Asian Tech Stock Weekly Review (August 23 – 29)

by: IRG Ltd



China enterprise software maker Pansoft Co. Ltd (NASDAQ:PSOF) will invest 18 million yuan (US$2.7 million) to set up a joint venture (JV) with two Japanese companies in order to enter Japan's mobile software outsourcing market. Pansoft will hold an 80 percent stake in the JV named Pansoft (Japan) Co. Ltd. with the remaining stakes going to Management Information Center Co. Ltd. (MIC) and Seven Colors Corp. The JV will test 3G mobile software for Sharp Corp. at Pansoft's headquarters in Jinan City, Shandong Province. The JV is the first step of what is potentially a major move for Pansoft into mobile software outsourcing for the Japanese market, said Pansoft CEO Hugh Wang. Pansoft Japan currently accounts for 10 to 20 percent of Sharp's software testing business. Hugh anticipates that Pansoft will be able to secure more outsourcing contracts from Sharp and other Japanese IT companies in future due to their competitive prices.


Softbank Corp. will offer 130 billion yen (US$1.5 billion) worth of bonds to individuals, to pay for upcoming bond redemptions. The payment date for the 3-year bonds, priced to yield in the 1 percent to 1.5 percent range, is Sept. 17, 2010 and the maturity date is Sept. 17, 2013. The company's improving cash flow should cover its capital investment. Softbank, which sells Apple's (NASDAQ:AAPL) iPhone in Japan, will spend 400 billion yen (US$4.6 billion) this fiscal year on new base stations to accommodate a surge in data traffic brought about partly by the popularity of the iPhone, as well as other smartphones. SMBC Friend Research Center analyst Naoki Yokota said that given the low interest rate, the bond issuance makes sense and allows the company to hold onto its cash for the time being.

NTT Com (NYSE:DCM) has entered into a definitive agreement to acquire all the shares of Sweden’s Secode, a managed securities and security consulting services firm. Following the acquisition, Secode will operate as a wholly owned subsidiary led by Trygve Reinertsen, Secode’s current CEO. NTT Com has purchased a series of IT-related companies, including German systems integrator, Integralis in July 2009 and Singapore outsource service provider, Emerio GlobeSoft in April this year. It purchased Dimension Data, a major global systems integrator. NTT Com also brought trans-Pacific cable operator Pacific Crossing during the period. Those acquisitions all fit into a stated ambition by NTT Com to become global IT service company supported by its traditional strengths in networking and IP.


Rakuten Inc. plans to ramp up its overseas expansion and establish a presence in every major overseas market including the U.S., Germany and Spain by the end of 2011. In the domestic market of Japan, Rakuten is worried about the shrinking population and weak consumer spending that might drag profit growth. The company’s founder Mikitani, a former M&A advisor for the Industrial Bank of Japan, is determined to use his western business acumen in his rush to catch up with Amazon (NASDAQ:AMZN) and eBay (NASDAQ:EBAY). Rakuten started business units in six countries. This year Mikitani bought U.S.-based for US$250 million and France's PriceMinister for US$240 million. In Asia he has tied up with China's top search engine Baidu (NASDAQ:BIDU) and Indonesia's media conglomerate PT Global Mediacom.

Media, Entertainment and Gaming

According to Nikkei, Japanese game developers are releasing more products in the April-September period in a shift away from a lopsided earnings structure that left them reliant on the second half for the bulk of their profits. The firms tend to launch a slew of new products during the year-end shopping season but are now moving to release such offerings as toys and gaming machines at other periods so that their earnings and cash flows do not fluctuate as much. As a result of such efforts, Namco Bandai generated 27 percent of its consolidated operating profit projection for the full fiscal year during the April-June quarter. It launched profitable card games and yo-yo products last quarter, which helped it post a quarterly operating profit of 2.9 billion yen (US$34 million). Sega Sammy introduced eight new pachinko and slot machines during the April-June quarter, five more than the same quarter a year earlier. It will release 25 titles in the full fiscal year, the same as the previous year.

