6/15/2021 Financial News: Suning’s Shares Partially Frozen, Lithium Giant To Buy Stake In Mali Lithium Mine

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1.Suning.com’s Shares Held by Zhang Jindong Partially Frozen

On June 15th, Suning.com announced that 27.68% of the company’s shares held by its founder and controlling shareholder Zhang Jindong, which accounted for 5.8% of the company’s share capital, had been frozen effective June 11th. The enforcer was Beijing No. 2 Intermediate People’s Court. Suning.com also announced that the shareholder Suning Appliance Group may reduce its holdings by no more than 4.12% of the company’s share capital in the next 6 months.

On June 10th, the Shenzhen Stock Exchange issued a regulatory letter on Suning Appliance Group. According to the announcement, Suning Appliance recently triggered the breach of contract due to its stock-pledged repurchase transactions. A total of 19.5 million shares were reduced through centralized bidding, accounting for 0.21% of the total equity of the listed company. However, it failed to announce the shareholding reduction plan 15 trading days before the first occurrence of the event.

2.Communist China’s Lithium Giant to Buy Stake in Mali Lithium Mine

On June 14th, Communist China’s lithium mining giant Ganfeng Lithium announced that its wholly-owned subsidiary Ganfeng International would take a 50% stake of a Special Purpose Vehicle (SPV) set up by Firefinch Ltd. at a price of $130 million. To help Lithium du Mali SA (LMSA), a wholly-owned subsidiary of the SPV, develop and construct the Goulamina spodumene project, Ganfeng International may help raise at least $64 million from banks or other financial institutions or opt to provide up to US$40 million in direct financial assistance. After the completion of the project, Ganfeng would acquire offtake rights to 50% of the first-phase annual production capacity of 455,000 tonnes of spodumene concentrate.

3.Price of Lithium Hexafluorophosphate More Than Tripled This Year

As the most widely used lithium salt electrolyte, lithium hexafluorophosphate is a key raw material in the production of lithium battery. The market price of lithium hexafluorophosphate was around 70,000 yuan/ton in the first half of 2020. It has been going up since August 2020. As of June 7th this year, the average domestic market price of lithium hexafluorophosphate climbed to 302,500 yuan/ton, an increase of 23.47% from the previous month and an increase of 182.71% from the beginning of the year. The industry inventory has also fallen to the lowest level in recent years. On June 8th, the price increased again, reaching 310,000 yuan/ton and having more than tripled since this January. The surging price of lithium is mainly due to the rising demand especially in downstream production of new energy vehicles.

4.WuXi AppTec’s Shareholder Secretly Sold Almost 3 Billion RMB Holdings

On June 11th, WuXi AppTec announced that the company had received a letter of apology from its shareholder Shanghai Yingyi Investment Center (hereinafter referred to as “Shanghai Yingyi”) on violating its commitment regarding shareholding reduction. From May 14th to June 8th, Shanghai Yingyi reduced its holdings of WuXi AppTec by a total of about 17.25 million shares through centralized bidding, accounting for about 0.7% of the company’s total share capital. The total value of the reduction is 2.894 billion yuan. On the same day, WuXi AppTec’s stock price suddenly plunged in late trading. In the last three minutes, about 1.9 million shares were sold, causing the stock price to plunge 2.4 yuan immediately and close down 2.52% to 146.02 yuan/share.

Shanghai Yingyi also explained in the announcement its staff did not know that the company needed to disclose its reduction plan 15 trading days in advance. It is worth noting that Taikang Insurance Group Co., Ltd. is the largest investor in Shanghai Yingyi, holding 55.64% of its shares.

5.Revenue and Profit Slumped for Huawei’s UK Business in 2020

On June 14th, Huawei announced its UK subsidiary’s revenue fell 27% to £913 million in 2020. And its pre-tax profit fell by about 25% to £36.4 million. Due to the reduction in staffing and travel costs, its technology expenditures were reduced by £26 million last year, which helped mitigate the drop in profit to some extent. The UK subsidiary paid out a dividend of £90 million to its parent company in 2020, up from £55 million the previous year. Last year, Huawei’s overall revenue increased to £97 billion, and operating profit fell to £7.8 billion.

6.Demand for Soybean Imports Likely to Remain High in June

According to the latest report released by Commerzbank, Communist China’s soybean imports in June are expected to remain high. Custom data shows its soybean imports in May were 9.61 million tons, a year-on-year increase of 2.5%. Commerzbank analyst Mikela Kuhler said that a large quantity of soybeans arrived at Chinese ports from Brazil in May and June. Brazil is currently Communist China’s most significant soybean supplier. Communist China’s soybean imports in April were low because the rain delayed the harvest and shipment of Brazilian soybeans. But as the weather clears up, many freighters carrying Brazilian soybeans are clearing customs at Chinese ports. Soybean imports in May increased 29% from the previous month.

Brazilian soybean exports continued to grow at the beginning of this month. Preliminary data released by the Brazilian Ministry of Economy show that in the first week of June (only three working days), Brazilian soybean exports reached 2.4 million tons.

7.Shanghai’s Growing High-Tech Imports

Shanghai’s foreign trade imports have grown significantly. The import value in the first four months reached 763.34 billion yuan, accounting for 62.6% of Shanghai’s total import and export value. Such an increase is mainly due to the surging demand for integrated circuit products, high-tech components, and R&D equipment by Shanghai enterprises. Data show that from January to April this year, Shanghai’s imports of high-tech products accounted for nearly 30% of its total import value.

However, Shanghai Customs has removed certain components such as high-voltage generators and ball bearings, which can be produced domestically, from the duty-free list in order to encourage enterprises to increase their independent innovation and spend limited import funds where they can be put to best use.

8.Chinese E-Commerce Platform Shein Sued for IP Violations

Founded in 2008, popular Chinese e-commerce platform Shein sells low-end but on-trend clothing online. Its data-driven clothing designs have helped it attract Gen Z customers and move to the top of app download charts. In May of this year, according to data from AppAnnie, the app made into the top download charts for shopping apps on both Apple and Google’s stores.

However, recently Shein is facing complaints from apparel brands claiming intellectual property infringements. AirWair International, the manufacturer of “Dr Martens” branded footwear, claimed that there were more than 20 counterfeit goods claiming to be “Martin boots” on the platform at a fraction of the price of the authentic “Dr Martens” boots. In a complaint filed in a California court, AirWave accused Shein and sister platform Romwe of not only selling counterfeit products but also using photos of genuine “Dr Martens” products to mislead consumers.

By【G Translators- Financial Team】
Author: Kate

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