On December 27, Sinochem Group signed the Capital Increase Agreement of Sinochem Energy Co., Ltd. with five strategic investors, including ABC Financial Asset Investment Co., Ltd., ICBC Financial Asset Investment Co., Ltd., Beijing Chengtong ICBC Equity Investment Fund (Limited Partnership), Qingdao Zhongxin Dinghui Equity Investment Partnership (Limited Partnership), and CITIC Securities Investment Limited. This project has introduced the most strategic investors among “top 100 subsidiaries of central enterprises and top 100 local state-owned backbone enterprises” in the reform of state-owned enterprises (SOEs).
According to the agreement, Sinochem Energy released 20% of its shares in reward for introducing these five investors with an investment totaling RMB 11.555 billion. In this end, this project has laid a good foundation for constantly deepening the reform and will help build a more market-oriented management mechanism and lift the allocation and operation efficiency of state-owned capital.
Mr. Frank Ning, President of Sinochem Group, said at the signing ceremony that, Sinochem Energy should further promote the system reform, stimulate vitality, power and creativity according to market needs, make good use of capital invested, and create added value. From the perspective of the capital market, Sinochem Energy should draw near and integrate into the capital market to bring more benefits and value to both the society and the market. From the perspective of internal cooperation, Sinochem Group will continue to support Sinochem Energy to explore innovative systems and mechanisms, and support the development of Sinochem Energy to the fullest extent permitted by laws and regulations.
On October 14, the capital increase project of Sinochem Energy was listed at China Beijing Equity Exchange, receiving market enthusiasm and extensive recognition from institutional investors. On December 9, 2019, the project completed listed trading, planning to introduce five investors and in turn, Sinochem Energy shall release 20% of its shares.
Sinochem Energy consists of business sectors including petroleum trading, refining and petrochemicals, petroleum distribution and retailing, petrochemicals trading and distribution, warehousing and logistics, and industrial park development. It has evolved into a key domestic energy player featuring internationalization, complete industrial chain, and prominent marketing capabilities. In 2018, it was listed among “top 100 subsidiaries of central enterprises and top 100 local state-owned backbone enterprises”.
According to the relevant deployment of the SASAC of the State Council, the “top 100 subsidiaries of central enterprises and top 100 local state-owned backbone enterprises” should make breakthroughs in the reform of mixed ownership structure, corporate governance structure, market-oriented operating mechanism, incentive mechanism and longstanding issues.