Dangdang Net Income Falls in 2011,three reasons

1, price competition, department store products, to increase the proportion of promotional marketing, gross margin declined from 22.2% to 13.8%; 2, warehousing logistics expenditure increase revenue ratio from 2010: 12.6% to rise to 13.1%; 3, marketing costs increase: revenue ratio from 2010 up to 3.4% 4.2%

China’s Dangdang Drops to Five-Week Low in New York After Net Loss Swells

E-Commerce China Dangdang Inc. (DANG), China’s biggest Internet-based book retailer, sank to a five- week low in U.S. trading after reporting its four-quarter loss increased from the previous three months.

American depositary receipts of E-Commerce, known as Dangdang, dropped 8.5 percent to $6.33 by 10:29 a.m. in New York, the lowest level since Jan. 17 based on closing prices. They earlier tumbled as much as 10 .4 percent, the biggest intraday drop since Sept. 22.

Beijing-based Dangdang’s net loss in the last three months of 2011 was 129.8 million yuan ($20.6 million), compared with a loss of 81.9 million yuan in the third quarter, and net income of 14.8 million yuan a year earlier, the company said today in a statement.

The loss in the fourth quarter exceeded the 85 million-yuan average estimate of five analysts compiled by Bloomberg.via chinacompanynews http://www.chinacompanynews.com/consumption/201202/333.shtml

Ku6 co-founder Han Kun leaves his post do poineering work

Ku 6 co-founder, vice president Han Kun has from the cool 6 network turnover, and the beginning of his another venture, which involved in the areas of mobile internet.

According to Reuters, Han Kun is a former Sohu portal matrix ChinaRen former editor-in-chief of Sohu interactive entertainment center. In 2006 June the same sohu.com senior vice president, general editor Li Shanyou founded the cool 6 network. Han Kun said the venture company involved in the business category at the end of the month and will be released to the public.

via chinacompanynews

Suntech Announces Preliminary Financial Results for the Q4 and Full Year 2011

China, Feb. 17, 2012 /PRNewswire-Asia/ — Suntech Power Holdings Co., Ltd. (NYSE: STP), the world’s largest producer of solar panels, today announced preliminary financial results for the fourth quarter and full year ended December 31, 2011.

Suntech exceeded shipment guidance for the fourth quarter of 2011. The Company previously expected shipments to decline by approximately 20% from the third quarter of 2011, but currently anticipates shipments to decline by approximately 10% from the third quarter of 2011. Revenues in the fourth quarter of 2011 are expected to be in the range of $610 million to $630 million. Gross margin is expected to be in the middle of the previously guided range of 9% to 11%.

Suntech expects shipments for the full year 2011 to be approximately 2.09GW, above previous guidance of 2GW. Revenues for the full year 2011 are expected to be in the range of $3.13 billion to $3.15 billion.

In the fourth quarter of 2011, due to continuing stringent working capital management, Suntech significantly reduced accounts receivable and inventory by a total of approximately $450 million, which was partially offset by an approximate $85 million decrease in accounts payable. This result exceeds Suntech’s stated goal to reduce accounts receivable and inventory by a total of $200 million in the fourth quarter of 2012. Net debt declined by approximately $200 million in the fourth quarter of 2011. Cash and restricted cash increased from $567.7 million as of September 30, 2011 to over $700 million as of December 31, 2011.

Dr. Zhengrong Shi, Suntech’s Chairman and CEO, said, “Our sales and operations teams both performed well in the fourth quarter, enabling us to achieve key goals and improvements across our business. We exceeded shipment guidance and improved our cash position through ongoing management of accounts receivable and inventory. We also completed the impairment assessment for the third quarter of 2011. The charges that we incurred were all non-cash and will not impact our operations moving forward. We will continue to implement the initiatives necessary to maintain our position as the leading supplier of solar panels.”

