|
| Friday, 23 October 2009, 16:43 HKT/SGT | |
| | | |
Source: IRG | |
|
|
|
HONG KONG, Oct 23, 2009 - (ACN Newswire) - The following is the China excerpt from IRG's TMT Weekly Market Review Oct 12 - Oct 18. IRG is a financial advisory and investment firm focused on the core growth sectors in Asia with particular focus on the telecommunications, media and technology (TMT).
Internet
- Chinese IM software QQ saw a concurrent online user base of 80 million. China had had an Internet user base of 338 million by the end of June 30, 2009 with about 25 percent Chinese netizens used QQ simultaneously. In addition, the company reached a simultaneous online QQ user base of 50 million, 60 million, and 70 million in February, May, and September, respectively, the company announced in its financial report previously. Total revenue surged 79.9 percent year on year. Net profit was up 84.3 percent. QQ registered accounts 990 million, climbing 5.9 percent. IM active accounts 448 million, rising 9.1 percent. Its market value hit HK$231.8 billion (US$29.9 billion) in September, outracing its peers like Ebay, Yahoo, and becoming the third biggest Internet company by market value in the world.
- Alibaba Group's consumer-focused e-commerce site Taobao.com has recorded more than 10,000 daily transactions through its "Wireless Taobao" service. Average daily transactions are expected to reach 13,000 in November. Wireless Taobao was established in March 2009, includes both consumer-to-consumer and business-to-consumer services, and currently has over 200 million products.
- Global Sources has appointed Spenser Au as company Deputy Chief Executive Officer, effective immediately, Global Sources announced. Merle A. Hinrichs still holds the position of Global Sources Chairman and CEO. Au has worked at Global Sources for the past 30 years, in positions including President of Asian Sales, Regional Sales Manager and Publisher.
- ezTravel booked revenue of nearly 4 billion yuan (US$585 million) in the first three quarters of 2009, compared to 5 billion yuan (US$732 million) in the full year 2008. Ctrip.com took nearly 20 percent stake in ezTravel after ezTravel decided to develop global and regional markets in 2006. Ctrip has ordered 250,000 tickets to the Shanghai 2010 Expo and has offered ezTravel 30,000 tickets to resell.
Mobile/Wireless
- China exported a total of 237 million mobile phones in the first half of 2009, with an export value of US$16.1 billion. The nation imported 11.74 million mobile phones in the period, and it saw a mobile phone output of 305 million. BYD Co., Ltd., Samsung, ZTE Corporation, and LG all gained high growths, for instance, Samsung's mobile phone output rocketed 300 percent year on year in its Huizhou production plant, with the highest growth ratio. By contrast, the mobile phone shipments all declined in Foxconn Technology Group, Motorola, Inc., Huawei Technologies Co., Ltd., and Compal Communications Inc. The nation harvested an aggregated mobile phone export volume of 533 million units in the full year 2008, with an export value of US$ 38.5 billion.
Telecommunications
- China's telecommunication sector has been continuously witnessing considerable developments over the recent years. The telecom industry has experienced double-digit growth over the past decade. And the recent move by the government, aimed at restructuring the domestic telecom industry following the issuance of 3G licenses in early 2009, has brought about a wave of rapid development and deployment of telecom infrastructure throughout the country. Operators continue to invest billions of dollars into the development of world-class telecom infrastructure in the country, despite gloomy economic environment. The issuance of 3G licenses in January 2009 has initiated a wave of investments that has long been waited for.
- ZTE Corp.'s controlling shareholder Shenzhen Zhongxingxin Telecommunications Equipment Co. Ltd. had bought 7.65 million of its A shares, accounting for about 0.42 percent of ZTE's total share capital. The controlling shareholder would hold 620 million shares of ZTE after the deal, representing 33.87 percent of the company's total share capital. ZTE has no interest in buying the GSM assets that Nortel Networks Corp. has put up for sale. The company didn't rule out the possibility of any future acquisitions, and it will remain extremely cautious in future acquisitions considering the current market conditions.
- China Mobile expects smartphone sales to be growing in double digits in the coming years, and at least two-to-three times faster than other phone sales. Over the next three to five years, 50 percent of customers will migrate to smartphones, Bill Huang, general manager of the company's research institute, said. Currently about 10 percent of China Mobile customers use a smartphone. Huang further expects the average selling price to fall below US$150 from over US$300 in one to two years.
