Friday, May 22, 2015
News this week: New York-listed Alibaba Group announced the acquisition of a minority stake in the Shanghai YTO Express (Logistics) Company. Financial details were not disclosed. Both companies plan to cooperate in developing logistics solutions to improve efficiency of China’s logistics industry.
YTO Express will work closely with Alibaba’s logistics subsidiary Cainiao to enhance the industry’s logistics management capabilities as well as international and rural delivery services. Cainiao was founded by Alibaba in 2013 in partnership with a consortium of logistics companies with the aim of building a nationwide logistics platform.
Judy Tong, senior vice president of Alibaba Group and president of Cainiao, said, “The strategic investment in YTO Express reflects our commitment to improving quality and service standards in China’s logistics industry. As a platform, we look forward to working closer with partners who share our vision to develop more efficient logistic infrastructure and solutions that will drive development of China’s logistics sector in order to fully satisfy our customers’ needs.”
News this week: Hong Kong-listed Sino Splendid (formerly China.com) has reported its first quarter results ended 31st March 2015. Revenues were US$1.7 million, growing 14% from last year. The company attributed the growth in revenue to the increase from print advertising. Profit in the quarter was US$114,000, more than triple last year’s US$31,000. Earnings per share in the period were HK$0.0014.
The travel media business, TTG, posted a positive result in the quarter due to steady growth of revenues within the overall business. Company management highlighted TTG Travel Trade Publishing completing various print publication special projects, as well as the confirmation of several advertising contracts for TTG Guides & Maps Publishing.
News this week: Last week, Hong Kong-listed HC International announced its results for the quarter ended 31st March 2015. Revenues were US$34 million, a decrease of 5.5% compared with the same quarter last year. Profit in the quarter also recorded a drop falling 41% down to US$4.0 million. Diluted earnings per share in the period were RMB 0.0365 (US$0.0059).
Almost 80% of the Beijing-based company’s revenues were generated from online services amounting to US$27 million. This represents a year-on-year decrease of 12%. The second largest business segment was seminars and other services, which increased by 8.7% to US$4.4 million and accounted for 13% of total revenues. The remaining revenues were generated from the newly acquired “digital identity management business”, anti-counterfeiting products and services (US$1.8 million), and the trade catalogues and yellow page directories segment (US$718,000).
News this week: Yesterday, NASDAQ-listed Global Sources released its financial results for the first quarter ended 31st March 2015. Revenues were US$22.2 million, down 36% compared with US$34.5 million last year. In the same period, the company recorded IFRS net loss of US$2.1 million, compared with IFRS net income of US$145,000 in 2014. The drop in revenue was largely due to the shifting of one of the company’s major exhibitions from the first quarter in 2014 to the second quarter in 2015.
More than 80% of Global Sources’ revenues were generated from its online business, amounting to US$17.9 million. That is a drop of 16% from US$21.3 million recorded last year. Revenues from print business accounted for 9.6% of total revenues at US$2.1 million, down 17% year-on-year from 2014’s US$2.6 million. Meanwhile, exhibitions revenues slipped to US$260,000, down from US$8.9 million in the same period last year. The company attributed the decline to the shift in timing of SIMM machinery shows (Shenzhen International Machinery Manufacturing Industry Exhibition and its related shows) from the first quarter of 2014 to the second quarter of 2015.
Global Sources’ executive chairman, Merle A. Hinrich, said, “Our first quarter results reflect the shift in timing of our SIMM machinery shows for the mainland China domestic market from the first quarter of 2014 to the second quarter of 2015. In April, we held our export-focused shows, including Global Sources Electronics, the world’s largest electronics sourcing trade show featuring a total of more than 5,500 booths.”
New this week: This week, the 6th edition of Hong Kong International Medical Devices and Supplies Fair (Medical Fair) featured more than 250 exhibitors from 11 countries and regions. The three-day fair ran from 18th to 20th May at the Hong Kong Convention and Exhibition Centre (HKCEC) welcoming nearly 10,000 buyers.
Organised by the Hong Kong Trade Development Council (HKTDC) and co-organised by the Hong Kong Medical and Healthcare Device Industries Association, this year’s Medical Fair featured two inaugural pavilions representing Canada and the Taiwan Medical and Biotech Industry Association. Ten sector-specific zones were also set up this year including: the Hospital Equipment zone, the Rehabilitation and Elderly Care zone, Household Medical Products, Medical Cosmetology, Medical Supplies and Disposable, Physiotherapy, Tech Exchange, Business of IP Zone, and the Building Technology and Hospital Furniture zone.
