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BLGW.95 +.05 on it's news this morning!
Watch MILL 5.60 + JADA .78 for more momo today!!
BLGW.90 close w/news:
Bloggerwave Global Advertising Campaigns Now Surpass 30,000 and Growing
Press Release Source: Bloggerwave Inc. On Tuesday March 30, 2010, 8:30 am
MOUNTAIN VIEW, CA--(Marketwire - 03/30/10) - Bloggerwave Inc. ("Bloggerwave") (OTC.BB:BLGW - News), an innovative commercial blogging company, announced today that it has now run more than 3,000 advertising campaigns for clients around the globe.
"Our international network of more than 30,000 independent bloggers has run more than 3,000 click, banner, video, music and sponsored reviews for a wide range of clients over the past three years, and the business continues to grow rapidly," noted Bloggerwave Director Ulrik Thomsen. "By connecting thousands of pre-approved bloggers around the globe with commercial clients that are looking to rapidly expand their internet exposure, we significantly boost recognition of their companies and brands among targeted audiences. Not only corporations but other internet marketers have learned to rely on the quality of our services."
Recently Bloggerwave was contracted by Buzzanova, a viral marketing company in Denmark, to help launch an advertising campaign for Maltesers Chocolate Balls designed for the teen market. "We used Bloggerwave to jump-start the campaign and quickly draw thousands of viewers to the client's new viral movies and webpage," said Karim Stoumann, managing director and founder of Buzzanova, an affiliate of Buzzamedia, a leading viral marketing platform in Scandinavia. "Bloggerwave not only enabled Maltesers to rapidly achieve our goal of a minimum of 1,000 views per day. It also gave the client higher page ranking and allowed us to follow all the SEO (search engine optimization) effects with graphs and stats, providing the client with advanced measurements and analysis of viewer behaviours and the effect of various interactive marketing channels and strategies."
About Bloggerwave
Bloggerwave helps its corporate clients harness the power of the Internet by leveraging the power and credibility of blogs to promote products and services. It connects clients directly with thousands of pre-approved bloggers around the globe, giving the bloggers the opportunity to write about and review specific products or services and include a link to the company's website. Once a company is blogged about, it increases its Internet buzz, credibility, site hits, ranking on search engines -- and ultimately, its bottom line. Bloggerwave has shot to the top in just three years of operation, achieving status as the No. 1 company of its kind in Europe and 3rd in the U.S. market. Bloggerwave is now focusing on becoming the best among its U.S. competitors. The Company currently has offices in the United States and Europe, and a virtual presence worldwide.
Forward Looking Statements
This press release contains "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 such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements; projected events in this press release may not occur due to unforeseen circumstances, various factors, and other risks identified in a company's annual report on Form 10-K and other filings made by such company.
For more information about Bloggerwave Inc. visit http://www.bloggerwaveinc.com/ or contact Stanley Wunderlich at (800) 625-2236 ext. 7770 or info@cfsg1.com.
Contact:
CONTACTStanley WunderlichConsulting For Strategic Growth 1, Ltd. 880 Third Ave, 6th Floor New York NY 10022 Telephone: (800) 625-2236 Fax: (646) 205-7771
Yes...thanks bb on JADA!! Would love for it to break a buck before too long....a possibility anyway...tuna
Nice close on JADA .788 +.078 near HOD on big volume!! APT surely kicked me in the rear though...took a big loss on it's bad news today...hope your day was a good one bb! tuna
Will take a look...congrats NewMoney and thanks for the mention! tuna
Yes wick 6.60 close on MILL +1.32 on the day!! But APT kicked me in the rear with bad news hitting and I didn't see it right away...ugh!! Out of it with a big loss....tuna
Yeah Mike! And in general Chinese stocks today are doing very well also...all the best! tuna
Yeah wick...we'll see how it goes...JADA .755 +.045 HOD!! Love this one for huge potential given TheStreet comments today on it being a possible "20 bagger"!!! tuna
Sorry mm...I don't have anything new to add...like TheStreet note on the company though as a potential 20 bagger!! tuna
Thx WANG! JADA .755 +.045 at HOD here!! tuna
HAHA!! Yeah me too wick!! Like to see CHGY catch fire again as it did in the past too...tuna
Both JADA .74 and CSGH 1.41 at or near HOD's on TheStreet article today!!
