China's surge in profitability is expected to win the Morgan Stanley Gambling Bureau

According to a financial report released recently by China Mobile, which owns the ownership and operating rights of the Kappa brand in the Mainland and Macau, the company’s 2007 sales increased by 99.2% year-on-year, and its net profit increased by 139.4% to 734 million yuan.

The well-known investment bank Morgan Stanley made a fortune in China: Before the listing, Morgan Stanley had invested 38 million US dollars in the company, accounting for 20% of the share capital. After China's move to the stock market after dilution, Morgan Stanley’s 29.1 million shares sold still accounted for 11.29% of its total share capital of 56.7715 billion shares. Following the high return on the listing, China’s move to this dividend will be Morgan Stanley’s. Once again bring 7 million yuan of income.

China Mobile’s “gambling agreement” with Morgan Stanley also received much attention from the market: China’s profitability target for 2008 was US$49.7 million. If this goal is not achieved, the major shareholder will transfer a not more than 20% of the issued share capital to Morgan Stanley at a nominal price of US$1; if it is 15% lower than the target, the transfer will be 17.6 as of June 29. % of the equity to Morgan Stanley; conversely, the group's profit during the period exceeded 55.9 million U.S. dollars, and the company will transfer 1% of the issued share capital to the other party. According to the 2007 China Financial Report, if there is no major change in the macro environment and internal operations, it is expected to win the "gambling game" with Morgan Stanley.