The news that Nanjing Hanzhong State Power Co., Ltd. is about to disappear has aroused widespread attention and discussion. It once lost more than 100 billion yuan in one yearRMBThis central enterprise has now been taken over as China Power InvestmentSubsidiaries。Years of bad management and mismanagement have brought the former central enterprise to the brink of decline.
ChinaHuarongAs one of the four largest asset management companies in China, Asset Management was established in the late 90s of the last century. At that time, China was facing the pressure of joining the WTO, in order to solve the problems of industry, agriculture, construction, and medium-sized enterprisesState-owned banksAccumulated in large quantitiesNon-performing assetsquestion, the state decided to establishFinanceAsset management companies undertake theseNon-performing assets。So, ChinaHuarongAs one of the asset management companies, it came into being.
ChinaHuarongundertakingNon-performing loansThe most, with a total of more than 407.7 billion yuanRMB。At first, theseNon-performing assetsThe processing plan is to be completed within 10 years and withdrawn from the market. However, over time, none of these four asset managers managed to exit successfully and instead continued to exist.
In 2009,Lai XiaominServed as ChinaHuarongPresident, he led the company through a series of expansion plans. Through acquisitions and restructurings, ChinaHuarongSuccessively obtainedBanks, private equity, ** consumptionFinanceand so onFinancial Licenseto become a huge familyFinanceEnterprise. China, 2015HuarongListed on the Hong Kong Stock Exchange. Its market capitalization reached 110 billion yuanRMB, becoming the largest state-owned enterprise in China by market value at that timeFinanceAsset management companies. In the following years, ChinaHuarongContinued to expand, revenue and profit continued to grow, and total assets reached 187 trillion yuan.
However, in 2018Lai XiaominAfter being investigated and punished, ChinaHuarongThe true face is gradually emerging. The company's revenue declined, net profit**, and total assets declined. By 2020, the company lost 102.9 billion yuanRMB, with an average daily loss of 2800 million yuan. After turning losses into profits in 2021, it will lose 27.6 billion yuan again in 2022 and continue to lose money in the first half of 2023. Lai Xiaominunder the management of ChinaHuarongThe decline is obvious, and the original treatmentNon-performing assetsof the company has now become itselfNon-performing assets
Faced with losses and huge debts, ChinaHuarongExternal funding had to be sought. In 2022, CITIC Group and many other strategiesInvestmentsThey have successively invested in ChinaHuarongCITIC Group became the largest shareholder, with a shareholding ratio of 2646%。Subsequently, ChinaHuarongDecided to change its name to CITICFinanceassets, officially controlled by CITIC Group. For CITIC Group, this means that it has obtained a new asset management license and its overall strength has been improved again.
ChinaHuarongThe fate of central enterprises has triggered people's thinking about the reform of central enterprises. The central enterprise is the stateEconomyIts role cannot be ignored. However, central enterprises are also facing challenges in the internal and external environment, how to maintain competitiveness andSustainabilityIt has become an urgent problem to be solved.
Looking back at ChinaHuarongIn the past, the company was inLai XiaominThe tenure has experienced a brief period of prosperity and a long period of decline. Although the expansion strategy once brought high growth, it also came with high risks and high debt. The company's management may have overlooked it in the long-term expansion processRisk controland internal management, which led to a growing situation of losses and insolvency.
The reform of central enterprises requires more in-depth thinking and development. theCriticalIt is necessary to seek a balance between efficiency and stability, and to give full play to the central enterprises in the countryEconomyand social development, and at the same time to pay attention toRisk managementand internal governance. Central enterprises should focus on innovation and transformation, and adaptEconomyThe need for transformation and upgrading, strengthen the sensitivity to market changes and industry trends, and avoid blind expansion and single dependence.
In addition, the reform of central enterprises also requires more effective supervision and governance mechanisms. ** The department should strengthen the supervision and guidance of central enterprises, promote the scientific and standardized management and decision-making of central enterprises, introduce a market-oriented competition mechanism, and stimulate the internal vitality and innovation momentum of central enterprises. At the same time, the supervision and restraint of senior managers of central enterprises should be strengthened to prevent the risks of corruption and abuse of power.
By ChinaHuarongWith the case analysis and thinking on the reform of central enterprises, we can more clearly understand the importance and urgency of the reform of central enterprises. Only by making substantial progress in the management and governance of central enterprises can we better play the role of central enterprises and promote the countryEconomystability andSustainability