Will do...thanks! tuna
MILL up over a buck now!! tuna
It continues to roll wick!! Sweet one in MILL!! CHGY 2.84 not drawing much attention as of yet but the earnings I thought were very good! tuna
Hey bb CHGY 2.84 +.09 may do well again w/earnings out:
China Energy Corp. Reports Financial Results for Fourth Quarter and 2009 Fiscal Year
- Fourth quarter 2009 revenue up approximately 300% to $21.9 million; net income $6.6 million
- Fiscal-year 2009 revenue up 110% to $41.7 million; net income $5.1 million
- Fiscal-year 2009 cash flow from operations of $13.2 million
- Mine expansion and improvement program completed in August 2009 contributed to Q4 2009 gains and will contribute to 2010 growth
Buzz up! 0 Print..Companies:CHINA ENERGY CORPTopics:Earnings.Related Quotes
Symbol Price Change
CHGY.OB 2.89 +0.14
{"s" : "chgy.ob","k" : "c10,l10,p20,t10","o" : "","j" : ""} Press Release Source: China Energy Corporation On Monday March 29, 2010, 7:00 am EDT
HOHHOT CITY, Inner Mongolia, China, March 29 /PRNewswire-Asia-FirstCall/ -- China Energy Corporation (OTC Bulletin Board:CHGY.ob - News), ("China Energy" or "the Company"), a leading Inner Mongolia producer and processor of raw coal for domestic heating, electrical generation, and coking purposes for steel production in the People's Republic of China, announced financial results for the fourth quarter and fiscal year 2009.
Fourth quarter revenues totaled $21.9 million, an increase of approximately 300% over revenues of $5.5 million in the same period in fiscal year 2008. The increase was due primarily to a $10 million expansion and improvement program at the LaiYeGou coal mine in Inner Mongolia, PRC. The program was completed in August 2009 and included the installation of more efficient "longwall" mining equipment, which increases the amount of recoverable coal from 40% previously to as much as 80% and significantly increases the utilization efficiency of the Company's coal reserves. China Energy produced approximately 295,000 metric tons of coal, compared to 136,000 metric tons in the third quarter of fiscal year 2009. Average pricing was $39 per ton during the fourth quarter of fiscal 2009. Today China Energy has the capacity to produce up to 800,000 metric tons annually, which is more than 2008 and 2009 combined. Net income for the fourth quarter of fiscal year 2009 was $6.6 million, or $0.15 per diluted share, compared to $4.2 million, or $0.09 per diluted share, in the fourth quarter of fiscal year 2008.
Fiscal Year 2009 Financial Results
For the year ended November 30, 2009, the Company reported revenue of $41.7 million, an increase of 110% over revenue of $19.9 million generated in 2008. For the fiscal year, sales from the Company's coal group increased 148% to $32 million, or 77% of total sales, compared to $12.9 million, or 65% of total sales in fiscal year 2008. As a component of this, 36% of total company sales came from coal trading, and 41% came from coal production during fiscal year 2009. Average sales price of coal during fiscal year 2009 was $37 per ton, compared to $33 per ton in fiscal year 2008.
Sales of the heat power group totaled $9.7 million, or $23% of total sales, in fiscal year 2009, compared to $7.0 million, or 35% of total sales in fiscal year 2008. The higher level of sales from the heat power group was attributed to an increase of over 50% in the coverage area of the Company's heat power operations, and a 31% increase in volume of electricity sold by its electric power operations.
"China Energy is well positioned to benefit from the growing demand and increasing price for coal used in heating, power generation and manufacturing, as a result of the rapid growth in the Chinese economy," stated WenXiang Ding, chief executive officer and president. "With our expanded production capacity at our LaiYeGou coal mine, coupled with our stable and growing thermoelectric heating and coal brokerage businesses, we expect to generate significant top and bottom line growth for 2010. We will consider acquisition opportunities to expand our production and distribution capabilities, and are well positioned to leverage our seasoned management team if industry consolidation commences in Inner Mongolia."
Cost of goods sold for fiscal year 2009 was approximately $29.4 million, compared to approximately $14.0 million for fiscal year 2008. Gross profit was $12.3 million and gross margins were 29.5% in 2009, compared to $5.9 million in gross profit and gross margins of 29.6% during 2008.
