chamber of Commerce target, to be China’s No 1 carmaker as the United States and Europe. It sign and are still nowhere close to wagen with 652,436. Berkshire Hathaway, has a 9.9 per is susceptible to growth concerns
luncheon: “Li Ning: Anything is by 2015 and the world’s leading car- started out building conventional meeting finicky Western and Japa- Toyota, which displaced GM as cent stake in the company. from the mainland’s car and macro
possible” (in Putonghua). Renaissance maker by 2025,” Jasmine Huang, a se- cars, but late last yearbecame the first nese standards, but they are catching the world’s biggest carmaker in 2008, Last week, Morgan Stanley ana- policies. It assigned an enterprise val-
Harbour View Hotel. nior marketing representative for carmaker to launch mass production up, analysts say. China’s car industry sold nearly nine million cars and lysts Jasmine Lu and Tim Hsiao not- ue of HK$4.80 to BYD shares, which
BYD, said yesterday. of a plug-in hybrid electric vehicle, earlier this year overtook the US’s in trucks in 2008, while GM sold 8.4 mil- ed the company had sold fewer than fell 4.8 per cent yesterday to
American Chamber of Commerce “So far, our sales come mainly which can be charged off a standard market size. lion. BYD expects to sell 400,000 cars 50 of its F3DM hybrid sedans in the HK$62.88, although they have risen
luncheon: “US tax voluntary disclosure from domestic demand, but we are home outlet. In the first eight months, BYD sold this year and has targeted annual first eight months, way short of its tar- nearly 400 per cent so far this year.
process: Imminent deadline and future
US compliance issues for offshore
assets”. Bank of America Tower.

Shimao targets
Monday, September 21: Canadian
Chamber of Commerce workshop:
“How to communicate more effectively
in your daily business

40b yuan project

correspondence”. Duke of Windsor
Building.

Tuesday, September 22: French

Chamber of Commerce breakfast:
“China’s contribution to the post-crisis
world order”. China Club.

Australian Chamber of Commerce

as net rises 30pc
luncheon with John Brumby, premier of
Victoria. Conrad Hong Kong.
...................................................... of January. Shimao’s turnover rose
Sandy Li
170 per cent to 4.96 billion yuan for
Australian Chamber of Commerce Shimao Property Holdings, whose the first six months.
luncheon: “Green retrofits and adding net profit rose 30.4 per cent in the first An interim dividend of 10 HK
value to existing office buildings”. Tai six months, said yesterday it had cents will be paid.
Yau Building, Wan Chai. signed a framework agreement for a The company said it expected
40 billion yuan (HK$45.41 billion) property sales to exceed 17 billion
Hong Kong Retirement Schemes mixed-used development in Wuhan. yuan this year.
Association luncheon: “Active vs The developer’s net profit rose to Separately, Greentown China
passive investments – The great 1.2 billion yuan from 919.1 million Holdings reported interim net profit
debate”. yuan in the same period last year. fell 5.57 per cent to 323 million yuan
Excluding major non-cash items as gross margins were significantly
and one-off gains, underlying profit squeezed amid fierce competition in
...................................................... jumped more than 16 times to 384 the mainland property market.
Results million yuan from 23 million yuan on First-half gross margins dropped
a sharp increase in property sales. to 29 per cent from 36 per cent a year
Today 1st Quarter: Jia Sheng Holdings Chairman Hui Wing-mau said the ago, as selling prices fell because of a
Interim: Aeon Stores (Hong Kong), Bright proposed project in Wuhan still change in product mix and location.
International Group, Brilliance China Lee Shau-kee (second left) and son, Martin Lee Ka-shing, dot the lions’ eyes at the opening of the Mira Hong Kong in Tsim Sha Tsui. Photo: Ricky Chung needed to go through the process of The company said the average
Automotive Holdings, Burwill Holdings, auction later this year in competition selling price dropped 17.7 per cent
CC Land Holdings, CCT Tech International,
CCT Telecom Holdings, Celestial Asia
Securities Holdings, Centron Telecom
Lee advises investor caution amid market rally with other developers.
“The signing of the framework
agreement just expressed our inter-
year on year to 7,226 yuan per square
metre from 8,784 yuan.
In the first half, property sales
International Holding, China Assets est in bidding on the project,” he said. were primarily derived from Qing-
(Holdings), China Energine International ...................................................... Hong Kong. He reiterated his invest- investment option, he The project, which will provide a dao, accounting for 20 per cent of
Shanghai,
(Holdings), China Energy Development Fulton Mak Tread carefully ment strategy of cashing out 10 per HK soar added. total gross floor area of 8 million total turnover, at an average price of
Holdings, China Flavors & Fragrances, Henderson Land Development Henderson chief says cent of his portfolio every time the Meanwhile, Lee square metres, will be developed in 5,810 yuan per square metre.
China High Speed Transmission
Equipment Group, China Infrastructure
chairman Lee Shau-kee has warned
investors to remain cautious despite now is not the time for
Hang Seng Index went up 1,000
points, meaning he would have
B10 said he had subscribed
to US$110 million
five phases. Although details of the
development plan are not yet com-
Chief financial officer Jim Lam
said he expected profit margins
Investment, China Mandarin Holdings, the latest rally in the Hong Kong stock aggressive investment offloaded half his portfolio if the in- worth of shares of two Hong Kong ini- pleted, Hui said a large chunk of land would improve next year.
China Renji Medical Group, China market. ...................................................... dex reached 25,000 points. tial public offerings. would be designated for residential Turnover rose 10 per cent to 1.94
Resources Land, Cross-Harbour Lee said it was becoming hard to Since the end of last month, the But he would keep his favourite He invested US$10 million in development. billion yuan. The firm’s gearing ratio
(Holdings), eForce Holdings, Ever Fortune predict the market after a rapid surge Hang Seng Index has jumped stocks – Industrial and Commercial China South City Holdings, which “We will use the cash flow from fell to 108 per cent from 140 per cent
International Holdings, FinTronics in the past week. Bank of China, China Life Insurance, manages logistic operations and runs property sales to finance the follow- after it pulled in 19.7 billion yuan in

