Mixed ownership reform: the "booster" of Zoomlion globalization
mixed ownership reform: the "booster" of Zoomlion globalization
China Construction machinery information
Guide: the Third Plenary Session of the 18th CPC Central Committee pointed out: actively develop the mixed ownership economy. Allow more state-owned and other ownership economies to develop into mixed ownership economies. The mixed ownership economy is allowed to implement employee stock ownership, forming a community of interests between capital owners and workers. As China
the Third Plenary Session of the 18th CPC Central Committee pointed out: "actively develop the mixed ownership economy. Allow more state-owned economies and other ownership economies to develop into a mixed ownership economy. Allow the mixed ownership economy to implement employee stock ownership and form a community of interests for capital owners and workers."
Zoomlion, as the leader of China's construction machinery, started with a registered capital of 500000 yuan in 1992 with the help of mixed ownership reform. By the end of 2012, its assets reached 88.974 billion yuan and its net profit was 7.53 billion yuan; At the same time, through enterprise restructuring, mergers and acquisitions and capital integration, Zoomlion has grown from a small inland company to a world-renowned international construction machinery enterprise, and its goal is directly to the top three in the global construction machinery industry
all this benefits from the mixed ownership reform of Zoomlion. If the internationalization journey of young Zoomlion is like a "rocket", then the reform of mixed ownership is its solid and powerful "booster"
Zoomlion, the predecessor of the former Changsha Construction Machinery Research Institute of the Ministry of construction, has 5 years of technological accumulation, which is a long and complex process for more than 0 years. It is the birthplace of China's construction machinery technology. In the past 22 years since its establishment, Zoomlion has continued to innovate its system and mechanism. Through its own shareholding reform and listing, parent company restructuring, and H-share listing, it has finally formed a mixed ownership property right structure jointly held by Hunan SASAC, management team and key employees, strategic investors, international investors, and other circulating shareholders
in 1992, Zhan Chunxin, then vice president of Changsha Construction Machinery Institute, led seven people and borrowed 500000 yuan to establish Zoomlion Construction Machinery Co., Ltd. to grease metal parts of optical instruments, taking the road of scientific and technological achievements transformation
in 1997, the performance scale of Zoomlion, whose technology and services have been continuously recognized by the market, has met the listing conditions. At the same time, the state has made important breakthroughs in "various forms of public ownership" and "joint-stock system is a form of capital organization of modern enterprises". Under the guidance of the Ministry of construction, the joint-stock reform of Zoomlion kicked off
after many difficulties, the Construction Machinery Institute was finally the main sponsor, and Zoomlion was officially reorganized into Changsha Zoomlion Heavy Industry Technology Development Co., Ltd. Among them, the Construction Machinery Institute accounted for 74.75% of the shares
in October 2000, Zoomlion entered the Shenzhen Stock Exchange and issued 50million A shares, raising 614million yuan. Of the 150million shares after listing, 49.83% were state-owned shares and 50.17% were other shareholders
Zoomlion, after going through the share reform and listing, has initially achieved equity diversification and good governance structure, but there is still a situation in which state-owned shares dominate. The contradiction between the regulatory enterprises of traditional state-owned scientific research institutions and the operation of market-oriented 4 indication with a relative error of ± 0.5% (level 0.5) has also been revealed: overstaffing, seniority, posts based on people... The young Zoomlion is facing many tests
fortunately, the leadership of Zoomlion saw the shortcomings of the original system in time and made a decisive decision. From 2005 to 2006, it boldly carried out system innovation and established the development strategy of "fission + fusion = globalization", which "shattered the original management mode"
in 2003, Changsha Construction Machinery Institute was incorporated into Hunan Province. In November, 2004, Hunan state owned Enterprise Reform Office approved the overall restructuring plan of Changsha Construction Machinery Institute. In October, 2005, Changsha Construction Machinery Institute completed the corporate transformation and became a limited company absolutely controlled by state-owned capital. Its China owned shares account for 94.1% and employee stock ownership is 5.9% (policy incentives for the appreciation of state-owned assets of scientific research institutions)
"heaven sent good luck", Hony capital of Lenovo holdings began to "marry" with Zoomlion in 2006, and played an extraordinary role in the restructuring process of Zoomlion. In May, 2006, Hony transferred 15.83% equity of Zoomlion held by Shenzhen jinxin'an, becoming the second largest shareholder of Zoomlion
in May, 2006, Hunan SASAC listed and transferred 32.1% equity of Changsha Construction Machinery Institute. Among them, 24.1% was transferred to the management team and key employees, and 8% to Hony capital. The shareholding structure of the Construction Machinery Institute has been transformed into: 62% owned by the state, 30% owned by the management and key employees, and 8% owned by financial investors
in 2008, Changsha Construction Machinery Institute was liquidated and cancelled. In March, 2009, its shares in Zoomlion were distributed among shareholders in proportion to their equity. After the liquidation and cancellation of China Construction Machinery Institute, Zoomlion is still controlled by state-owned shareholders, but the shareholding structure has changed, with the largest shareholder, Hunan SASAC holding 24.99%; The shareholding ratio of the management is 12.56%, that of Hony capital is 12.36%, and that of other shareholders is 50.09%