Operating expenses for fiscal year 2009 were approximately $5.5 million, or 13.2% of revenue, compared to $2.7 million, or 13.6% of revenue in 2008. Selling and marketing expenses in fiscal year 2009 were $2.2 million compared to $0.4 million in 2008, and general and administration expenses totaled $3.3 million and $2.3 million in the respective periods. The increase in selling and marketing expenses in fiscal year 2009 was attributable in large part to the inclusion of $1.4 million in transportation and storage expenses incurred in the Company's proprietary coal trading business. These expenses were first incurred in fiscal year 2009 because that was the first full year of the coal trading business.
Net income for fiscal year 2009 totaled approximately $5.1 million, or $0.11 per diluted, share, compared to approximately $4.0 million, or $0.09 per diluted share, in fiscal year 2008. Net income margins were 12.2% and 20.1% for fiscal years 2009 and 2008, respectively. Contributing to the decline in net margin was a reduction in government subsidies from $3.0 million in 2008 to $1.6 million in 2009. The amount recorded for the 2008 subsidy was artificially high due to the inclusion of a portion of the Company's 2007 subsidy in fiscal year 2008.
Balance Sheet and Cash Flow
Cash and cash equivalents and restricted cash totaled $5.2 million on November 30, 2009 compared to $0.6 million on November 30, 2008. The Company had total stockholders' equity of $33.2 million, with total assets of $86.6 million versus total liabilities of $53.4 million on November 30, 2009. For fiscal year 2009, the Company generated $13.2 million in cash from operations versus $4.4 million in fiscal year 2008.
About China Energy Corporation
China Energy Corporation produces and processes raw coal for domestic heating, electrical generation and coking purposes for steel production primarily in the People's Republic of China, and acts as a brokerage in facilitating coal trade transactions. The Company produces coal through its subsidiary Inner Mongolia Tehong Coal Group Co, Ltd. ("Coal Group") and supplies heating and electricity requirements throughout the XueJiaWan district through its subsidiary Inner Mongolia Zhunger Heat Power Co., Ltd. ("Heat Power"). Through Heat Power, China Energy operates a thermoelectric plant and 21 heat transfer stations located in XueJiaWan, Ordos City, and is the sole company in that area granted the right by the local government to provide heating supply to its end-users. For additional information on China Energy Corporation see http://www.ceccec.com/ .
Cautionary Statement Regarding Forward-Looking Information
This press release may contain certain "forward-looking statements" relating to the business of China Energy Corporation, and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding: the impact of the proceeds from the private placement on the Company's short term business and operations,; the general ability of the Company to achieve its commercial objectives, including the ability of the Company to sustain growth; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov)
Contacts: Company: Alex (Yuan) Gong, Chief Financial Officer Tel: +86 10 52036900 Email: alexgong08@gmail.com Investor Relations: HC International, Inc. Ted Haberfield, Executive VP Tel: +1-760-755-2716 Email: thaberfield@hcinternational.net
Just part of the report here...tuna
New HOD on Chinese CSGH 1.41 +.13 here on bullish TheStreet article this morning!!
APT 3.26 +.07 near HOD also...had a strong earnings report a couple of weeks ago...tuna
Chinese CSGH 1.40 x 1.41 best bid/ask on the day!!
WANG...added Chinese JADA .73/.74 on bullish comments in TheStreet Top 50 Stocks To Own this morning:
"We'll leave you with a somewhat speculative but extremely rewarding company. This is a $48 million company with a current P/E of 4.2. Jade Art Group (JADA.OB) is up more than 50% just as we have written this article. Jade Art's mine can produce up to 40,000 tons of jade a year. With jade at $3,200 a ton, that makes $128 million in revenue for a full year of capacity. With profit margins hovering around 60%, we conservatively estimate net income of $60 million at full capacity. This would put the company at a P/E of less than 1!
Jade Art is a growing company. Just for it to return to a reasonable P/E of 10 would make the stock a 20 bagger."
tuna
CSGH 1.40 +.12 new HOD on bullish article by TheStreet today!!
In Chinese JADA .73/.74 on bullish comments in TheStreet Top 50 Stocks To Own this morning:
"We'll leave you with a somewhat speculative but extremely rewarding company. This is a $48 million company with a current P/E of 4.2. Jade Art Group (JADA.OB) is up more than 50% just as we have written this article. Jade Art's mine can produce up to 40,000 tons of jade a year. With jade at $3,200 a ton, that makes $128 million in revenue for a full year of capacity. With profit margins hovering around 60%, we conservatively estimate net income of $60 million at full capacity. This would put the company at a P/E of less than 1!
