Shanxi coal reform speed increase industry coal mining enterprises merger, coal and electricity joint venture two expectations

“There is no upper limit for the transfer of equity.” The official public number of Shanxi State-owned Assets Supervision and Administration Commission issued a document on November 22, indicating that Jiangsu Guoxin Group will hold some coal-fired power enterprises in Shanxi.

Prior to this, Yangmei Group also established a 10 billion yuan state-owned enterprise mixed fund with Wutongshu Capital Group. Shanxi State-owned coal enterprises such as Datong Coal Industry (601001.SH) and Shanmei International (600546.SZ) were also included in Shanxi. Under the umbrella of SDIC.

"There is a demand for some achievements at the end of this year, so the reform of Shanxi's state-owned coal enterprises has started to accelerate since November. If one coal enterprise can be relocated within the year, it will undoubtedly provide a good demonstration role for other coal enterprises." Zhang Feilong, director of the Coal Research Institute, said on November 23.

In the course of the interview, the 21st Century Business Herald found that for the Shanxi coal enterprises to reform, the current market mainly has coal and electricity joint ventures, and the expectation of mutual integration between the same types of coal enterprises, such as the integration of thermal coal and coking coal production enterprises into one.

Baichuan Information Coal Industry analyst Xie Yaowen pointed out on November 23 that compared with the integration of coal enterprises, it is more important to pay attention to coal-electricity joint ventures. After all, there are cases of Shenhua and Guodian integration. "When coal prices fall, The power plant does not speak, the coal price rises, and the power plant can't sit still. Through the coal-electricity joint venture, the problem of coal-electricity contradiction can be effectively solved."

National reform

As a province with the most concentrated information on state-owned enterprise reforms, Shanxi has repeatedly reiterated that it has maximized the liberalization of state-owned enterprise equity and sought cooperation in many fields and at various levels.

According to the 2017 Shanxi Provincial Government Work Report, this year the Shanxi government promised to introduce a state-owned assets reform plan and comprehensively launch the reform of provincial state-owned enterprises. Nearing the end of 2017, the reform of local state-owned enterprises has shown signs of speeding up, and the breakthrough will undoubtedly be dominated by the most important coal industry.

On November 4th, Shanmei International announced that it intends to transfer 100% equity of five wholly-owned subsidiaries, including Energy Group Sales Co., Ltd., Shanmei International Energy Group Qinhuangdao Co., Ltd. and Shanmei International Energy Group Huayuan Co., Ltd., to Yangquan. City State-owned Capital Operation and Investment Co., Ltd., each of which is transferred at a price of 1 yuan.

"This is not the first time that Shanmei Group has divested its loss-making assets. The assets of listed companies have been very clean, which is undoubtedly beneficial to future reforms." Zhang Feilong said.

Subsequently, on November 7 and 8, Xishan Coal and Electricity (000983.SZ), Yangquan Coal (600348.SH) and Datong Coal and other seven listed coal enterprises in Shanxi released the "Acquisition Report Summary". The State-owned Assets Supervision and Administration Commission of Shanxi Province transferred the equity of the relevant controlling shareholder of the listed company mentioned above to Shanxi Provincial State-owned Capital Investment Operation Co., Ltd. without compensation.

In the above-mentioned acquisition report, each company has issued such a paragraph: “The purchaser will use capital operation and financial instrument innovation as the main means to effectively promote the development and transformation of Shanxi's industrial agglomeration and promote state-owned enterprises through market-based methods. The rational flow of capital and optimal allocation play an important role in demonstrating and supporting the main battlefield of the comprehensive reform of Shanxi Province."

“Although coal prices have started to rise since the second half of 2016, the accumulated liabilities in previous years are still outstanding, which is one of the problems at the level of integration of listed companies.” Zhang Feilong pointed out.

He also said that from the perspective of listed companies, the large-scale direct restructuring of some coal enterprises is not realistic. Therefore, the reform of Shanxi state-owned enterprises in the future will be a breakthrough from some companies with relatively small scale and relatively “clean” corporate bodies. One, the other is good to say."

On the other hand, the “supporting facilities” for the reform of Shanxi coal enterprises are also constantly improving.

On November 8, Yangmei Group and Wutongshu Capital Group signed a cooperation agreement on the coal industry fund in Taiyuan. The first state-owned enterprise in Shanxi initiated and marketed the state-owned enterprise mixed fund.

