Focus On Energy Intensive And Financial Restructuring Of Four Major State-Owned Enterprises In Shandong

On July 13, two provincial state-owned enterprise groups related to energy and transportation in Shandong Province were born, which immediately attracted market attention.

The Shandong provincial government held a conference on the promotion of the reform of provincial enterprises and the cadres' meeting in Jinan. It announced the joint reorganization plan of Shandong energy group and Yankuang Group, Shandong Expressway Group and Qilu transportation group, and announced the leading group of enterprises after the joint reorganization.

According to the financial data of 2019, the total assets of the new Shandong energy group and the new Shandong high speed group will reach 637.9 billion yuan and 945.2 billion yuan respectively, and the operating income will reach 637.1 billion yuan and 123.7 billion yuan respectively. In terms of total assets and coal production and sales, new Shandong energy group will surpass China Coal Group and become the second largest coal enterprise in China.

"While doing a good job in restructuring, we should also do a good job in the integration of culture, system and management, so as to truly realize the scale effect and synergy effect of 1 + 1 greater than 2." Liu fushai, director of the state owned assets supervision and Administration Commission of Shandong Province, said that "Shandong Province has the effect of improving the scale of enterprises in the world."

It is worth mentioning that this is not only Shandong, but also the first major action of state-owned enterprise reform in China this year. "In the future, SOE reform will continue." Huang Xiaodan, director of S & P global rating, told 21st century economic news that "the follow-up reform of state-owned enterprises may pay more attention to the benefits after integration."

Shandong will strive to reduce the number of provincial state-owned enterprises by more than 30% in three years, and increase the asset efficiency by more than 30%. Standing cool

Horizontal restructuring to create important enterprises

According to the requirements of the reform plan, the restructured Shandong energy group will become a state-owned capital investment company in the energy industry of Shandong Province. While consolidating the development of coal, coal power and coal chemical industry, it will vigorously develop three emerging industries, namely, high-end equipment manufacturing, new energy and new materials, and modern logistics trade, so as to create a global clean energy supplier and a world-class energy enterprise.

The new Shandong Expressway Group is positioned as a state-owned capital investment company in the field of transportation in Shandong Province, vigorously develops the core business of transportation infrastructure, and creates a transportation infrastructure investment, construction and operation service provider and industry leading enterprise with prominent main business and strong core competitiveness.

According to public reports, before this year, Shandong Province has successively integrated several port groups, such as Qingdao port and Yantai port, to form Shandong Port Group; to integrate airport assets and enterprises in many places to form Shandong airport group; and to transfer China Heavy Truck Group and Shandong communications industry group to Shandong heavy industry group.

According to the plan, Shandong will strive to reduce the number of provincial state-owned enterprises by more than 30% in three years, and increase asset efficiency by more than 30%.

Due to historical reasons, state-owned enterprises have problems such as too wide industrial distribution and too many enterprise levels, which need to be integrated. Therefore, in 2016, the central government issued the guiding opinions on promoting the structural adjustment and restructuring of central enterprises, and local governments at all levels also issued similar documents.

The restructuring of state-owned enterprises in Shandong province belongs to the strategic restructuring in the field of transportation.

"There are three benefits of this reform. First, it will reduce disorderly competition and homogeneous operation in the same industry and field. Second, it will directly enlarge the scale of state-owned enterprises and concentrate resources to form a joint force." Wu Gangliang, a researcher at the China enterprise reform and Development Research Association, told the 21st century economic reporter, "finally, from the perspective of state-owned assets supervision, state-owned capital will be concentrated in important industries and key areas, and the distribution of state-owned capital will be optimized."

It is worth mentioning that the establishment of state-owned capital investment and operation company is a bright spot in this round of state-owned enterprise reform. Wu Gangliang believes that the state-owned capital investment company can perform the investor's duties to its state-owned enterprises according to the authorization, which has the nature of "small SASAC".

After the reorganization, it was no longer a state-owned company and became a specialized operation platform of the group company Wu Gangliang said.

At present, the newly established state-owned capital investment companies all focus on strategic investment, and the investment tool is to initiate the establishment of various equity investment funds. In addition, the management and control mode of the group has also changed. The implementation of "capital management" for its subsidiary enterprises will have a profound impact on the whole state-owned assets supervision mode and the state-owned enterprise governance mode.

The follow-up may focus on the financial sector

In recent years, the reform of state-owned enterprises is stepping into the deep-water area step by step.

"A few years ago, the reform of state-owned enterprises was still carried out between central enterprises and central enterprises. From these two years on, there have been cases of reorganization between central enterprises and local state-owned enterprises. The typical cases are Baowu iron and Steel Group and Maanshan Iron and Steel Group in Anhui Province." Huang Xiaodan said.

With the restructuring of state-owned enterprises, he believes that more and more small policies will be hindered in China. "However, with the increasing scale of state-owned enterprises, these restructured enterprises may encounter some resistance from local regulation when they make overseas investment in the future." He said.

In fact, the top-level design of this round of state-owned enterprise reform has been basically completed. The upcoming three-year action plan for state-owned enterprise reform will further deepen various reform measures around the formulation of a timetable and a roadmap. In addition to horizontal professional restructuring, mixed ownership reform will also be a major focus.

"We should realize that mixing is only the way, and change is the purpose. We should promote the diversification of ownership structure by means of mixing. According to the reform idea of hierarchical classification, we should remodel and improve the corporate governance mechanism, and effectively improve the innovation and global competitiveness of state-owned enterprises Xiao Xu, School of business administration, Capital University of economics and trade, told reporters.

In Shandong Province, one of the follow-up reform directions of state-owned enterprises is likely to be the financial sector.

"At present, there are 14 city commercial banks in 17 prefectures and cities of Shandong Province. These city commercial banks are small in scale, relatively dispersed in equity, need to strengthen risk prevention measures, improve risk tolerance and competitiveness. However, Shandong does not have provincial financial holding companies like Beijing, Shanghai and Chongqing." Taishan industry leader, Professor Chen Hua of Shandong University of Finance and economics told reporters. "Therefore, it is more urgent and operable to restructure a full license provincial financial holding group in the future."

In particular, in the process of uncertainty caused by the epidemic, the downward pressure on the economy has increased, and the potential non-performing assets of banks have the risk of a substantial increase. As the major shareholders of city commercial banks, the pressure of local governments to take out real gold and silver to supplement bank capital also increases, and local governments also have the inherent requirements of transferring city commercial banks.

"The current institutional barriers have been removed. In the next three to five years, it is likely that a provincial financial holding group company with core competitiveness and controllable risks will emerge." He said.

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