Zoomlion was listed on the main board of the Hong Kong Stock Exchange in December 2010. Zoomlion publicly issued 1billion H shares, raising a total of HK $15billion, which was subscribed by top international investment banks, including Goldman Sachs and Soros. The door of Zoomlion's equity internationalization was officially opened
nowadays, Zoomlion has formed a pattern of relatively state-owned holding and diversified equity. Such an equity structure has enabled Zoomlion to achieve leapfrog development in a more autonomous and free environment: starting with a registered capital of 500000 yuan in 1992, its assets reached 88.974 billion yuan by the end of 2012, and its net profit reached 7.53 billion yuan
on the eve of the national "two sessions", Zoomlion was invited as a sample enterprise to participate in the "sample power - mixed ownership enterprise development seminar" hosted by the SASAC center of the State Council. Sunchangjun, vice president, said at the meeting that Zoomlion, which has achieved mixed ownership, will make full use of the two platforms of domestic and international capital and strive to enter the top three in the world of construction machinery within three to five years and become a truly global enterprise
according to the data released by the Ministry of Commerce a few days ago, China's foreign direct investment increased by 16.8% year-on-year in 2013. Under the situation of global economic integration, the "going out" of Chinese enterprises has stepped into the stage of accelerated development. However, with the upsurge of overseas investment, the low success rate of Chinese enterprises in the process of foreign investment
public market research data show that the proportion of successful overseas mergers and acquisitions of Chinese enterprises is no more than 14%, far below the global average of 25%. It is worth mentioning that many of these failures are not due to commercial factors, but are trapped in the identity of "national team"
Li Yining, a famous economist, once gave a solution: developing mixed ownership can solve the problem encountered by Chinese enterprises when they "go global". "The 'going out' of enterprises with mixed ownership will not be restricted by other countries, nor will it be impossible because of their small strength. Assuming that foreign capital participates in the mixed ownership, it is good for enterprises to 'go out'."
Zoomlion also provided evidence for the above view with practical cases. In 2008, Zoomlion successfully acquired CIFA, the third largest concrete machinery manufacturer in the world, laying the foundation for China's construction machinery to expand into Europe and broader overseas markets
with the successful overseas practice of mergers and acquisitions of CIFA, Zoomlion's internationalization process is accelerating day by day: in June 2011, Zoomlion signed a technology transfer agreement with German Jost Crane Co., Ltd. in Frankfurt, Germany, to buy out the full set of technology of German Jost flat head Tower series products, which are recognized by the international community as high-end experts of tower cranes; In August 2012, Zoomlion set up its first overseas plant in India, and established a tower crane business base in a joint venture with Indian electro mech company; In October, 2012, it established a joint venture with RIBA of Italy to establish high carbon materials Co., Ltd; In December 2013, m-TEC, a global brand of dry mixing mortar equipment located in neuenburg, Germany, was acquired
in fact, from Zoomlion's experience in the international market, it can also be seen that mixed ownership can not only solve the "identity" problem of enterprises, but also help enterprises operate flexibly in the international capital market and introduce foreign capital, so as to realize the optimal allocation of global resources and improve the global operation ability of enterprises
in 2010, Zoomlion improved the mixed ownership development model through H-share listing, and introduced top international investment banks including Goldman Sachs and Soros. Zoomlion has made continuous breakthroughs in its internationalization while achieving full integration with the capital market
with the help of H-share financing, Zoomlion accelerated the construction of overseas marketing network, overseas production base and overseas R & D center, successfully realized the optimal allocation of global resources, and became the leader of global operation. Statistics show that of the $1.7 billion raised by Zoomlion H-share, nearly $700million is used for the transformation of domestic projects, and the rest is used to support and improve CIFA, expand overseas emerging markets such as Russia and Brazil, and build 15 overseas sales and service platforms
Zoomlion successfully issued US bonds in 2012 and used them in the construction of overseas R & D centers and production and manufacturing centers. Among them, R & D centers are mainly distributed in the United States, Germany, Japan and other places, while production and manufacturing centers are arranged according to the market: the United States, Russia, Turkey, Brazil, India, Indonesia. The rest will be used for the construction of global image stores, logistics centers and spare parts centers, and 35 new overseas sales and service platforms will be added
data shows that Zoomlion has established sales and service platforms in nearly 80 countries. Covering five continents, including India, Australia, Algeria, Russia, the United Arab Emirates, the United States, the Netherlands, the United Kingdom, Belarus, South Korea, Brazil, Libya, Egypt and other key global markets
in 2013, Zoomlion's overseas revenue increased strongly, reaching 3.5 billion yuan. From Russia, the host of the Sochi Winter Olympics, to Brazil, the host of the 2014 World Cup, from Europe and the United States, which represent the high-end market, to Asia, Africa and Latin America, which represent the emerging market, Zoomlion products are found in almost all major projects that meet the new needs of the automotive industry
"Zoomlion's experience in developing mixed ownership shows that realizing equity diversification is conducive to the complementarity of various capital advantages, which is also the only way to build a world-class enterprise." Zhang Meicheng, deputy director of the state owned assets supervision and Administration Commission of Hunan Province, said