Impairments of Goodwill, Intangibles, Certain Investments and Other Long Term Assets

As stated on the Company’s third quarter 2011 earnings announcement, due to the challenging solar market conditions and the significant reduction in the Company’s market capitalization in the third quarter of 2011, Suntech initiated an assessment of its goodwill, intangibles, and certain investments. Suntech recently completed its analysis and has recorded impairment charges of $571 million in the third quarter of 2011. These charges consist of $407 million in non-cash impairments of goodwill and intangible assets; $109 million of non-cash impairments of Suntech’s investments in, and prepayments to, Nitol Solar and Shunda; and a $55 million non-cash write-down of equipment and facilities.

Suntech will publish updated financial results for the third quarter of 2011 together with its financial results for the fourth quarter and full year 2011 on March 8, 2012 at 8am EST. Please visit Suntech’s investor relations website at ir.suntech-power.com for dial-in details for the conference call. The estimates presented in this press release are preliminary, unaudited and subject to further adjustments.

About Suntech

Suntech Power Holdings Co., Ltd. (NYSE: STP) produces industry-leading solar products for residential, commercial, industrial, and utility applications. With regional headquarters in China, Switzerland, and the United States, and gigawatt-scale manufacturing worldwide, Suntech has delivered more than 20,000,000 photovoltaic panels to over a thousand customers in more than 80 countries. Suntech’s pioneering R&D creates customer-centric innovations that are driving solar to grid parity against fossil fuels. Our mission is to provide everyone with reliable access to nature’s cleanest and most abundant energy source.

For more information about our people and products visit http://www.suntech-power.com.

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “plans to”, “expects to,” “anticipates,” “future,” “intends to,” “plans,” “believes,” “considers” and similar statements, and includes preliminary financial results for the third quarter, fourth quarter and full year including shipments, revenues, gross margin, working capital improvement, cash and impairments, and Suntech’s ability to maintain its position as the leading supplier of solar panels. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these and other risks is included in Suntech’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. Suntech does not undertake any obligation to update any forward- looking statement as a result of new information, future events or otherwise, except as required under applicable law.

For further information, please contact:

Rory MacphersonInvestor Relations DirectorTel: +1-415-268-8975Email: ir@suntech-power.com

SOURCE Suntech Power Holdings Co., Ltd.

China cuts banks’ reserve requirement ratios by 50 bps

chinacompanynews.com China’s central bank said on Saturday it would cut the reserve requirement ratio (RRR) for banks by 50 basis points, effective from February 24.

The first RRR cut in 2012 came more than two months after the last 50-basis-point cut announced on November 30, 2011.

The People’s Bank of China made the announcement on its website (www.pbc.gov.cn).

It would cut the RRR for the biggest banks to 20.5 percent from 21 percent, freeing up funds that could be used for lending.

Baidu looks to fuel growth on mobile search

chinacompanynews.com— Baidu Inc, China’s biggest search engine, plans to increase its efforts on the mobile search service starting this year, as its market share in the mobile search area lags far behind its dominance in traditional PC search.

“In the past, we have not spent any resources in monetizing the mobile traffic, but starting from this year, we will do something to figure out how to better serve our customers on our mobile platform,” Robin Li, chief executive officer, said during a conference call on Feb 17.

He said mobile will become “a very important channel to distribute our products”. He expects that “mobile will represent an ever larger percentage of our total traffic” in the coming year.

Baidu’s share in China’s PC search has kept climbing, especially after rival Google Inc redirected all mainland search traffic to Hong Kong in 2010.

Baidu occupied 78.3 percent of PC search revenues last quarter, with Google’s ranking second at 16.7 percent, according Analysys International, a Chinese research company. However, Baidu only had 33.5 percent in the mobile search sector, closely followed by Easou.com’s 22 percent and Tencent Holdings Ltd’s Soso.com’s 21 percent in terms of traffic in the third quarter of last year, said the research company.

