Daily Archives: October 27, 2016

Chinese TV Giant Hisense Showcases Its B2B Business

QINGDAO, China, Oct. 27, 2016 /PRNewswire/ — The president of Hisense Group, Mr. Liu Hongxin, unveiled the branding and visual symbol of Hisense’s B2B business on 25th October in Qingdao. From January to September 2016, Hisense B2B companies’ sales revenue is already 27% of Hisense Group’s total and the profit share is 38%. Hisense is enjoying a more balanced industrial structure between its traditional B2C business and new B2B business. As a result, Hisense Group achieved 78.5 billion RMB in sales income as of the end of September, increasing 6.53%, and profit reached 5.36 billion RMB, increasing 53.31%.

Photo – http://photos.prnewswire.com/prnh/20161027/433216

An official partner of UEFA EURO 2016, Hisense is UEFA’s first Chinese sponsor in 56 years, and through this sponsorship the world has been introduced to Hisense as China’s No.1 TV brand. Hisense TV’s market share has been No.1 in China for 13 years in a row. What’s more, Hisense TV was tops in unit share both in South Africa and Australia this year. The B2C business of Hisense covers TV, refrigerator and air conditioner, and more.

However, Hisense’s great achievements in its B2B business is not as well-known as its B2C business. Hisense’s optical communication business is already No.1 in China and its optical receiver module has been holding the top position in the world for 5 consecutive years. Hisense’s intelligent transportation system also has been China’s No.1 in terms of market share for 7 consecutive years. From 2012 to 2015, Hisense won 42% of the domestic intelligent transportation projects that were worth over 100 million RMB each. While developing its own computerized surgery assistance system and smart operation display system, Hisense’s technology in surgery guiding systems has reached a globally-advanced in just 3 years’ time. After 14 years of development, Hisense’s market share in the commercial air conditioner space is already No.2 in China, with the help of its world-leading VRF technology.

The rising of Hisense’s B2B business indicates that the company is no longer a pure CE and home appliances company, but also a high technology company.

Going forward, Hisense will use its technology to link all communities through communication products and smart home products and eventually provide services to entire cities.

Hisense’s B2B business will also seek to develop overseas markets together with Hisense’s existing global TV, fridge and air conditioner businesses.

The Secret Recipe for Powdered Alcohol to be Sold at Auction

SCOTTSDALE, Ariz., Oct. 26, 2016 (GLOBE NEWSWIRE) — Mark Phillips, the creator of Palcohol – powdered alcohol, has decided to auction off the secret formula and manufacturing process for Palcohol to the highest bidder in each of 130 counties. Phillips says, “We believe that Palcohol’s potential can be best realized by a person / company in the country who is familiar with the liquor laws and distribution systems.”

A photo accompanying this announcement is available at www.Palcohol.com.

Palcohol was approved for sale in the United States in March, 2015. The worldwide demand for Palcohol has been tremendous yet Phillips found navigating the liquor laws in each country to be a daunting task. With no other powdered alcohol currently being sold in the world, the auction winners will have a great opportunity to secure the market in their country.

Palcohol enables someone to just add water or a mixer to the powder and have an instant cocktail. While five versions of Palcohol were approved in the United States…Vodka, Rum, Cosmopolitan, Lemon Drop and Powderita (Margarita), with the secret formula, the winning bidder in each country can choose those versions or make up their own. The alcohol content can also be adjusted.

Palcohol has many applications. Because Palcohol is so light, airlines can reduce the weight on an airplane by serving powdered vs. liquid alcohol and save millions on fuel costs. The lightness is a boon for travelers, outdoor recreation enthusiasts and for medical personnel who can use it as antiseptic when they have to carry medicine into a disaster zone. Other possible uses include as fuel, whether in vehicles or in a soldier’s stove in his backpack. There are applications in pharmaceuticals, manufacturing, food production, etc. The applications seem to be endless.

The auction begins January 1, 2017. Potential bidders must register with Lipsmark, the parent company of Palcohol, to show proof of funds. However, there is a Buy Now price for each country that enables someone to buy the rights for a country before the auction begins. Once the auction is over, the secret formula will be sent to all the winning bidders at the same time.

Contact: Lynne Barbour 
Email: info@palcohol.com
Website: www.Palcohol.com

Exporters Encouraged to Utilise More of AGOA Tariff Lines

South African exporters have been encouraged to utilise more of the tariff lines negotiated under the Africa Growth Opportunity Act (AGOA). This came through at the two-day Team Export South Africa (TESA) workshop which took place in Midrand in the past two days.

According to the Director of Americas Bilateral Trade Relations in the International Trade and Economic Development Division (ITED) of the Department of Trade and Industry (the dti) Mr Malose Letsoalo, South Africa is only utilising 141 tariff lines out of the 1835 that are there under AGOA. He added that with regards to the 3 400 non-reciprocal arrangements, South Africa was only utilising 459.

We have experienced a lot of change and diversification in terms of our exports to the United States of America market from just exporting mainly commodities between 1994 and 2000, to more value-added products since 2001 to date, said Letsoalo.

He highlighted that the value-added products included among others nuts, automotives, chemicals and wines, and said more of the opportunities exited in the sectors of agricultural products, automotive components and capital equipment among others.