In this regard, Liu Yukun, president of Wutong Tree Capital, said that the fund will focus on Yangjia Group's mixed ownership reform, mergers and acquisitions, and other aspects of investment, with capital strength to help Yangmei Group's mixed ownership reform, industrial transformation and upgrading, for Shanxi state-owned enterprises. Mixed ownership reforms provide important exemplary experiences.

Two directions

For the integration of Shanxi coal enterprises, there are two main expectations in the industry for coal mining and coal and electricity joint ventures.

According to the China Coal Network, Shanxi will carry out specialized reorganization and plate management for the seven provincial coal enterprises, breaking the pattern of the existing provincial coal enterprises, which are overlapping, competing with each other, and establishing coal-based species. The specialized coal production group will achieve strong alliance through mergers and acquisitions.

“The main coal types include thermal coal, coking coal and anthracite. For example, anthracite producers mainly rely on Shanxi Coal Group and Yangmei Group, while thermal coal is mainly distributed in Jinbei area. Datong Coal has the highest output.” Xie Yaowen said .

According to the above-mentioned coal classification and integration, will there be a “carrier-class” coal enterprise in Shanxi in the future?

"There may be only three large entities, which will increase the concentration of the industry on the one hand, and solve the problem of homogenization competition among coal enterprises in the province on the other hand, thereby improving the overall competitiveness of Shanxi coal enterprises." Zhang Feilong believes that the program is still Without final confirmation, it depends on how each company implements it.

He also said that Datong Coal has been ranked among the top four in the industry. If the thermal coal assets are integrated into the company, at least the scale will not be weaker than the China Coal Group. "In the competition with Inner Mongolia and Shaanxi, the right to speak will follow. Enhancement."

In contrast, the concentration of coking coal market is slightly worse. If Shanxi Coking Enterprises integrates according to the above ideas, it will give birth to an absolute leader in the industry.

However, Xie Yaowen believes that it may not be the integration of coal enterprises in the future, but more attention should be paid to the combination of coal enterprises and electricity companies.

The "Guiding Opinions on Deepening the Reform of State-Owned Enterprises in State-Owned Enterprises" promulgated by Shanxi Province also emphasizes that state-owned enterprises with coal power as their main business should strengthen equity cooperation with downstream users and form industrial synergies.

The contradiction between coal and electricity has existed for a long time, but there is no effective way to crack it. For example, while the profit of listed coal companies in 2012 surged, the profitability of downstream thermal power companies fell sharply.

"The merger of coal-fired power enterprises is more in line with the trend, and can effectively avoid the risk of soaring coal prices, and find a balance point among coal enterprises and power companies. Both of them will remain relatively stable." Xie Yaowen pointed out.

The National Energy Investment Group, which was merged by Guodian Group and Shenhua Group, was formally established on November 20th, which also provided reference and experience for Shaanxi Coal and Electricity Joint Venture.

Due to the high profitability of coal enterprises this year, the debt ratio has decreased to a certain extent, and this is also the time window for opening integration. According to statistics, the average debt ratio of listed coal enterprises in the third quarter was 53.6%, which was 1.79 percentage points lower than the end of the first quarter.

Steel Structures can be used in many industries such as foundation reinforce, electric power transmission structures and tubular scaffolding, etc.

A flange can also be a plate or ring to form a rim at the end of a pipe when fastened to the pipe. A blind flange is a plate for covering or closing the end of a pipe. A flange joint is a connection of pipes, where the connecting pieces have flanges by which the parts are bolted together.

Although the word flange generally refers to the actual raised rim or lip of a fitting, many flanged plumbing fittings are themselves known as 'flanges':

There are many different flange standards to be found worldwide. To allow easy functionality and interchangeability, these are designed to have standardised dimensions. Common world standards include ASA/ASME (USA), PN/DIN (European), BS10 (British/Australian), and JIS/KS (Japanese/Korean). In the USA, ANSI stopped publishing B16.5 in 1996, and the standard is ASME B16.5

Steel Structures

Steel Structures,Steel Structure Building,Classic Steel Structure,Light Steel Structures

Yixing Steel Pole International Trading Co., Ltd , https://www.yx-steelpole.com