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• Nintendo Co. (NTDOY.PK) might reduce its earnings forecast. Annual profit will lessen for the first time in six years due to the fall of Wii console sales and stronger yen. Net income at Nintendo might lessen 11 percent to 249.3 billion yen (US$2.7 billion) this fiscal year, the first drop since the 12 months ended March 2004. The company lowered the price of Wii’s in September. Nintendo had 300 billion yen (US$3.3 billion) net income this year. Global sales of the Wii fell for the first time. Sony Corp. (SNE) sold the fewest number of PlayStation 3 machines in two years.

• Sony Corp.’s PlayStation 3 outsold Nintendo Co.’s Wii console for the first time following a US$100 price cut, helping the U.S. video-game market end six consecutive months of declining revenue. Hardware, software and accessory sales in the world’s largest video-game market increased 1 percent to US$1.28 billion last month. Sales of PS3 are more than doubled to 491,800, while those of the Wii declined 33 percent to 462,800. Microsoft Corp.’s (MSFT) Xbox 360 sales gained 1.6 percent to 352,600. Sony’s reduction of the PS3 price on August helped reverse an industry slump that had been exacerbated by the absence of new hit games. Industry revenue declined 13 percent through September. Microsoft reduced the price of the Xbox 360 Elite by US$100 to US$300 and Nintendo had 20 percent price cut for the Wii.

• LG Telecom Co. said its third-quarter net profit fell 6.7 percent from a year earlier, largely because of higher marketing costs. Net profit in the three months ended Sept. 30 fell to 92.7 billion won (US$78.6 million). Its operating profit lessened 9.7 percent. Sales climbed 5.6 percent due to the increase in the number of subscribers for its mobile Internet services. The mobile carrier’s marketing expenses in the third quarter rose 25 percent because of the fierce competition among telecom firms. South Korean telecom firms have aggressively stepped up marketing activity in the past few quarters, seeking various ways to boost profits in one of the world's most saturated and fiercely competitive markets, by developing products bundling fixed-line, mobile and Internet services.

• LG Powercom Corp. said its third-quarter net profit declined 54 percent from a year earlier on a rise in marketing fees. Net profit stood at 8.44 billion won (US$7.16 million) in the July-September period, down 54 percent from 18.34 billion won (US$15.4 million) a year earlier. Its bottom line rose 17.8 percent on quarter. The third-quarter bottom line was slightly above a market consensus of 8 billion won (US$6.7 million). Sales climbed16 percent on-year to 374.6 billion won (US$316.5 million) but operating profit sank 51 percent. The smaller-than-expected decline in Q3 earnings and the on-year rise in revenues were attributed to the increased number of subscribers to the company's broadband Internet and Internet phone services. LG Powercom registered the highest net increase of new subscribers among broadband Internet providers during the July-September period. As of end-September, it secured 2.46 million subscribers compared to 2.38 million in the previous quarter.

• LG Dacom Corp, South Korea's No. 2 fixed-line carrier, said that its third-quarter earnings rose 3.2 percent from a year earlier on strong Internet-based business. Net profit recorded at 42.4 billion won (US$36 million) in the July-September period. Its bottom line lessened 7.4 percent on-quarter. Sales increased 17.2 percent on-year to a quarterly record, with operating profit gaining 2.6 percent. The increase in Q3 earnings was attributed to the growth in Internet-based telephone and Internet-protocol television (IPTV) services, as well as its online business units. LG Dacom’s Internet-based services division saw the largest annual increase in revenues among its business segments, with sales from Internet phone services and IPTV soaring 76 percent.

• LG Telecom Ltd. said its third-quarter earnings fell less than expected from a year earlier on decreased marketing expenses. Net profit was 92.7 billion won (US$78.7 million) in the July-September period, down 6.75 percent. Its bottom line, however, rose 141.75 percent from the second quarter. The third-quarter bottom line was above a market consensus of 90.4 billion won (US$76.4 million). Sales climbed 5.64 percent on-year but operating profit dropped 9.61 percent. The smaller-than-expected decline in Q3 earnings was attributed to reduce marketing costs and handset subsidies. LG Telecom said that its third-quarter spending was down 14.1 percent from three months earlier.

