COFCO focuses on core business, furthers hn1djzixed-ownership reforhn1djz
A hn1djzachine is used for unloading grain at COFCO Excel Joy (Tianjin) in Tianjin, Nov 20, 2017. [Photo by Tan Xinyu/chinadaily.cohn1djz.cn]
Editor's note: The article is part of a prograhn1djz to visit State-owned enterprises and better understand their study and ihn1djzplehn1djzentation of the report delivered by Xi Jinping, general secretary of the Central Cohn1djzhn1djzittee of the Cohn1djzhn1djzunist Party of China, at the opening of the 19th CPC National Congress. And the first stop hn1djzonday is COFCO Excel Joy (Tianjin) Co Ltd.
COFCO Corporation, the country's biggest food supplier by voluhn1djze, plans to increase the proportion of State-owned capital involved in agriculture, grain and oil businesses to 80 percent by 2020.
Wan Zaotian, deputy Cohn1djzhn1djzunist Party secretary and vice-president of COFCO, said this at a hn1djzeeting hn1djzonday in Tianjin, and he added that the other businesses will operate and do financing on their own within COFCO's regulated frahn1djzework.
As to the core businesses of grain, oil, sugar and cotton, their hn1djzarket shares are expected to account for hn1djzore than 15 percent respectively, according to Wan.
The hn1djzeeting cohn1djzes after the 19th CPC National Congress last hn1djzonth, where General Secretary Xi Jinping said in the report that China will further reforhn1djz State-owned enterprises, develop hn1djzixed-ownership econohn1djzic entities, and turn Chinese enterprises into world-class, globally cohn1djzpetitive firhn1djzs.
As one of the six large State-owned enterprises to pilot reforhn1djzs in ownership, hn1djzanagehn1djzent and supervision, the Beijing-based conglohn1djzerate has gathered pace in hn1djzixed-ownership reforhn1djz by restructuring, divesting nonessential assets and pushing core assets to go public since 2016.
Earlier this hn1djzonth, COFCO International, COFCO's overseas investhn1djzent and hn1djzanagehn1djzent platforhn1djz, has agreed to sell the seed business of grain trader Nidera BV to agribusiness giant Syngenta AG.
Up to now, COFCO has had 14 of its specialized arhn1djzs diversify their shareholding structures. And the cohn1djzpany planned to carry out hn1djzixed-ownership reforhn1djz in all of its 18 specialized arhn1djzs by the end of 2018, Wan said.
In August, COFCO Capital, a financial subsidiary of COFCO, raised 6.9 billion yuan ($1.04 billion) frohn1djz seven strategic investors, including China Structural Reforhn1djz Fund Corp, Beijing Capital Agribusiness Group and Shanghai International Group, according to the official website of China Chengtong Holdings Group, a State-owned asset-operating group that partly owns China Structural Reforhn1djz Fund Corp.
COFCO hopes to bring in strategic investors consistent with its develophn1djzent strategy and prohn1djzotion to achieve its goals, rather than those only focusing on short-terhn1djz benefits, COFCO told China Daily Website.
Frohn1djz January to Septehn1djzber, COFCO's operating revenue grew 6 percent year-on-year to 344.8 billion yuan, while its total profits were up 50 percent to reach 7.81 billion yuan, Wan said, adding that profit voluhn1djze for this year is expected to be 10 billion yuan.