- China Telecom Corporation Ltd. CDMA mobile phone sales volume topped 2.5 million in September 2009, rocketing 600 percent from the period last year. If the sales volume grows at the above pace, the telecom carrier will be likely to seek a net increase of 35 million in its CDMA subscribers. China Telecom plans to lure 35 million CDMA users this year and the demand for CDMA terminals will be 50 million, said an executive for the telecom operator. CDMA mobile phone sales volume arrived at 2.508 million or so this September, outnumbering 2.5 million for the first time, showed a research report. The telecom operator had no time to consider CDMA mobile phone sales volume in 2008 due to the nation's telecom industry regrouping. CDMA mobile phone sales volume was unsatisfying last year. However, CDMA sales volume started to rebound in November 2008 and was forecasted to seek a year-on-year growth of over 600 percent in September 2009.
Media, Entertainment and Gaming
- VODone Telemedia Co., Ltd. is scheduled to acquire 70 percent of Dragon Joyce, a mobile phone game maker. VODone will spend HK$40 million (US$5.2 million) in cash and offer about 100.789 million shares for the deal, with a total cost of 168 million yuan (US$24.6 million). The deal will bring more synergy and opportunities for the two parties, citing the report. Dragon Joyce focuses on the low-cost domestic mobile phone market, and its users are likely to become the consumers who buy lotteries and Shishicai products by mobile phones. So, the acquisition is in line with VODone's business strategy, pointed out the Hong Kong-listed company.
- MyStarU.com, Inc. will complete the acquisition of the minority ownership of its subsidiary, Subaye.com, Inc. and Subaye's various subsidiaries by October 31, 2009. Subaye is also refocusing efforts to increase its member and will seek additional advertising, marketing, acquisition, joint venture and investment opportunities in the next six months. The Company expects an increase in its membership in the next 12 months. Subaye membership will reach 72,000 unique members. The Company has discontinuance of its plans to spin off certain assets of the Company due to specific transactional complexities and income tax considerations.
- Shanghai plans to focus on development of online video and audio industry, and aims to build the city into a center of China's online video and audio resources by 2012. The online culture industry, including video and audio section, in Shanghai grew rapidly in recent years. It achieved a value added close to 15 billion yuan in 2008 with the growth rate pierced 25 percent. The World EXPO 2010 in Shanghai is believed to provide the city with new opportunities to promote the online video and audio industry. Shanghai has 19 enterprises, which are licensed to provide services for IPTV, handset TV, video sharing websites, video web portals and P2P streaming media. By implementing pilot programs, the industry in Shanghai is now made up of mainly state-own enterprises, as well as other non-state-own businesses, providing various services via different networks.
- VisionChina Media Inc. has signed an agreement to acquire subway television advertiser Digital Media Group (DMG) for US$160 million in cash and shares, VisionChina announced. The transaction is expected to close in the first quarter of 2010. The deal will give VisionChina access to the Shanghai market and create China's largest mobile television advertising network, the announcement said. The merged entity will operate bus networks in 18 Chinese cities, including Beijing, Guangzhou and Shenzhen; hold exclusive subway networks in eight cities, including Beijing Guangzhou, Shenzhen, Shanghai and Hong Kong's airport express line. Total consideration will be paid in three installments over two years: a first installment of US$100 million, US$40 million in cash and US$60 million in shares at the close of the transaction, and two subsequent installments of US$30 million each on the first and second anniversaries of the deal.
- Hurray Holdings said Songzuo Xiang has resigned as CEO and Xiaoqing Guo has resigned as Chief Financial Officer and Vice President for personal reasons, effective immediately. Shanda Executive Vice President Haibin Qu has been appointed Acting CEO, while Shanda Associate President and Financial Director Li Yao will serve as Acting Chief Financial Officer. Shanda agreed to purchase 51 percent stake in Hurray, a music production, artist development and wireless value-added services provider, for roughly US$46.2 million in June.
Alternative Energy
- China plans to limit the increase of polysilicon projects to reduce surplus capacity. It will strictly regulate the establishment of polysilicon projects in areas that are short of energy supply and apply high electricity prices, because most of China's polysilicon production adopts the improved Siemens process, which is both energy and capital consuming. The country will not approve projects that do not meet environmental protection standards. The production capacity of each new project should reach 30 million tons/year, representing a rise in the investment threshold and allowing companies to enjoy advantages such as economies of scale.