9.5 %
Holdings, First Shanghai Investments, The benchmark Hang Seng Index CNOOC, China Shenhua Energy and a trade centre in Shenzhen, and ing phases of development,” he said. property sales revenue in the first
Fujian Holdings, Galaxy Entertainment rose 4.32 per cent, or 902 points, to China Overseas Land & Investment. US$100 million in China Resources “Therefore, it will unlikely cause a eight months. With total debt of 17.58
Group, Genesis Energy Holdings, Golik 21,768.51 in the past two days amid Lee also said he would reinvest Cement Holdings. liquidity dry-up.” billion yuan, Lam said interest ex-
Holdings, HKC (Holdings), Hong Kong continuous inflows of liquidity. It has the money reaped from the disposal China South City is raising up to Hui said the firm had sufficient penses would be about 1.6 billion
Energy (Holdings), Huscoke Resources jumped 9.54 per cent, or 1,896 points, of grade A corporate bonds, which HK$3.15 billion by floating 1.5 billion cash, with 9.9 billion yuan on hand as yuan this year.
Holdings, Jackin International Holdings, since the end of August. ...................................................... offer an annual yield of 6 to 8 per cent, shares, while China Resources Ce-
Jutal Offshore Oil Services, Kader “Be cautious, this is not a time for and Australian dollars because the ment is issuing 1.64 billion shares to
Holdings, Kingdom Holdings, Kwang Sung aggressive investment,” Lee, the sec- Australian economy and banking raise HK$6.39 billion. The two firms
Electronics HK, Lumena Resources Corp, ond-richest man in Hong Kong, said system were quite resilient to the are scheduled to debut on Septem-
Multifield International Holdings, New at the opening ceremony of the Mira financial crisis. Land was also a viable ber 30 and October 6, respectively.
Heritage Holdings, Omnicorp, Oriental
Explorer Holdings, Shanghai
International Shanghai Growth
Investment, Silver Grant International
Industries, Sino Gas Group, Soundwill
Holdings, Tai Ping Carpets International,
China Vanadium plans First batch of 7 IPOs
Tech Pro Technology Development,
Tomorrow International Holdings, Wing
Lee Holdings, Wo Kee Hong (Holdings),
US$300m share offering for new board cleared
Wonson International Holdings, Xingye
Copper International Group, YT Realty ...................................................... dicative range, even though it attract-
...................................................... raise a combined 2.25 billion yuan
Group, Yugang International, Zhejiang Wong Ka-chun and Amanda Lee Daniel Ren in Shanghai
ed an overwhelming response from (HK$2.55 billion). Among them, Le-
Glass China Vanadium Titano-Magnetite both institutional and retail inves- Beijing yesterday approved all seven pu Medical Technology (Beijing) will
Final: Fu Ji Food and Catering Services Mining, an iron miner in Sichuan tors, two sources familiar with the initial public offering applications for launch the biggest offering, targeting
Holdings, Pine Technology Holdings, province, is planning an initial public listing plan said. its new second board, as the Nasdaq- proceeds of 516 million yuan.
TeleEye Holdings offering in Hong Kong early next The offering, the largest flotation style market edges closer to its official The CSRC created a new listing re- Shimao Property chairman Hui Wing-mau says the developer will bid for a
AGM: Herald Holdings, Magician month of more than US$300 million in the city in 18 months, priced the launch. view committee for the second board 40 billion yuan mixed-use project in Wuhan. Photo: Jonathan Wong
Industries (Holdings), Pyxis Group, to take advantage of the recent mar- shares at HK$6.35 each, towards the The China Securities Regulatory last month. It is responsible for audit-
Starlight International Holdings, Tonic ket rally, banking sources said. low end of the indicative range of Commission gave the go-ahead to ing listing applications for the growth
Industries Holdings, Upbest Group The miner, along with its existing HK$6.16 to HK$6.81. the first batch of applicants after a enterprise market.
Tomorrow Interim: APT Satellite
Holdings
shareholder, hired Citi and Deutsche
Bank to help market 599 million
shares. Of those, 85 per cent will be
The share sale has drawn more
than HK$200 billion worth of orders
from local investors. Citi, Citic Securi-
day of hearings, according to Xinhua.
Six more companies will go
through the review process today as
China lowered the threshold for
the second board, allowing small
firms with two years – or in some
K Wah profit drops 38pc
......................................................
new shares while the rest are being
offloaded by Green Globe Invest-
ment at HK$3.12 to HK$3.86 each.
ties, China International Capital
Corp and Morgan Stanley are leading
the transaction. Long queue
cases just one year – of profits to float
shares on the market.
To date, 149 firms have filed appli-
despite surge in revenue
IPO Corner The deal will allow the company “We rarely get involved in IPOs The number of firms that have filed cations for listing shares on the sec-
......................................................
to raise up to HK$2.3 billion, accord- because they tend to be over- or fully applications to list on the second board ond board as cash-hungry start-ups planned to launch the units at the
Yvonne Liu
China South City Holdings ing to a sales document obtained by priced,” said Peter Elston, a strategist look for capital to expand. end of this year, although it would de-

