The reorganization of the "two ships" has finally come to fruition.
After approval from the State Council, China Shipbuilding Industrial Group Co., Ltd. and China Shipbuilding Heavy Industry Group Co., Ltd. carried out a joint reorganization. The 20-year history of the "North and South Ship" division is about to end.
"North and South Ship" reorganization was approved
China Shipbuilding Industrial Group (hereinafter referred to as "China Shipbuilding Group") and China Shipbuilding Heavy Industry Group (hereinafter referred to as "China Shipbuilding Heavy Industry") are commonly known as "North and South Shipbuilding", and were split from the former Shipbuilding Industry Corporation in 1999.
Industry insiders generally believe that once the merger of "North and South Ships" will improve production efficiency, reduce internal ineffective competition, and strengthen the R&D capabilities of military products. At the same time, this asset restructuring is conducive to optimizing the capital structure, actively and steadily accelerating the market-oriented debt-to-equity conversion and strategic restructuring of the ship industry.
China Shipbuilding Group was established on July 1, 1999. It has three listed companies: China Shipbuilding , China Shipbuilding Defense , and China Shipbuilding Technology. It has six major sectors including shipbuilding, marine engineering, power equipment, mechanical and electrical equipment, information and control, and productive modern service industry.
China Shipbuilding Industry Corporation was established on July 1, 1999. It has five listed companies including China Heavy Industry Corporation , China Power , China Coast Defense, China Emergency, Jiuzhiyang, and Lepu Medical.
On the evening of July 1, 2019, several listed companies under China Shipbuilding Corporation and China Shipbuilding Corporation issued announcements stating that China Shipbuilding Corporation and China Shipbuilding Corporation are planning a strategic restructuring.
On the evening of October 25, a listed company under China Shipbuilding Group, announced that the controlling shareholder China Shipbuilding Group and China Shipbuilding Heavy Industry carried out a joint restructuring, and established China Shipbuilding Group Co., Ltd. (referred to as " China Shipbuilding Group"), and the State-owned Assets Supervision and Administration Commission of the State Council performed its investor duties on behalf of the State Council. China Shipbuilding Group and China Shipbuilding Heavy Industry were allocated to China Shipbuilding Group as a whole. After this reorganization, the company's controlling shareholder and actual controller have not changed.
Regarding the main impact of the restructuring of north-south ships, CITIC Construction Investment Securities research report pointed out: First, it is conducive to optimizing capacity resources and effectively removing excess capacity. After the two ships are reorganized, the industry positioning and main construction ship types of each shipyard may be repositioned, effectively eliminating duplicate low-end production capacity and concentrating more resources into the construction of high-end production capacity. It is conducive to the overcapacity reduction of the entire industry, and the industry will achieve a fundamental balance between supply and demand. Second, reduce ineffective competition to a certain extent and improve the international competitiveness of enterprises. The third is to improve the entire industrial chain and give full play to complementary and synergistic effects. After the restructuring, it is expected to promote the professional integration of various types of assets, effectively exert the complementarity and synergy between the two parties, and improve corporate value.
For listed companies, CITIC Construction Investment believes that after the two ships are reorganized, it will reposition the listed company and take over the related assets of the two ships as a professional platform.
Reorganization of listed companies has been steadily advancing
It is worth noting that the reorganization of "North and South Ship" has always adopted two lines: "group-level reorganization" and "listed company-level reorganization". Up to now, the restructuring at the group level has been officially approved, and the restructuring at the listed company level has also been steadily advancing.
On the evening of October 24, China Ship announced that the State-owned Assets Supervision and Administration Commission of the State Council agreed in principle to the overall plan for the joint-stock company's asset restructuring and supporting financing.
After the completion of this asset restructuring and supporting financing, the total share capital of China Shipbuilding will not exceed 4.498 billion shares. Among them, China Shipbuilding Industrial Group Co., Ltd., China Shipbuilding Marine and Defense Equipment Co., Ltd., China Shipbuilding Investment Development Co., Ltd., Huarong Ruitong Equity Investment Management Co., Ltd., China State-owned Enterprise Structure Adjustment Fund Co., Ltd., China Life Insurance Co., Ltd., China People's Property Insurance Co., Ltd., National Military-Civilian Integration Industry Investment Fund Co., Ltd., Bank of China Financial Asset Investment Co., Ltd. and Zhongyuan Asset Management Co., Ltd. hold 1.989 billion shares, 217 million shares, 48.5588 million shares, 161 million shares, 92.6415 million shares, 79.83 million shares, 79.7105 million shares, 78.1574 million shares, 39.474 million shares and 38.8838 million shares respectively.
