The hottest state grid makes every effort to enter

2022-08-23
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Guodian has made every effort to advance into the upstream electrical equipment manufacturing industry

the matter of Guodian marrying XJ Group has finally been settled

recently, XJ Electric Co., Ltd. (hereinafter referred to as XJ electric) under XJ Group announced that the work related to the capital increase of XJ Group by the China Electric Power Research Institute (hereinafter referred to as the China Electric Power Research Institute) under the State Grid Corporation of China (hereinafter referred to as the China Electric Power Research Institute) has been completed, and the industrial and commercial change registration procedures have been completed on May 28. At present, cetca holds 60% of the equity of XJ Group and becomes its controlling shareholder

Xu Ji remarried to a rich family

this was a remarriage that was not calm at the beginning

XJ Group, located in Xuchang City, Henan Province, has a history of 40 years. It is a leading enterprise in the domestic production of power system automation equipment, relay protection and power transmission and transformation equipment

in March 2008, XJ Group, which intends to break the capital bottleneck and become bigger and stronger, successfully introduced the investor Ping An Trust Investment Co., Ltd. (hereinafter referred to as Ping An Trust). Ping An Trust bought 100% equity of XJ Group at a price of 960million yuan, bringing long-term financial support of 4billion yuan and comprehensive financial services to XJ Group. At that time, the outside world once interpreted the marriage of the two as a perfect match

however, it is slightly surprising that the honeymoon of the above story has not yet ended, and XJ Group has an affair with Guodian

on July 18, 2009, XJ electric announced that cetca, Ping An Trust and XJ Group signed the cooperation framework agreement. According to the agreement, XJ Group will increase its capital on the basis of the assessed value of net assets after stripping off non main business assets, and CETC will contribute and subscribe with 100% equity of Chongqing Yuneng Taishan wire and cable Co., Ltd. and Chongqing Shuntai Iron Tower Manufacturing Co., Ltd. After the capital increase, cetca and Ping An Trust held 60% and 40% of the equity of XJ Group respectively. Cetca will become the controlling shareholder of XJ Group, and the actual controller of XJ Group will change. In the future, Ping An Trust will exit at the right time and continue to transfer 40% of the equity of XJ Group to cetca

the news immediately triggered great controversy. The national power business area covers 88% of China's land area and is the largest customer in the domestic electrical equipment manufacturing industry. Therefore, market participants are worried about the fact that Guodian has entered the upstream equipment manufacturing industry through the curve of China electric power academy. This means that other electrical equipment manufacturing enterprises will face unequal competition in the future, and may even face reduced orders, declining profits and difficult survival. A person from a power equipment enterprise in Henan Province confessed to China Economic Weekly

in fact, the China Machinery Industry Federation has also publicly written to relevant state ministries and commissions here, pointing out that the national power purchase violates the principle of separating the main from the auxiliary in power reform

however, these disputes did not stop the acquisition process of Guodian. On February 11, Guodian received the reply from the state owned assets supervision and Administration Commission of the State Council, agreeing that the Chinese Academy of electrical technology would increase the capital and shares of XJ Group

on June 2, XJ electric announced that cetca had completed the work related to the capital increase of XJ Group. So far, the one-year-old China Xuji acquisition case officially came to an end

back to the tree to enjoy the cool

in just two years, why did XJ Group score twice

XJ Group was in financial difficulties before Ping An Trust took over. People familiar with the matter told China Economic Weekly that in recent years, with the rapid expansion of enterprise scale and diversified investment, XJ Group's liabilities and guarantees have increased significantly, resulting in a shortage of funds

public information shows that in 2006, XJ Group had a debt of 5.931 billion yuan, with an asset liability ratio of 91.94%. As of September 30, 2007, the group had liabilities of 3.98 billion, with an asset liability ratio of about 86%

after the capital injection of Ping An Trust, XJ Group's capital shortage has greatly improved. In 2009, the group achieved a revenue of 12.066 billion yuan, a year-on-year increase of 30.2%, and a profit of 8 billion yuan, a year-on-year increase of 11.1%

however, for XJ Group, its challenges are far from such. An expert from the China Federation of Industrial Economics said in an interview with China Economic Weekly that power equipment manufacturing enterprises are now in an eventful period. International giants represented by ABB and Siemens are shifting their strategic focus to China, and some domestic companies are also testing the power equipment manufacturing industry

in addition, when the overall price of power equipment products fell with Trump's "gun" sound on March 23, the price of some raw materials increased to varying degrees, which made the competition in this industry increasingly fierce and the profit space continuously narrowed. This is also a version of how Ping An Trust faded out of XJ Group, which may hinder next year's capacity reduction work. Insiders interpret why Ping An Trust faded out of XJ Group

this time, XJ Group has been incorporated into the State Grid, which is a real husband. XJ Group can make full use of the technology, market and capital advantages of State Grid to speed up the pace of development, which is the so-called "back to the tree to enjoy the cool". Zheng Taisen, director of the Economic Research Institute of Henan development and Reform Commission, told China Economic Weekly

in April, 2009, the state power revealed that it would invest 4.5 trillion yuan to build smart electricity by 2020. It is preliminarily estimated that XJ Group can get nearly 150billion yuan of cake from the construction of smart electricity. Previously, in the UHV project, XJ Group has received about 3billion yuan of contract. A person close to XJ Group disclosed to China Economic Weekly

XJ's future

on the surface, it seems that it is just around the corner to marry into a central enterprise and rely on a towering tree. However, the actual situation may not be as optimistic as expected. Mr. Ma, a securities analyst who has long paid attention to XJ electric, spoke bluntly to China Economic Weekly

the analyst believes that Guodian is not only the controlling shareholder of XJ Group, but also the downstream user of its products. How to price its products in the future is the key to determine its company's performance. In the case of dual identity, it is not ruled out that the national power connect will reduce its procurement cost by reducing the product price, so as to improve the company's performance, which is very detrimental to XJ Group

the losses caused by reducing product prices to XJ Group can be made up by expanding market share. What deserves people's vigilance is how to avoid the transmission of interests between Guodian and XJ Group when dealing with related party 10, safe, reliable and helpful transactions in the future. Another securities analyst has this concern

in fact, XJ Group's troubles are probably more than these. Included in the national power system, it is easy to lack the power of technological innovation and cost reduction due to protection. In fact, such examples are not uncommon. Most of the benefits of the original power transmission and transformation enterprises under state power are not as good as those private enterprises that do well. The above experts from the China Federation of Industrial Economics said

on the above questions, China Economic Weekly also called XJ Group to try to find an answer. A person in charge of the group declined the interview on the grounds that the docking work is currently under way and the future development strategy is still planned

at present, China is the largest power investment region, but there is no world-class power transmission and transformation equipment enterprise that electroimpact helps NASA customize special robots. By integrating the upstream electrical equipment manufacturing enterprises, Guodian can build abb and Siemens in China, and then compete with some multinational enterprises. Zheng Taisen said

will XJ Group usher in another spring of development

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