Zhifengyun:If it is said that the main responsibility and main business of state-owned enterprises are in their own bowls, then the strategic emerging industries that have been developing strongly in the past two years are planted in the ground.
Author |Zhiben consults the State-owned Enterprise Industry Research Institute.
Editor-in-charge|billionsEdit|Ling.
State-owned enterprises to continue to develop, not only to serve the bowl in hand, but also to plant the grain in the field, this is a very difficult errand to do well, not to mention the new industry of food, the enterprise has never planted before, whether it can germinate, whether it can output, whether it can enter the warehouse, there are greater unknowns.
Is there one or some methods that can help state-owned enterprises to develop their main business smoothly while having a greater certainty of successfully developing new industries?
In the past two years, state-owned central enterprises have initially provided some experience solutions through exploration. Zhiben Consulting summarizes these development paths of the new industry and provides you with reference today.
Our basic conclusion: there are five basic models for state-owned enterprises to lay out strategic emerging industries, which are:
Mode 1: Extended investment projects with new business as the main businessMode 2: Establish a second-level professional subsidiary as a platform for the new industryMode 3: A number of groups jointly establish a joint venture in the new industryMode 4: Develop new business through investment and equity participationMode 5: Market-oriented** investment war new businessEach of these five modes has its own applicable scenarios and advantages, and the following are discussed with you with examples.
Strategic emerging industries are concentrated in basic industries and key products such as new energy, new materials, and high-end equipment, which makes these businesses directly become a link in the core industrial chain of some large state-owned enterprises.
For example, in the field of energy and chemical industry, for a long time, the production of chemical products in the downstream of the industry is the upstream oil and gas, and now the development of new energy, then through the investment of upstream business, the traditional energy can be replaced by new energy such as wind and solar, and the traditional industrial chain will be transformed and upgraded.In this way,Zhanxin business is not an independent and isolated industry, but an inevitable extension and expansion of the main business. In this case, some state-owned enterprise groups have carried out the layout of new businesses through direct investment projects in the industrial chain. Let's take an example:
In August 2023, Sinopec announced that China's largest photovoltaic power generation direct production green hydrogen project, the Xinjiang Kuqa Green Hydrogen Demonstration Project, was fully completed and put into operation.
Photovoltaic and hydrogen energy are typical businesses in the field of new energy, but the garage green hydrogen project invested by Sinopec is not a separate energy production plant, it is through a photovoltaic power station with an area of about 900 football fields, to produce green electricity, and then electrolysis of water to produce hydrogen, so as to fully replace the traditional natural gas hydrogen production in oil refining and processing, and finally benefit from Sinopec Tahe Refining and Chemical Company, which can realize the greening of this company's refining products.
Therefore, this is the largest green hydrogen project in China, with a certain output and a certain market, and can be seamlessly embedded in Sinopec's chemical industry chain, which can be said to be the perfect combination of Zhanxin industry and traditional main business!
Therefore, the main body of Sinopec's investment and construction of this new project is implemented by its subsidiary, Sinopec Xinxing Company, through the establishment of a separate project company, Sinopec Xinxing Xinjiang Green Hydrogen New Energy.
The new industrial layout model represented by Sinopec's green hydrogen project is called "the extended investment project of the main business", and its basic form is shown in the figure below
Under this model, state-owned enterprises do not need to list the new industrial sectors separately, but directly complete the new projects that are closely integrated with the main business as normal investment projects in the industrial chain.
The advantages of this model are also obvious, the new project is fully embedded in the main business of the enterprise, the market risk is greatly reduced, and only the technical problems need to be solved.
To illustrate the second pattern, let's look at another example.
In May 2023, China Telecom Quantum Information Technology Group*** was unveiled in Hefei. With a registered capital of 3 billion yuan, the company is said to be the world's largest registered quantum technology company, and is 100% controlled by China Telecom.
China Telecom Group has invested heavily in the establishment of a secondary industry group to develop the quantum communication industry for two reasons, one is that this group has accumulated more experience in the industry and has a certain business foundation, and the other is that the volume of this industry is very large, and China Telecom has cultivated it as a pillar of the core industry in the future.