Jupiter Telecommunications (J:Com) ended July with a total of 3.35 million 3.34 million customers, up 3.8 percent year-on-year. Combined revenue generating units (RGUs) for cable television, internet access and telephony services reached approximately 6.14 million, up 5.8 percent since end-July 2009, and the bundle ratio (average number of services received per subscribing household) increased to 1.83 from 1.80 a year earlier. J:Com's television subscriber base stood at 2.616 million in July, up from 2.580 million a year earlier. Of the total 2.543 million are digital television subscribers. The number of internet subscribers went up to 1.649 million from 1.544 million, and the number of telephony customers rose to 1.876 million from 1.682 million a year earlier.


Sharp Corp. President Mikio Katayama said that his company's multifunctional device that allows users to access e-book content will be sold in autumn, and a model that can project three-dimensional images and videos is likely to be sold next year or later. Katayama's remark comes after the company announced in July its entry into the e-book market later this year by launching a device that allows users to access video and audio contents, in addition to text and still images. Rivals include U.S. technology giant Apple which released in late May its iPad tablet computer and Japanese electronics giant Sony (NYSE:SNE) which is set to launch its own e-book reader device soon. The company also aims to roll out the device in the U.S. sometime this year, and in emerging economies next fiscal year. Katayama said that Sharp's product can compete against popular rival products including the iPad tablet computer by offering features such as being able to play Flash content. Flash content is a format used in many videos online, but the iPad cannot run Flash.

Mobile/ Wireless

Bell-Park sold 300,355 handsets in the first half ended June 2010. The retailer aims to sell a total of 560,000 handsets this year, compared with 455,020 in FY 2009. Net sales for the first half totaled 28.64 billion yen (US$335 million), up 41 percent, but falling short of guidance of 30 billion yen (US$352 million). Revenues were boosted by increased number of Bell-Park shops and strong performances of iPhones and PhotoVision. Bell-Park posted a net income of 936 million yen (US$10.9 million), up 26 percent. The company's net income beat guidance of 800 million yen (US$ million). For the full year, Bell-Park expects sales to come in at 56 billion yen (US$656 million), up 19 percent year-on-year, and a net income of 1.5 billion yen (US$ million), down 27 percent from 2009 as commission terms are expected to fall below initial estimates.



SK Telecom Co. (NYSE:SKM) will beef up its cellular networks and start commercial high-speed data service called long-term evolution (LTE) next year, as it braces for a surge in data traffic. The company will raise the amount of data traffic capacity on its WCDMA networks by six-fold before December, as it expects its mobile networks will have to manage an increased amount of Web surfing with the recent buying spree of cell phones and smartphones. SK Telecom is also betting on the LTE service, which is being pursued by global mobile-phone operators, including Verizon Communications (NYSE:VZ), and will offer the service nationwide in 2013. Its rival and dominant fixed-line operator KT Corp. (NYSE:KT) is pushing for the combination of fixed-line and wireless networks, including building more WiFi zones countrywide to handle the surge in data traffic. KT, also the country's exclusive distributor of Apple's iPhone, will invest in LTE next year.

Investments/ Ventures

The cashable assets held by South Korea's listed companies rose 8.91 percent in the first half from six months earlier as improved corporate earnings spurred cash inflows. The cashable assets of 552 firms listed on the Seoul main bourse reached 71 trillion won (US$60.2 billion) as of the end of June. Cashable assets cover cash, bank deposits, cash equivalents and other short-term financial instruments. South Korea's top automaker Hyundai Motor Co. (OTCPK:HYMLF) (held the largest cashable assets with 7.27 trillion won (US$6.27 billion), followed by leading steelmaker POSCO (NYSE:PKX) with 6.48 trillion won (US$5.4 billion) and chip giant Hynix Semiconductor with 2.41 trillion won (US$2.01 billion). In the height of the global financial crisis, companies had hoarded cash in a bid to secure safe assets to brace for rainy days. Growth in cashable assets is also interpreted as local firms' reluctance to increase capital spending.


