Our shareholder: China National Chemical Corporation Limited (hereinafter referred to as Sinochem Group) and China National Chemical Corporation Limited (hereinafter referred to as Sinochem) implemented a joint reorganization. It is understood that the newly established new company, Sinochem Group and CHEMCHINA as a whole, in which the SASAC performs the duties of investor on behalf of the State Council, will be included in the new company. The merger of the “two modernizations” means that a huge central enterprise with assets of more than trillion will be born. Some institutional research reports pointed out that after the merger, the new company will enter the world’s top 40 enterprises by revenue volume.
Some analysts also pointed out that the merger of chemical enterprises is the current trend of the development of the international chemical industry, and the merger of “two modernizations” is also to better participate in international competition and gain international voice. At the same time, the current competition in the domestic petrochemical industry is very full, so there is no need to worry about the formation of a new monopoly after the merger. “At present, we still have some problems to be solved in the petrochemical industry. The new company after the merger will have to make up for these shortcomings in the supply chain in the future.”
After the reorganization, the total assets of the new company exceed trillion “and its revenue volume will enter the top 40 in the world”
The merger and reorganization of two large central enterprises means that trillion level “Big Mac” central enterprises will be born.
According to the official website of Sinochem Group, the company was founded in 1950, formerly known as China National Chemical Import and Export Corporation. It is a leading integrated operator of petroleum and chemical industry, agricultural inputs (seeds, pesticides, fertilizers) and modern agricultural services, and has a strong influence in urban development and operation and non bank financial fields. Sinochem Group is also one of the first Chinese enterprises to be listed in the Fortune Global 500, ranking 109th in 2020.
According to public information, Sinochem Group’s revenue increased from 243 billion yuan in 2009 to 591.1 billion yuan in 2018, its total profit increased from 6.14 billion yuan in 2009 to 15.95 billion yuan in 2018, and its total assets increased from 176.6 billion yuan in 2009 to 489.7 billion yuan in 2018. According to other data, by the end of December 2019, the total assets of Sinochem Group had reached 564.3 billion yuan.
According to the official website of China National Chemical Corporation, the company is a state-owned enterprise established on the basis of the enterprises affiliated to the former Ministry of chemical industry. It is the largest chemical enterprise in China and ranks 164 in the world’s top 500. The strategic positioning of the company is “new science, new future”. It has six business segments: new chemical materials and special chemicals, agricultural chemicals, petroleum processing and refining products, rubber tires, chemical equipment and scientific research and design. The 2019 annual report of CHEMCHINA shows that the total assets of the company are 843.962 billion yuan and the revenue is 454.346 billion yuan.
In addition, according to the announcement released on the official website of Sinochem Group on March 31, the restructured new company covers the business fields of life science, material science, basic chemical industry, environmental science, rubber tires, machinery and equipment, urban operation, industrial finance and so on. It will do a solid job in business coordination and management improvement, gather innovative resources, open up the industrial chain, and improve the competitiveness of the industry, especially in the application fields of construction, transportation, new generation information industry and so on, Break through the bottleneck of key materials and provide comprehensive solutions for chemical materials; In the field of agriculture, provide high-level agricultural materials and comprehensive agricultural services to promote the transformation and upgrading of China’s agriculture; In the field of chemical environmental protection business, vigorously promote energy conservation and emission reduction, and contribute to the realization of China’s carbon peak and carbon neutralization goals.
According to CICC Research Report, in 2018, China’s chemical products sales were about 1.2 trillion euros, accounting for more than 35% of the global market. BASF predicts that China’s share in the global chemical market will exceed 50% by 2030. In 2019, according to Fortune magazine, Sinochem Group and CHEMCHINA ranked 88th and 144th among the world’s top 500 enterprises respectively. In addition, CICC also predicts that the new company will enter the world’s top 40 enterprises by revenue volume after the merger.
Post time: Aug-10-2022