This is indeed the case. China Telecom has a long history in the quantum industry, led the formulation of 5 quantum communication industry standards, self-developed quantum security service platform, has the core capabilities of quantum encryption of quantum keys and national cryptography algorithms, and cooperated with leading enterprises in the industry to establish the "Quantum Information Application Cooperation Ecological Alliance", and the quantum industry system has been initially formed.
China Telecom Group invested in the establishment of a quantum information technology group, as the core platform of the group's quantum communication industry, under this platform company, continue to incubate and invest in quantum technology companies in different segments.
For example, the world's first quantum-secure call product - "Quantum Secret Talk" was first launched by China Telecom in Hefei, and the product comes from China Telecom Quantum Technology, a joint venture between China Telecom and Science and Technology Dadun Quantum, which currently has 500,000 users.This model of establishing a second-level professional group and being responsible for the layout of a new industry in a certain field is not only adopted by China Telecom. In the organizational system of China Southern Power Grid Group, it has set up a special sector for emerging businesses, and its secondary companies Energy Storage Co., Ltd., Industrial Investment Group, and Comprehensive Energy Co., Ltd. are respectively responsible for the layout and expansion of different new businesses.
Under what circumstances can a state-owned enterprise group set up a secondary professional subsidiary as a platform for the new industry, like China Telecom and China Southern Power Grid?
Zhiben Consulting believes that the core condition is that the new industry to be developed has a certain business foundation in this enterprise, and has the basic elements to cultivate it as the core business in the future, and the group company has a good idea of the planning and development of this industry.
If there is such a prerequisite, then we suggest that your enterprise can choose mode 2 and set up a separate secondary enterprise to be responsible for the development of this kind of new industry.
The specific form of this pattern is similar to the following diagram:
The third model discussed today involves multiple groups joining forces to develop new businesses with the same goal.
Let's start with the schematic:
For joint ventures, all friends will be no strangers. This kind of joint venture model of joint investment, risk sharing, and results sharing by multiple shareholders also has its unique benefits when applied to the new industries of state-owned enterprises.
The first advantage is that the new industry belongs to tomorrow, the prospect must be good, all industry participants have seen the opportunity, have the willingness to lay out the development, but all face the lack of experience, need to learn the problem, at this time several enterprises in the industry, used to be competitive, but now there is a common interest appeal, I hope that everyone will pick up firewood and flame high. Under the premise of common needs, joint ventures to carry out layout expansion are just a good choice!
The second advantage is that through the form of joint ventures, the joint layout of the forefront of the industry can make full use of and share each other's resources in the industry, and at the same time reduce the technical risks and market risks of independent investment in R&D layout. As long as the responsibilities and rights of all parties can be clearly stipulated, this kind of joint venture is profitable for everyone.
Let's give you another example:
In June 2020, China Automobile Chuangzhi Technology Co., Ltd., which was jointly funded by Ordnance Equipment Group, China FAW, Dongfeng Company, Changan Automobile and Jiangning Jingkai Technology Co., Ltd., with a registered capital of 16 billion yuan, was established.
What is the business of this company "China Automobile Chuangzhi"?
According to the company, it focuses on the three major fields of intelligent electric chassis, hydrogen fuel power, and intelligent networking, and carries out technology research and development and industrial incubation. The company's development goal is to build China's first in three to five years.
1. A world-class innovative automotive high-tech enterprise.
These three business areas can be said to be the core technology frontiers of intelligent new energy vehicles. Whether it is the shareholder structure or the scale of the registered capital, this company reveals the dream of striving to become a world-class enterprise.
In addition to Jiangning Jingkai Technology Co., Ltd., a local shareholder representing the company's registered place in Jiangning District, Nanjing, the main shareholders of other companies are jointly composed of three central enterprises, FAW Group, Dongfeng Motor Group, Ordnance Equipment Group and its subordinate Changan Automobile Company, which are the three core enterprises in the automotive industry in the central enterprises, which are combined through the joint venture of China Enterprise Chuangzhi, each accounting for 25% of the shares, with an investment of 4 billion yuan respectively.