• SK Telecom has signed an agreement with Bell Laboratories Inc. to jointly develop post-fourth generation (4G) communication technologies. The company said the memorandum of understanding (MOU) calls for merging communication networks with information technology. The tie-up will allow SK to develop key technologies in smart communications networks, expected to lead the next phase in mobile telecommunications. Such an arrangement can lead to greater efficiency and lower costs in services. South Korean companies have led growth in the current fourth-generation wireless technologies and have engaged in aggressive efforts to maintain their edge in the future.

• Samsung SDI Co. (SSNLF.PK) had its biggest profit in five years due to the record shipments and sales of the product and gains from its mobile-display unit. Third-quarter net income increased 48 percent to 87 billion won (US$75 million). Sales declined 9 percent. Profit from rechargeable batteries might still climb in the next two years. The company might also expand its market share until at least 2011. Bayerische Motoren Werke AG selected SB LiMotive Co. to make car batteries for its electric vehicles for eight years starting in 2013. SDI had profit of 82.9 billion won (US$7 million) on sales of 1.31 trillion won (US$1.1 billion).

• Samsung SDI posted a better-than-expected quarterly operating profit, helped by robust growth in rechargeable battery sales and narrowing losses from its plasma panel business. While the short-term profit momentum is limited due to its unprofitable plasma business and competition in lithium-ion batteries, the South Korean company is set to become a key beneficiary of future growth in electric car batteries and new organic displays for smartphones. Samsung SDI expected demand for lithium ion batteries, used in mobile phones and notebook PCs, to grow 12 percent in the fourth quarter from the third, led by seasonal strength in notebook computers. Global plasma panel demand is likely to increase 13 percent in the October-December period.

• Lotte Shopping will have to acquire Chinese supermarket operator Times Ltd. in order to expand its business in mainland China, reports qq.com citing unspecified Korean media. Lotte announced in a notice on the South Korean Stock Exchange that it will invest US$635 million in a Hong Kong subsidiary for its China business.

• Baidu Inc. (BIDU) and China Unicom (CHU) signed a strategic cooperative agreement on wireless search. Baidu will offer a full range of wireless search technologies, including WAP search and webpage search to China Unicom, and the mobile search service, which is operated by the two sides, will be available on the latter's mobile homepage. Meanwhile, the two firms will launch deep cooperation in wireless search technology, product innovation, brand promotion, and research and development of industrial standard. Since China Unicom boasts great advantages in the field of wireless communication, and Baidu has rich experiences in research and development of search products, the cooperation will bring search services of higher quality and more convenience to wireless service users.

• Sina (SINA) will receive 30 percent of the future profit generated by China Real Estate Information Corporation (CRIC), a subsidiary of Shanghai-based real estate services company E-House that is also partially owned by Sina. 30 percent of CRIC's profits will greatly exceed the profit from Sina's independent real estate service. E-House and SINA will hold 51.01 percent and 33.99 percent of CIRC's outstanding ordinary shares following the deal. Following the listing, E-House Executive Chairman of the Board Zhou Xin and Sina CEO Charles Chao will serve as CRIC's joint chairman. Sina will inject its online real estate business into its majority-owned subsidiary China Online Housing Technology Corporation and transfer its interest in the subsidiary to CRIC in exchange for a 39 percent stake in CRIC. The deal was conditional upon CRIC completing an initial public offering on a major U.S. stock exchange.

• China had seen a 3G mobile phone sales volume of more than 1 million sets as of October 2009 and its 3G mobile phone sales volume surged 150 percent year on year outpacing its 2G mobile phone sales volume. The nation totally sold 220,000 3G mobile phones in the first half of 2009, and China Mobile (CHL) and China Unicom separately captured 30 percent and 16 percent market shares, with selling their TD-SCDMA mobile phones and WCDMA mobile phones. Notably, China Telecom (CHA) took a 54 percent slice. The nation aggregately sold 2.87 million CDMA mobile phones in September, accounting for 20 percent of the Chinese 3G cellphone sales market, and the figure increased nine percentage points compared with 11 percent in December 2008, said SINO Market Research Co., Ltd.

