Air China’s net profit slides 58%

    CHINA’S flagship carrier Air China Ltd. said yesterday its first-half net profit fell 58 percent, weighed down by a depreciating yuan that increased financial costs.

    Air China said net income fell to 474.4 million yuan (US$77 million), compared with 1.12 billion yuan it booked for the same period a year ago. The Beijing-based carrier said foreign exchange net losses for the first six months of the year amounted to 721 million yuan (US$117.19 million), compared with foreign exchange net earnings of 1.12 billion yuan for the same period last year.

    China Telecom profit rises 11.8%

    CHINA Telecom Ltd., one of the country’s three main State-owned carriers, said yesterday its profit rose 11.8 percent in the first half of the year as its Internet and mobile data businesses grew.

    The Beijing-based firm said it earned 11.4 billion yuan (US$1.9 billion), or 0.14 yuan per share, in the first six months of the year. Revenue rose 5.3 percent to 165.9 billion yuan. China Telecom said its total number of mobile subscribers declined by 3 percent to 180 million but mobile data usage rose 30 percent. Revenue for the company’s Internet data centers also rose 30 percent.

    AgBank net profit up 13%

    AGRICULTURAL Bank of China Ltd. (AgBank) said yesterday its first-half net profit rose 13 percent year on year thanks to growth in interest and fee income.

    Net profit for six months that ended June 30 was 104.03 billion yuan (US$16.8 billion) compared with 92.4 billion yuan, the country’s third-largest lender by assets said. Net interest income rose 16 percent to 209.44 billion yuan and net fee and commission income rose 0.5 percent to 47.85 billion yuan, the bank said.

    Sinopec unit to cooperate with Tencent

    CHINA Petroleum & Chemical Corp. (Sinopec), China’s largest oil refiner, has signed a agreement with Internet giant Tencent Holdings Ltd. to diversify its service and marketing channels.

    The partnership comes as Sinopec seeks outside investors for its marketing arm, known as Sinopec Sales Co. Sinopec Sales is a US$56 billion business that includes more than 30,000 gas stations and 23,000 convenience stores across China. Sinopec will cooperate with Tencent to explore business development, mobile payments, brand promotion and cross-marketing opportunities. The two companies will utilize Tencent’s social platforms.