Jade Art is a growing company. Just for it to return to a reasonable P/E of 10 would make the stock a 20 bagger."
tuna
Added Chinese JADA .73/.74 on bullish comments in TheStreet Top 50 Stocks To Own this morning:
"We'll leave you with a somewhat speculative but extremely rewarding company. This is a $48 million company with a current P/E of 4.2. Jade Art Group (JADA.OB) is up more than 50% just as we have written this article. Jade Art's mine can produce up to 40,000 tons of jade a year. With jade at $3,200 a ton, that makes $128 million in revenue for a full year of capacity. With profit margins hovering around 60%, we conservatively estimate net income of $60 million at full capacity. This would put the company at a P/E of less than 1!
Jade Art is a growing company. Just for it to return to a reasonable P/E of 10 would make the stock a 20 bagger."
tuna
Okay wick...tuna
My Chinese CSGH 1.39 +.11 doing well as it got included in TheStreet Top 50 Stocks To Own this morning...also STV 7.16 +.06 bouncing off 7.00 LOD may be about ready to head higher after falling from above 8 bucks recently. CHGY 2.90 +.15 on strong earnings I added today along with Chinese JADA at .73 and .74 on it's inclusion in TheStreet Top 50...traded another new Chinese stock that IPO'd Friday HTHT...took a nice gain on it...hope your stocks do great today!! tuna
Chinese CSGH $1.39 +.11 new HOD on strong volume on being in top 50 stocks to own by TheStreet this morning!!
Back in CHGY $2.93 +.18 here on big earnings:
China Energy Corp. Reports Financial Results for Fourth Quarter and 2009 Fiscal Year
- Fourth quarter 2009 revenue up approximately 300% to $21.9 million; net income $6.6 million
- Fiscal-year 2009 revenue up 110% to $41.7 million; net income $5.1 million
- Fiscal-year 2009 cash flow from operations of $13.2 million
- Mine expansion and improvement program completed in August 2009 contributed to Q4 2009 gains and will contribute to 2010 growth
Buzz up! 0 Print..Companies:CHINA ENERGY CORPTopics:Earnings.Related Quotes
Symbol Price Change
CHGY.OB 2.95 +0.20
{"s" : "chgy.ob","k" : "c10,l10,p20,t10","o" : "","j" : ""} Press Release Source: China Energy Corporation On Monday March 29, 2010, 7:00 am EDT
HOHHOT CITY, Inner Mongolia, China, March 29 /PRNewswire-Asia-FirstCall/ -- China Energy Corporation (OTC Bulletin Board:CHGY.ob - News), ("China Energy" or "the Company"), a leading Inner Mongolia producer and processor of raw coal for domestic heating, electrical generation, and coking purposes for steel production in the People's Republic of China, announced financial results for the fourth quarter and fiscal year 2009.
Fourth quarter revenues totaled $21.9 million, an increase of approximately 300% over revenues of $5.5 million in the same period in fiscal year 2008. The increase was due primarily to a $10 million expansion and improvement program at the LaiYeGou coal mine in Inner Mongolia, PRC. The program was completed in August 2009 and included the installation of more efficient "longwall" mining equipment, which increases the amount of recoverable coal from 40% previously to as much as 80% and significantly increases the utilization efficiency of the Company's coal reserves. China Energy produced approximately 295,000 metric tons of coal, compared to 136,000 metric tons in the third quarter of fiscal year 2009. Average pricing was $39 per ton during the fourth quarter of fiscal 2009. Today China Energy has the capacity to produce up to 800,000 metric tons annually, which is more than 2008 and 2009 combined. Net income for the fourth quarter of fiscal year 2009 was $6.6 million, or $0.15 per diluted share, compared to $4.2 million, or $0.09 per diluted share, in the fourth quarter of fiscal year 2008.
Fiscal Year 2009 Financial Results
For the year ended November 30, 2009, the Company reported revenue of $41.7 million, an increase of 110% over revenue of $19.9 million generated in 2008. For the fiscal year, sales from the Company's coal group increased 148% to $32 million, or 77% of total sales, compared to $12.9 million, or 65% of total sales in fiscal year 2008. As a component of this, 36% of total company sales came from coal trading, and 41% came from coal production during fiscal year 2009. Average sales price of coal during fiscal year 2009 was $37 per ton, compared to $33 per ton in fiscal year 2008.