Samsung Electronics Co. (OTC:SSNLF) has recently decided to withdraw from the electronic paper (e-paper) business due to cost issues. The company, however, will not completely leave the market for electronic book (e-book) readers, and will launch next year an electronic reading device using a liquid crystal display (LCD) panel as a screen. E-paper is a display technology that closely mimics ordinary paper. The screen remains clear under direct sunlight, boasts a wider viewing angle and puts little pressure on the eyes even after long hours of reading. But the production cost is higher than making LCD panels and the number of suppliers is limited. LCD panels, which require a backlight to illuminate the screen, are cheaper than e-paper and can adopt a variety of colors, unlike e-paper technology, which is currently available only in black and white.



Alibaba Group (OTC:ALBCF) is getting aggressive in acquisitions abroad and at home. In the U.S., the company has bought e-commerce site operator Vendio Services Inc. And in China, Alibaba will invest in an online search venture. The deal to purchase the California-based Vendio is aimed at strengthening AliExpress, a wholesale site Alibaba launched in April to provide a marketplace for Chinese suppliers and retailers worldwide. Vendio was founded 11 years ago and saw its transactions exceed US$2 billion, or about 168 billion yen, in fiscal 2009. Its acquisition cost was not disclosed. Employees will stay on, and the brand will remain intact. The deal gives Alibaba instant access to more than 80,000 U.S. merchants that use Vendio's services, with Alibaba integrating AliExpress and Vendio to create a one-stop service connecting Chinese manufacturers and U.S. retailers. Limited will acquire Auctiva, a third-party developer of tools for vendors on e-commerce site eBay (EBAY). Auctiva has more than 170,000 active users. will integrate Auctiva's platform with its own AliExpress service, allowing Auctiva users to search for suppliers, acquire merchandise and list products on eBay through their Auctiva accounts, the report said. Auctiva will operate as a new business unit within and will retain its own brand name and operations. The acquisition is part of the's planned US$100 million investment in AliExpress. and eBay's online payment services company PayPal jointly announced in April that AliExpress will offer PayPal services. will launch an e-commerce-focused recruitment platform at on August 30, hosting job postings for store managers, client service staff, models and logistics workers.'s online traveling platform, launched in May, makes daily air ticket sales of around 10,000 and hosts stores for a number of domestic airline companies and travel agencies. The platform's ticket sales are expected to amount to 1.5 times that of International by the end of this year. had more than 200 million users by August.

NetEase (NASDAQ:NTES) reported second quarter earnings with total operating revenue of 1.35 billion yuan (US$198 million), a 12.7 percent increase over the previous quarter and 54.4 percent over the same period of a year earlier. Revenue from online games reached 1.18 billion yuan (US$173 million), a 8.8 percent increase over the previous quarter and 51.1 percent over the same period of a year earlier; revenue from advertising business reached 150 million yuan (US$22.05 million), leaping 59.4 percent over the previous quarter and 100.5 percent over the same period of a year earlier; revenue from wireless value-added business also witnessed a gentle growth to about 200 million yuan (US$29.4 million). Two core business, online game and advertising, of the company witnessed a sharp growth, showing that the company performed well in the second quarter of this year. The online game revenue hit 1.18 billion yuan (US$173 million), a record high, and kept a year-on-year growth of more than 50 percent for three consecutive quarters.

BBC Worldwide has signed a content supply agreement with Chinese Internet portal Inc. (NASDAQ:SOHU), its first digital deal in China. The two-year deal, which will see some of BBC's programs such as Great Expectations, Tale of Two Cities, Planet Earth and Teletubbies shown in China, was announced at the BBC Worldwide's first television screening event, BBC Showcase China, in Beijing. It has set a target of generating 66 percent of its revenue from outside the U.K. by 2012. That compares with 55 percent in the year ended March 31, and 51 percent in fiscal 2009. The group also will grow its digital operations, develop a closer relationship with consumers and make more content. BBC Showcase China is the group's second regional spin-off after BBC Showcase Latin America launched in 2004.


