What is the main business of Sinochem Group?

China Sinochem Group Corporation (hereinafter referred to as "Sinochem Group") is an important state-owned backbone enterprise supervised by the State Council SASAC. It has entered Fortune Global 500 for 0/7 times, and ranked 299th in 2007.

Since 1998, Sinochem Group has actively explored the road of transformation and development of traditional state-owned foreign trade enterprises under the conditions of socialist market economy, vigorously promoted concept innovation and management reform, and concentrated resources on developing five main businesses: finance, real estate, agriculture, energy and chemical industry. It has gradually developed into an innovative enterprise with advanced concept, scientific management and outstanding core competitiveness. Its overall strength and industry status have been rapidly improved, and its influence, control and driving force in related industries have been continuously enhanced.

In recent years, Sinochem Group's financial services business has further accelerated its development and gradually established its leading position in related industries in China. Sinochem Group provides a variety of financial products and services to the market, and its foreign trade trust, Far East Leasing, Nuoan Fund, Hong Zhong Life Insurance and other enterprises all have strong market position and industry influence in their respective fields.

Starting from the long-term development needs, the company has positioned the financial services business as an important platform to support the long-term and stable development of its core business, built professional teams in the fields of trust, financial leasing, life insurance and securities investment fund management, expanded business development space and established market competitive advantages.

In the field of real estate, Sinochem Group is committed to the professional development and operation of high-end hotels and commercial properties, and has a number of well-known brands and high-quality assets in the hotel real estate industry such as Jinmao and Fangxing. Jinmao Tower and chemsunny World Trade Center, which are invested and controlled, have become landmark buildings in Pudong, Shanghai and West Chang 'an Avenue, Beijing.

In the agricultural field, Sinochem Group is the largest fertilizer enterprise in China, which integrates all kinds of fertilizers, production, supply and sales, and maintains a leading position in pesticide research and development, production and sales, seed production and processing, etc. Through a powerful distribution network covering more than 80% of the country's arable land, the company provides hundreds of millions of farmers with high-quality and efficient agricultural inputs and thoughtful agricultural science and technology services, and strives to promote the development of modern agriculture and increase farmers' income. It is the national team and main force to ensure national agricultural security and promote the construction of new socialist countryside.

In the field of energy, Sinochem has been engaged in petroleum business for decades and maintained long-term friendly cooperation with the global petroleum industry. In recent years, the company has not only strengthened its strength in the field of international oil trade and warehousing and logistics by virtue of its traditional advantages, but also achieved a historic breakthrough in the upstream exploration and development business. It has developed into a national oil company with integrated upstream and downstream, distinctive features and important influence in the industry, and has become an important force to ensure national energy security.

In the field of chemical industry, Sinochem Group maintains a leading position in fluorine chemical industry, natural rubber, chemical logistics and other sub-industries. It has an important influence on the research and development and marketing of dyes and medicines. Is a leading comprehensive service provider of chemical products in China, and plays an active role in promoting scientific and technological progress and safe, environmental protection and harmonious development of the chemical industry.

Sinochem Group has a number of operating institutions at home and abroad, holding three listed companies: Sinochem International, Sinochem Fertilizer and Fangxing Real Estate. More than 20,000 employees of Sinochem Group adhere to the spirit of entrepreneurship and innovation, practice the corporate culture concept of "creating value and pursuing Excellence", and constantly enhance the value of Sinochem Group.

What is the responsibility of the fund management department of Sinochem Group in the company's finance department and the whole group? What are the main contents of Sinochem Fund Management?

A: The company cancelled the finance department in 2002. The financial management system consists of fund management department, analysis and evaluation department, accounting management department and financial comprehensive department, all of which are independent functional departments of the company. The fund management department is the functional department that formulates the company's financing strategy and organizes its implementation, and is responsible for the centralized management of funds within the group. The main contents of fund management include:

1, draft and organize the implementation of the company's overall financing strategy and control the company's credit resources;

2. Centrally manage the funds of the whole group and manage and control the company's cash;

3. Draft the company's annual capital budget, organize and supervise its implementation, and optimize the allocation of capital resources;

4. Financial risk management of interest rate;

5. Participate in the formulation and implementation of the company's asset restructuring and capital operation plan;

6. Formulate the company's debt and capital optimization plan.

How do you think the financial business relationship between the fund management department and the group should be positioned? For example, finance companies, insurance companies, fund management companies, trust companies and so on.

A: As a functional department of the group company, the fund management department is positioned as a management department, which makes policy formulation and business coordination, and plays a guiding and coordinating role by administrative means.

The relationship with other related financial businesses needs to be treated differently. The positioning of the financial company is the platform for fund management of the group company and the executive operation department. As a cost center, it is not for profit. Its purpose is to provide fund management and related financial services for member units by market-oriented means based on groups and service groups. Under the guidance and coordination of the fund management department, the fund management system will be established together with the fund management department.

Insurance companies, fund management companies and trust companies are positioned as profit centers and provide financial services to the society to obtain profits. The fund management department mainly monitors and manages from the perspective of fund budget and resource allocation. On the other hand, the fund management department can also use these companies as a supplement to financing sources and a channel for idle funds to invest.

