3.63 trillion! Major restructuring of Shanxi’s state-owned assets! All the leading coking companies have entered the market

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On December 3, Shanxi Provincial State-owned Capital Operation Co., Ltd. (hereinafter referred to as “Shanxi Provincial State Capital Operation Company”) issued a announcement stating that, in line with the strategic plans of the Shanxi Provincial Party Committee and Provincial Government to improve the mechanisms for overseeing state-owned assets, the company will undergo significant structural adjustments, which will involve the transfer and reorganization of shares in 19 state-owned enterprises in Shanxi Province. On the same day, 18 listed companies owned by Shanxi’s state-owned assets, including Northern Copper Industry, Blue Flame Holdings, Jincheng Power, Shanxi Coking Coal, Luhua Technology, Shitou Co., Ltd., Lu’an Environmental Energy, Tongbao Energy, Jincheng Coal Industry, Guoxin New Energy, Shanxi Coal International, Guangyuyuan, Shanxi Highways, ST Taiyong, Huayang Co., Ltd., Huayang New Materials, Shanxi Fenjiu, and Shanxi Coking, also issued announcements stating that there was a reduction in the hierarchy of ownership between their controlling shareholders and actual controllers. Several respondents told reporters from the Securities Daily that the scale of this reform is unprecedented, with assets worth 3.63 trillion yuan being transferred. These assets cover key sectors such as energy, transportation, finance, and culture and tourism, indicating that the reform of the state-owned assets supervision system in Shanxi Province has entered a more advanced phase. This will further optimize the allocation of state-owned capital and improve the efficiency of its supervision. Shanxi Guoyun Company was established in 2017. The Shanxi Provincial Government authorized the Shanxi State-owned Assets Supervision and Administration Commission to assume the responsibilities of the investor, and the latter then delegated all its responsibilities related to the management of state-owned assets to this company. The company fully fulfills its responsibilities as a capital contributor by carrying out professional capital management. According to the announcement, Shanxi Guoyun Company will carry out a comprehensive adjustment of its equity holdings in enterprises owned by the Shanxi province, in line with the unified arrangements of the Shanxi provincial government. In addition to retaining 10 subsidiaries that it operates itself, the company has been approved to keep a 34.70% stake in Taiyuan Iron and Steel Group, as well as a 37.56% stake each in Huayuan Landport, Shanxi Construction Investment, and International Energy; all remaining stakes in enterprises owned by Shanxi Province will be transferred to the Shanxi State-owned Assets Supervision and Administration Commission. This share transfer involves 19 enterprises owned by Shanxi Province, covering various key areas of the province’s economic development. It basically covers the key enterprises under Shanxi Province. According to the announcements issued by various listed companies, the specific proportions of shares transferred vary: 53.8051% of the shares of Huayang Group, 100% of the shares of Taihua Group, 90% of the shares of Lu’an Chemical Group, 74.15% of the shares of Shennong Technology Group, 90% of the shares of Fenjiu Group, 91.78% of the shares of Taizhong Group, 90% of the shares of Coking Coal Group, 90% of the shares of Huaxin Gas Group, and 90% of the shares of Jinneng Holding Group were all transferred to be directly held by the Shanxi State-owned Assets Supervision and Administration Commission. In terms of asset size, the 19 companies transferred this time have a total asset value of 3.63 trillion yuan; their combined revenue for the most recent year was 1.19 trillion yuan, while their combined net profit amounted to 24.443 billion yuan. Among them, Jinneng Holding Group has the largest asset scale, at 1.09 trillion yuan, accounting for 31.04% of the total assets transferred ； The asset size of Shanxi Transportation Holding Group is 650.478 billion yuan, accounting for 18.60% ； Shanxi Coking Coal Group has an asset scale of 540.164 billion yuan, accounting for 15.45%.