China Direct

Alliance Boots announces China growth for 2011-12

 

[Image courtesy of www.allianceboots.com]

CBI member Alliance Boots recently released its preliminary results for the year ended 31 March 2012, reporting revenue up 18.4% to £23 billion and underlying profit after tax up 10.2% to £693 million.

Alliance Boots continued to grow strongly in China as Guangzhou Pharmaceuticals Corporation, its joint venture in the country, made several acquisitions during the year to strengthen its position in key regional provinces. The joint venture performed well with good revenue growth, margin management, and control over costs, enabling the business to significantly improve profitability.

Commenting on Alliance Boots' preliminary results, Stefano Pessina, Executive Chairman, said, "Alliance Boots has again delivered double digit growth in trading profit while at the same time generating a strong operating cash flow to fund investment in growth and substantially reduce net borrowings. This performance, which reflects the excellent work of our teams, has been achieved through a combination of organic growth and benefits from the previous year's acquisitions, is particularly encouraging given the challenging economic environment.

"In the coming year, we expect the economic environment to remain difficult with continuing pressure on both consumer and governmental expenditure. This will generate both challenges and new opportunities for us.

"We are confident about our future prospects and ability to pursue profitable growth, both organically and through further international expansion. This will be supported by our strong operating cash flow and secure funding arrangements, which will enable us to continue to invest while at the same time reducing net borrowings. The development of new and existing partnerships will be a key component of our future growth."

Please click here to read the full results for Alliance Boots.

CBI member News International takes stake in China Bona Film Group

 

[Image courtesy of www.newscorp.com]

CBI member News Corporation recently agreed to acquire a 19.9% equity stake in Bona Film Group, one of China's leading film distributors, directly from Dong Yu, Bona's Founder, Chairman, and CEO.

Mr. Yu said, "We are thrilled to receive this strategic investment from News Corporation. As one of the leading film distributors in China, we are committed to bringing the best quality Chinese films to broad audiences around the world. News Corporation's extensive global reach, investment, and distribution will help accelerate our strategy to expand our global footprint.

"Since our IPO in 2010, we have developed our business significantly, and we believe now is the time to diversify our ownership structure by introducing select strategic investors. This is an exciting period of growth for China's film industry, and we look forward to exploring the international commercial opportunities for Chinese films with our new partner."

Dr. Jack Gao, Senior Vice President at News Corporation and CEO of News Corporation China Investments, said, "One of Bona's unique advantages is its vertically-integrated business model, which differentiates the company from other film distributors in China. China's film market is growing at a rapid pace, positioning the country to be the second-largest film market following the United States, and Bona's market leadership, compelling value proposition, and tremendous growth potential make this an attractive opportunity for News Corporation."

Please click here to read the full press release by Bona Film.

Jones Lang LaSalle announce Guangzhou city's largest retail mall transaction

 

 

[Image courtesy of www.joneslanglasalle.com]

 CBI member Jones Lang LaSalle recently facilitated Guangzhou's largest shopping mall transaction when China Overseas' Everbright Mall, for which Jones Lang LaSalle is the Sole Leasing Agent and Retail Asset Manager, was sold to Pramerica Real Estate Investors for US$318 million.

Located in Guangzhou's Haizhu District, Everbright Mall serves approximately 300,000 local residents, and is comprised of high-end retail space as well as a supermarket, a cinema, and restaurants.

Jex Ng, Managing Director of Jones Lang LaSalle Guangzhou and Shenzhen, said, "The historic deal was concluded after more than one year of negotiations. It is the largest retail mall transaction ever recorded in Guangzhou as well as the city's first investment acquisition of commercial real estate by a foreign institutional investor."

Tom Liu, Head of Investment at Jones Lang LaSalle Guangzhou, said, "This transaction reinforces the positive outlook of Guangzhou's retail sector. We believe the investment market is still in its infancy, Guangzhou will continue to attract more foreign investors into its fast-growing commercial real estate sector."

Click here to read the full press release by Jones Lang LaSalle.

UK company M&S announces good growth in China

 

 

[Image courtesy of www.marksandspencer.com]

CBI member Marks & Spencer (M&S) recently released its trading statement for the fourth quarter of 2011/12, reporting double digit growth in strategic international markets, including China and India.

Marc Bolland, Chief Executive of M&S, said, "Marks & Spencer continued to make progress in a challenging market. Group sales grew by 0.8%, and U.K. sales grew by 1.2%. Our Food business has again performed well, especially in healthy food, whilst the General Merchandise performance was more mixed.

"Direct had another strong quarter with sales up 22.8% through a number of new initiatives delivering an improved customer shopping experience.

"Strategic international markets, including India and China, delivered double digit growth, but we continue to experience macro-economic pressure and restructuring in some parts of Europe.

"We have continued to manage costs tightly, and are confident of delivering full year profits in line with expectations. While the short term trading outlook continues to be challenging, we are focused on investing in line with our plan and are making strong progress against our goal of becoming an international, multi-channel retailer."

Please click here to read the full press release by M&S.

Jaguar Land Rover announce highest ever China sales

 

[Image courtesy of www.jaguarlandrover.com]

CBI member Jaguar Land Rover (JLR) recently announced its highest-ever quarterly sales in China, with 17,997 vehicles delivered in the first three months this year, up 110% over the same period last year.

Jaguar delivered 2,098 units in the first quarter, up 156%, while Land Rover delivered 15,899 units, up 105%. The exceptional first quarter sales figures contributed to the conclusion of a successful fiscal year (April 2011—March 2012), which saw deliveries of 52,032 units, up 76% over the fiscal year of 2010/2011.

JLR will be an active participant in the upcoming Beijing Auto Show, which will feature the global debut of a new XJ model and the China debut of the Jaguar C-X16 Concept as well as the world premiere of the Range Rover Evoque Victoria Beckham Edition.

