On October 14, the capital increase project of Sinochem Energy Co., Ltd. (Sinochem Energy for short) was listed at China Beijing Equity Exchange. By means of capital increase and share enlargement, the company plans to introduce more investors, which means an important step towards the company’s reform of mixed ownership system. This measure will further optimize the ownership structure, promote the transformation of operation mechanism, improve the company’s ability for market operation and expansion as well as enhance its competitiveness.
At the end of 2016, Sinochem Group set up five business departments according to the principle of Small Headquarters and Large Business. With the aim of improving the market flexibility and competitiveness on the operation frontline, the group aims to turn the business departments into the pillar for pushing forward the group’s strategies and expanding the businesses. Over the past two years, Sinochem Energy has made great efforts to push forward the integration of real economy and restructuring, accelerate the connection with the capital market, introduce incremental resources and inject impetus to the business development.
The businesses of Sinochem Energy are made up of various sectors, including oil trading, oil refining and chemical processing, refined oil distribution and sales, chemical products trading and distribution, warehousing and logistics, park development and energy Internet. At present, Sinochem Energy has developed into a national-level key energy enterprise with internationalization characteristics, a complete industrial chain and outstanding marketing service abilities. The industrial strength and sustainable development ability of the company are also improving.
Since 2017, the SBU of Energy of Sinochem Group has gradually restructured its main businesses and assets both at home and abroad into the platform of the company. In June 2018, the transformation of shareholding system was completed and Sinochem Energy was founded. In the same year, Sinochem Energy was included in the list of 100 Selected Subsidiaries of Central State-owned Enterprises and 100 Selected Major Local State-owned Enterprises. As a Double-Hundred Enterprise, Sinochem Energy has taken active action to answer the call for deepening the reform of state-owned enterprises and push forward the reform of mixed ownership system. The company’s effort to introduce new investors will facilitate the integration of state-owned capital, collective capital and non-public capital, improve the efficiency of state-owned allocation and operation, marketize the corporate governance structure as well as make the operation mechanism more efficient and flexible.