On March 18, Zhengzhou Coal Industry & Electric Power Co.Ltd(600121) ( Zhengzhou Coal Industry & Electric Power Co.Ltd(600121) ) announced that the company received a notice from the controlling shareholder Zhengzhou coal industry (Group) Co., Ltd. (hereinafter referred to as Zhengzhou Coal Group), that Henan SASAC plans to transfer its 72.03% equity directly held by Zhengzhou Coal Group to the state owned Assets Supervision and Administration Commission of Zhengzhou Municipal People’s government free of charge, and is currently performing relevant procedures.
This means that although the controlling shareholder of Zhengzhou Coal Industry & Electric Power Co.Ltd(600121) is still Zheng coal group, the actual controller will be changed to Zhengzhou SASAC, thus becoming a veritable “Zhengzhou” coal and electricity industry company.
The reporter saw on the website of Henan SASAC that at present, Zheng coal group is still listed as the provincial management enterprise of Henan SASAC. In addition, the list also includes Henan energy and Chemical Group Co., Ltd., China Pingmei Shenma Group, Anyang Iron & Steel Inc(600569) Group Co., Ltd. and other companies.
At the 2022 working meeting held by Zheng coal group at the beginning of this year, the relevant person in charge has made it clear that it is necessary to plan the transformation and development after the sinking management of the group company in advance. According to the statement at that time, the sinking management of the group company has been advancing. It is necessary to plan in advance how to give full play to the advantages of territorial management, accelerate the transformation and development of the group company and achieve more sustainable development. We should seize the opportunities for the development of vacation and leisure projects, and actively integrate them into the local economy.
From a broader perspective, in recent years, some other provinces also have cases of provincial enterprises transferred to local governments.
Take Jinan Iron and Steel Group as an example. In December last year, Lu Xinxin material, a company listed on the new third board, issued an announcement and received a notice from the controlling shareholder of Jinan Iron and steel group. Shandong SASAC approved the equity transfer of Jinan Iron and Steel Group and agreed to transfer 100% of the equity of Jinan Iron and Steel Group held by Shandong Iron and Steel Group to Jinan SASAC. This means that Jinan Iron and Steel Group will officially become a municipal enterprise in Jinan.
However, more cases are the transfer of assets under state-owned assets to local finance, including Kweichow Moutai Co.Ltd(600519) , Guangzhou Pearl River Piano Group Co.Ltd(002678) , Wangfujing Group Co.Ltd(600859) , etc.
From the perspective of this transfer of Zhengzhou state-owned assets system, in addition to the equity change of the controlling shareholder Zheng coal group, Zhengzhou Coal Industry & Electric Power Co.Ltd(600121) as a listed subject, has also been changing its equity recently.
In December last year, Zhengzhou Coal Industry & Electric Power Co.Ltd(600121) once announced that the controlling shareholder Zheng coal group planned to transfer 63.23 million tradable shares (accounting for 5.19% of the total shares of the company) of Zhengzhou Coal Industry & Electric Power Co.Ltd(600121) held by it to China Pingmei Shenma Group. At that time, the planned unit price of share transfer was 4.87 yuan / share, and the total price of share transfer exceeded 307.93 million yuan.
According to the plan at that time, after the equity change, China Pingmei Shenma Group will hold 6 Zhengzhou Qianweiyangchu Food Co.Ltd(001215) 19% shares, Zheng coal group will still be the controlling shareholder of the company, and SASAC of the provincial government will still be the actual controller of the company.
This transfer is expected to be coordinated and integrated Zhengzhou Coal Industry & Electric Power Co.Ltd(600121) said at that time that China Pingmei Shenma Group recognized the long-term development prospect of Zhengzhou Coal Industry & Electric Power Co.Ltd(600121) and made strategic investment in Zhengzhou Coal Industry & Electric Power Co.Ltd(600121) through this transaction, China Pingmei Shenma Group will help Zhengzhou Coal Industry & Electric Power Co.Ltd(600121) optimize the ownership structure and corporate governance, support Zhengzhou Coal Industry & Electric Power Co.Ltd(600121) improve quality and efficiency, and promote the integration and coordinated development of state-owned resources.
Before the transfer of the controlling right of Zheng coal group, Zheng coal group and Pingmei Shenma were both large coal enterprises directly controlled by Henan SASAC. Therefore, Pingmei Shenma’s participation in Zhengzhou Coal Industry & Electric Power Co.Ltd(600121) at that time would not affect the actual control of Henan SASAC over the two enterprises. However, judging from the announcement on the proposed change of actual controller disclosed by Zhengzhou Coal Industry & Electric Power Co.Ltd(600121) tonight, the SASAC of Henan Province will probably take advantage of Pingmei Shenma to realize the indirect shareholding of Zhengzhou Coal Industry & Electric Power Co.Ltd(600121) in the future.
