Guangdong No.2 Hydropower Engineering Company Ltd(002060) ( Guangdong No.2 Hydropower Engineering Company Ltd(002060) ) on March 7, it was announced that the company was planning to issue shares to purchase 100% equity of Guangdong Construction Engineering Group Co., Ltd. (hereinafter referred to as “Construction Engineering Group”) held by the controlling shareholder Guangdong Construction Engineering Group Holding Co., Ltd. (hereinafter referred to as “construction engineering holding”), and non-public offering of shares to raise supporting funds. The trading of the company’s shares has been suspended since the opening of the market on March 8, and the suspension time is expected to be no more than 10 trading days.
Looking back, on December 11, 2017, Guangdong No.2 Hydropower Engineering Company Ltd(002060) announced that the controlling shareholder Guangdong Hydropower Group Co., Ltd. (hereinafter referred to as “Hydropower Group”) merged with the construction engineering group, and the new construction engineering group became the new subject after the merger. This reform and reorganization is mainly group level reorganization and merger, and does not involve the change of Guangdong No.2 Hydropower Engineering Company Ltd(002060) business. After the reform and reorganization, Guangdong No.2 Hydropower Engineering Company Ltd(002060) the actual controller is still the state owned assets supervision and Administration Commission of Guangdong Province.
However, because the original construction engineering group has businesses such as water conservancy and power generation that coincide with Guangdong No.2 Hydropower Engineering Company Ltd(002060) project, the two companies have the problem of horizontal competition.
On December 3, 2021, Guangdong No.2 Hydropower Engineering Company Ltd(002060) in an institutional survey, said that after the reform and reorganization of the construction engineering group and the Hydropower Group in 2018 to form the new construction engineering group and become the indirect controlling shareholder of the company, the new construction engineering group promised to solve the problem of horizontal competition with the company within five years after the completion of the equity transfer of the Hydropower Group, and the specific scheme is being studied and formulated.
On December 9, 2021, the hydropower group and its Guangdong No.2 Hydropower Engineering Company Ltd(002060) shares held by the construction engineering group were transferred to the construction engineering holding for free. After the transfer, the construction engineering holding directly or indirectly held Guangdong No.2 Hydropower Engineering Company Ltd(002060) 37.23% of the shares. It was announced that the equity transfer was to further deepen the reform of state-owned enterprises, optimize the allocation of resources and reduce the management level.
On February 18, Zhang Yumin, Secretary of the Party committee and chairman of China Construction Engineering Group, visited Guangdong No.2 Hydropower Engineering Company Ltd(002060) for investigation. Zhang Yumin Requested Guangdong No.2 Hydropower Engineering Company Ltd(002060) deep ploughing project construction and clean energy investment and construction area, implement the positioning of “comprehensive development of construction” given by the group, and implement the three-year action task of state-owned enterprise reform and benchmarking and improvement action task.
Now, the five-year commitment has entered the last year. Coupled with the requirements of the three-year action task of state-owned enterprise reform, the overall listing of the assets of China Construction Engineering Holdings has finally begun.
According to the announcement, the current main businesses of the construction engineering group are construction engineering, construction related industries (construction scientific research, technical services, equipment and materials and construction services), water conservancy management and hydropower generation.
The Construction Engineering Group has the qualification system of construction engineering construction, municipal public works and other special general contracting and complete professional supporting facilities, and its business covers the whole infrastructure industry; With 2 national scientific research institutions, 19 provincial scientific research institutions and 29 high-tech enterprises, it is a new type of comprehensive urban construction service operator with core competitiveness and a regional leading enterprise in the construction industry.
In 2020, the operating income of China Construction Engineering Group was 69.4 billion yuan, with total assets of 93.3 billion yuan. It has more than 200 subsidiaries at all levels, and has ranked among the “top 500 Chinese enterprises” for 16 consecutive years (ranking 332 among the top 500 Chinese enterprises in 2020 and 302 among the top 500 Chinese enterprises in 2021)