Sales of the heat power group totaled $9.7 million, or $23% of total sales, in fiscal year 2009, compared to $7.0 million, or 35% of total sales in fiscal year 2008. The higher level of sales from the heat power group was attributed to an increase of over 50% in the coverage area of the Company's heat power operations, and a 31% increase in volume of electricity sold by its electric power operations.
"China Energy is well positioned to benefit from the growing demand and increasing price for coal used in heating, power generation and manufacturing, as a result of the rapid growth in the Chinese economy," stated WenXiang Ding, chief executive officer and president. "With our expanded production capacity at our LaiYeGou coal mine, coupled with our stable and growing thermoelectric heating and coal brokerage businesses, we expect to generate significant top and bottom line growth for 2010. We will consider acquisition opportunities to expand our production and distribution capabilities, and are well positioned to leverage our seasoned management team if industry consolidation commences in Inner Mongolia."
Cost of goods sold for fiscal year 2009 was approximately $29.4 million, compared to approximately $14.0 million for fiscal year 2008. Gross profit was $12.3 million and gross margins were 29.5% in 2009, compared to $5.9 million in gross profit and gross margins of 29.6% during 2008.
Operating expenses for fiscal year 2009 were approximately $5.5 million, or 13.2% of revenue, compared to $2.7 million, or 13.6% of revenue in 2008. Selling and marketing expenses in fiscal year 2009 were $2.2 million compared to $0.4 million in 2008, and general and administration expenses totaled $3.3 million and $2.3 million in the respective periods. The increase in selling and marketing expenses in fiscal year 2009 was attributable in large part to the inclusion of $1.4 million in transportation and storage expenses incurred in the Company's proprietary coal trading business. These expenses were first incurred in fiscal year 2009 because that was the first full year of the coal trading business.
Net income for fiscal year 2009 totaled approximately $5.1 million, or $0.11 per diluted, share, compared to approximately $4.0 million, or $0.09 per diluted share, in fiscal year 2008. Net income margins were 12.2% and 20.1% for fiscal years 2009 and 2008, respectively. Contributing to the decline in net margin was a reduction in government subsidies from $3.0 million in 2008 to $1.6 million in 2009. The amount recorded for the 2008 subsidy was artificially high due to the inclusion of a portion of the Company's 2007 subsidy in fiscal year 2008.
Balance Sheet and Cash Flow
Cash and cash equivalents and restricted cash totaled $5.2 million on November 30, 2009 compared to $0.6 million on November 30, 2008. The Company had total stockholders' equity of $33.2 million, with total assets of $86.6 million versus total liabilities of $53.4 million on November 30, 2009. For fiscal year 2009, the Company generated $13.2 million in cash from operations versus $4.4 million in fiscal year 2008.
About China Energy Corporation
China Energy Corporation produces and processes raw coal for domestic heating, electrical generation and coking purposes for steel production primarily in the People's Republic of China, and acts as a brokerage in facilitating coal trade transactions. The Company produces coal through its subsidiary Inner Mongolia Tehong Coal Group Co, Ltd. ("Coal Group") and supplies heating and electricity requirements throughout the XueJiaWan district through its subsidiary Inner Mongolia Zhunger Heat Power Co., Ltd. ("Heat Power"). Through Heat Power, China Energy operates a thermoelectric plant and 21 heat transfer stations located in XueJiaWan, Ordos City, and is the sole company in that area granted the right by the local government to provide heating supply to its end-users. For additional information on China Energy Corporation see http://www.ceccec.com/ .
Cautionary Statement Regarding Forward-Looking Information
This press release may contain certain "forward-looking statements" relating to the business of China Energy Corporation, and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding: the impact of the proceeds from the private placement on the Company's short term business and operations,; the general ability of the Company to achieve its commercial objectives, including the ability of the Company to sustain growth; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov)
Contacts: Company: Alex (Yuan) Gong, Chief Financial Officer Tel: +86 10 52036900 Email: alexgong08@gmail.com Investor Relations: HC International, Inc. Ted Haberfield, Executive VP Tel: +1-760-755-2716 Email: thaberfield@hcinternational.net
More to the report...tuna
Chinese NEWN 7.25 +.15 HOD here!
Chinese CSGH 1.35 +.07 HOD after bullish article this morning!!!
