Company

China sales boost Starbucks' Q2 results

Starbucks Corp - the dominant coffeehouse chain in China's growing coffee market - posted a 26 percent jump in profits for its second fiscal quarter ending by March 31 and raised its full-year earnings outlook, helped by strong sales growth in China and the Asia-Pacific.

Sales at stores open at least a year rose 8 percent in the region. But operating earnings remained flat and profit margin shrank as the United States-based company, whose specialty coffee drinks are popular with China's increasingly wealthy upper and middle class, has stepped up cafe openings in what has become one of its key segments.

As Starbucks faces more competition globally in the coffee market from fast food chains such as McDonald's, Burger King and Wendy's, it is trying to maintain its appeal to consumers and boost profits by expanding its line of caf products.

Entertainment

China highlights in Iron Man 3

Walt Disney Co has won approval to release Iron Man 3 in China on May 3, offering a separate version aimed at enhancing the film's appeal in the world's second-largest movie market. The movie, produced by Disney's Marvel unit and Beijing-based DMG Entertainment, opens the same day in the US. The separate version will highlight Chinese actors and include additional China footage, according to the company.

Technology

Lenovo eyes challenge to Apple

Lenovo Group, the world's second-largest personal computer manufacturer by market share, is eyeing a challenge to Apple and Samsung ahead of predicted sales growth. The Beijing-based company plans to sell 100 million Lenovo-branded computers in the 2013 financial year, which began April 1.

"Lenovo's major competitors are no longer traditional PC makers such as Hewlett-Packard Co," said Yang Yuanqing, chairman and CEO of Lenovo. "We see Apple and Samsung as our biggest competitors as the company is actively entering the smartphone and tablet market."

Investment

17th CIFIT to stress outbound investment

The 17th China International Fair for Investment and Trade will focus more on China's outbound investments, said Fang Wei, the deputy head of the Department of Outward Investment and Economic Cooperation at the Ministry of Commerce. Speaking during the event's Beijing promotional symposium on April 24, Fang said the fair - to be held in Xiamen, Fujian province, from Sept 8-11 - has become a bridge for Chinese enterprises to tap global markets, and active Chinese outbound investment is an important boost to the sluggish world economy.

Economy

China now world's biggest tourist source

China has overtaken Germany and the US to become the world's biggest source of tourists after the number of outbound trips taken by its people increased 18.4 percent last year. Outbound travel from China rose to 83.2 million trips last year, Ma Yiliang, a researcher at the Beijing-based China Tourism Academy, said April 25. The number has increased more than eightfold from 2000.

Finance

UnionPay issues its first card in US

China UnionPay, the dominant credit card company in China that has been expanding internationally, launched its first card in the US on April 29.

The prepaid travel card was jointly issued by UnionPay's subsidiary UnionPay International, which focuses on international business, and The Bancorp Bank, a local bank and subsidiary of The Bankcorp Inc.

The UnionPay travel card is designed to meet payment needs of American tourists and business visitors who frequently travel to the Asia-Pacific region, as well as provides another payment choice for local residents.

Aviation

China's CAS to buy 60 Airbus planes

China Aviation Supplies Holding Co signed a general terms agreement with Airbus on April 25 to buy 60 planes from the European aircraft manufacturer.

The order comprises 42 single-aisle A320 aircraft and 18 wide-body A330 planes.

The A320's high reliability and low operational cost has appealed to Chinese airlines, while the A330 offers a solution to airport congestion in large Chinese cities because larger planes can carry more passengers with fewer flights, said Fabrice Bregier, president and chief executive officer of Airbus.

Energy

Total, CNOOC deal awaits agreement

Total SA, along with partners Tullow Oil Plc and China National Offshore Oil Corp, have yet to reach an agreement with Uganda on a billion-dollar oilfield development in the Lake Albert Basin.

"It's not completely finalized," Yves-Louis Darricarrere, Total head of exploration and production, said in Oslo. The sticking point between the oil companies and Ugandan authorities remains the potential size of a refinery that would be developed to process crude from Uganda, he said.

China Daily-Agencies

(China Daily 05/03/2013 page14)