China's mobile Internet user base and market revenue surged to 214 million yuan (US$31.4 million) and 23.7 billion yuan (US$3.40 million) respectively by the first half of this year. According to Analysys International, these are expected to reach 300 million and 63.3 billion yuan (US$9.3 billion) by the year-end. The company developed more business opportunities to the development of mobile Internet as demands for mobile phone data services boosted. Statistics shows that mobile phone subscribers using mobile Internet in the total mobile phone users was at 38 percent in China surged 27 percent in the United States. The number of China's mobile phone users reached 277 million by the end of June, boosted 43.34 million from the end of 2009. The users who make access to the Internet boosted to 11.7 percent of the total number of mobile Internet service subscribers. Mobile Internet users cause the surging of China's Internet user base in the first half of this year. The market size of China's mobile Internet boosted 7.7 percent year on year to 4.02 billion yuan (US$ million) in the second quarter of this year.

KongZhong’s (KONG) second quarter net income came to US$5.55 million, or US$0.09 per diluted American depository share. Total revenues for the period were US$35.27 million, up 9 percent year-on-year but down from US$40.64 million in the previous quarter. WVAS revenues decreased 33 percent quarter-on-quarter and 27 percent year-on-year to US$17.37 million, while wireless internet services revenues were US$893,000, up 43 percent year-on-year and down 13 percent quarter on quarter. The company's mobile games segment contributed revenues of US$13.00 million, a 91 percent annual increase and a 37 percent sequential rise. Revenues from downloadable mobile games were US$12.4 million, up 145 percent from the same period last year and 38 percent from the previous quarter. Revenues from Tian Jie accounted for about 49 percent of the company's online mobile game revenues while revenues from Feng Shen accounted for the remaining 51 percent in the quarter.

China is expected to see its mobile payment market hit 3.01 billion yuan (US$442 million) this year and expand to 23.51 billion yuan (US$3.5 billion) in 2013, forecasted by Analysys International. Tangible goods transaction value via the mobile e-commerce platform in China had reached 130 million yuan (US$19.11 million), with the number of users totaling 55.315 million. Such a huge size appears to be irresistible to most of the players in the mobile payment market, ranging from telecom operators to third-party payment service providers, although the market is still far away from fully-fledged. China Mobile (NYSE:CHL), one of the Big Three integrated telecom operators in the country, kicked off trial commercial operation of mobile phone-based payment business in 10 provinces. The company expects to see the figure top 10 million this year.

According to Analysis International, the number of China's mobile phone e-mail accounts climbed 3.66 percent from January-March to 185 million by the second quarter of this year, including 48.11 million active accounts, with account activity at 25.96 percent, generally the same level as in the first quarter. By comparing the number of accounts owned by different mobile phone e-mail service providers, telecom operators are still in the dominant position. Both the percentages of mobile phone e-mail accounts of China and China Telecom (NYSE:CHA) showed slight increases, while the market share of China Mobile declined to 74 percent in the second quarter from 77 percent in the first quarter of the year, triggered by robust growth of the number of third-party handset e-mail accounts. The number of accounts of new players in the mobile phone e-mail market, namely,, and, all increased to some extent, and the growth of third-party handset e-mail brands are expected to be the leading force boosting the development of the mobile phone e-mail market.


Huawei Technologies Co. and ZTE Corp. (OTCPK:ZTCOF) are experiencing stagnant growth as the U.S. and Indian security are examining their products, said researcher iSuppli Corp. Huawei and ZTE haven’t cracked the U.S. market after more than a decade because the U.S. government’s security measures to China-made networks. India did not allow the companies from selling network equipment to domestic phone carriers due to security concerns. The combined global market for wired and wireless telecommunications infrastructure gear is seen to surge US$65 billion this year and reach US$83 billion in 2014. Huawei will have sales boost by 20 percent this year.