Liking MILL wick!! 5.70 +.42 hot!! CREG warming up too again it appears...tuna
Chinese CREG 5.78 +.08 maybe it will crack $6 again this week!!
Chinese CREG 5.78 +.08 gone "green" with many of these other Chinese stocks I'm in...tuna
HTHT 14.40 +.48 up early on here...tuna
HTHT 14.40 +.48 early on...tuna
HTHT 14.20 +.28 HOD newly NASDAQ IPO Friday!!
MILL plus 4 Chinese stocks I have are up in PM so far: CHGI HTHT YTEC and CSGH...hoping CREG joins them also...tuna
MILL CSGH HTHT CHGI YTEC looking up in PM so far of those I'm in...tuna
Watch Chinese HTHT $13.94 close:
Chinese co. IPO HTHT $13.94 started Friday:
UPDATE 4-China Lodging surges in stock market debut
Fri Mar 26, 2010 4:17pm EDTStocks
China Lodging Group, Ltd
* Shares rise as much as 27 pct above IPO price
* Company rents budget hotel rooms through three chains (Adds comments from hotel guests, background, details about hotels)
By Farah Master and Clare Baldwin
SHANGHAI/NEW YORK, March 26 (Reuters) - Shares of discount Chinese hotel chain China Lodging Group Ltd (HTHT.O) rose as much as 27 percent above their initial public offering price on Friday as investors bet that rising incomes in China would increase travel.
The shares opened at $13.62 and rose as high as $15.50 in their Nasdaq debut. They closed at $13.92. The company sold 9 million American Depositary Shares at $12.25 each on Thursday, raising $110.25 million.
China Lodging Group rents budget hotel rooms in China through three chains. Its website, ir.htinns.com, sports photos of hotel rooms, including one with bunk beds.
Most of China Lodging's hotels are in big cities in the industrialized eastern part of the country, where business travelers have helped to ratchet up the market for budget hotels, analysts said.
Lily Ng, a senior vice president at Jones Lang LaSalle Hotels in Shanghai, said domestic as well as foreign travel may increase in China.
"Traveling among Chinese is also becoming more frequent as incomes increase. Another factor driving hotel demand is increasing commercial and trading activity, which is spurring the development and expansion of companies in China."
As China's hotel sector expands, analysts have expressed concern that growth could be too rapid, leaving a glut of rooms without sufficient demand.
Media inside China have reported that the Chinese government could take steps to cool the hotel sector.
When China wanted to slow growth of its real estate sector, the government said it would require some large state-owned enterprises whose core business was not in the property sector to withdraw from the business. [ID:nN21134343]
LEGAL QUESTIONS
China Lodging, sharing characteristics with other Chinese IPOs, said in its prospectus that it might not be in compliance with certain Chinese laws.
It wrote in its prospectus that it does not hold land-use rights for any of its properties, and it holds some leases without the permission of the property owners or government authorities. It also wrote that it may be afoul of labor law.
In the run up to China Lodging Group's IPO, IPOfinancial.com President David Menlow said such non-compliance issues were apparently not a major concern, given that Goldman Sachs (GS.N) and Morgan Stanley (MS.N)were proceeding with the offering.
The company's founder and executive chairman, Qi Ji, also has experience in the industry, having co-founded online travel services provider Ctrip.com (CTRP.O) and Chinese discount hotelier Home Inns & Hotels Management Inc (HMIN.O).
"OKAY HOTEL"
China Lodging runs three hotel chains in China: HanTing Express, its main chain; HanTing Seasons, its premium chain; and HanTing Hi Inn, its discount chain.
At a Seasons hotel in downtown Shanghai, for example, rooms rent for 300-400 yuan ($43.95-$58.60) a night. The hotel is less than a four minute walk from a shopping mall and subway.
Aimed at mid-level executives and business owners, a room at the Seasons features modern wooden furniture, a black leather chair and large windows.
"It is not bad. It is quite an okay hotel, better for young people. We chose it because our conference is just opposite. It is clean, good for a short trip," said Zhang Lihun, 46, who works in the export business and was in town for a three-day conference.
Another guest, 30 year-old software company employee Guan Kun, in Shanghai for two days, said the hotel was loud at night and he could hear street noise, but the location was convenient.
The hotel group aims for broad appeal, not just business people, and this is reflected on its website, which features an animated cartoon horse.