How do you think the fund management department should help the company achieve strategic growth?

A: 1. Plan the financial strategy that matches the business strategy. During the transition period, the company has a large amount of capital demand, so the fund management department should draw up a reasonable capital structure and debt structure, which can not only ensure the capital demand of the company's business strategy, but also avoid excessive financial risks. By cooperating with rating agencies and risk management departments in financial institutions, we can judge the company's financial strategy from the perspective of capital market and constantly revise it in the dynamic, so as to match and balance the company's business strategy.

2. Keep close contact with the capital market, constantly enrich financing channels, and use diversified financing means, such as direct financing, off-balance sheet financing, project financing, asset securitization, etc. , reduce financial risks and ensure capital demand.

What is the strategic implementation and plan of Sinochem's fund management? How to ensure the realization of management objectives?

A: Over the years, Sinochem Capital Management has ensured the implementation of the strategy and the completion of the work plan through the rolling revision of the system and business processes and the training of professionals.

The realization of management purpose depends on:

1. Set forward-looking goals, describe prospects and motivate employees to work hard for them;

2. Clear responsibilities, task decomposition, and implementation to people;

3. Cultivate a group of key employees and key employees with strong professionalism and certain professionalism;

4. Constantly revise business operation processes and systems to standardize management and operation;

5, establish an effective fund information system, fully grasp the information, provide a basis for analysis and decision-making, and improve work efficiency;

6, clear key management indicators, implement and clear everyone's management point and core.

How does the financial department of Sinochem Group participate in the merger and acquisition of the group? How to define the roles of Treasury Department and Investment Department?

A: In Sinochem, the finance department and the investment department are separate. In Sinochem's view, M&A is not only an investment activity, but also a financial activity and financing activity. If investment and financing are separated, the investment department will only pay more attention to investment income and ignore the extensive sources, costs, deadlines and channels of financing; As for the Treasury Department, it may ignore various financing opportunities brought by M&A activities, so Sinochem's work direction is to better let the investment and financing departments cooperate with each other to help achieve the overall M&A goal of the group.

At the same time, great changes are taking place in domestic financial institutions and financial markets. Commercial banks are increasingly using the combination of various financial instruments to provide comprehensive investment and financing services for their customers, and customers need to better adapt to this change. Therefore, the fund management department of Sinochem Group has been deeply involved from the initial stage of investment activities, closely combining the analysis of investment target value, the management of cash flow in the investment process with related financing activities, and grafting the investment behavior within the enterprise with the requirements of the capital market through our valuable management activities, so as to make more use of financial market tools and realize the strategic objectives of the Group.

What's your comment on the current situation of China's financial market and the prospect of China Enterprise Group's treasurer function?

A: China's financial market is still in the primary stage, the interest rate system reform has just begun, the financing means and channels are not rich, and the tools for financial risk management are not perfect. However, from the trend, China's financial market will gradually mature, the pace of reform will be further accelerated, the policy environment will be gradually liberalized, enterprises will constantly put forward new financial service needs in the process of development and internationalization, and financial institutions will continue to innovate. Therefore, China's financial market will be improved under the background of deepening reform in China.

In this environment, the shopkeeper function of China Enterprise Group is bound to be highlighted. Enterprises are facing an increasingly complex financial environment, which requires a large number of professional fund managers to play an increasingly important role in capital operation, asset restructuring, financial risk management, capital concentration and diversified financing. The trend is as follows:

1, independence and professionalism are enhanced. More and more enterprise groups have separated the function of fund management from the traditional financial department, and the professional level of fund management has been continuously improved.

2. The fields involved are constantly expanding. Traditional fund management usually refers to centralized cash management and liquidity management. Under the background of economic reform in China, the future treasurer will play a more important role in the fields of enterprise merger and reorganization, financial strategy and financial risk management.

3. Fund management has been deepened and improved. For example, fund management will develop from basic cash concentration to settlement concentration, and realize fund management based on controlling the source of fund risk and dynamic real-time monitoring.

Commentator said: From knowing Mr. Yang Lin four years ago to now, I have seen the growth of Sinochem's finance department step by step. Now, Mr. Yang Lin and his team are experiencing the best period. They integrated the financial resources of enterprises, narrowed the settlement authority, concentrated cash resources, engaged in capital market and foreign exchange market, issued bonds, merged and listed. With the support of the company's top management and the cooperation of such a strong tactical execution team, Yang Zong is undoubtedly happy, because he can do many things, but all this is based on the safe management of funds.

Looking at many domestic enterprise groups, many even fail to distinguish the difference between the investment department and the fund management department. Without the actual understanding of this field, the support and participation of the company's top management and a strong executive team, too many ideas are more likely to become Cao's second. I hope this interview can stimulate more thinking and discussion. Sinochem's model is certainly not unique, but at least it can be used for reference. Let's handle the fund management affairs of the Group with a more cautious attitude, and welcome financial reform and innovation with a more positive attitude. (Author: Alex Gao, founder of Yaqiao Consulting, Secretary General of China Fund Manager Salon)