Archives 2008

Dongfang issue for wind power

DONGFANG Electric Corp says it proposes to sell up to 65 million new shares in China to raise funds to invest in energy-related infrastructure projects.

China’s third-biggest maker of power-generation equipment said it intends to use the funds make total investments of up to 3.96 billion yuan (US$565 million) on wind power projects in Hangzhou, eastern China, and Tianjin in northern China, and a nuclear power renovation project in Sichuan Province.

Dongfang said it proposed to sell not more than 65 million new A shares, representing 7.96 percent of the total shares of the company currently in issue.

The sale will be subject to approval by shareholders and relevant Chinese authorities, Dongfang said in a statement to the Hong Kong Stock Exchange.

The company also said profit for 2007 fell 1.9 percent to 2.41 billion yuan, from 2.46 billion yuan in 2006. Earnings per share dropped to 2.723 yuan from 2.777 yuan the previous year, the Deyang, Sichuan-based company said.

The directors proposed a final cash dividend of 0.24 yuan per share for 2007, compared with 0.20 yuan a year earlier.

China’s Baidu appoints Jennifer Li as CFO

SHANGHAI, March 21 (Reuters) – Top Chinese Web search firm Baidu.com Inc (BIDU.O: Quote, Profile, Research) said on Friday it had appointed Jennifer Li as chief financial officer. Li previously worked for General Motors China (GM.N: Quote, Profile, Research), Baidu said in a statement.

Shawn Wang, Baidu’s previous chief financial officer, died in an accident late last year.

China Yuchai Intl. Names New CFO Hoh Weng Ming

NEW YORK – Diesel engine maker China Yuchai International Ltd. said Thursday it appointed Hoh Weng Ming as its chief financial officer, effective May 1.

He replaces Ho Tuck Chuen who resigned as a director and CFO effective April 30 for health reasons. Chuen will continue as an adviser to the company.

Shares fell a penny to $8.34 in morning trading.

China Solar & Clean Energy appoints acting CFO

China Solar & Clean Energy Solutions has announced the appointment of Yihai Yang to the position of acting CFO.

Mr Yang replaces Gary Lam, who resigned from the position of CFO to pursue other interests. Mr Yang has prior experience working for several China-based companies in accountant, controller and CFO positions.

From September 2006, Mr Yang served as the financial controller of China Diagnostics Medical Corporation, a company engaged in the business of pharmaceutical research and development.

From April 2005 to August 2006, he served as the CFO of Beijing Tanglewood Tour Development, a company engaged in the business of real estate investment and development.

Deli Du, CEO, said: “We are very pleased to have Mr Yang join as our acting CFO. We are confident that his experience in several industries will provide our management team a valuable perspective on how to grow our business.”

Doing Business in China: Regulatory change to have impact on U.S. shippers

Patrick Burnson, Executive Editor — Logistics Management, 3/19/2008

SAN FRANCISCO—As reported here yesterday, shippers are telling LM that sourcing manufactured goods from China will have a few new wrinkles in the coming months. According to Saji Daniel, president and CEO of Tradex International, it is now time for U.S. shippers to take a fresh at look trade issues now if they are to remain competitive in this marketplace.

“The Chinese government is taking deliberate steps to shift manufacturing to high-tech industries,” he said. “Last summer, the government reduced value-added tax (VAT) rebates on thousands of products. These rebates provide tax relief for exporters, but were removed for many commodity goods and products requiring high levels of energy to manufacture.”

Daniel also made note of a new labor law enacted January 1, which substantially increased production costs by requiring employers to pay insurance, overtime, and severance benefits to eligible employees.

“Our company has experienced direct increases in cost as a result of this new legislation, with labor costs estimated to have grown between 30-to-40 percent,” he said.

In the short-term, said Daniel, businesses in and around Beijing may also be seriously impacted by the 2008 Olympics. The government plans to reduce pollution prior to and during the games by shutting down factories surrounding the city, effectively stopping production for over a month.

Not that it will require a global sporting event to earn media scrutiny, he noted:

“The most publicized example is Mattel,” noted Daniel, “which recalled millions of toys last summer following the discovery of lead in many of its products produced in China. The recalls impacted not just toy manufacturers, but all importers, as questions regarding the safety of Chinese products drew international spotlight.

Daniel said that Mattel’s lack of oversight exemplifies the complexity of manufacturing overseas; issues like lead content, long ago dissolved in the United States, must still be considered in China.

“In a marketplace characterized by instant, global communication, one mistake can significantly damage the reputation of your brand both in the United States and worldwide,” he said.

By way of transport advice, Daniel suggests shippers stick with reliable ocean carriers with a proven record in the trade lane.

“Historically, Hanjin, Hyundai, Cosco, and CMA CGM have provided us with the best lead times and service,” he said. “The nature of our business does not require the use of air freight, as our chief concern is cost rather than delivery time. We maintain ample levels of safety stock domestically to satisfy any interruptions in the supply chain.”

Nor does Daniel recommend taking on too many of the intermediary functions of goods sourcing:

“We continue to find benefit from the use of freight forwarders, and utilize several different services to varying degrees. Freight forwarders reduce our staffing requirements by handling procurement, and our EDI capabilities enable us to monitor shipments by providing automatic updates from our forwarding partners,” he said.

In conclusion, Daniel observed that freight forwarders also provide his company with “peace of mind” by enabling them to delay its insurance liability for shipments until they arrive.

CHVC: Appointment of Jose Ferrer as COO

China Voice Holding Corporation (CHVC) has hired Jose Ferrer as the Company’s Chief Operating Officer.