An employee of China Lodging Group explained that the horse is a nod to the chief executive, who was born in the year of the horse. "It is representative of Chinese history and symbols," the employee said. (Reporting by Farah Master in Shanghai and Clare Baldwin in New York; Additional reporting by Lee Chyen Yee and James Pomfret in Hong Kong; Editing by Toni Reinhold)
tuna
New Chinese IPO started trading Friday...HTHT $13.94 close:
Chinese co. IPO HTHT $13.94 started Friday:
UPDATE 4-China Lodging surges in stock market debut
Fri Mar 26, 2010 4:17pm EDTStocks
China Lodging Group, Ltd
* Shares rise as much as 27 pct above IPO price
* Company rents budget hotel rooms through three chains (Adds comments from hotel guests, background, details about hotels)
By Farah Master and Clare Baldwin
SHANGHAI/NEW YORK, March 26 (Reuters) - Shares of discount Chinese hotel chain China Lodging Group Ltd (HTHT.O) rose as much as 27 percent above their initial public offering price on Friday as investors bet that rising incomes in China would increase travel.
The shares opened at $13.62 and rose as high as $15.50 in their Nasdaq debut. They closed at $13.92. The company sold 9 million American Depositary Shares at $12.25 each on Thursday, raising $110.25 million.
China Lodging Group rents budget hotel rooms in China through three chains. Its website, ir.htinns.com, sports photos of hotel rooms, including one with bunk beds.
Most of China Lodging's hotels are in big cities in the industrialized eastern part of the country, where business travelers have helped to ratchet up the market for budget hotels, analysts said.
Lily Ng, a senior vice president at Jones Lang LaSalle Hotels in Shanghai, said domestic as well as foreign travel may increase in China.
"Traveling among Chinese is also becoming more frequent as incomes increase. Another factor driving hotel demand is increasing commercial and trading activity, which is spurring the development and expansion of companies in China."
As China's hotel sector expands, analysts have expressed concern that growth could be too rapid, leaving a glut of rooms without sufficient demand.
Media inside China have reported that the Chinese government could take steps to cool the hotel sector.
When China wanted to slow growth of its real estate sector, the government said it would require some large state-owned enterprises whose core business was not in the property sector to withdraw from the business. [ID:nN21134343]
LEGAL QUESTIONS
China Lodging, sharing characteristics with other Chinese IPOs, said in its prospectus that it might not be in compliance with certain Chinese laws.
It wrote in its prospectus that it does not hold land-use rights for any of its properties, and it holds some leases without the permission of the property owners or government authorities. It also wrote that it may be afoul of labor law.
In the run up to China Lodging Group's IPO, IPOfinancial.com President David Menlow said such non-compliance issues were apparently not a major concern, given that Goldman Sachs (GS.N) and Morgan Stanley (MS.N)were proceeding with the offering.
The company's founder and executive chairman, Qi Ji, also has experience in the industry, having co-founded online travel services provider Ctrip.com (CTRP.O) and Chinese discount hotelier Home Inns & Hotels Management Inc (HMIN.O).
"OKAY HOTEL"
China Lodging runs three hotel chains in China: HanTing Express, its main chain; HanTing Seasons, its premium chain; and HanTing Hi Inn, its discount chain.
At a Seasons hotel in downtown Shanghai, for example, rooms rent for 300-400 yuan ($43.95-$58.60) a night. The hotel is less than a four minute walk from a shopping mall and subway.
Aimed at mid-level executives and business owners, a room at the Seasons features modern wooden furniture, a black leather chair and large windows.
"It is not bad. It is quite an okay hotel, better for young people. We chose it because our conference is just opposite. It is clean, good for a short trip," said Zhang Lihun, 46, who works in the export business and was in town for a three-day conference.
Another guest, 30 year-old software company employee Guan Kun, in Shanghai for two days, said the hotel was loud at night and he could hear street noise, but the location was convenient.
The hotel group aims for broad appeal, not just business people, and this is reflected on its website, which features an animated cartoon horse.
An employee of China Lodging Group explained that the horse is a nod to the chief executive, who was born in the year of the horse. "It is representative of Chinese history and symbols," the employee said. (Reporting by Farah Master in Shanghai and Clare Baldwin in New York; Additional reporting by Lee Chyen Yee and James Pomfret in Hong Kong; Editing by Toni Reinhold)
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