Enterprise reform of China Shipbuilding Industry Corporation

In October 214, China Shipbuilding Industry Corporation officially sounded the clarion call for the reform of military enterprises. For the "mixed reform", CSIC clearly proposed to vigorously develop the mixed ownership economy and actively introduce external capital. At the same time, the work of accelerating the pace of asset securitization in scientific research institutes, promoting the reorganization of high-quality assets and injecting them into listed companies in a timely manner has also been put on the agenda by CSIC.

After Ordnance Group, China Shipbuilding Industry Corporation has become another one of the top ten military industrial groups to launch comprehensive reform. As the main listing platform of CSIC, China Heavy Industry will be the biggest beneficiary of this "mixed reform".

In the Opinions on Comprehensively Deepening Reform (hereinafter referred to as the "Reform Plan") issued by CSIC, vigorously developing the mixed ownership economy has become the focus of this round of deepening reform. CSIC emphasizes that the shareholding system reform of the company should realize the pattern of "one is large and the other is small"-strive to make China Heavy Industry the flagship listed in the military industry, and at the same time cultivate and build a number of listed companies in the non-ship field.

In fact, as early as September 213, China Heavy Industry began to involve the military assets of CSIC, and in early 214, it completed the acquisition of related surface ship assets of Dalian Shipyard Group Co., Ltd. (hereinafter referred to as "Big Ship Group") and Wuchang Shipyard Group Co., Ltd. (hereinafter referred to as "Wuchuan Group"). With the "mixed reform" of CSIC, more military assets will be gradually injected into China Heavy Industry.

In the aspect of mixed ownership reform, CSIC proposes to optimize the structure of state-owned shares, and define the corresponding proportion of state-owned shares according to the positioning of different member units: the state has stipulated units related to national security and national strategy, and the group company shall remain wholly-owned; Maintain the absolute control of the group company for the national key military protection units and the units in the key development fields of the group company; For some pillar industries and important backbone units in high-tech industries, the group company maintains relative holding, and the proportion of state-owned shares of other units is determined according to national requirements and company strategy.

The reform plan makes it clear that CSIC is positioned as a state-owned capital investment company, saying that developing mixed ownership economy is the focus of CSIC's efforts, and that it will actively attract all kinds of ownership capital to participate in the capital operation dominated by China Heavy Industry through various forms such as capital contribution, equity purchase, equity exchange and financial leasing, so as to promote the reorganization of high-quality assets.

China Heavy Industry has been involved in the acquisition of the military assets of CSIC. On September 13, 213, China Heavy Industry issued 2.28 billion shares to 1 specific targets, raising a total of 8.48 billion yuan, and took out 3.275 billion yuan to acquire the military assets of CSIC's CSIC's CSIC, including the production design and assembly business and assets of super-large surface ships, large and medium-sized surface ships, conventional submarines and large landing ships.

As a whole listing platform, China Heavy Industry has been steadily injecting high-quality assets of CSIC. In 29, CSIC first integrated 12 companies and 4 research institutes to realize China Heavy Industry IPO; In 211, CSIC launched a major asset restructuring, injecting four shipping companies, namely, Big Ship Heavy Industry, Bo Ship Heavy Industry, North Ship Heavy Industry and Shan Ship Heavy Industry, after divesting the core military assembly business into the listing platform; In 212, CSIC issued convertible bonds, injecting some shares of Wuchuan Heavy Industry, five other companies and CSIC Ship Design and Research Center Co., Ltd. after divesting the core military assembly business into the platform. With the opening of "mixed reform" of CSIC, more military assets and research institute assets will enter China Heavy Industry.

In fact, CSIC has always attached great importance to China Heavy Industry. During the major asset restructuring of China Heavy Industry in 21, CSIC promised to inject some enterprises with potential competition with China Heavy Industry into China Heavy Industry in the next three years or try its best to make them meet the listing conditions, and promised to propose to the board of directors of the company to consider the proposal of injecting relevant assets within one year after 16 enterprises with potential horizontal competition met the specific trigger conditions.

On February 14th, 214, China Heavy Industry announced that 11 of the 16 enterprises had not been injected, mainly because most of them were at the level of loss or meager profit, and it was not in the overall interests of investors to inject into listed companies. Among the remaining 11 companies that have not been injected, 1 companies will be injected into listed companies before February 15, 217. Due to objective factors, Dalian Fishing Vessel Company is affected by long-term losses and insolvency, and it is listed in the national policy list of reform and extricating itself from difficulties, so it is no longer listed in the commitment list of asset injection.

With regard to the injection of 1 enterprises, on August 28th, 214, China Heavy Industry announced that Shanghai Waxilan Qiyao Diesel Engine Co., Ltd. has basically reached the trigger condition, and CSIC will complete the necessary pre-procedures that Shanghai Waxilan Qiyao Diesel Engine Co., Ltd. needs to complete before February 15th, 215. At the same time, the relevant restructuring work of Chongqing Changping Machinery Factory was completed because the policy debt-to-equity swap was still in communication and negotiation, so that it could meet all the conditions for injection.

CSIC is expected to welcome a third listed company. On April 18, 214, Huazhou Heavy Industry, a subsidiary of CSIC, made a pre-disclosure and planned to be listed on the Growth Enterprise Market.