The following is excerpted from IRG's weekly stock report:
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- Semiconductor Manufacturing International Corporation (SMIC) suffered a US$30.3 million net loss in the third quarter of 2008, swelling from US$25.6 million a year earlier. The figure was smaller than both its loss of US$45.6 million in the second quarter and the US$52.6 million forecasted by analysts. Loss per ADS stood at US$0.08, smaller than US$0.06 in the comparable period of 2007. Gross profit margin slipped from 10.8 percent a year ago to 7.2 percent. Operating revenue was US$376 million, declining nearly 4 percent from US$391.4 million in the prior July - September period. As part of its efforts to cut costs, SMIC will suspend planned production capacity expansion before there are warm-up signals in end-customer demand.
- Datang Mobile is expected to win the largest share of China Mobile's (NYSE:CHL) contracts to build TDSCDMA networks in 28 cities, the China Business News reported. ZTE Corp. (OTCPK:ZTCOF) and Huawei Technologies are also expected to win significant contracts. More than 10 companies joined the tender. The exact size of the contract awards has not been decided. China Mobile announced the tender to help expand commercial trials for its TD-SCDMA 3G service to 38 cities on the mainland, from the current 10.
- China Unicom Ltd. (NYSE:CHU), the second largest mobile telecom operator in the country, announced its net profit rose 34.84 percent from a year earlier to hit 7 billion yuan (US$1 billion) in the first nine months. EPS stood at 0.512 yuan (US$0.07) during the period, and revenue expanded 3 percent to 52.5 billion yuan (US$7.7 billion). Operating revenue amounted to 52.5 billion yuan (US$7.7 billion) in the first three quarters, with revenue from its GSM cellular business went up 2.8 percent year-on-year to 48.5 billion yuan (US$7.1 billion). The mobile operator's CDMA business, which was sold to China Telecom (NYSE:CHA) this month, has brought in net income of 1.7 billion yuan (US$248.5 million) during the period. China Unicom's overall GSM subscribers totaled 130.7 million as of the end of September. Over the first nine months, its billed GSM users climbed by 4.7 million to 67.1 million, with prepaid users increasing 5.5 million to 63.6 million.
- China Unicom has fixed a new executive team recently, disclosed people briefed on the matter on October 29, 2008. The new team is made up of four previous vice presidents for China Unicom and seven previous vice presidents for China Netcom. Most of the executives will take one post at China Unicom and its parent China Unicom Corp., which has plenty of executives after the merger. In addition, of all the appointed 28 departmental chiefs at Unicom Group, 15 are from China Unicom and the rest 13 from China Netcom (NYSEARCA:CN). 13 previous Netcom Group executives and 18 prior Unicom Group executives will take the posts at the 31 China Unicom provincial branches.