According to the previously disclosed asset restructuring content, China Shipbuilding issues shares to China Shipbuilding Group, China Shipbuilding Defense , China Shipbuilding Investment and other parties, and purchases their assets of 100% of Jiangnan Shipbuilding, about 36.27% of Waigaoqiao Shipbuilding, and 51% of Guangshu International.
Based on this reorganization, China Shipbuilding Group will form the shipbuilding platform of China Shipbuilding , the power platform of China Shipbuilding Defense , and the high-tech platform of China Shipbuilding Technology, which basically corresponds to the positioning of China Shipbuilding Industrial , China Power and China Shipbuilding Industrial , China Power and China Shipbuilding Industrial mount. Against the backdrop of strategic restructuring of North and South ships, the plan of China Ship is also regarded as paving the way for further operations at the listed company level after the restructuring of the two major groups in the future.
AVIC Securities research report pointed out that this restructuring will help further optimize the industrial layout, inject high-quality resources for military ship assembly into listed companies, and lay out the military and civilian markets. At the same time, it is conducive to accelerating the pace of high-end transformation, highlighting its advantages in the field of offshore cruises, innovating green ship repair technology, improving the level of ship repair technology, and achieving full coverage of ship repair capabilities. To achieve the goal of achieving recovery growth of the main business and promoting stable growth of the ship and marine industry.
boots landed, stock prices are flat
It is worth noting that since 2019, many concept stocks of north-south ship merger have risen significantly, and many individual stocks have doubled. Wind data shows that as of the close of October 25, the North-South Ship Merger Index closed at 822.88 points, down 0.66%. Compared with 542.29 points at the beginning of the year, the increase reached 51.45%.
However, recently, with the release of news of the "boots" of the North and South ships, the stock prices of related listed companies have performed flat.
On the evening of October 24, China Ship issued an announcement that the State-owned Assets Supervision and Administration Commission of the State Council agreed in principle to the overall plan for the joint-stock company's asset restructuring and supporting financing.
htmlOn October 25, the overall stock prices of related listed companies performed flat. The stock prices of three listed companies, including Juzhiyang, China Heavy Industry , and China Shipping , have turned red. The other listed companies all experienced declines to varying degrees.Electricity, telecommunications, chemicals, automobiles and other fields are worth looking forward to
Researcher Zhou Lisha, a researcher at the Research Center of the State-owned Assets Supervision and Administration Commission, believes that the main purpose of the reorganization of the "two ships" is to implement the national strategy, promote professional reorganization, and promote further concentration of state-owned capital in key industries, key areas and advantageous enterprises that are in line with the national strategy. After the reorganization of
, industry-oriented reorganization was achieved. The restructuring of the two ships is guided by national strategies and focuses on strategic and industry-oriented restructuring. Through restructuring and integration, we will deepen internal reforms and mechanism innovations of the two enterprises, accelerate the comprehensive integration of business, management, technology, talents, market resources, etc., and amplify the efficiency of restructuring.
The second is to promote professional integration. By optimizing the industrial organizational structure, especially in the current situation of overcapacity of shipbuilding business, we will integrate ship production capacity, reduce internal competition in the industry, and achieve strong alliances.
The third is to focus on improving industrial competitiveness. Steadily promote the reorganization of central enterprises, with the goal of promoting transformation and upgrading and enhancing my country's industrial competitiveness, and steadily promote the integration of the ship industry, the core competitiveness will be greatly strengthened, and the level of industrial organization will be improved through mergers and reorganizations.
She pointed out that after the reorganization of the "two ships", the number of central enterprises will be reduced to 96. In the next step, the restructuring will continue to focus on deepening supply-side structural reform, continue to increase the capacity for de-production, increase industry concentration, and achieve orderly development of the industry. In addition, we must accelerate the breakthrough of a number of key core technologies through the integration of R&D resources and play a leading role in building an innovative country.
Liu Xingguo, a researcher at the Research Department of the China Enterprise Federation, believes that the joint reorganization of the two ships marks a big step forward in the strong alliance of central enterprises, and the strong alliance has blazed a new path. A few years ago, the strong alliance between China Southern and China Automobile took the path of top-down, first group integration and then subsidiaries integration. However, the joint reorganization of the two ships chose to implement professional integration at the subsidiary level first, realize optimal resource allocation, and then complete integration at the group company level. This strong integration path will help reduce integration resistance, improve integration efficiency, and fully achieve the expected integration goals.It is expected that this path will be widely adopted in the future when state-owned enterprises are strongly reorganized.
He pointed out that from the overall deployment of reform, the strategic integration and resource optimization and adjustment of central enterprises are far from over, and strong alliances and professional restructuring will continue to be deepened. In many fields such as electricity, telecommunications, chemicals, and automobiles, there is still the need and room for promoting strong alliances, and integration measures will be introduced in these fields.
This article is from China Securities Journal
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