Baidu’s revenues increased by 82.5 percent to 4.474 billion yuan ($710.9 million), and its net income climbed 77 percent to 2.05 billion yuan ($326.3 million), according to its financial report on Feb 17.

Apple’s share of Chinese smartphone market declines

Apple’s share of Chinese smartphone market declines

A staff member at China Unicom’s Wuxi branch in Jiangsu province displays the iPhone 4S. The number of mobile subscribers in China is set to top 1 billion this year. [Photo/Xinhua]

HONG KONG / BEIJING – Apple Inc’s share of China’s smartphone market slipped for a second straight quarter between October and December. The retreat came as the company lost ground to cheaper local brands and as some shoppers held back from purchases until after the launch of the iPhone 4S in January.

China, the world’s largest mobile phone market, has not been an easy ride for Apple, which is grappling with a lawsuit from a local company over the iPad name and has issues concerning wages and working conditions at its supplier’s factories.

With the number of mobile subscribers in China set to top 1 billion this year, there is cutthroat competition among Samsung Electronics Co Ltd, Nokia Oyj, Apple and the domestic companies Huawei Technologies Co Ltd and ZTE Corp.

While Apple regained its top spot as the world’s largest smartphone vendor in the fourth quarter and in 2011 as a whole, it slipped to 5th place in China, overtaken by ZTE. Apple’s smartphone market share in China slid to 7.5 percent from 10.4 percent in the three months between July and September.

In the last quarter, Samsung knocked Nokia off the top slot, taking 24.3 percent of the market, more than three times Apple’s share, according to data from the researcher Gartner Inc. Nokia’s market share more than halved last year, from more than 40 percent in the first quarter to less than one-fifth by the fourth quarter.

“Chinese handset makers have been actively promoting their smartphones with China’s three telecoms operators, so we saw ZTE and Huawei gain significant market share,” said the Taipei-based Gartner analyst C. K. Lu.

Gartner said this week that it expects the market share of Apple’s iPhone to slip for a couple of quarters as the novelty of its latest 4S model wears off.

In the first quarter of last year, ZTE had a market share of just 3 percent, but ended 2011 ranked fourth with more than 11 percent.

Chinese companies are gradually shifting toward the higher end of the market, unveiling more feature-packed smartphones.

“If you want to sell handsets to the mass market, a simple rule of thumb in China is that the handset price has to be close to 70 percent of the monthly salary,” said Jayesh Easwaramony, an analyst with Frost & Sullivan in Singapore.

“Today, an iPhone is more than two months salary.”

This, said Easwaramony, provides an opportunity for the likes of Huawei and ZTE to cater to a mass market that is captivated by the iPhone, but doesn’t have the purchasing power for it.

“The quality of Huawei’s phones is quite high and good value for money compared with the iPhone,” said Dale Dai, a 28-year-old sales executive from Beijing.

Dai, who uses his Huawei phone to write weibo, or Chinese micro blogs, surf the Internet and make calls, recently bought a new Honor smartphone for 1,800 yuan ($286), almost a third of the price of a new iPhone 4S which costs 4,988 yuan.

However, given the sheer size of the Chinese market, just targeting the highest-end users should be enough for Apple, though it’s not always been a smooth ride.

Analysts expect Apple to stem its slide in market share in China by signing up another carrier.

China Unicom (Hong Kong) Ltd, the country’s No 2 telecoms operator, is currently the only carrier to officially sell the iPhone. It has not officially announced its iPhone sales, but analysts estimate that the company has sold around 3 million since signing a contract with Apple in 2009.

China Telecom Corp Ltd, the third and smallest operator, is expected to be next to clinch a similar deal with Apple later this year, and analysts predicted it would sell about 1.4 million iPhones this year if it can reach a deal with Apple by May, rising to between 2 and 4 million new iPhone users in 2013.
via chinacompanynews.com http://www.chinacompanynews.com/news/201202/265.shtml