In the second half of the year, the State-owned Assets Supervision and Administration Commission will vigorously advance restructuring in areas such as modern logistics and strategic resources.
Release date:
2021-09-24
Author:
Jinhua Logistics
On August 26, the State-owned Assets Supervision and Administration Commission (SASAC) held a media briefing on the restructuring and reorganization of central enterprises on August 25. The meeting outlined that, in the second half of the year, vigorous efforts will be made to advance restructuring in the power transmission and distribution equipment sector, modern logistics, strategic resources, grain storage and processing, and offshore engineering equipment. In addition, divesting “two non‑core” businesses—non‑core operations and non‑advantageous lines of business—and disposing of “two types of assets”—ineffective and inefficient assets—are also key levers for the structural adjustment of central enterprises.
Weng Jieming, Deputy Director of the State-owned Assets Supervision and Administration Commission of the State Council, stated that strategic restructuring at the group level among central enterprises has entered a new phase of accelerated progress, with a series of large-scale, far-reaching restructuring projects completed to date, involving a total of six pairs—12 central enterprises. Notably, the merger between China Shipbuilding Group and China Shipbuilding Industry Corporation has consolidated the industry’s leading resources; following the reorganization, the newly formed group ranks first worldwide in total assets, operating revenue, and net profit among shipbuilding conglomerates.
Mergers and acquisitions are an effective means for enterprises to achieve rapid growth. Since the 19th National Congress of the Communist Party of China, the State-owned Assets Supervision and Administration Commission of the State Council has guided central enterprises to pursue M&A activities focused on supporting epidemic prevention and control, deepening cooperation between central and local governments, and ensuring the stability of industrial and supply chains, thereby effectively promoting industrial transformation and upgrading as well as high-quality enterprise development.
Among these initiatives, China COSCO Shipping has proactively established a global hub network by acquiring projects such as the Chancay Terminal in Peru, strengthening its control over core resources along the industrial chain, and fostering connectivity and economic and trade exchanges between China and Latin America. At the same time, by integrating logistics enterprises in Liaoning and other regions, it is actively building comprehensive end-to-end logistics and supply-chain capabilities across multiple dimensions—nodes, routes, and networks—ensuring the smooth circulation of international and domestic trade logistics “lifelines.”
In addition, through the implementation of two targeted initiatives—divesting from “non‑core” businesses and exiting “non‑productive” assets—the State-owned Assets Supervision and Administration Commission of the State Council has ensured that state capital both enters and exits, effectively concentrating superior resources, substantially alleviating enterprises’ burdens, and fostering their sustainable development.
According to Wang Jeming, since the launch of the “two non‑core” divestiture initiative last September, as of the first half of this year, 51 central enterprises have divested 252 non‑core business units through methods such as absorption and merger, bankruptcy reorganization, and external transfer, involving total assets amounting to RMB 49.57 billion.
Weng Jieming stated that, in the next phase, efforts will focus on five key areas—supporting national strategic priorities, aligning state‑owned capital allocation with industrial development needs, standardizing investment and M&A activities, strengthening core businesses, and maximizing synergy—to further advance structural adjustments and restructuring among central enterprises.
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