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author| broken leaf holly

in 2024, major reforms in state-owned enterprises will be launched frequently.the official tone is that this year will be a "tough year to connect the past and the next", and it is obvious that big things will be done.

various recent signs indicate that central state-owned enterprises are accelerating mergers and reorganizations and making major moves:

on july 11, avic electronic testing acquired chengdu aircraft group.the scale of mergers and acquisitions reaches tens of billions;

on august 30, china eastern airlines announced the merger with 123 airlines;

on september 2, china state shipbuilding co., ltd. planned to absorb and merge china heavy industries, and north and south shipbuilding corporation merged. the two major companies with a market capitalization of over 100 billion were "merged". the scale of m&a transactions was the largest in the a-share market in the past ten years;

on the same day, china baobian electric integrated its business with china electric equipment;

on september 5, guotai junan planned to absorb and merge haitong securities, directly changing the structure of leading securities firms;

on september 8, salt lake co., ltd. and china minmetals corporation establishedchina salt lake group has a registered capital of tens of billions.another giant emerges

……

according to incomplete statistics, since 2024, nearly 20 listed companies have been involved in the reorganization and integration of central enterprises.you must know that central state-owned enterprises play an important role in china's economy. last year, their total revenue exceeded 80 trillion, contributing nearly 70% of gdp.

throughout history, the integration of central enterprises has always been the vane of history, and the divisions and integrations have reflected the will and needs of the country.an era from "dividing" to "unifying" is coming strongly.

why should the country proposebuild a valuation system with chinese characteristics,subsequently, the central government's state-owned enterprise reform policy continued to increase?

why has the acceleration of the reorganization of state-owned enterprises become a "breakthrough" for concentrating efforts on major things in the era of great changes?

under the unprecedented changes in a century, the accelerating reform of central state-owned enterprises will play a vital role.

following the "chinese divine car", the "chinese divine ship" is also coming.

china shipbuilding industry corporation and china national heavy industries & construction co., ltd., two flagship listed companies valued at over 100 billion yuan, merged into one company. this explosive news aroused great concern in the capital market.

although they are both a-share listed companies under china state shipbuilding corporation, the world's largest shipbuilding group, the two companies were originally "one south and one north" and formed a competitive relationship. their integration process can be called a condensed history of state-owned enterprise reform.

in 1982, china state shipbuilding corporation was established, referred to as cssc. in 1999, amid the tide of state-owned enterprise reform, china state shipbuilding corporation was split into two, changing from a ministerial-level state agency to two enterprises:

the china state shipbuilding industry corporation south of the yangtze river - "southern shipbuilding", owns the listed company "china shipbuilding";

the china shipbuilding industry corporation, "bei shipbuilding", north of the yangtze river, owns the listed company "china heavy industries";

in 2019, the two major groups "north and south shipbuilding" implemented a joint reorganization, and the giant china shipbuilding group was born. today, china state shipbuilding corporation is once again undergoing asset integration. china state shipbuilding plans to absorb and merge china heavy industries through a share exchange by issuing a shares to all shareholders of china heavy industries.the two "giant ships" finally merged.

the birth of the "chinese divine ship" is strikingly similar to the "chinese divine car" model. can we create a capital miracle again?

10 years ago, china south locomotive and rolling stock corporation and china north locomotive and rolling stock corporation announced that they would merge by exchanging shares for csr locomotive and rolling stock corporation to absorb cnr and become crrc co., ltd. subsequently, crrc’s share price continued to rise by the daily limit. in april 2015, after the merger was approved, the stock price skyrocketed again.in just half a year, due to the major benefits of the merger, the stock price increased nearly 10 times, from more than 4 yuan to nearly 38 yuan.

crrc is therefore known as the "chinese divine car". the 350 high-speed rail, fuxinghao, is designed and built by crrc.

from the case of crrc, we can get a glimpse of the operation and key objectives of the merger of central and state-owned enterprises.

at present, crrc's development has long gone beyond high-speed rail. the sales volume of wind turbines ranks first in the country, the number of energy storage equipment won in 2023 ranks first in the country, and the sales scale of automobile vibration reduction and lightweighting ranks third in the world... focusing on rail transit equipment, crrc is also "cross-border" expand high-speed rail technology to other fields.

making the company bigger and stronger through mergers and further concentrating its efforts on big things is the essence of crrc’s model.

as a result, many netizens also have high hopes for the "china divine ship" and have even begun to "imagine" whether more central state-owned enterprises will also merge in the future? xac, shenyang aircraft and chengdu aircraft corporation of china aviation industry corporation will combine into "china shenfei", the "three barrels of oil" of china national petroleum corporation, sinopec and cnooc will combine into "china shenyou", the five major power generation groups may combine into "china shendian", and operators synthesize "chinese magical power"...

judging from the major mergers of central and state-owned enterprises, the emergence of various great "gods" is not without opportunities.

for example, after the integration and reorganization, china salt lake group, with a registered capital of 10 billion, was nicknamed "china sacred lake" and was included under the minmetals group. its equity structure is planned to be: china minmetals holds 53.00%; qinghai provincial government the state-owned assets supervision and administration commission holds 18.73% of the shares; qinghai state-owned investment corporation holds 28.27% of the shares.

you must know that salt lake co., ltd. has considerable strategic resource advantages. it is currently the company that controls the most potassium and lithium resources in salt lake in china. in recent years, it has a potash fertilizer production capacity of 5 million tons/year, accounting for about 35% of the domestic market; it has a lithium carbonate production capacity of 40,000 tons/year, accounting for about 8% of the country.since then, the construction of a world-class salt lake industrial base is expected to accelerate significantly.

in order to become bigger and stronger, the pace of reform of central state-owned enterprises will only become faster and faster, and the "merger wave" has become a general trend.