• China Telecom Corp. achieved an about 56 percent surge in its CDMA user base during just ten months after it took over the CDMA service network from China Unicom when the CDMA user base was less than 28 million. China Telecom reached a CDMA user increase of 2.08 million, compared with 2.45 million in July; and its CDMA user base grew to 43.81 million. E surfing, its CDMA service brand, made a big progress in China. China Mobile Ltd. had bred a TD-SCDMA user base of 959,000, China Telecom an EV-DO user base of 1.3 million, and China Unicom a WCDMA user base of 350,000.

• China's Personal Handy-phone System (PHS) user base had reduced to 53.245 million by the end of September, accounting for 20.2 percent of the total fixed-line phone user base compared with 16.4 percent at the end of 2008. The number of fixed-line phone users declined 16.608 million in the first nine months. And 15.686 million of them were PHS users, with an average user loss of 1.743 million monthly.

• China TechFaith Wireless Communication Technology announced that its wholly owned gaming subsidiary 798 Entertainment will provide game content to Chinese mobile phone branding companies aigo, Doov, AMT, QiGi and Flyfot. Mobile phone customers can play built-in and other downloaded games free of charge, and will be charged for purchases of accessories for the games.

• Cheah Co Ltd, which is controlled by Cheah Cheng Hye, the co-founder of Value Partners, reduced its H-share holding in ZTE Corp. (ZTCOF.PK) to 4.98 percent from the previous 5.08 percent, sources reported. Cheah sold 289,200 shares of ZTE for HK$12.95 million (US$1.6 million) on Oct. 12. The average price of the share transaction was approximately HK$44.79 (US$5.8) apiece. ZTE's controlling shareholder Shenzhen Zhongxingxin Telecommunications Equipment Co Ltd had bought 7.65 million of its A shares as of Oct. 9, 2009, accounting for about 0.42 percent of ZTE's total share capital.

• China Mobile Ltd. had a sharp slowdown in profit growth for January-September period as competition intensified, while rival China Telecom Corp. said its net profit in the same period fell 34 percent due to higher marketing expenses. Competition is intensifying for China's major telecom operators as the government granted three third-generation mobile licenses to three nationwide full services providers in January. Since then, all of them have been striving to ramp up their new 3G services with lower tariffs and higher handset subsidies. China Mobile's earnings will continue to be pressured by falling average revenue per user and growing handset subsidies due to increasing competition from China Unicom and China Telecom. China Mobile posted a net profit of 83.94 billion yuan (US$12.31 billion) for the nine months ended Sept. 30, up 1.8 percent. Revenue rose 8.9 percent.

• China Mobile Ltd. became the world’s first phone company with more than half a billion subscribers as price cuts lured users, helping the carrier’s profit rebound from its only profit drop in a decade. Third-quarter net income rose 2.6 percent to 28.6 billion yuan (US$4.2 billion). Sales increased 9 percent. China Mobile cut call fees and raised handset subsidies to attract 15.24 million users in the quarter as Chairman Wang Jianzhou expands in lower-income rural areas to fend off mounting competition from China Telecom and China Unicom. The stock fell in Hong Kong trading as earnings missed some analysts’ estimates, underscoring the slowing subscriber growth in the world’s largest phone market.

• Chinese broker Guotai & Junan Securities released the monthly report for the telecom industry, saying that the industry's revenue keeps increasing and the mobile business sector is still the major force in driving the growth. In the first eight months of this year, China's telecom industry registered revenue was up 3.1 percent on year, and the revenue gained in August was up 6.5 percent. The mobile business sector contributed 62.6 percent share to the revenue. The revenue of fixed-line business slid 3.5 percent month on month. The growth of mobile business made up losses from fixed-line business and maintained a growing trend in general, and the broker believes that driving up by the revival of mobile business, China's telecom industry has left a space of slowing growth triggered by the international financial crisis.

• China's telecom industry generated revenues of 1.88 trillion yuan (US$275 billion) in the first nine months of 2009, up 13.4 percent year-on-year and including 76.97 billion yuan (US$11.3 billion) in September. China added 9.33 million mobile phone users to reach a total of 719.83 million in September. The number of Chinese fixed-line subscribers fell by 2.23 million in September to 323.75 million, while broadband subscribers rose by 2.1 million to total 99.33 million in September.