The joint venture of three central enterprises to form a joint venture of China Enterprise Chuangzhi Company can gather the scattered cutting-edge technology resources and achieve technological breakthroughs through joint research.
Next, we enter the fourth mode, in which state-owned enterprises enter the new industrial technology companies outside the system as investors and strategic shareholders through investment and equity participation, so as to borrow social forces and market forces to lay out new businesses.
Please don't get me wrong. While state-owned enterprises (SOEs) investing in technology companies is not new, it is not the model we introduced today.
The so-called development of Zhanxin business through investment and equity participation here refers to the systematic research of a state-owned enterprise group to invest in a new industrial chain or ecology through systematic research.
This kind of investment is not a single, independent, or occasional, but parallel, multi-point, and planned, and its goal is to grasp the layout foundation and industrial capacity of the new industrial chain through the investment penetration of different industrial fields and links, so as to prepare for possible large-scale entry in the future.
The basic schematic diagram of this pattern is as follows:
In this regard, China Mobile has demonstrated with years of practice.
In October 2023, the first China Mobile Industry Investment Ecological Cooperation Conference was held in Changsha, and 110 China Mobile ecological enterprises in which China Mobile participated in the event.
Since 2016, China Mobile has begun to use the platform of its capital holding company and investment company to carry out the development of the industrial ecosystem.
As an industrial investor, focusing on key areas such as computing power, artificial intelligence, 5G-A 6G, data, and network security, and focusing on the three goals of "value contribution, production and investment synergy, and ecological construction", it has established a capital operation system based on direct investment + **, two straights and three bases, and expanded the "ecosystem" enterprises of the modern mobile information industry to more than 500.
Through such a form of equity investment, China Mobile can obtain the rights and interests of the leading enterprises with the most advanced technology and the most prominent position in the new industry, and promote the accelerated growth of these enterprises with market-oriented capital, and at the same time the layout of different industrial fields and links, making China Mobile occupy a larger and more active position in the large category of digital economy infrastructure.
Of course, China Mobile's successful experience in the incubation of new industries is not necessarily suitable for every state-owned enterprise. The systematic incubation of equity investment poses a challenge to doubling the investment management capabilities, industrial analysis capabilities, and collaborative operation capabilities of state-owned enterprises. If your business really needs to develop a new industry, but you are just getting started and gaining experience, you can try this solution on a small scale.
State-owned capital investment companies and state-owned capital operation companies, from the perspective of strategic investors and financial investors, through the path of market-oriented new industries, investment in the development of new industries, is also an effective model in recent years.
The basic situation of this model is shown in the figure:
In the form of the first class, through the full market-oriented way to invest in the new industry, it can be better combined with the capital operation of science and technology enterprises, and at the same time realize a fuller combination of industry and finance, which is in line with the growth law of many new enterprises.
In this regard, the State Development and Investment Corporation has made many successful cases. The company actively explores the effective path of cultivating and developing strategic emerging industries, through direct investment and first-class investment, two-wheel drive, mergers and acquisitions and cultivation of a number of strategic emerging enterprises, and currently has 28 specialized and special new enterprises, including 10 national-level specialized and special new 'little giant' enterprises and 5 individual champions in the manufacturing industry.
The latest example occurred in September 2023, when SDIC Seed Industry Technology officially completed its registration in Sanya City, Hainan Province, which is an important measure for SDIC Group to serve the national seed industry revitalization strategy and implement the development task of strategic emerging industries, with an investment of 4 billion yuan.
In the future, with the establishment and expansion of state-owned enterprises' related new industries, this model of using the best model to leverage the layout and development of new industries will continue to upgrade.
Above, through the cases of five central enterprise groups, we have introduced to you five typical models of state-owned enterprises in the layout of new industries.
Specific to any company, the situation is different, how should we judge and choose among these five types?
In this regard, Zhiben Consulting has made a comparison table of applicable scenarios and advantages and disadvantages for your reference
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