ZTE Corporation had its net profit surge by 12.02 percent to US$128.97 million in January-June this year even as its overseas sales dipped, mainly due to restrictions imposed by India on equipment purchases. The first-half-year revenue was 30.73 billion yuan (US$4.5 billion), up 10.89 percent year-on-year. However, its sales in Asia outside China decreased 18.6 percent to 5.25 billion yuan (US$771 million) in the January-June period because of India's ban on purchases of telecom equipment from Chinese manufacturers. Chinese Minister of Commerce Chen Deming urged India to provide a fair, open and transparent investment environment for Chinese companies. Chinese companies were back in business in India after India's Department of Telecom came out with a new policy which applied to all telecom companies irrespective of their origin. Russel Osi, a manager from Bharti Airtel, said the firm is possible to cooperate with ZTE as ZTE's wireless products are very competitive. ZTE said it will also strengthen cooperation with its partners and expand its market in Nigeria. As a country with the largest population in Africa, Nigeria would be the key for ZTE's business in Africa in the next three to five years. The Nigerian subsidiary company was established in 1999 and has strategic cooperation with all GSM and CDMA operators there.

According to Infonetics Research, China's telecom companies spent just 12 percent of their planned 3G capital expenditure budgets during the first half of 2010. The consultancy also noted that stalling investments by Indian operators contributed to a slight slowdown in mobile infrastructure spending during the second quarter to US$8.7 billion, down 0.9 percent from US$8.8 billion in Q1.Infonetics also found that Swedish vendor Ericsson's (NASDAQ:ERIC) leading share of global macro radio access network (RAN) revenue was pegged back slightly by Nokia (NYSE:NOK) Siemens Networks and Alcatel-Lucent. Its two rivals each gained revenue share of around two percentage points, narrowing the gap between Nokia Siemens and Ericsson, and pushing Alcatel-Lucent ahead of Chinese competitor Huawei for the first time since early 2009.

The Ministry of Industry and Information Technology (MIIT) released results of China’s telecommunications industry. The report stated that the industry had operating revenues of 539.14 billion yuan (US$79.2 billion) between January and July this year, up 6.7 percent year-on-year, with July alone contributing 81.63 billion yuan (US$12 billion). The country's mobile phone users increased by 66.88 million during the period to reach a total of 814.09 million by the end of July, while broadband users rose by 12.95 million during the period to hit 116.93 million. Fixed-line user numbers decreased 9.97 million to 303.76 million.

China Unicom (NYSE:CHU) had a 54 percent fall in second-quarter profit, but the figure beat expectations, as increasing 3G use helped to partly offset the effects of intensifying competition. The company made a net profit of 1.4 billion yuan (US$205 million) in the April-June quarter. The company called 2010 a critical year for it to enhance its market position and make changes in its operational model. Unicom's market-beating results come after rivals China Mobile and China Telecom had second-quarter earnings that beat expectations, helped by a growing number of 3G users.

China Telecom raised its FY 2010 capex guidance to 44 billion yuan (US$6.5 billion), and commits to deliver an additional 3 million broadband net additions for FY 2010 and FY 2011 combined. The cumulative cash flow impact should turn positive sometime between Year 4 and Year 5 post the initial capex investments, assuming those additional broadband subscribers come in with ARPU at 80 yuan (US$11.8). China Telecom can afford to spend more on handset subsidy (in absolute dollars) in 2H and still stay within its full year budget.

According to figures from telecom companies, China's communications firms added a combined 9.255 million mobile customers in July, ending the month with a total of 794.779 million mobile users. China Mobile led in mobile subscriber adds in July as the company added 4.886 million new customers to bring its customer base to 558.928 million. Of the total, 11.834 million are 3G customers. China Telecom signed up 2.80 million new mobile subscribers in the month to bring its total to 77.32 million. The carrier continued shedding fixed-line customers and saw its customer base fall by 960,000 fixed-line users to end the month with a total of 180.11 million local access lines in service. China Telecom gained 900,000 broadband subscribers in June to hit a total of 59.23 million. China Unicom ended June with a total of 158.531 million mobile customers, which comprises 150.030 million 2G subscribers and 8.501 million 3G customers.