· Giant Interactive Group Inc.’s (GA) board chairman and CEO Shi Yuzhu will take charge of the R&D of a next-generation online game project, in which gamers will play an important role in deciding the billing of games. The project has an R&D cycle of three years and has been developed for about one year. The project will bring a revolution to the billing of online games and change the micropayment way. Giant Interactive previously spent much in getting a stake in social networking service provider 51.com. The next-generation online game project has something to do with the integration of online games and communities. Shanda Interactive Entertainment Ltd. (SNDA) and Kingsoft Corp. have readopted time billing due to the disadvantages of micropayment games.

• Focus Media Holding Ltd. (FMCN) purchased a 51 percent stake in the 12580 information service of China Mobile Ltd., but was denied by the leading mobile carrier. Focus Media will return to the wireless service field through the acquisition. 80 percent of China's spam messages came from Focus Media, forcing the digital media operator to withdraw from the mobile advertising and wireless service fields. The 12580 information service is managed by the data division of China Mobile Communications Corporation. Its supporting service is provided by Beijing Umessage Co., Ltd. Everywhere around China, mobile phone users are able to check information relating to restaurants, entertainment, tourism, weather and traffic, and to book hotel rooms and air tickets by telephoning the 12580 service hotline.

• Focus Media expects to complete restructuring of its non-core businesses, involving at least five or six subsidiaries, in the fourth quarter. Focus Media upcoming third quarter will depend on the effects of restructuring. Focus Media will have its net revenue from continued operations, including Internet, movie theater and traditional outdoor advertising channels, lessen by about 40-50 percent in the third quarter. Focus Media now has about 10,000 to 20,000 fewer advertising frames compared with last quarter due to network optimization. Focus Media plans to maintain 70-75 percent overall market share and about 80-90 percent market share in excellent media resources, or media channels like high-rent office buildings.

• JA Solar Holdings Co., Ltd. (JASO), appointed Mr. Yuwen Zhao as an independent member of its board of directors. The company’s board of directors has accepted Mr. Huaijin Yang's resignation as vice chairman and board member.

• LDK Solar (LDK) announced organizational changes to its management team. Mr. Xingxue Tong, President and Chief Operating Officer will temporarily take over all manufacturing operation functions, including polysilicon and wafer production, as a result of the resignation of Mr. Nicola Sarno, Senior Vice President of Manufacturing. Mr. Sarno will leave the Company on October 16, 2009 to pursue personal interests.

• ENN Solar Energy will have to invest 200 million yuan (US$29.3 million) to establish photovoltaic power stations in Qinghai and Gansu provinces with installed capacity of 2-5MW. ENN Solar will have to list in 2011 at the latest and has not yet chosen a location for the offering. ENN Solar will kick off a Hong Kong IPO as early as mid-2010.

• Comtec Solar Technology began offer subscriptions for an initial public offering on the Hong Kong Exchange. The company's global offering is no more than 250 million shares, including 25 million shares for the Hong Kong market priced between 2.1 yuan (US$.3) and 3.1 yuan (US$.4). Comtec had decided to reduce its issue by 17 percent.

• China Sunergy (CSUN) has appointed Siegfried Yi Chou Hsu as company Chief Financial Officer, effective immediately, the company said. Dr. Shiliang Guo concurrently resigned from his position as acting CFO, but will remain a company director. The company's previous CFO, Kenneth Luk, resigned effective March 31, 2009. Hsu most recently worked as vice president of structured finance and a chief advisor of the investment committee for China investment strategy at China Development Industry Bank in Taipei.

· Intel Corp. (INTC) will add US$75 million in its plant in Chengdu, the provincial capital of southwest China's Sichuan province, boosting the company's total investment to US$600 million. Intel will move the assembly and test plant from Shanghai to Chengdu, and finish the transfer by the end of November. The investment of Intel in Chengdu facilitated the settlement of related enterprises here as well, hence formed a comparatively complete industrial chain. Most of the enterprises the plant needs for operational procurement have settled their branches in Chengdu and west China. The plant expects to attract downstream manufacturers of computer and consumer electronics products to Chengdu as well.