Technology
- Perot Systems Corp. will buy BearingPoint Inc's consulting practice in China to develop in the country. BearingPoint China Consulting will become part of Perot Systems' commercial solutions business unit. The Chinese unit of BearingPoint's revenue climbed 14 percent to US$35 million last year. The Chinese operations accounted for about 1 percent of BearingPoint's total sales. Executives declined to disclose the terms of the acquisition at the briefing. BearingPoint was spun off from accounting firm KPMG LLP in 2000 and filed a so-called prepackaged bankruptcy plan in February
Investments/ Ventures
- China lent 516.7 billion yuan (US$75.7 billion) in new RMB-denominated loans in September, the People's Bank of China said. In the first nine months of 2009, new loans totaled 8.67 trillion yuan (US$1.3 trillion), almost 5.19 trillion yuan (US$760 billion) more than the year-ago period. China lent 410.4 billion yuan (US$60.1 billion) in new loans in August. The country saw 999.2 billion yuan (US$146.3 billion) in new deposits in September. M2, the broadest measure of money supply covering all cash in circulation and all deposits, rose 29.31 percent year-on-year by the end of September.
Taiwan
- Chunghwa Telecom's nine-month revenues dropped by 2.5 percent year-on-year. In the year-ago period the company posted revenues of NT$151.9 billion (US$4.7 billion). Net income was NT$33.18 billion (US$1.03 billion). Fixed-line revenues were down by almost 3 percent. Of the fixed-line revenues, local call revenues fell 4.5 percent while domestic long-distance revenues dropped 9 percent. Broadband services revenues stable. However, within broadband service revenues, ADSL revenues fell 23.6 percent, but FTTx revenues increased by 66.9 percent. Mobile revenues fell 2.5 percent, with handset sales dropping almost 20 percent and services revenues falling almost 2 percent.
- Acer will have third quarter revenue to be up about 5 percent because of a rebound in tech demand as the global economy shows more signs of recovery. Acer sees PC shipments to increase in the fourth quarter from the preceding three months as demand for computers peak ahead of the holiday shopping season. The company forecast revenue the July-September period at a record high of NT$167 billion (US$5.18 billion). Acer will release its official third-quarter results and provide an outlook for the fourth quarter on Oct 30. The last quarter of the year is typically the strongest period for most PC brands, helped by students returning to school and pre-Christmas demand. The launch of Microsoft's Windows 7 operating system is likely to help sales further, as the sale of new system software is typically followed by an uptick in consumer demand for computers.
- Acer is reducing net book business. Instead, it decided to increase the proportion of smart book business using smart phone and Qualcomm chip. Acer is the company that has been aggressive in net book market along with Asus. World PC market is led by HP and Dell but Net book has been concentrated by Acer and Asus. Acer turned because of profitability. Profitability of net book has become urgent problem. It has brought fresh change in notebook market, but said as under expectation. In fact, the biggest issue of PC market in this year was net book. In 1Q of this year, over 6 million units were sold worldwide, taking over 20 percent of overall notebook market. It is the same to Korea. It has been growth trend in economic recession. 58,796 units were sold in the first half of this year, up 114 percent from 27,395 units in the second half of last year.
Topic: Research / Industry Report
Source: IRG
http://www.acnnewswire.com
From the Asia Corporate News Network
Copyright © 2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.
|
|
|
|
|
|
|
| IRG |
| Dec 1, 2009 21:00 HKT/SGT |
|
IRG Technology, Media and Telecoms Weekly Asia Market Review |
| Dec 1, 2009 20:42 HKT/SGT |
|
IRG Technology, Media and Telecoms Weekly China Market Review |
| Nov 11, 2009 21:05 HKT/SGT |
|
IRG Technology, Media and Telecoms Weekly Asia Market Review |
| Nov 11, 2009 20:42 HKT/SGT |
|
IRG Technology, Media and Telecoms Weekly China Market Review |
| Oct 28, 2009 21:43 HKT/SGT |
|
IRG Technology, Media and Telecoms Weekly Asia Market Review |
| Oct 28, 2009 21:21 HKT/SGT |
|
IRG Technology, Media and Telecoms Weekly China Market Review |
| Oct 23, 2009 16:51 HKT/SGT |
|
IRG Technology, Media and Telecoms Weekly Asia Market Review |
| Oct 14, 2009 18:52 HKT/SGT |
|
IRG Technology, Media and Telecoms Weekly Asia Market Review |
| Oct 14, 2009 18:46 HKT/SGT |
|
IRG Technology, Media and Telecoms Weekly China Market Review |
| Oct 8, 2009 02:31 HKT/SGT |
|
IRG Technology, Media and Telecoms Weekly Asia Market Review |
| More news >> |
 |
|
|
