China Industry: Apr. 13

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Apr. 13 – This is a regular series of relevant industry news from around China.

Solar power
Solar power technology supplier Canadian Solar has nabbed an order to supply 80,000 solar panels of 1.6 MW in total for rural households in China’s Sichuan province.

The micro systems have enough capacity to power several lighting fixtures and minor home appliances and will be the first electrical power source for many families in the area, said Shawn Qu, chief executive of Canadian Solar.

German Q-Cells SE and China-based LDK Solar have established a joint venture, which will focus on large photovoltaic systems and market development in Europe and China. The first 40MW project has been already initiated. Projects of the joint venture will utilize 100 percent solar wafers from LDK Solar and 100 percent solar cells from Q-Cells.

Air transport
China Southern Airlines’ passenger transport volume rose by 3.3 percent  in February 2009 compared to the same period last year. Air China and China Eastern Airlines also experienced a rise in passenger volume – by 6.2 percent  and 3 percent, respectively. Despite the growth in domestic transport volume, all three airlines registered 20 percent less passengers on international routes.

China Southern Airlines Limited has introduced an online seat booking service. After reserving a seat, passengers will be notified by the company via SMS. Separately, Chongqing Airlines, in cooperation with China Southern, has started an online luggage inquiry system allowing passengers to check the status of their luggage in real time. The service is offered by the two companies in 25 Chinese cities.

China Eastern Airlines has decided to suspend its service from Shanghai to London due to falling demand. The route was initiated five years ago and was operated three times a week.

China Southern Airlines Limited has entered into a strategic cooperation agreement with China Construction Bank (CCB), under which CCB will loan the airline RMB20 billion or an estimated US$2.9 billion.

China National Aviation Fuel Holding lowered its quarterly jet fuel prices to domestic air carriers by approximately 12 percent to RMB3,530 per ton. The company’s sales for the first quarter of 2009 also rose 13 percent compared to the same period last year.

Henry Fan has stepped down as deputy chairman of Cathay Pacific Airways Limited following his resignation as managing director of Citic Pacific, which holds a 17.5 percent stake in the airline.

Wind power
For the last quarter of 2008, A-Power Energy Generation Systems Ltd’s revenues reached US$81.4 million, 93.5 percent more than a year earlier. Net income rose by 197.8 percent to US$10 million. Gross profit rose 207.5 percent to US$14.5 million. For the full year 2008, the company’s revenues increased 73.6 percent on the year to US$264.9 million. Gross profit increased 79.4 percent to US$36.9 million. Net income rose 87.4 percent to US$28.5 million.

This industry report brief is courtesy of Aii Data Processing.