TESA needs to take advantage of trade opportunities provided by trade agreements like the SADC protocol, The European Free Trade Agreement and the Economic Partnership Agreements with other countries. This will assist us to deal with the triple challenges of poverty, unemployment and inequality, said Letsoalo.

The Chief Director for the Incentive Development and Administration Division of the dti Mr Hawie Viljoen said the department was committed to assist exporters even under the tight budgetary constraints. According to Viljoen the department had introduced more stringent criteria in terms of providing funding for exporters into the international market.

Some of the criteria that we had to introduce included improvement in terms of strengthening post-event export benefit tracking to ensure that the companies we fund are able to increase exports, to ensure high impact and value for money, said Viljoen.

He highlighted that the importance of exporters making use of opportunities available for export but ensuring that there is value for money in terms of what government puts in.

Ms Jill Atwood-Palm from the South African Fruits and Vegetable Canners Association said she appreciated the interaction by government, agencies and export councils and highlighted the importance of continuous engagement, as sharing of resources will ensure that the common goal of increasing exports is achieved.

Export councils as well as provincial departments participating in the workshop expressed the need for collaboration, communication and increasing the partnership between the dti and the exporters. The workshop also resolved that Trade Invest South Africa (TISA) within the dti leads the process of developing an action plan derived out of the Integrated National Export Strategy to ensure that the objectives are realised.

Source: The Department of Trade and Industry

RATINGS DOWNGRADE REMAINS A GREAT RISK FOR SOUTH AFRICA, SAYS GORDHAN

A further loss of confidence and a ratings downgrade remain to be great risks facing the South African economy, says Finance Minister Pravin Gordhan.

While a lot has been done to confront these challenges, greater collaboration between the government, business, labour and civil society is required, he said when delivering his Medium Term Budget Policy Statement (MTBPS) in Parliament here Wednesday.

Decisive action was needed to restore confidence and inspire private sector investments to boost economic growth, he said.

In the next few weeks, the international ratings agencies will review South Africa’s credit rating and coming under the microscope will be the country’s institutions, public finances and debt levels.

The economy is weaker than previously estimated, while confidence in the economy is low, which has led to subdued private investment and this translates to higher unemployment and falling tax revenue.

It has also frustrated government efforts to reduce borrowing, and ultimately keeping the budget deficit in check.

Gordhan said the budget deficit stood at 3.4 per cent of gross domestic product (GDP) for the 2016-2017 fiscal year and a collaborative effort among all stakeholders was critical to help avert a ratings downgrade.

“We must look frankly at ourselves, and ask what is working for us and what is not, and what needs to change. It is not just that our economic outlook is distressed, and there is the possibility of downgrades in credit ratings and the rising cost of debt,” he added.

“It is not just the most severe drought in decades, and rising food prices. It is not just the unsettling effect of legal matters and court challenges. These are considerable challenges, Honourable Speaker, but we can address them, rationally, deliberately, and through the appropriate procedures.”

This year’s Medium Term Budget Policy Statement is presented under precarious conditions but it signals optimism, said Gordhan, who noted that the global economy is expected to recover which could improve demand for locally manufactured goods while the weak Rand is expected to be supportive of exports and the easing drought conditions, improved electricity supply and a rebound in commodity prices are expected to also support a recovery.

Experts say the Finance Minister may have ticked the boxes for a favourable ratings outcome but the current political environment may not help matters, as it is undermining the perceived independence and effectiveness of institutions.

The financial risk posed by State-owned enterprises (SOEs) is also be a factor. The National Treasury says interventions to support SOEs must be consistent with sustainable public finances, and their demonstration of sound business planning and good governance.

Source: Nam News Network

Finance Minister to table mini budget

Pretoria – Finance Minister Pravin Gordhan will table the Medium Term Budget Policy Statement (MTBPS) in Parliament today.

The Minister is due to present the MTBPS, which is also known as the mini budget, at 2pm.

The Minister will table his maiden mini budget since his return to the finance portfolio last December.

At its second last meeting of the year in September, the Reserve Bank’s Monetary Policy Committee (MPC) said that while the bank has revised the country’s growth forecast up from 0% to 0.4% for 2016 following stronger-than-expected economic data for the second quarter, the domestic economy remains weak.

The eyes of the nation will be on Minster Gordhan, as he is expected to announce how National Treasury will fund the university fees shortfall.

Higher Education and Training Minster Blade Nzimande last month announced that fees for students, who qualify for funding under the National Student Financial Aid Scheme, and the missing middle, would not increase in 2017.

Minister Nzimande announced that universities will individually decide on fee increases for the 2017 academic year. However, the recommendation is that fee increases should not go above 8%.

In a statement last month, National Treasury said it has been exploring different mechanisms of finding the money to pay for the subsidy.

The MTBPS comes ahead of Standard and Poor’s credit rating review in December.

Rating agencies Fitch and Standard & Poor’s both have South Africa’s credit outlook at BBB- with a negative outlook, one notch above junk status.

In May, Moody’s held South Africa’s credit rating at Baa2 � two notches above junk, while keeping the outlook negative.

Minister Gordhan is expected to announce National Treasury’s views on growth prospects.

On Thursday, the Minister will brief the Standing Committees on Appropriations and Finance and Select Committees on Appropriations and Finance on the 2016 MTBPS in Parliament.

Source: South African Government News Agency