The map of Nanshan District of Shenzhen, which is 2 kilometers around Shenzhen University, can be called the highland of electronic communication industry in China. In the north, CLP great wall building faces Tencent building on the same side of Shennan Avenue, on the other side stands Lenovo, Zte Corporation(000063) , TCL and other enterprise buildings, and to the south is a group of research institutes and laboratory buildings.
Today, in this high-tech park, CLP great wall building is given new significance. On December 25, China Electronics (CEC) headquarters moved to Shenzhen, and the conference was held in the great wall building. So far, Shenzhen officially ushered in the third central enterprise.
China Electronics Group has been established for a long time and its industries are huge. It is the largest state-owned comprehensive IT enterprise group in China. It has been listed in the Fortune Global 500 for ten consecutive years and ranked 334 in 2021. According to the information on the official website, by the end of 2020, China Electronics had 26 secondary enterprises, 15 listed companies and more than 180000 employees, with an annual revenue of 247.92 billion yuan. It focuses on network security and informatization, and has key core technologies such as computer CPU and operating system.
According to the 21st Century Business Herald reporter, at present, more than 200 employees of China Electronics headquarters have moved to Shenzhen for office. At the same time, the core management of the company will also attend various resolution meetings in Shenzhen to jointly formulate short-term, medium and long-term business plans for next year and three years.
With the gradual relocation of headquarters, central enterprises will also drive more capital and talents to integrate into local industries. As one of the benchmarks, China Electronics took off its heavy coat and set sail in Shenzhen, which was as warm as spring in December.
why move?
From the general background, the move of China Electronics headquarters from Beijing to Shenzhen is in line with the national policy of relieving non capital functions. At the same time, with the deepening of the reform of state-owned enterprises, the headquarters of central enterprises are accelerating the relocation. At present, there are 96 first-class central enterprises supervised by the state owned assets supervision and Administration Commission of the State Council, most of which are headquartered in Beijing. Since this year, seven central enterprises have moved their headquarters away from Beijing.
Specifically, after China Electronics comes to Shenzhen, there will be three headquarters of central enterprises in Shenzhen, and the other two are OCT Group and Cgn Power Co.Ltd(003816) group. The headquarters of central enterprises in Guangdong Province have increased to 5, China Southern Airlines Company Limited(600029) group and China Southern Power Grid are headquartered in Guangzhou.
The Yangtze River Delta region also has frequent news. On December 24, the headquarters of China Cssc Holdings Limited(600150) Group Co., Ltd. held a relocation meeting in Shanghai. The China Cssc Holdings Limited(600150) group was jointly reorganized and established by the former China Cssc Holdings Limited(600150) industrial group and the former China shipbuilding industry group; On September 25, China Electric Equipment Group Co., Ltd. held its inaugural meeting, which was established on the basis of China Xd Electric Co.Ltd(601179) group, XJ Group, Pinggao group, Shandong electric and other enterprises.
During the same period, there were also actions in the central region. On September 26, the Three Gorges group announced that it would “move back” its headquarters to Wuhan, Hubei Province. The Three Gorges group has signed strategic cooperation agreements with Hubei Province, Wuhan city and Yichang city respectively. It plans to promote 154 major projects with an amount of 364.5 billion yuan, and help Hubei build a batch of 100 billion industrial clusters.
In addition, xiong’an new area, which shoulders the important task, has undertaken the headquarters of three central enterprises. In April this year, China Spacesat Co.Ltd(600118) network group signed a cooperation agreement with xiong’an new area and was inaugurated in xiong’an new area. The company is the first central enterprise registered and settled in xiong’an new area; In May, Sinochem holdings, reorganized by Sinochem Group and Sinochem Group, was officially established with its headquarters in xiong’an; In August, China Huaneng said on its official website that it would promote the relocation.
The relocation of the headquarters of the first batch of central enterprises this year can be said to be the first step. Next, more central enterprises and their industries will be restructured, reformed and moved to cities. From the case of China Electronics entering Shenzhen, the momentum of integrating into the construction and development of Guangdong, Hong Kong and Macao Bay area has begun, and the actual operation is also in progress. At the meeting, China Electronics and Guangdong Province signed the strategic cooperation framework agreement on accelerating the building of the core strength and organizational platform of the national Internet information industry, and the strategic cooperation agreement on jointly building the national Internet information innovation strategy highland and industrial cluster with Shenzhen.
In addition, in early December, China Electronics took shares in digital Guangdong and became the controlling shareholder. Next, China Electronics’s cooperation in the digital field of Guangdong will also increase. At the same time, the group’s industrial integration and market-oriented reform will also be carried out imperceptibly.
why did you move to Shenzhen?
China Electronics has a deep relationship with Shenzhen. If we go back, the headquarters of three listed companies of China Electronics, namely Shenzhen Kaifa Technology Co.Ltd(000021) established in 1985, SHENSANGDA established in 1993 and China Greatwall Technology Group Co.Ltd(000066) reorganized in 2017, are all located in Shenzhen, and Huaqiangbei is also associated with China Electronics. In recent years, the interaction between the two sides has become more and more frequent. Three years ago, China Electronics had nearly half of its revenue from Shenzhen companies. Now its main assets have been transferred to Shenzhen. Five kilometers away from the great wall building, China Electronics Shenzhen Bay headquarters base is under construction.