CHVC’s President and CEO Bill Burbank said, “Mr. Ferrer brings to CHVC over 20 years of success in Business Development and Operations. He has extensive experience in working with technology development companies in the communications space in the U.S. and abroad. Jose also possesses an in-depth understanding of emerging technologies and their commercial applications. For over ten years of his career, he was focused in the telecommunications field and has worked at a senior executive level with both private and public companies.”

China’s Tom Group CEO Tang Meijuan Resigns

The Hong Kong-headquartered Chinese online and mobile media group Tom Group announced its 2007 financial results, and the once-profitable company is now operating at a loss and Tom Group Limited CEO Tang Meijuan, in the position for the last five years. has resigned due to “personal reasons”. Operating Director Yang Mengguo will become the new CEO.

TOM’s revenues were 2.68 billion HK dollars ($347 million) in 2007, down 4.2 percent from the year before. In 2007, TOM’s losses were 297 million HK dollars ($38 million) compared to a profit of 32 million HK dollars ($4.1 million) in the prior year. The losses in 2007 were mainly due to a drop in mobile-valued added services (MVAS) revenues as the top 2 Chinese carriers, China Mobile and China Unicom, placed new restrictions on MVAS providers. More details in the releases here and here.

The losses included an HK$127 million impairment charge in its digital business after the mobile operators changed their policies, which hurt all MVAS players in China. It also lost HK$104 million from Tom Eachnet, an online auction venture with Ebay in China.

Agility names James Gagn as Greater China CEO

Agility, a logistics provider, has appointed James Gagne as CEO for Greater China.

Gagne’s appointment is part of a new regional management structure at Agility that will help to better manage its growing network of offices and to engage specialists for industry vertical sectors.

“We are delighted to have James on board as he brings 12 years of experience of working in China with a leading logistics services provider and he will be a key player as Agility continues to grow its business both organically and through strategic acquisition,” said Wolfgang Hollermann, CEO, Agility, Asia Pacific.

Agility is to strengthen its management team as a result of continuing high levels of growth in Asia Pacific and has set up five new regions and appointed leaders to manage these regions.

The five regions and their leaders are: North Asia (Japan, Korea, Philippines, and Guam), Olaf Tauschke; South East Asia (Cambodia, Indonesia, Malaysia, Singapore, Thailand and Vietnam), Mykell Lee; South Asia (Afghanistan, Bangladesh, India, Pakistan and Sri Lanka), Mahesh Niruttan; Australasia (Australia, New Zealand, Papua New Guinea and South Pacific Islands), Mick Turnbull; Greater China (China, Hong Kong and Taiwan), James Gagne.

The Asia Pacific region is part of the Global Integrated Logistics (GIL) unit of Agility. The GIL unit has four regional CEOs – one for each geographical region. In Asia the CEO is Wolfgang Hollermann, in the Americas, Mike Bible, in Europe, Beat Simon, and in Middle East and Africa, Elias Monem.

The GIL unit is headquartered out of Baar, Switzerland and is managed by Essa Al-Saleh, president and CEO, Global Integrated Logistics.

Goldman Appoints a New China Chief

HONG KONG — Goldman Sachs Group Inc. named Cai Jinyong, an eight-year veteran of the firm, as chief executive of its Chinese securities joint venture and head of Goldman’s China investment-banking business, according to an internal memo reviewed by The Wall Street Journal.

The promotion of Mr. Cai, who made partner in 2006, should bring some stability to the top ranks of Goldman’s China operations after the departure of Richard Ong, its most senior Beijing-based banker, this month.

Mr. Ong, Goldman’s co-head of investment banking in Asia excluding Japan, is leaving to help run a new private-equity fund raising over $2 billion. He will be joined by Fang Fenglei, the chairman of the joint venture, Goldman Sachs Gaohua Securities Co. Mr. Fang continues to serve as chairman of the joint venture, which was one of the first such Chinese JVs, formed in late 2004.

Mr. Cai will succeed Zha Xiangyang as CEO of the joint venture. Goldman said in the memo that Mr. Zha is leaving the firm. Mr. Zha didn’t reply to an email seeking comment.

Mr. Cai, 48 years old, brings extensive China experience. He most recently led Goldman’s team of China bankers dedicated to landing deals in oil, gas and power. Born in China, Mr. Cai earned a Ph.D. in economics at Boston University, graduating in 1990. He then worked for the World Bank, before starting his investment-banking career at Morgan Stanley.

CPC plans to hire 100,000 college graduates to work in villages

BEIJING, (Xinhua) — The Organization Department of the Communist Party of China (CPC) Central Committee has launched a project to make 100,000 college graduates over fives years to work in villages.

The Organization Department will work closely with the ministries of education and finance and the new ministry of human resources and social security to select competent graduates.

Graduates who pass written, oral and physical tests will be dispatched to work as assistants to heads of CPC branches and directors of village committees.

They will be responsible for helping farmers with agricultural technology, raising health awareness and skills, promoting cultural activities and also researching farmers’ complaints.

The graduate’s specialties will be an important reference for the consideration of selection.

The CPC will offer a three-year contract with adequate insurance to selected graduates with bachelor and master degrees. The monthly salaries will vary with the length of service.

Li Yuanchao, head of the Organization Department, urged Party officials at local levels to provide an appropriate environment for the work and lives of graduate workers.

Li said the project was a strategic move for the CPC to train reserve cadres who were acquainted with rural areas.

All qualifying tests to be held during the selection should be transparent to ensure fairness.

Graduates who complete the three-year service will have priority for consideration in civil service post in governments at all levels. Service in rural areas will be added to their accumulated length of service.

The Ministry of Education said the number of college students graduating this year will reach a record 5.59 million, 640,000 more than last year.