Commenting on JLR's impressive performance in the first quarter, Bob Grace, President of JLR China, said, "This year's promising start has strengthened our resolve to carry our superb sales forward by relentlessly bringing the finest brand experience possible to our Chinese customers. At the upcoming Beijing Auto Show, Jaguar Land Rover will showcase a breathtaking model line-up that further demonstrates the rich brand connotations of our unique British heritage. We will endeavour to continue bringing more smaller-engine models to this highly valuable market—to satisfy the demands of our discerning Chinese customers."

JLR remains strongly committed to sustainable development in China, focusing on new technology, environmental protection, humanitarian aid, and education. With a total China fund amounting to nearly £7.75 million, JLR's CO₂ Offset Programme has 17 out of its 50 environmental projects located in China. In support of education, JLR recently established its second "Apprentice Training Programme" in Shanghai following the successful launch of the programme in Beijing last year. In addition, JLR recently sponsored the "Sport for All Programme" in partnership with the Shanghai Rugby Football Club, which promotes the healthy growth and development of children through physical exercise. 

Please click here to read the full press release by JLR

UK Company Pinsent Masons advises Chinese sportswear group on AIM IPO

 

[Image courtesy of www.pinsentmasons.com]

CBI member Pinsent Masons recently announced that it had advised Chinese sportswear group Naibu Global International Company on its AIM IPO with a market capitalisation of £68 million and raising £6 million of new money for the expansion of the group. Naibu is the first consumer brand from China to float in London, and its AIM IPO enables the group to strengthen its manufacturing capability.

Huoyan Lin, Naibu's Executive Chairman, said, "Our successful admission to AIM represents an important platform for the Company, and the Board believes that we can build substantially from our current position with the aim of growing the business further. We are delighted to have worked with Pinsent Masons as part of our IPO team."

Sean Page, Corporate Finance Partner at Pinsent Masons, said, "We are very pleased to have advised Naibu on its IPO in London. It is an exciting and fast growing business which operates at pace, through its strong brand presence in China and its highly developed distribution network."

Please click here to read the full press release by Pinsent Masons.

CBI Member Fuji Xerox wins China green award

 

[Image courtesy of www.fujixerox.com]

CBI member Fuji Xerox recently won the "Outstanding Contribution Company to China IT Industry Green Development Award" from China Information World, an IT newspaper run by the China Electronic Information Industry Development Research Institute, as well as the China CSR Award, which was evaluated by more than 100 public organisations, media outlets, and specialists.

The Green Development Award was established in 2011, and Fuji Xerox (China) Ltd. was the only winner in the green development category, receiving recognition for its energy-saving products, recycling system for used products and cartridges, and "Print Green" campaign.

Also launched in 2011, the China CSR Award evaluated Fuji Xerox's environmental and educational initiatives in China, and Fuji Xerox was the only office equipment manufacturer among the 35 award-winning companies.

Please click here to read the full press release by Fuji Xerox.

UK Company Unilever investing in growth in Tianjin

 

[Image courtesy of www.unilever.com]

CBI member Unilever recently launched construction in China on one of its largest production operations, which will produce 100,000 metric tonnes of detergent and fabric softeners every year. Located in Tianjin in northeastern China, the new facility will be called Unilever Tianjin Industrial Park.

The first phase of the project is scheduled for completion by the end of 2012.

Alan Jope, President of Unilever North Asia, said, "Unilever plans to greatly increase its market share and multiply by five times its business in China in 10 years. Meanwhile, the birth of Unilever Tianjin Industrial Park indicates Unilever's strong confidence in the Chinese market. We believe that it will add wings to the development of Unilever China and its whole North Asia market."

In the past five years, Unilever's business in China has grown at an average annual rate of more than 18%.

Please read more here and here.

CBI Member Success Stories March 2012

 

[Image courtesy of www.cbi.org.uk]

A number of CBI members were busy raising their profile in China in March, engaging in many exciting activities across a wide range of industries.

Members covered include: 

• 3i
• ABB
• Atkins
• Bentley
• Boeing
• BNY Mellon
• BP
• Burson-Marsteller
• Clifford Chance
• Diageo
• Freshfields Bruckhaus Deringer
• Fuji Xerox
• GKN
• HSBC
• INEOS
• InterContinental Hotels Group (IHG)
• Jaguar Land Rover (JLR)
• Jones Lang LaSalle
• J.P. Morgan
• Nike
• Pearson
• Penguin
• Pinsent Masons
• Procter & Gamble
• Research in Motion (RIM)
• Shell
• Siemens
• Simmons & Simmons
• Thales
• Unilever
• University of Nottingham
• Willis

Please click here to access our latest briefing, which highlights the recent successes of 32 CBI members.

The briefing can also be accessed below:

Download CBI China, Celebrating CBI member success in China, March 2012

US Company Nike races ahead with strong 3Q China growth

 

[Image courtesy of www.nike.com]

Last week CBI member Nike released its financial results for its fiscal 2012 third quarter, reporting revenues up 15% to US$5.8 billion, up 16% excluding currency changes.

In China, Nike continues to perform strongly, with currency-neutral revenue up 21% in the third quarter, driven by 30% growth in footwear and 6% growth in apparel. Nike continues to hold the top spot for sports brands in China.

Commenting on Nike's financial results for the third quarter, Mark Parker, President and CEO of Nike, said, "We had a strong third quarter. Our relentless focus on innovation delivered powerful new products and services for athletes and consumers, and continues to drive value to our shareholders. The environment remains volatile, but I'm optimistic about the future. We're starting a great season of major sports events, and we have a pipeline full of innovation to fuel growth over the long term."

Please click here to access Nike's full financial results for its third quarter.