why has the integration of state-owned and central enterprises reached a peak of mergers again? this is not unrelated to the current development stage of state-owned enterprises and the existing shortcomings.

in fact, the reform of state-owned enterprises still has a long way to go from the initial "decentralization of power and profit transfer" to the establishment of a modern enterprise system. today's state-owned enterprises are already "super giants". last year, the total operating income of state-owned enterprises was 85.7 trillion, equivalent to six guangdong's gdp.

judging from the "economic physical examination" reports of the national audit office in the past two years, there are many "problems" in central state-owned enterprises.

in 2022, 33 key central enterprisesthere is a problem of inaccurate accounting information. revenue alone was overstated by 67.173 billion yuan and understated by 19.585 billion yuan. at the same time, the phenomenon of "chaotic asset management" was prominent.this is manifested in false assets, lax management, and illegal operations. not long ago, the national audit office announced the situation for 2023. 22 key central enterprises still have problems such as inaccurate accounting information and weak management of state-owned assets.

to put it simply, this state of being “big but not strong, not efficient, and not dynamic enough” still does not meet the country’s expectations for central state-owned enterprises, nor does it adapt to the new requirements of economic development.

in addition, some industries have also fallen into "involution" vicious competition, with profit margins narrowing and development struggling.

for example, in august this year, the "people's post and telecommunications" published an article saying that basic telecommunications companies have been suffering from "involution-type" vicious competition for a long time. in order to compete for new users,many grassroots companies have engaged in vicious price wars, incited users to rebel, and slandered competitors.and other behaviors, and at the same time, the means of competition are constantly being renovated and banned repeatedly.

the continuous advancement of the reform of central state-owned enterprises is precisely to solve various problems. the sasac sets the tone:

to promote state-owned capital torelevant to national security and the lifeline of the national economyconcentrate on important industries and key areas, including public services, emergency response capabilities, and public welfare areas that are related to the national economy and people's livelihood.forward-looking strategic emerging industriesconcentrated.

mergers and reorganizations have also become a new trend in this round of reform.

more than 20 years ago, china's technical conditions in all aspects were not yet mature, and the "domestic dominance" of central state-owned enterprises was not conducive to the establishment of a modern enterprise system and market-oriented competition. therefore, many central state-owned enterprises were split up in one fell swoop.

today, the technical conditions of central state-owned enterprises have become mature, but due to problems such as dispersed resource allocation, overlapping business fields, and duplication of investment, they have fallen into the quagmire of "involution" vicious competition.

separation is for development, and merging is also for development.

before the merger and reorganization of china shipbuilding industry corporation and china heavy industry corporation, its financial reports mentioned many times——“eliminate and avoid horizontal competition between china shipbuilding industry corporation and other enterprises and institutions controlled by china state shipbuilding corporation". it can be seen that the merger of the two "100 billion giant ships" is precisely to reduce "internal friction."

the merger and reorganization of central state-owned enterprises has had a far-reaching impact.

in addition to avoiding "involution" and "internal friction", the merger and reorganization of central state-owned enterprisesthere is also a common key goal - to speed up the overseas expansion.

if you don’t go to sea, you’re out. in the current globalization, going overseas has become a must-answer question. this is both the demand for industrial upgrading and the result of capacity spillover. however, global economic uncertainty, geographical fluctuations and the complexity of the international market have caused companies to face many challenges in the process of going overseas.

at this time, the integration of central and state-owned enterprises also hopes to concentrate on winning overseas markets, rather than "fighting among brothers" within the walls.

as early as 2018, "chinese divine car" formulated a list in response to disorderly competition overseas. those who are not on the list will not be allowed to enter the market. it has repeatedly emphasized that "one crrc, one core" must be achieved in the international market. .

currently, central state-owned enterprises are entering a critical period of acceleration in overseas expansion.

according to xinhua finance, overseas investment by central enterprises will surge by 15.5% year-on-year in 2023. among the top 100 chinese multinational companies, 38 are state-owned enterprises, and the average multinational index is 13.2%, a year-on-year increase of 0.66 percentage points.

among them, the infrastructure business performed outstandingly. in the 2023 "engineering news record (enr)" "top 250 global contractors in 2023" list in the united states, 9 chinese companies entered the top 10 on the list.seven of them are state-owned enterprises, namely china construction, china railway, china railway construction, china communications construction, mcc science and industry, china power construction, and china energy construction. state-owned enterprises account for 70% of the top 10.

in china's future "sea-going army", central state-owned enterprises will obviously be the core force that "fixes the sea".

at present,after layout and optimization, china's state-owned capital has been further concentrated in important industries and key areas.

the reorganization of anshan iron and steel and benxi iron and steel group, the reorganization of sinochem group and china national chemical corporation, the reorganization of china electronics technology and china putian, and the establishment or acquisition of 8 central enterprises such as china star network and china rare earth group...at present, the operating income of central enterprises involved in important industries and key fields accounts for more than 70%.

in the next step, what key areas will the central government’s state-owned enterprise reform focus on?

there are various indications thatin the new round of state-owned enterprise reform, national security, infrastructure construction, and technological innovation are the three major sectors that deserve the most attention, and there may be continued big moves.

currently, china is frantically stockpiling supplies to prepare for a rainy day and cope with global changes: it plans to increase its food self-sufficiency rate from 65.8% to 90%, and increase its crude oil reserves from "an average of 900,000 barrels of new reserves per day" to "1 billion barrels of new reserves within this year." , the current reserves of natural gas are 15 billion cubic meters, and are expected to reach 55 billion cubic meters by 2025...

behind the game between great powers is a contest of comprehensive national strength.where the reform of central state-owned enterprises is carried out will drive the trend of huge resources and wealth, and is also a key clue to understand the national layout.