China Wi-Max Communications has signed a reserve equity financing agreement with AGS Capital Group in a commitment to purchase, over a period of two years, shares of China Wi-Max common stock for up to US$10 million in cash. This funding plan will support China Wi-Max's current operations by providing capital to enable the execution of the company's business plan, both organically and through merger and acquisition activities, in the broadband telecommunications market in China, and international data services market. China Wi-Max will provide, through one or more of its wholly-owned foreign entities and joint venture companies, telecommunications and internet services to customers situated in buildings that are networked via its fibre and wireless assets. The company anticipates acquiring emerging internet companies, including value-added telecommunications and a fibre transport and engineering companies with high growth and profit potential.

Media, Entertainment and Gaming

· GigaMedia Ltd. (NASDAQ:GIGM) posted a surprise quarterly loss, hurt by a weak Asian online games business. The company also warned of a decline in its third-quarter game business sales in Taiwan and China due to seasonality and the absence of new game launches. GigaMedia sees costs and expenses for its online games business remaining high as it continues to expand the platform and rebuild pipeline, it said in a statement. For the April-June quarter, the company posted net income attributable to shareholders of US$52.5 million, or 87 cents a share, compared with US$128,000 or breakeven per share, last year. The second-quarter results include a gain of US$75.8 million related to the sale of its gambling software business.

· Tony Park, head of The9 Limited (NASDAQ:NCTY), will take charge of the company's North American investment unit, which is responsible for the operation of just acquired Red 5 Studios. The9 and Red 5 jointly announced an investment agreement, according to which the Chinese party will buy a majority stake in its US peer for about US$20 million. Red 5 will launch a game product that has been under R&D for years and anticipated by The9 Board Chairman and CEO Zhu Jun.

· Xinhua News Agency will link up with China Mobile to develop mobile search technology, which may challenge the mobile search market leaders, Baidu and Google (NASDAQ:GOOG). Industrial insiders hold that with the promotion of China's 3G services, an increasing number of subscribers choose to use smartphones, and mobile search will be a major driving force of the market. Baidu currently holds one-third of China's search engine market, while and Google respectively took up 17 percent and 12 percent. Industrial analysts believe that the cooperation between Xinhua and China Mobile will not pose a big challenge to Baidu and Google, as it is still uncertain whether China Mobile will enter the traditional search market.

· The9 made a net loss of 65.82 million yuan (US$9.6 million) or in the second quarter of 2010. Net revenues for the quarter came to 25.37 million yuan (US$3.7 million), up 15 percent. The company attributed the sequential increase to the release of Kingdom of Heroes Online 2, which was commercialized in May, and the year-on-year decrease to the expiration of its operations of World of Warcraft (WOW) towards the end of the comparable quarter last year.


Focus Media (NASDAQ:FMCN) had net income of US$25.35 million for the second quarter of 2010, or US$0.17 per diluted share. Total net revenues increased 27 percent sequentially and 22 percent annually to reach US$158.17 million. The company's LCD display network generated revenues of US$72.53 million, up 44 percent from the previous quarter and 24 percent million from the second quarter of last year. Revenues from the poster frame network increased 2 percent sequentially but decreased 5 percent annually to US$25.24 million, while revenues from internet advertising increased 27 percent quarter-on-quarter and 43 percent year-on-year to reach US$35.65 million. The company expects net revenues in the third quarter of 2010 to be between US$120 million and US$123 million, representing an 8 percent quarter-on-quarter growth and a 27 percent year-on-year growth.

Hanwang Technology Co., Ltd., a renowned e-book reader maker in China, unveiled its financial report for the first half of 2010, saying that net profit soared 321 percent year on year to 86.87 million yuan (US$12.8 million). Operating revenue amounted to 674 million yuan (US$99.07 million). Gross profit margin of the e-book reader operation slid 10 percent year on year, as the company launched medium- and low-end products in the January-June period. Nevertheless, integrated gross profit margin still stood at 41 percent. Revenue from the handwriting product line touched 45.3539 million yuan (US$ million), rising 45.34 percent year on year; from the OCR product line, 24.799 million yuan (US$3.6 million).

