INNOVATIVE International says there is little possibility of spinning off its toy manufacturing subsidiary for a separate listing. Chang Liem-hing, chairman of Innovative, says the company has considered spinning off a toy manufacturing company in which it holds a 45 per cent stake. However, due to the small size of the subsidiary, it is unlikely to seek a separate listing this year. Meanwhile, Innovative will invest $50 million in a joint-venture plant in Tianjin. Innovative and its mainland partner will hold equal stakes, and Innovative has invested $16 million. The plant will begin operation in March or April next year and production capacity will be 20 million batteries.- EXPRESS NEWS SOUTHEAST Asia Properties plans to develop a multi-purpose property in Dongguan which will have a floor area of more than 200,000 square metres when completed. The site will be developed into residential, commercial and industrial buildings. Planning for the construction of the residential and commercial sections has been finalised, but planning for the industrial section is still continuing. Construction will begin in 1994. Elsewhere, a plot of land in Shenzhen, which has been developed in co-operation with a mainland partner, has been reclaimed by the Government for public use. Southeast Asia Properties is seeking to secure another plot of land in Shenzhen as a replacement for the site.- EXPRESS NEWS MONDAY, SEPTEMBER 27 FOLLOWING the agreement to rent nine transponders from four foreign television companies earlier this month, TVB intends to rent more transponders in order to expand its market. Fung Sing-kwong, general manager of TVB, says the company is aiming at the entire Asian market, and following the renting of the Apstar 1 satellite, TVB is now looking to lease transponders on satellites which can cover more regions.- ECONOMIC JOURNAL PETER Wong, managing director of Hong Kong Ferry, says the company is in discussion with companies in a number of mainland cities regarding joint ventures. Hong Kong Ferry is seeking to become involved in the operation of car ferries and floating restaurants in China. Following the relocation of its plant to Tsing Yi at the end of the year, Hong Kong Ferry will keep most of the land at its Tai Kok Tsui plant for redevelopment.- ECONOMIC JOURNAL CHEUNG Choi-ngor, a director of South China Industry, says the company has signed agreements with a Tianjin shoe manufacturer and a Nanjing machinery manufacturer to set up joint ventures. Investment for the projects will be $100 million and $40 million, respectively. South China Industry will use the funds raised by its recent share placement to finance the ventures and at present there is no need to carry out further capital raising activities. South China Industry will also invest $300 million in industrial projects in Tianjin and Nanjing. Contracts are expected to be signed within a few months.- ECONOMIC JOURNAL LEE Keung, chairman of Le Saunda, says the company has increased sales of the products that it manufactures itself, and the cost of shoes imported from Italy has fallen. Mr Lee expects the company's profit margin to be maintained at 17 per cent this year. He says the Hong Kong retail market is relatively small and rentals and wages have continued to increase. He believes this will create difficulties for retail operators during this year.- ECONOMIC TIMES YAU Man-tak, managing director of Union Bank, says the growth of the banking industry has slowed down and the cost of capital has continued to rise, and this has reduced the attraction of involvement in bank loan syndications. Meanwhile, Mr Yau says the issue of three-year certificates of deposit by Union Bank is a response to the slow down in the growth of deposits. He points out that reduced involvement in syndicated bank loans is becoming increasingly common among local banks.- ECONOMIC TIMES NEW World Development plans to sign a contract with the Guangzhou city government next month for the construction of the second phase of the Zhujiang power plant. Following extensive negotiations, it has been decided that New World will hold a 25 per cent stake in the second phase and its investment will be $550 million to $625 million. New World Development holds a 50 per cent stake in the first phase of the development and originally hoped to secure 50 per cent of the second phase. The reduction in New World's stake is due to Guangzhou Investment's involvement in the second phase.- SING TAO HUNG Hing-chuen, a director of Lai Sun Group, says Lai Sun will receive $1.5 billion in revenues from property sales this year. Lai Sun has made a number of major acquisitions this year, including the Ritz-Carlton Hotel, and the revenues from sales will reduce pressure on the company to raise funds.- SING TAO TSE Lup-kee, managing director of Silver Eagle, says that due to the world economic recession, the company's revenues from the US market have fallen 20 per cent from last year. In contrast, the shoe market on the mainland has been expanding and Silver Eagle will make a greater effort to expand sales in China. Mr Tse expects sales in this market to rise gradually. He says the purchasing power of mainland residents has risen significantly in recent years and shoes priced between 200 and 600 yuan are now highly affordable. Boby shoes, which are manufactured by Silver Eagle, are particularly popular on the mainland and Italian shoes also sell well. Silver Eagle plans to open more outlets in Tianjin and Xian, and at present the company has 17 shops in China.- SING TAO GUANGZHOU Investment is seeking to redevelop a residential property in Guangzhou which it owns into a 10-storey office block. Guangzhou Investment is already discussing the acquisition of the completed property with a Sino-foreign joint venture.- WAH KIU YAT PO SHUN Tak Holdings has invested $933 million to modernise a site in Tianjin in co-operation with two local enterprises. The site has a total area of 578,000 square feet and will be developed into a commercial property. The development will be completed in 1996.- WAH KIU YAT PO MARTIN O'Grady, company secretary of Mandarin Oriental, says the company will spend $46 million to refurbish its two hotels in Hong Kong. He adds that despite a number of companies demolishing hotels for redevelopment into commercial properties, Mandarin Oriental has no plans to redevelop the Excelsior or the Mandarin. Meanwhile, Mandarin Oriental will invest US$200 million to build a new hotel in Kuala Lumpur.- MING PAO THE Shanghai Subway Co is discussing the possibility of developing properties along the southern section of route one of the Shanghai subway with a number of Hong Kong companies including Hutchison Whampoa, Wharf Holdings, SHKP and Henderson Land, and a letter of intent is expected to be signed in October.- ECONOMIC TIMES TSOI Siu-ho, managing director of MC Packaging, says the company plans to set up a joint venture with a Shanghai company and a foreign company. Investment for the project will be US$5 million to $10 million and the three partners will hold equal stakes. Itis expected that the deal will be finalised within six months.- SING PAO YIP Sum-yin, chairman of Same Time Holdings, says the company will concentrate on the manufacture of telecom products and low-price consumer goods. He predicts that the company's revenues in the 1993-94 financial year will reach $400 million and profits will increase from last year. Elsewhere, the company's exports to France, Germany and other EC countries have fallen, and this has directly affected profits. After-tax profits in the past fiscal year fell nine per cent from the year before.- ECONOMIC TIMES
