GuShiio.com ① A new round of restructuring of central enterprises has sounded again. China Ordnance Equipment Group Co., Ltd. and Dongfeng Motor Group Co., Ltd. announced plans to restructure on the same day;
② As a central enterprise, it is also located in the automobile field, and its announcement of restructuring on the same day triggered market speculation about the integration of the two;
③ In recent years, Dongfeng Company has cooperated closely with Ordnance Equipment Group and Chang ‘an Automobile, and interactions between senior management teams have occurred frequently.
What should I see in the face of thousands of listed company announcements every day? Announcement on major issues often takes dozens of pages to hundreds of pages. What are the key points? I don’t know whether a bunch of technical terms in the announcement are good or bad? Please see the “Speed Reading Announcement” column of the News Department of Cailian Corporation. Our reporters stationed across the country will provide you with accurate, fast and professional interpretations on the night of the announcement.
Cailian News Agency, February 9 (Reporter Fang Yanbo and Liang Xiangcai)A new round of reorganization and integration of central enterprises has once again sounded.
Tonight, many listed companies such as Chang ‘an Automobile (000625.SZ), Great Wall Military Industry (601606.SH), and Construction Industry (002265.SZ) under China Ordnance Equipment Group Co., Ltd.(referred to as “Ordnance Equipment Group”) issued announcements saying that they had received a notice from the (indirect) controlling shareholder Ordnance Equipment Group thatReorganization matters are being planned with other state-owned central enterprise groups。
On the same day, Dongfeng Motor Group Co., Ltd.(600006.SH) and Dongfeng Technology (600081.SH), subsidiaries of Dongfeng Motor Group Co., Ltd.(referred to as “Dongfeng Company”), also issued an announcement stating that they had received notice from Dongfeng Company thatReorganization matters are being planned with other state-owned central enterprise groups。
These listed companies all stated in their announcements: The above-mentioned reorganization may lead to changes in the company’s (indirect) controlling shareholder, but will not lead to changes in the actual controller, and the reorganization will not have a significant impact on the company’s normal production and operation activities. At the same time, relevant arrangements also need to follow procedures and obtain approval from relevant competent authorities.
It is worth noting that although it is not yet certain whether Weapons Equipment Group and Dongfeng Company are reorganization objects of each other, as first-level central enterprises and important participants in the domestic automobile manufacturing field, their reorganization plan released on the same day still triggered market speculation about the integration of the two.
According to public information, the Weapons Equipment Group has more than 60 key enterprises and R & D institutions. The company has ranked among the world’s top 500 for many consecutive years, ranking 101st. Changan Automobile, one of my country’s major self-owned brand automobile manufacturers, is its subsidiary. The company has 12 manufacturing bases and 22 factories around the world, and its own brand sales exceed 25 million units. It is a typical representative of China automobile brands.
Dongfeng Company’s predecessor was the Second Automobile Manufacturing Factory founded in 1969. Over the past 50 years since the factory was established, nearly 60 million vehicles have been produced and sold. As of the end of 2023, the company’s total assets were 521 billion yuan and the number of employees was 121,000. In 2023, the company will sell 2.42 million vehicles and operate income of 410.3 billion yuan. Its operating scale ranks among the top in the domestic automobile industry and ranks 188th among the world’s top 500 companies.
In recent years, Dongfeng Corporation and Chang ‘an Automobile have cooperated quite closely. In 2017, Dongfeng Motor Group, Chang ‘an Automobile and FAW Group jointly signed a strategic cooperation framework agreement, and the following year jointly established T3 Travel Service Company to create a travel service brand; in 2019, Dongfeng Company and Weapons Equipment Group also cooperated with FAW Group and others registered and established China Automobile Chuangzhi Technology Co., Ltd., and began to carry out in-depth cooperation in the field of intelligent networking technology development.
In addition to business cooperation, the two senior management teams also have interactive positions. Zhou Zhiping, director, general manager and deputy secretary of the Party Committee of Dongfeng Motor Group Co., Ltd., once served as an employee director of China Ordnance Equipment Group Co., Ltd., as well as Party Secretary, Director and President of China Changan Automobile Group Co., Ltd.; Feng Changjun, currently the chief accountant and member of the Standing Committee of the Party Committee of Dongfeng Motor Group Co., Ltd., once served as deputy director of the Budget Department of the Finance Department and director of the Finance Department in Ordnance Equipment Group.
In the capital market, the reorganization and integration of central enterprises has always been a hot topic for investors. At the press conference held at the State Council Information Office in January this year, Lin Qingmiao, director of the Enterprise Reform Bureau of the State-owned Assets Supervision and Administration Commission of the State Council, once said: In the future, the State-owned Assets Supervision and Administration Commission will focus on the reorganization and integration of central enterprises, further promote the optimization and structural adjustment of the state-owned economy, and accelerate the promotion. State-owned capital is concentrated in important industries and key areas related to national security and the lifeline of the national economy, in public services, emergency response capabilities, and public welfare areas related to the national economy and the people’s livelihood, and in forward-looking strategic emerging industries.
Some market participants said that in the face of changes in the global economic structure and the need for domestic industrial upgrading, more state-owned central enterprises may join the ranks of reorganization and integration, and enhance the market competitiveness and innovation capabilities of central enterprises through resource integration and complementary advantages., ultimately achieve higher-quality development.