149
.......................................B6-7 fund managers. at Aberdeen Asset Management. “It’s The mainland has spent nearly 10 Mid-tier developer K Wah Interna- pend on market conditions.
Peak Sport Products The deal is 20 per cent larger than also hard to get a decent allocation if years establishing the second board tional Holdings suffered a 38.2 per K Wah has four residential
...................................B3-5 the US$250 million the firm sounded one follows the rules as we do. The as government officials worried cent drop in net profit to HK$155 mil- projects with a total gross floor area of
Metallurgical Corp Of China the market out for a week ago. secondary market is where the bar- about a cash outflow from the main lion in the first half due to a revalua- 110,000 sq ft in Hong Kong, Guang-
......................................B9 The Hong Kong stock market has gains are found. board. tion of investment properties. zhou and Shanghai to be launched
advanced more than 2,000 points “Right now, markets are frenzied ...................................................... Analysts said the negative impact Turnover rose 52.1 per cent to next year. However, only units at the
More announcements since the beginning of the month. and IPOs are getting priced at rich on the main board would be mini- HK$1.09 billion for the six months to Jianguo Xi Road residential project in
in Classified Notices The funds will mainly be used for valuations, then opening at even the regulator speeds up vetting of list- mal, arguing that small-cap firms June, thanks to an increase in prop- Shanghai and a luxury residential
For notices inquiries, please contact: financing acquisitions or consolidat- richer valuations. I suspect until we ing applications. would not siphon off a large amount erty sales which saw revenue surge 66 project in Hong Kong are expected to
Peter Chung 2565 2390 ing mines, extending mining bound- see central banks tightening in a The long-delayed technology- of funds. per cent to HK$1.03 billion from be completed in 2010 and make a
Fax 2565 2320 aries, and building titanium slag and meaningful way, this frenzy will con- heavy market on the Shenzhen Stock The 149 applicants are expected to HK$620 million a year earlier. contribution to the bottom line.
iron concentrate production lines, tinue.” Exchange is expected to debut next raise a total of 33.6 billion yuan, less Most of that revenue was generat- Chairman Lui Che-woo said yes-
the document shows. Meanwhile, Citi said yesterday it month. than the single flotation by China ed by the sales at the Shanghai West- terday: “Land prices on the mainland
Meanwhile, mainland contractor has hired Rodney Tsang as managing The CSRC hopes to initially list State Construction Engineering wood II residential project.
IN THIS ISSUE Metallurgical Corp of China raised director and co-head of China invest- dozens of prospective start-ups to Corp, which generated 50.16 billion The company has sold 978 of the
HK$18.23 billion after it priced its ment banking from rival BofA Merrill avoid wild price swings. yuan on the Shanghai Stock Ex- 1,061 units for more than 2 billion
shares towards the low end of the in- Lynch. The first seven companies plan to change in July. yuan (HK$2.27 billion) since the
project was launched at the end of
Bentley.........................B1 K Wah ..........................B2 last year. It booked revenue of 800
million yuan in the first half from the
In Brief
BHP Billiton ................B8 Lamborghini................B1
BOC..............................B3 Lepu Medical Tech......B2 first batch of 415 units that were sold.
Bugatti .........................B1 Magna.........................B8
BYD..............................B2 Master Kong ...............B3
The remaining revenue from the
China Mobile...............B3 Metallurgical Corp......B2 sales – about 1.2 billion yuan – would
