Hundreds of billions of "Big Mac" new central enterprises turned out! Or listed at the end of the month
2021-09-15: [Original Article Link].
On the evening of September 14, China West Power announced that it received a notice from the controlling shareholder, China XD Group, which was studied by the State-owned Assets Supervision and Administration Commission of the State Council and submitted to the State Council for approval, it is agreed that China West Power Group and the State Grid Corporation will implement reorganization and integration, and a new company will be established by the State-owned Assets Supervision and Administration Commission of the State Council to perform the duties of investors on behalf of the State Council.
In addition, the shares of Jiangsu Nanrui Hengchi Electric Equipment Co., Ltd., Jiangsu Nanrui Taishida Electric Co., Ltd., and Chongqing Nanrui Borui Transformer Co., Ltd. held by the State Grid Electric Power Research Institute Co., Ltd., which belong to the new company. These three companies are owned by the National Grid Group, a subsidiary of the State Grid, and are a primary equipment production company.
After the reorganization and integration, the company's controlling shareholders and actual controllers have not changed. Financial data show that China Xidian Group, XJ Group, Pinggao Group, Shandong Electrical Group, the difference between the amount of assets and the close to 120 billion yuan. This means that after the successful reorganization, in the field of power transmission and distribution equipment manufacturing, there may be a 100 billion-level new central enterprise.
At the same time, on the evening of September 14, Xu Ji Electric and Pinggao Electric also announced that their controlling shareholders Xu Ji Group, Pinggao Group and China Xidang Group have implemented reorganization and integration, which has been approved by the State Council. As 14th closing, XJ Electric closed at 19.45 yuan/share, market capitalization 19.6 billion yuan; Pinggao Electric closed at 7.7 yuan/share, market capitalization 10.4 billion yuan.
Public information shows that China XD Group, which participates in the strategic reorganization, is the only central enterprise in China with a complete power transmission and distribution industry as its main business. It was established in July 1959. At present, China West Power Group has become the R & D, manufacturing, experimental testing and service base for medium voltage, high voltage, ultra high voltage, UHV, UHV AC/DC power transmission and distribution equipment and other electrical products in China.
Xu Ji Group, Pinggao Group and Shandong Electric Power Group are all directly affiliated industrial companies in the State Grid manufacturing business sector. Among them, Xu Ji Group focuses on power, automation and intelligent manufacturing, mainly involving five major businesses: UHV transmission, smart grid, new energy power generation, electric vehicle charging and swapping, rail transit and industrial intelligence. Its main products include Transformers, GIS, Transformers, smart grid solutions, etc. It is a leading enterprise in the field of HVDC transmission and secondary equipment.
The business scope of Pinggao Group covers power transmission and distribution equipment research and development, design, manufacturing, sales, testing, related equipment complete sets, services and engineering contracting, and actively develops operation and maintenance, GIL, power energy storage, new businesses such as integrated energy.
Industry insiders believe that the reform of the separation of power main and auxiliary power is an important link in the reform of the national power system and the reform of the entire state-owned assets management. The business reorganization of Xu Ji Group and Pinggao Group is the beginning of competitive businesses such as the stripping of equipment manufacturing by the State Grid, and it is also an important progress in the separation of the main and auxiliary parts of the power system reform.
On July 16, at a press conference on the economic operation of central enterprises held by the State Information Office in the first half of the year, Peng Huagang, secretary-general of the State-owned Assets Supervision and Supervision Commission, said that the reorganization and integration of Central Enterprises in steel, transmission and distribution equipment manufacturing and other industries will be steadily promoted, and actively cultivate the formation of new central enterprise groups in the relevant fields.
In mid-August, the enlarged meeting held by the Party Committee of the State-owned Assets Supervision and Administration Commission once again emphasized to actively promote the optimization and structural adjustment of state-owned capital, and focus on strategic emerging industries to set up new central enterprise groups in a timely manner.
Note: This is auto-translated version of an article meant for Chinese audience. A mature and nuanced reading is suggested.