Hu Qimu, a senior researcher at Sinosteel Economic Research Institute, who was interviewed by the Securities Daily, said: the acquisition of parent company assets by China Construction Investment Energy Co., Ltd. for many times is actually the fact that China Construction Investment Group has continuously loaded high-quality assets into the listed companies, strengthening and optimizing the main business through the capital market, and realizing high-quality development.
According to public information, CCDI group holds 65.63% of the shares of CCDI energy, which is the controlling shareholder of the company. The acquisition is the second time that China Construction Investment Energy Co., Ltd. has purchased the equity of a subsidiary of China Construction Investment Group this year. On October 28, China Construction Investment Energy announced that the company intends to purchase 40% of the equity of Qinhuangdao qinre Power Generation Co., Ltd. held by the controlling shareholder of China Construction Investment Group in cash by means of agreement transfer, with the equity transfer price of 314851800 yuan.
From the perspective of statistics, the scale of social capital introduced by state-owned assets has been on the rise since this year, which reflects the transformation of the concept of state-owned assets supervision from asset management to capital management. Hu Qimu said.
Construction investment group is an investment and financing platform, infrastructure construction platform and financial service industry platform for Hebei provincial government to aggregate, finance and guide social capital and financial capital to support economic development of Hebei Province. It is a state-owned capital operation organization and investment subject whose supervision responsibility is performed by the state-owned assets supervision and Administration Commission of Hebei Province.
China Construction Investment Group holds two listed companies, namely, CCDI energy and Xintian green energy, and shares in Huaneng International, Datang Power Generation and other listed companies. It is a pilot unit for the reform of state-owned capital investment companies in Hebei Province. Over the years, China Construction Investment Group has successively invested in the construction of power plants, railways, ports, expressways, natural gas pipelines, water plants and a number of provincial major supporting projects, and has gradually formed a business sector dominated by infrastructure and strategic emerging industries such as energy, transportation, water affairs, urbanization, etc. In addition, the groups investment also involves financial services, mineral development and other industries.
By the end of 2019, the total assets and net assets of China construction investment group were 191.187 billion yuan and 89.286 billion yuan respectively; in 2019, the main business income was 34.611 billion yuan, and the net profit was 3.832 billion yuan.
As a state-owned asset, China Construction Investment Group is rich in assets. According to the current measures of China Construction Investment Group, as long as the asset property rights and business system within the group system are sorted out clearly, it may continue to inject into listed companies. Liu Shengyu said.
Strengthen business synergy
According to the announcement, the target of CCDI energy acquisition is Guorong company, and its main business is comprehensive energy services, including investment, construction and operation of comprehensive energy supply projects in the form of natural gas cooling, heating and power generation, multi energy complementary and other forms of comprehensive energy supply projects, as well as value-added businesses such as power plant technical supervision and technical service business, carbon asset management business, online bidding and procurement business of e-commerce platform.
At present, Guorong company has two wholly-owned subsidiaries, namely Hebei Jiyan energy science and Technology Research Institute Co., Ltd. (hereinafter referred to as Jineng Academy) and Hebei Construction Investment Carbon Asset Management Co., Ltd. (hereinafter referred to as carbon melting company); it has one branch, namely, e-commerce branch of Hebei Construction Investment Guorong Energy Service Co., Ltd.
According to the announcement, the main customers of Guorongs energy management contract business are the power generation enterprises affiliated to China Construction Investment and Investment Corporation, which mainly implemented the frequency conversion transformation of circulating pump motor in power plant, utilization of flue gas waste heat, flow transformation, waste heat utilization of circulating water, etc. The main business of the subsidiary carbon finance company is to provide carbon asset management services for CCDIs system emission control and emission reduction enterprises. The main business of the e-commerce branch company is responsible for the construction and operation of the construction investment business network. It has the qualification of engineering bidding agency, and mainly provides sunshine procurement services for the system enterprises of the construction investment group. The technical supervision and service business of power plant is the main business of Jineng Institute of science and technology.
From the main financial data of Guorong company in 2017-2019 and the first three quarters of 2020, the company has achieved operating revenue of RMB 90.805 million, RMB 119 million, RMB 100 million and RMB 85.4821 million, and net profit of RMB 3.3196 million, RMB 24.3272 million, RMB 23.9121 million and RMB 13.6766 million respectively.
China Construction Investment Energy said the acquisition is aimed at enhancing the ability of scientific and technological innovation and accelerating the transformation of scientific and technological achievements. The main business of Guorong company has strong synergy with the main power industry of the company. After the acquisition of Guorong company, the business structure of the company will be further optimized. The company can use Guorong company as a platform for scientific and technological innovation, continuously increase the innovation, accelerate the transformation and application of scientific research achievements, and further improve the core competitiveness of the company.
Ding Meng, an economist at the Financial Research Institute of Bank of China (Hong Kong), said in an interview with Securities Daily: this acquisition is mainly aimed at strengthening listed companies, which is conducive to the future development of the company. In addition, China Construction Investment energy should also pay attention to the fair value of transactions in the acquisition of holding group assets.
Since this year, the buy energy mode has been launched.
According to a reporter from Securities Daily, before purchasing the assets of the controlling shareholder, CCDI energy also successively acquired 51% equity of Shouyang Boqi Power Generation Co., Ltd. of Yangquan Coal Group and 50% equity of Xishangzhuang low calorific value coal thermal power Co., Ltd. of Yangquan coal industry group.
As for the companys multiple acquisitions, sun yuan, Director Secretary of CCPIT energy, said in an interview with the Securities Daily: the acquisition mainly focuses on the main business and focuses on extending the upstream and downstream strategy of the companys industrial chain. The main purpose of cooperation with Shanxi coal enterprises is to expand to the upstream of the industrial chain and expand the business to other provinces. In addition, the advantages of the acquired project company may be more obvious in the future. For example, in terms of coal acquisition cost, point-to-network power transmission to Hebei Province after completion can effectively alleviate the power supply tension in Hebei Province during the peak period of power consumption.
Qinhuangdao thermal power project itself is the main business of construction investment energy. The acquisition of Guorong is due to the synergy in business. After the acquisition, related party transactions can be reduced. In the future, China Construction Investment Group will continue to support listed companies to become bigger and stronger. Sun Yuan said.
As for the multiple acquisitions of CCDI energy, Hu Qimu said that through the acquisition of high-quality assets in the main industry, CCDI energy has obtained resources such as market and technology, which has improved the competitiveness of the main industry, which is conducive to optimizing the asset quality of listed companies, further boosting investor confidence, and maintaining and increasing the value of state-owned capital. In this process, we should take high-quality development as the first priority and not simply pursue the expansion of asset scale. The purchased assets must form complementary advantages with the parent company and enhance the core competitiveness of construction investment and energy.