In fact, during the two sessions in 2018, Rui Xiaowu, Secretary of the Party group and chairman of China Electronics, said that in 2017, the enterprise income of China Electronics Group in Shenzhen exceeded 130 billion yuan, accounting for about half of the group’s total. At that time, China Electronics was already restructuring and would allocate 90% of its assets to the platform company established in Shenzhen. A major task was to develop intelligent manufacturing.
Two years later, in December 2020, China Electronics finally established this platform – “China Electronics Co., Ltd.” in Shenzhen (the industrial layout is shown in the following figure, as shown in qixinbao information). At the same time, it is also an important pilot of the national mixed ownership reform. At that time, some analysts pointed out that China Electronics may move its headquarters to Shenzhen.
(photo source: qixinbao)
By November 2021, once the news of China Electronics headquarters settled in Shenzhen was released, it triggered a heated discussion among many parties. Topics such as the coordinated development of Central real estate industry, the change of industrial pattern, enterprise reform and upgrading have become the focus.
At the level of industrial objectives, at the relocation conference, Rui Xiaowu said: “we will take serving the overall situation of national development as the starting point, take the relocation of China Electronics Group headquarters in Shenzhen as an opportunity, focus on building a highland of national online information innovation strategy and cultivating a world-class online information industry cluster, and accelerate the layout in Guangdong Province and Shenzhen, so as to provide strong support for the national scientific and technological self-reliance and the independent, safe and controllable supply chain of the industrial chain.”
For Guangdong and Shenzhen, they are also facing the challenges of the supply chain while making good achievements in science and technology. Due to the changes of international trade rules, the repeated covid-19 epidemic and the global trend of anti globalization, the reconstruction of the international political and economic pattern is accelerated, which leads to the increase of the instability of the global industrial chain supply chain, affects the international scientific and technological cooperation and restricts the further development of scientific and technological enterprises.
Guangdong Province is also forging the development potential of science and innovation, strengthening basic research and original innovation, and going deep into strategic industries. Shenzhen occupies a leading position in many strategic emerging industries, and high-tech enterprises such as Huawei, ZTE, Tencent, TCL and Dajiang have emerged. China Electronics’s enterprises are involved in many basic fields such as integrated circuits, display panels, intelligent terminals and software systems. They are well-known, including China National Software And Service Company Limited(600536) Kirin software, China Greatwall Technology Group Co.Ltd(000066) Feiteng chip, CLP panda, Chengdu Rainbow Appliance(Group) Shares Co.Ltd(003023) , Huada semiconductor, etc. the outside world also expects the two sides to form synergy in tackling the difficulties in the highland of science and technology industry, Establish a new highland of electronic industry.
acceleration of market-oriented reform
In the future, the relationship between China Electronics and Shenzhen will be closer. On the one hand, it is the coordinated development of the electronic industry. Rui Xiaowu said in his speech: “this is a milestone event in the history of China’s electronics development, which will have a significant and far-reaching impact on the high-quality development of China’s electronics.” It is imperative to build the Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) chain capability. On the other hand, China Electronics, as a central enterprise, is also accelerating its transformation and upgrading. As we all know, Guangdong Province has always been the forefront of marketization, and a large number of enterprises with active market have emerged. After coming to Shenzhen, China Electronics how to inject new vitality into marketization is also the focus of attention.
In the territory of China’s electronic industry, Guangdong Province is the region closest to the market demand. Under the open business environment and full market-oriented competition, many competitive enterprises in the international scientific and technological community have been produced, and a complete industrial cluster from the terminal to the upstream has been gradually formed. Taking Shenzhen as an example, Shenzhen is an important town of China’s electronic information industry. In 2020, the scale of Shenzhen’s information industry will reach 2.8 trillion yuan, ranking first among large and medium-sized cities in China; 21 enterprises were selected as China’s top 100 electronic information enterprises in 2020, ranking first in China; 11 enterprises were selected into the top 100 China National Software And Service Company Limited(600536) enterprises in 2019, ranking the second in China. At the same time, Shenzhen is also strengthening the core competitiveness of high-tech industries and improving the overall independent innovation ability of the industry, which also needs new energy.
It can be seen that China Electronics is also facing new market opportunities. In the highly globalized electronic market, the industrial reform of its subsidiaries will also accelerate, and it should further strengthen its own ability in the market competition. An industry source told reporters: “The relocation of headquarters is an important symbol of deepening reform. In places with high freedom of market allocation, it is conducive to play a market-oriented role and increase the strength of central enterprises. Central enterprises are also one of the market-oriented elements, play an important role in market-oriented reform, and are actively participating in market-oriented reform. Relocation has important industrial transformation and reform significance.”
He also pointed out that after moving to Shenzhen, the asset elements owned by China Electronics may change, and will also face challenges in various aspects such as mode and culture. At the same time, the outside world is also concerned about the future report card and long-term planning, whether there are effective assessment standards, etc., which also depends on the determination of transformation and reform.
(21st Century Business Herald)
