Original Title: China Railway Group Delineates Work Focus in 2022 to Promote the Restructuring of Qualified Companies and the Stock Reform and Listing
Our reporter Du Yumeng
“In 2021, national railways will complete 748.9 billion yuan in fixed assets investment and put 4,208 kilometers of new lines into production; total corporate operating income is 1,138.3 billion yuan, an increase of 87 billion yuan or 13.4% year-on-year. Among them, passenger transport revenue is 301.6 billion yuan, an increase of 21.5% year-on-year. ; Freight revenue was 435.9 billion yuan, a year-on-year increase of 8.4%. Cost expenditures, debt scale, and asset-liability ratio were actively controlled.” On January 4, China National Railway Group Co., Ltd. (hereinafter referred to as “China Railway Group”) work conference was held in Beijing , On the basis of summarizing the railway work in 2021, further deployment of key railway work in 2022.
The “Securities Daily” reporter learned that in the first year of the “14th Five-Year Plan”, the reform of China National Railway Group Corporation has accelerated. According to Lu Dongfu, Chairman of the Group and Secretary of the Party Leadership Group, the reform measures specified in the three-year action plan for corporate reform of the National Railway Group have been fully implemented, with an overall completion rate of over 80%, and the annual tasks specified by the state have been completed.
In terms of further advancing the capitalization, equity and securitization of railway assets, in 2021, China Railway Group will complete the issuance and listing of Daqin Company’s convertible bonds, Golden Eagle Heavy Industries, China Railway Special Cargo Stock Reform, and the orderly implementation of the railway infrastructure REITs pilot projects. Shanghai-Kunming Coach Station in Zhejiang Province and Wuhan-Guangzhou Coach Station in Guangdong Province have land equity adjustments. In addition, the National Railway Group further concentrated its investment on the trunk line and implemented the reorganization of 31 joint venture companies in 7 provinces. Among them, six provincial-level companies can achieve local holdings, and the advantages of local governments have been better utilized. China National Railway Group has also achieved further optimization of capital allocation in the process of supporting local development. In terms of strengthening the corporate governance system and governance capacity building, the board of directors of China Railway Group has also achieved a majority of external directors and established a special committee of the board of directors.
The Central Economic Work Conference held a few days ago pointed out that it is necessary to “complete the three-year action task of the reform of state-owned enterprises and steadily promote the reform of natural monopoly industries such as power grids and railways.” The National Railway Group’s work conference clearly requested that in 2022, focus on 14 areas of work, including the full implementation of the three-year action of the National Railway Group’s corporate reform, strengthening the governance system and governance capacity building, and promoting the capitalization of railway assets. China will steadily promote the reform and innovation of China National Railway Group Corporation.
Lu Dongfu said that in 2022, it will steadily promote the three-year action of the national railway group enterprise reform. Implement the deployment of the Central Economic Work Conference, organize and carry out research on railway fundamentals, public welfare, business, and competitive links, provide support for the design and coordinated promotion of the national railway enterprise reform system, and create necessary regulations, policies and markets condition. Actively and steadily advance the collective reform of railway factories.
In terms of deepening the capitalization of railway assets and equity securitization, Lu Dongfu revealed that China Railway Group will promote the reorganization of qualified companies and the listing of shares, pilot the issuance of infrastructure REITs, study the capital operation plan of existing listing platforms, and formulate and increase the holding of China Railway Group. Guiding opinions on the quality of listed companies. In addition, it is necessary to further promote the road and land equity adjustment of trunk line companies and the reorganization of provincial (regional, municipal) regional companies to promote the concentration of national railway capital on the trunk line of the road network. Deepen the integration of non-transportation companies, and dynamically complete the disposal of zombie companies during the year.