Recombination and Acceleration of Coal Enterprises

On August 2, Guodian Yongshou Coal Industry Co., Ltd. (referred to as "Guodian Yongshou Coal Industry") was publicly listed on the Beijing Property Exchange to transfer 55% of its shares and 799 million yuan of its creditor's rights at a price of 1 yuan. The listing information shows that as of May 31, 2019, the total assets, liabilities and operating income of Yongshou Coal Industry are 607 million yuan, 887 million yuan and 0 yuan. In other words, Yongshou Coal of Guodian Power Company is now insolvent.

In fact, the above-mentioned transfer has been the second "self-help" of the enterprise. In December 2018, Yongshou Coal Industry of Guodian was listed and transferred for the first time with 799 million yuan, and no one came to the market at last.

"Coal enterprises should transfer liabilities and assets while the industry benefits are good, otherwise it is difficult to have a better opportunity." Lin Boqiang, director of China Energy Economics Research Center, Xiamen University, interprets this. Debt Coal Enterprises quickened liquidation. Enterprise Survey data show that China Yongshou Coal Industry was established in June 2008, with registered capital of 40 million yuan and two major shareholders. Among them, the controlling shareholder of Shaanxi Electric Power Co., Ltd. (Shaanxi Electric Power Co., Ltd.) accounted for 55%, and Shaanxi Zhengdao Investment Co., Ltd. accounted for 45%. The former is one of 94 subsidiaries of the State Energy Group of State-owned Enterprises directly under the SAC.

According to the listing information, because of the involvement of Cuiping Mountain Nature Reserve (city level) in Yongshou County, the 100% controlled Nianzigou Coal Mine of Yongshou Coal Industry of China has completely stopped construction and exploration activities, and the validity period of mining warrants has expired on September 18, 2017. At the same time, according to the "Notice of Mining Right Price Payment" provided by the evaluation unit by the Shaanxi Provincial Department of Land and Resources, the mining right of Nianzigou Coal Mine still remains unpaid for 40 million yuan. Nianzigou Coal Mine, which had been built for 46 years, came to an early end after 27 years of use. Milligou Coal Mine, with an annual output of 300,000 tons, has been "sold off", which is only one of the new wave of coal industry capacity loss. In the days after Yongshou Coal Industry Transfer Information was released, Guodian Guizhou Coal Industry Investment Co., Ltd. (referred to as "Guodian Guizhou Coal Industry") and Inner Mongolia Lantai Coal Industry Co., Ltd. (referred to as "Inner Mongolia Lantai Coal Industry") issued transfer information one after another.

Listing information shows that as of June 30, 2019, Shuanglong prosperous coal industry has total assets of 248 million yuan, liabilities of 584 million yuan and revenue losses of 25.557 million yuan. At the same time, according to the 51% equity and related creditor's rights transfer information issued by Lantai Coal Industry of Inner Mongolia on August 13, the total assets and liabilities of Lantai Coal Industry of Inner Mongolia were 80.435 million yuan and 56.71.89 million yuan respectively, and the operating profit was also in a loss situation as of June 30, 2019. Behind the accelerated liquidation of many zombies and indebted coal enterprises, the supply-side reform of the coal industry has entered the accelerated stage of merger and reorganization. In 2018, Shanxi Province and Henan Province respectively restructured the specialized sectors of the coal group; Liaoning Province integrated nine coal-related enterprises to form Liaoning Province's energy industry holding group; Huaibei Mining Holding Co., Ltd. restructured and renamed its landing in A-share market; Guizhou Province restructured Panjiang Coal and Electricity Group, and water and six branches of industrial and mining were integrated. Specialized restructuring events followed. At the same time, the news of cross-border integration of coal enterprises keeps coming. National Energy Group, Yanzhou Mining Group, Jincheng Coal Group and other active layout of hydrogen energy industry; Shaanxi Coal Group restructured Jiangsu Hengshen Co., Ltd. layout of carbon fibers; Shandong Energy Capital injection of 3 billion layout of health care and other frequent performances.

According to the Opinions on Further Promoting the Transformation and Upgrading of Mergers and Acquisitions of Coal Enterprises, by the end of 2020, a number of mega-coal enterprise groups with strong international competitiveness will be formed throughout the country, and a number of modern coal enterprise groups will be developed and nurtured.

"In order to get rid of the loss predicament, many coal industries have tried to restructure and restructure. It should be noted that coal enterprises are still large but not strong. At the annual press conference of China Coal Industry Association in March this year, the insiders pointed out that. It is gratifying to note that the current policy's attitude towards promoting the release of advanced coal production capacity is constantly being clarified.

According to the arrangement of SASASAC of the State Council, the coal resources integration of central enterprises will continue to be promoted in 2019, and the task of capacity integration of 20 million tons will be accomplished.

In May of this year, the State Development and Reform Commission, Ministry of Industry and Information Technology and State Energy Administration issued the "Key Points of Coal Dissolution Overcapacity Work in 2019", which also clearly pointed out that we should adhere to the principle of "big pressure, small pressure, increase advantages and decrease disadvantages, and strive to improve the quality of coal supply"; actively and steadily promote the optimization and upgrading of coal and electricity; accelerate the clearance of "zombie enterprises" in key areas, etc. Target requirements are listed one by one. It should also be noted that while the merger and reorganization of coal enterprises is speeding up, coal prices are entering the downward channel with an irresistible trend. In 2019, pithead prices of other kinds of coal, except coking coal, fell for three consecutive quarters year-on-year and year-on-year. Taking August as an example, the inventory of coastal power plants and key power plants in China has exceeded or approached the historical high level, and the inventory of transit links and ports along the Yangtze River has also reached a new high. In the passive inventory phase, coal prices are continuing to decline. At present, the market share of the top five major coal producers is more than 50%. From the experience of the United States and other developed countries, the concentration of coal industry will gradually increase in the post-industrialization stage.

Take the United States as an example, the 1980s and 1990s were an important period of mergers and acquisitions in the industry, which were mainly divided into two stages. The first stage of mergers and acquisitions took place from the early 1980s to the early 1990s. Its main characteristics were non-coal enterprises dominated by oil, steel and power companies.