IDC released the latest data for the Chinese PC market in the second quarter, which shows the statuses of industrial players, which have been stable for years, is gradually changing. In the period, Lenovo Group (OTCPK:LNVGY) still took the first place, with market share rising to 28.7 percent. Meanwhile, Hewlett-Packard (NYSE:HPQ) saw market share slip from 11.1 percent a quarter ago to 8.2 percent. Its second place was replaced by Dell (NASDAQ:DELL) whose market share hiked from 8.6 percent to 9 percent. However, analysts are not bullish on the situation for Dell, because it not only faces the counterattack by Hewlett-Packard, but also meet the challenge of Acer, which just took over the branded PC business of Founder Technology Group Corporation. A fierce war is going to break out among the three PC giants in the second half of 2010. Lenovo is seemingly growing without a hitch. Last week, Lenovo issued its financial report for the first fiscal quarter ended June 30, according to which the company has witnessed the fastest growth among the top five global PC makers for three consecutive quarters, with its growth higher than the industrial average for five consecutive quarters.

Alternative Energy

ReneSola (NYSE:SOL) will supply two Taiwanese solar companies, cell maker Neo Solar Power and solar panel and off-grid systems components producer Solartech Energy, with a total of 836MW of monocrystalline and multicrystalline wafers. Renesola delivered 206.7MW of wafers in the second quarter of 2010, and expects to make total PV products shipments in the third quarter of 280-310MW.

Trina Solar (NYSE:TSL) had a net income of US$38.71 million in the second quarter of 2010, compared to a net income of US$44.54 million in the first quarter of the year and US$18.6 million in the second quarter of 2009. Net revenues came to US$370.76 million, up 10.1 percent quarter-on-quarter and 147.2 percent year-on-year. Total shipments were 222.8 MW in the quarter, up 15.7 percent sequentially and 248.7 percent annually, and above the company's previously stated guidance of 200-205MW. The company attributes the sequential increase in shipments to brand recognition and demand ahead of mid-year feed-in-tariff (FIT) adjustments in Germany. The company incurred a net foreign currency exchange loss of US$29.2 million in the quarter, compared to a net loss of US$14.5 million in the first quarter and a net gain of US$10.5 million in the same period a year ago.

Trony Solar Holdings Co. Ltd. is targeted to raise US$200 million to US$250 million from a Hong Kong initial public offering in September. The company originally planned to list on the New York Stock Exchange in December last year, but eventually shelved the plan due to poor market conditions. JP Morgan (NYSE:JPM) is handling the deal. China is the among the world's largest suppliers of solar panels but uses little of what it produces domestically. With large projects having more than 12 Gigawatt (GW) of capacity in the pipeline, China could rapidly become a major market.


Kingdee International Software Group Co generated 88.73 million yuan (US$13 million) of net profit for the first half of this year, reflecting a year-on-year increase of 18.58 percent. Earnings per share were HK$0.044 (US$.0056) and no dividend was declared. The firm's operating revenue surged 21.28 percent year on year to 534 million yuan (US$78.5 million), and its software sales revenue totaled 336 million yuan (US$4.9 million), up 19.17 percent year on year. During the period from January to June, the firm completed three acquisitions with purchasing prices totaling 38.05 million yuan (US$5.6 million). According to CEO Xu Shaochun, the company had teamed up with IBM to jointly expand the IT market. Kingdee International's revenue derived from high-end product sales and services is expected to increase from current 25 percent to 30 percent of the total revenue.

Kingsoft had net income of 156.66 million yuan (US$23 million) in the first half of this year, down 21 percent year-on-year. Revenue for the period increased 3 percent annually to 492.01 million yuan (US$72.4 million), with the company's entertainment software business contribution flat from last year at 320.66 million yuan (US$47.13 million). The company's application software business revenues in the six months grew 11 percent year-on-year to 168.14 million yuan (US$24.7 million), due to fast growth of sales of Kingsoft's WPS Office package in China and Japan. The company's second quarter revenues were 246.31 million yuan (US$36.2 million). The company had daily average peak concurrent users (PCU) during the second quarter of 820,000, down 14 percent on an annual basis and compared with first quarter PCU of 915,212.

Disclosure: Author holds no positions in the stocks mentioned.