China Railway Construction responds to the progress of the spin-off of subsidiaries: the next step will be to participate in the shareholders meeting

China Railway Construction responds to the progress of the spin-off of subsidiaries: the next step will be to participate in the shareholders meeting
Sauna Night News (reporter Xiao Wei Li Yunqi) On December 12, last year, the China Securities Regulatory Commission issued “Some Provisions on the Internal Listing Pilot of a Subsidiary of a Listed Company”. Subsequently, the listed company China Railway Construction Corporation Limited (abbreviated as: China RailwayJian) was the first to disclose the plan for the internal listing of the spin-off subsidiary, and now there has been new progress in this matter.On April 2, China Railway Construction announced a number of announcements, including the revised draft of the spin-off listing plan, the resolution of the company ‘s board meeting, and the verification opinions of the relevant securities firms, the accountant ‘s opinion letter and the law firm ‘s legal opinion, etc., only in December last yearOn May 19, there were only spin-off listing plans and board resolutions, and the latest announcement documents were more abundant.An investment bank sponsor representative of a large brokerage said to Sauna, Yewang: “The spin-off and listing process should follow a major asset restructuring process, with the first director ‘s plan, second director ‘s budget, and then the shareholders’ meeting.The lawyers and securities firms are not required to produce documents during the pre-planning stage. This time China Railway Construction’s disclosure may be equivalent to the “Second Director Summary”.”Sauna, Yewang called China Railway Construction Securities Department, and the other party said,” This time is equivalent to the second step, followed by the shareholders’ meeting, but see the announcement for the specific time.”China Railway Construction Announcement warns of risk weighing. The spin-off still needs to meet several conditions before it can be implemented, including but not merging. The company’s shareholders’ meeting officially approved the spin-off plan. The merger of the Shanghai Stock Exchange and the China Securities Regulatory CommissionCorresponding procedures and so on.Whether the spin-off can obtain the above approval or approval and the time for the final approval or approval are uncertain. Investors are advised to pay attention to investment risks.At the same time, China Railway Construction pointed out that the interest held by the listed company in the construction of Iron Construction Heavy Industry was diluted. It is expected that the net profit attributable to the parent company of the listed company may be reduced in the short term than before the spin-off.The total assets and net assets will increase compared with before the spin-off.China Railway Construction was listed on the main board of the Shanghai Stock Exchange in March 2008. Its main business includes engineering contracting, survey and design consulting, industrial manufacturing, logistics and material trading.As of noon on April 3, China Railway Construction A shares shrank and fell by 1.63%, reported 9.68 yuan / share, with a total market value of 131.4 billion yuan; China Railway Construction H shares fell by 1.26%, reported 8.590 construction / shares, with a total market value of about 116.6 billion reconstruction.The 2019 annual report shows that China Railway Construction achieved 8304 operating income last year.$ 5.2 billion, an annual increase of 13.74%, of which the revenue from engineering contracting business is 7245.4.5 billion yuan, survey and design consulting business 180.8.5 billion yuan, industrial manufacturing business 181.05 billion yuan, real estate development business 412.9.7 billion US dollars, logistics and material trade and other business income 718.5.7 billion yuan, inter-segment offset -434.3.7 billion yuan.As of April 2, China Railway Construction’s total share capital was 135.8 billion shares, 51 held by China Railway Construction Group Co., Ltd.13%, usually the controlling shareholder of China Railway Construction, the actual controller behind it is the State-owned Assets Supervision and Administration Commission of the State Council.China Railway Construction has planned to spin off its subsidiary China Railway Construction Heavy Industry Group Co., Ltd. (hereinafter referred to as “Tiejian Heavy Industry”) to the Science and Technology Board.Information shows that Tiejian Heavy Industry was established in November 2006 with a registered capital of 38.USD 5.6 billion, the legal representative is Liu Feixiang, and China Railway Construction directly or indirectly holds 100% of the shares.Tiejian Heavy Industry’s equity relationship.The design, development, manufacture and sales of Tiejian Heavy Industry’s main military roadheader equipment, rail transit equipment and special professional equipment.Among them, roadheader equipment mainly includes shield machine, rock tunnel boring machine and pipe jacking machine products; rail transit equipment mainly includes railway turnouts, spring bar fasteners, brake pads and brake shoes; special professional equipment mainly includes drilling and blasting methodTunnel construction equipment, coal mine construction equipment, mine construction equipment and high-end agricultural machinery, etc.The main products of Tiejian Heavy Industry disclosed in the revised draft of the spin-off plan.The revised draft of the plan shows that between 2017 and 2019, Tiejian Heavy Industry achieved operating income of 66 respectively.5.1 billion, 79.3.1 billion and 72.8.2 billion; the realized net profit was 11.3.7 billion, 16.07 billion and 15.At 30 ppm, its combined assets and debt at the end of 2019 were 151, respectively.5.6 billion and 80.1.4 billion.In comparison, China Railway Construction’s asset scale is 71 times that of China Railway Construction.The annual report shows that China Railway Construction’s total assets and liabilities at the end of 2019 were 10812.3.9 billion and 8192.1.8 billion US dollars, and the net profit attributable to shareholders of the parent company in the past three years was 160.5.7 billion, 179.3.5 billion and 201.9.7 billion yuan.The sponsor of the investment bank gradually said: “In our view, one of the benefits of the spin-off is that the subsidiary can directly finance.”China International Capital Corporation said in the brokerage inspection opinion issued this time that it is expected that the spin-off of CRH will help its internal value be fully released, and the value of CRH’s equity held by listed companies will continue to increaseThe liquidity will also be significantly improved, the efficiency, the spin-off of Tiejian Heavy Industries and listing and the expansion and expansion of financing channels will increase the overall financing efficiency of listed companies and reduce the overall asset-liability ratio.Sauna, Ye Wang Xiao Wei Li Yunqi Editor Zhao Ze proofreading Wang Xin reporters contact email: xiaowei @ xjbnews.com