Re integration of central enterprises: COFCO's "brothers" changed into "fathers and sons"

Introduction: the issue of "ownership" of China Hua [0.081.30%] grain logistics group company (hereinafter referred to as "Hualiang"), the largest cross regional grain logistics enterprise in China, has finally come to a conclusion J97 yesterday (March 12), the state owned assets supervision and Administration Commission website released information that, with the latest approval of the State Council, COFCO as a whole was incorporated into COFCO Group Co., Ltd (hereinafter referred to as COFCO), becoming a wholly-owned subsidiary of COFCO and no longer acting as an enterprise of the SASAC to perform the responsibilities of investor COFCO j97 has a wide business scope in the whole industrial chain, which overlaps with COFCO's business to a certain extent On how to integrate, the reporter of daily economic news called COFCO, but no reply was received J97 industry experts said that in theory, COFCO could improve its grain logistics efficiency and domestic market competitiveness after taking over COFCO However, it is a big challenge for COFCO to "digest" it well Before j97 was founded, COFCO / j97, a company with a long way to go It is understood that in order to deepen the reform of grain circulation system, establish a fast channel of "transferring grain from the north to the South" and promote the "four dispersions" (bulk, bulk transportation, bulk storage and bulk unloading) of grain, China has formed four relatively independent and interconnected grain transportation corridors in the northeast, Yangtze River, southwest and Beijing Tianjin on the basis of World Bank project loans Since then, the state has established COFCO on the basis of World Bank project loans J97 but the establishment of COFCO is not smooth Information on the official website of COFCO shows that the State Council approved the establishment of COFCO on January 9, 2000 Later, for various reasons, the establishment work ran aground In 2004, the organization was put on the agenda again After a series of investigations and approvals, COFCO was registered in August 2006 with a registered capital of 4.755 billion yuan, which was jointly managed by the national development and Reform Commission, the Ministry of finance, the state owned assets supervision and Administration Commission and the State Food Administration The grain purchase and sale business was guided by the development and Reform Commission, the Ministry of finance, the State Food Administration and the Agricultural Development Bank of China However, COFCO's performance has not been satisfactory It is reported that Hualiang's financial report shows that in 2010, its total assets were 22.089 billion yuan, its operating revenue was 16.646 billion yuan, its total profit was - 89 million yuan, and its net profit was - 120 million yuan In the first three quarters of 2011, the total liabilities of COFCO was 18.444 billion yuan, with the asset liability ratio of 87.56% J97 on April 10, 2012, Hualiang was transferred to the state owned assets supervision and Administration Commission (SASAC) for management, becoming another grain enterprise managed by SASAC It is also known as the "three major state-owned grain merchants" together with COFCO and CSSF J97 but compared with the other two, Hualiang has a "short life" Since the day when Hualiang was formally transferred to SASAC for management, its fate of integration has been doomed In 2009, Yu Xubo, President of COFCO, said that both COFCO and COSCO intended to acquire COFCO, so as to form a new situation of two wheel drive of COFCO J97 in July 2012, SASAC announced the appointment and removal of personnel Chi Jingtao, the former vice president of COFCO, served as the general manager and Deputy Secretary of the Party committee of COFCO, Peng anqiao, the former general manager of COFCO group grain and Oil Co., Ltd., Xu Feng, the deputy general manager of COFCO, and Li Min, the former deputy general manager of COFCO, served as the Secretary of the Party committee J97's decision was interpreted by the industry as that COFCO was about to take charge of COFCO, while the hope of COFCO was slim Ma Wenfeng, analyst of j97 Beijing Oriental egger Agricultural Consulting Co., Ltd., told Daily economic news reporter: COFCO has been transformed into a market-oriented operation enterprise, with both domestic and international market competition experience At present, COFCO is still a national policy grain and oil enterprise Considering the need of competition with multinational grain enterprises, COFCO's receiver should be COFCO with more market-oriented operation experience J97 COFCO's "resettlement" problem / how much "dividend" can j97 win from this merger and acquisition with COFCO's success in the competition with COFCO? This has become the focus of the industry Some insiders in j97 said that at present, COFCO's domestic grain trade business share is relatively small After the acquisition of COFCO, the layout of COFCO's domestic grain trade will be more reasonable J97 Ma Wenfeng told the daily economic news that in theory, after winning COFCO, it can greatly improve the efficiency of COFCO Grain Logistics and domestic market competitiveness Zheng Yujie, a researcher in agriculture, forestry, animal husbandry and fishery, a consultant of j97 China Investment Corporation, believes that COFCO is mainly engaged in grain transportation and involved in grain trade and other businesses COFCO is known as the operation of the whole industrial chain, which covers many aspects such as grain, oil and food trade, processing, logistics, storage and transportation, etc., so the addition of COFCO can improve the market competitiveness of COFCO's grain trade, logistics, storage and transportation and other business areas J97 seems to have a bright future, but COFCO is not optimistic about its grain and oil business According to media reports, in addition to COFCO packaging [6.38-1.70%] (00906, HK), 6 of the 7 listed companies under COFCO fell into performance quagmire China Grain and Oil Holding Co., Ltd., a listed company of COFCO group in charge of grain and oil processing [4.30-1.38%] (00606, HK), previously released performance expectations that compared with 2011, the company's comprehensive net profit in 2012 will be significantly reduced, but the decline is significantly narrower than that in the medium term One of the main reasons affecting the company's annual performance is that the domestic macro-economy and related industries are full of challenges, which makes the price transmission of oil, starch, rice and other products inadequate, and the gross profit space is squeezed According to j97 and China Grain & oil holding's 2012 half year report, the total revenue in the first half of 2012 was HK $41667.9 million, up 24.0% year on year, but the net profit was only HK $501.8 million, down 68.7% year on year The overall gross profit margin decreased from 10.8% in the same period of 2011 to 6.3% The decrease of gross profit was mainly reflected in the oilseed unit and rice unit According to j97 Zheng Yujie, it is a great advantage for COFCO to win COFCO, which is an important step in the overall industrial chain layout of COFCO In the future, COFCO's business layout will be more perfect, and its advantages in transportation will be more obvious The cost of grain and oil transportation is expected to be significantly reduced The financial statement of the loss in advance last year may be revised this year In response to j97, some insiders said that the concept of COFCO's whole industrial chain was well proposed, but each business of the group was independent and did not achieve synergy After the incorporation of COFCO, what position will COFCO give COFCO in its whole industrial chain? How will COFCO deal with the overlap of business and resources with COFCO? J97 to this, "daily economic news" reporter called COFCO, but as of the press release has not received a response J97