Will there be no more than 90 central enterprises in the future?

Many experts told reporters in Beijing News that the pace of mergers and acquisitions of state-owned enterprises, especially central enterprises, has accelerated since last year. At present, the number of Chinese enterprises under the supervision of SASASAC under the State Council is 96, which may be controlled within 90 in the future.

There are new actions in the reorganization of central enterprises.

On July 8, according to the SASASAC, with the approval of the State Council, China Poly Group Limited (hereinafter referred to as Poly Group) and China Zhongsi Group Limited (hereinafter referred to as Zhongsi Group) were restructured, and China Silk Group as a whole was transferred to Poly Group free of charge and no longer directly supervised by SASASAC. Analysts believe that Poly has always wanted to strengthen the cultural sector. There are fewer cultural sector enterprises in the central enterprises. This merger and acquisition of China Silk Group not only strengthens the strength of the Poly cultural sector, but also complements the advantages of Poly in the field of trade. As one of the pilot projects of eight state-owned capital investment companies, Poly Group has continued to promote restructuring and integration in recent years. As early as 2017, China Light Industry Group and China Technological (Group) Company were integrated into Poly Group as a whole. Many experts told Beijing News that the pace of mergers and acquisitions of state-owned enterprises, especially central enterprises, has accelerated since last year. At present, the number of Chinese enterprises under the supervision of SASASAC under the State Council is 96, which may be controlled within 90 in the future.

Zhongsi's asset-liability ratio in 2016 reached 97.51%

Poly Group's website shows that the company is a large central enterprise managed by the State Asset Management Commission of the State Council, which was established in 1992 and is a state-level qualified real estate development enterprise. Its predecessor is Poly Technology Co., Ltd., which was founded in January 1984.

China Silk Group is the only central enterprise group directly supervised by SASAC under the State Council. It was founded in 1946 and was formerly China National Silk Import and Export Corporation. According to the official website, the business scope of China Silk Group covers silk business, chemical logistics, comprehensive trade, fashion magazines, property management, etc. It is one of the oldest and largest enterprises engaged in silk import and export trade in China. The consolidated financial statements of China Silk Group in 2016 show that at the end of 2016, the total assets and liabilities of China Silk Group were 5.2 billion yuan, 5.071 billion yuan, and the owner's equity was 129 million yuan, with the asset-liability ratio as high as 97.51%. In that year, the total operating income was 9.332 billion yuan, the total profit was 50.047 million yuan, the net profit was 8.875 million yuan, the return on net assets was 5.56%, and the preservation and appreciation rate of state-owned capital was 38.91%.

From May to June 2017, the Audit Office conducted an audit of the financial revenue and expenditure of China Silk Group in 2016. The audit results showed that there were still some problems in the financial management and accounting, operation and management, implementation of the spirit of the Eight Provisions of the Central Committee, and incorruptible employment regulations of China Silk Group.

For example, in 2016, Zhongsi Hainan Company was less prepared for bad debts and more profitable than 36.274 million yuan. In the same year, the internal transaction offset errors in the consolidated financial statements of China Silk Group amounted to 16.8369 million yuan in profits. In addition, in 2016, in the absence of a formal assessment report, China Silk Group will be reimbursed for accounts receivable property at the agreed price of 1.262 billion yuan. In contrast, Poly Group operates well. According to the company's official website, in 2018, Poly's operating income exceeded 300 billion yuan and its total profit exceeded 40 billion yuan. By the end of 2018, the total assets of the group exceeded trillion yuan, ranking 312th among the world's top 500.

Sino-Silk is complementary to Poly in the fields of trade and culture

In view of this reorganization, financial commentator Buna New Analysis said that from the open data, the operation of Sino-Silk Group is not ideal. To classify Sino-Silk Group as a whole into Poly Group without compensation is a comprehensive consideration of macroeconomic situation by SASAC and the combination of Industrial Development laws. The decision made by the actual situation of the operation of the state-owned enterprises. According to Zhang Yongji, director of the Center for Corporate Governance and Information Disclosure Research of Beijing University of Technology, although the two enterprises have great differences in their original business, Poly has rich experience in international trade, the integration of M&A is not very difficult. "(Poly Group) the previous acquisition of China's light industry, China's technology, to complement its shortcomings in the field of chemical industry, logistics, processing and manufacturing. To some extent, the business content of China Silk Group is very similar to that of China Light Industry. Zhang Yongji said. After the restructuring, the sunrise industry of China Silk Group will be retained and further integrated to play a synergistic role, and the sunset industry will be stripped or even eliminated.

Zhang Yongji told reporters that the business of Poly Group mainly consists of five business sectors: international trade, culture, real estate, investment and development in the field of resources, production and marketing of civil explosives. Pauli has always wanted to strengthen the cultural sector. There are fewer cultural sector enterprises in the central enterprises. This merger and acquisition of China Silk Group not only strengthens the strength of the cultural sector of Pauli once again, but also complements the advantages of Pauli in the field of trade.

In fact, Pauli is not the first reorganization. In 2017, China Light Industry Group Co., Ltd. and China Technological (Group) Co. merged into China Poly Group Co., Ltd. as a wholly owned subsidiary. According to the analysis of Zhang Yongji, Poly Group is one of the eight pilot state-owned capital investment companies. An important task of pilot enterprises is to promote the reorganization and integration of related industries and businesses, make the state-owned capital advance and retreat, and improve the allocation efficiency of state-owned capital. Pauli's previous mergers and acquisitions of central enterprises have shown strong integration capabilities. The acquisition was expected and reasonable. According to Buna Xin, the reorganization of state-owned enterprises is to maintain and increase the value of state-owned assets, and repeated reorganization is also conducive to the enhancement of their own strength and participation in international competition.