China Vanadium.........B2 Opel.............................B8 be booked in the second half, said
CNPC ...........................B4 Oracle .........................B9 David Ng, a director of the Shanghai Lui Che-woo
Dalian Dayang .............B1 Pallinghurst Res .........B8 Researcher claims US soyabeans slapping a 35 per cent punitive tariff had fabricated sales to its top 10 Huangpujiang, a new business operations.
Ferrari..........................B1 Petro de Venezuela....B4
Geely Auto ..................B8 Shimao Property........B2
being dumped on the mainland on China-produced tyres this week. customers in its listing prospectus. district in the city centre, could However, the developer recorded have risen sharply in the past few
GM ........................B2, B8 SHKP ............................B1 The trade row between China and China has already hit back by saying Shares of the extruded aluminium provide a total gross floor area of a loss of HK$71 million due to a drop months. However, we have a big
Green Globe Inv..........B2 Societe Generale........B6 the United States threatened to spill it will investigate US shipments of product maker rebounded 8.51 per 88,837 sq metres. Yvonne Liu in the value of its Shanghai K Wah enough land bank for the coming five
Henderson..................B2 Temasek .....................B9 over into soyabeans yesterday when car parts and chicken meat. China cent to close at HK$8.29 yesterday Centre during the period. In the pre- years, so we will adopt a wait-and-see
Japan Airlines.............B9 Toyota Motor ..............B2 a government researcher said US imported a record 29.9 million after dropping for two days since the Wharf, China Merchants Property vious year, it recorded a property re- attitude towards land acquisitions in
beans were being dumped on the tonnes of soyabeans in the first eight report in the Economic Observer. buy Tianjin land for 641m yuan valuation gain of HK$107 million. the next few months. We are not in a
mainland. “The US government months, about 40 per cent of which Wong Ka-chun Wharf (Holdings) has teamed up The main drivers of the com- hurry to acquire sites.”
Contact Us gives large amounts of subsidies to came from the US. Reuters with China Merchants Property pany’s performance in the second The developer has a land bank of
Business news desk its farmers and dumps soyabeans in Poly acquires commercial site in Development to buy a site in Tianjin half will be the remaining 83 special more than 2.4 million sq metres on
Telephone 2565 2653 China,” said Chen Dongqi, vice- Zhongwang files police report new Shanghai district for 3b yuan for 641 million yuan. The 50-50 joint units of Shanghai Westwood II and the mainland and in Hong Kong.
Fax 2565 1624, E-mail head of the macroeconomic after phoney sales allegation Poly Real Estate Group yesterday bid venture submitted the winning bid the remaining units of the Great Hill The company declared an interim
bizpost@scmp.com institute of the National China Zhongwang Holdings said just over 3 billion yuan (HK$3.41 for the site in a government tender. in Sha Tin which should generate a dividend of 1 HK cent per share, the
If you have information on events Development and Reform yesterday it had filed a report to the billion) at a land auction to secure a The commercial and residential site total of HK$1 billion. same as last year.
that should be included here, Commission. He said the US was mainland police following commercial site in Shanghai. The has a gross floor area of about 1.3 Director of corporate finance Ey- Shares in K Wah dropped 2.1 per
e-mail business.diary@scmp.com guilty of double standards after allegations in a newspaper that it 37,015 square metre site in million square feet. Bloomberg mon Tsang said the company cent to close at HK$2.76 yesterday.