Benjamin Chau, HKTDC’s deputy executive director, said, “Buyers from Japan, Taiwan, Singapore, and Vietnam recorded significant growth. It is an indication of Asia’s strong demand for medical supplies and services. An ageing population and increased health consciousness are also factors boosting the demand for healthcare equipment in the region.”
News this week: Earlier this week, Reed Exhibitions’ joint venture subsidiary, Reed Sinopharm, organised the 2015 Health Industry Summit (tHIS) for the first time at the National Exhibition and Convention Center (NECC) in Shanghai. The mega umbrella show spanned a total exhibition space of 290,000 m2 and drew 210,000 visitors from 150 countries and regions. The first day of tHIS alone reportedly attracted 100,000 visitors.
There were media reports of teething problems at the relatively new NECC venue. Visitors reportedly complained about chaotic organisation ranging from poor signage in the venue and parking lot, hour-long queues for food and beverage, inadequate connections for transportation and insufficient hotel accommodations.
Running from 15th to 18th May, the four-day show featured 6,800 exhibitors showcasing the latest in medical equipment and equipment manufacturing solutions, pharmaceutical formulations and ingredients, manufacturing technologies, natural health and nutrition products. Notable exhibitors included healthcare equipment giants such as GE, Siemens, Philips, Mindray, and United Imaging.
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Friday, May 15, 2015
News this week: The 117th China Import and Export Fair (Canton Fair) concluded its spring edition on 5th May at the China Import and Export Fair Complex. Organised by the China Foreign Trade Centre (CFTC), the organiser reported a year-on-year increase of 3% in the number of regular buyers to over 52,000. Compared with the autumn session in 2014, the number of overall buyers was mostly flat at 184,801 – originating from 216 countries and regions.
The CFTC reported the number of buyers from Asia, the Americas, Africa and Oceania showed encouraging year-on-year growth. Additionally, the number of buyers from countries relevant to China’s “One Belt, One Road” amounted to more than 80,000. Market weakness saw attendees from Europe drop by 18% compared to the autumn session to 30,383.
Chinese manufacturers of smart appliances used the Canton Fair to showcase their latest hi-tech products. Smart products by the likes of Haier, Midea and Chigo accounted for roughly half of the products exhibited by leading home appliance brands, in response to Beijing’s call for increased innovation.
News this week: According to the Hong Kong Trade Development Council (HKTDC), seven trade fairs organised by the council in April attracted close to 224,000 buyers in total, up 1% year-on-year, and had an economic impact that generated more than US$168 million for the local economy.
The HKTDC reported that more than 127,000 buyers, or 57% of the total, originated from mainland China or overseas. In particular, year-on-year increases in overseas buyers were observed from the U.S. (4%), U.K. (4%), Germany (6%), Switzerland (10%), mainland China (2%), India (23%) and the Philippines (12%).
Benjamin Chau, deputy executive director of HKTDC, said, “Despite some uncertainties such as the slowing economic growth in certain Asian economies, the pending U.S. rate hike and the strengthening Hong Kong currency, buyer attendance at our fairs recorded growth… According to the Hong Kong Tourism Board, per capita spending of overnight MICE visitors averaged over HK$9,400 (US$1,213) during their stay.”
News this week: Hong Kong-listed, mainland media group, CCID Consulting, released its quarterly result for the three months ended 31st March 2015. Revenues were US$3.6 million, a year-on-year decrease of 19%. However, the company’s net profit jumped 57% from last year, amounting to US$174,000 in the quarter. Earnings per share in the three-month period were RMB 0.0015.
More than half of CCID’s revenues were generated from its management & strategic consultancy services, amounting to US$1.9 million – a drop of 22% year-on-year. Management attributed the decrease in this business segment to the expansion of other businesses within the company.
CCID’s second largest business segment, information engineering supervision services, also slipped 26% to US$1.2 million, and accounted for 32% of total revenues. The remaining revenues were generated from market consultancy services, which grew 20% to US$613,000.
News this week: Last week, Bangkok-based business information provider, Business Online (BOL), announced its financial results for the first quarter of 2015. Revenues were US$2.8 million, down 16% year-on-year. Net income in the quarter was US$461,000, a drop of 13% from the same period last year. The company did not comment on the decrease in revenue and profit. Earnings per share in the period were Baht 0.02.
Nearly 70% of BOL’s revenues were generated from its online information services which amounted to US$1.9 million, a year-on-year growth of 11%. Income from other services slipped 46%, down to US$885,000 in the quarter. The company did not provide details of the various revenue categories.