Under the continuous promotion of national policies, China's marine engineering equipment manufacturing technology continues to advance, and China's marine engineering equipment field will usher in important players. On the evening of December 24, 2021, CIMC disclosed that ten companies including CIMC Offshore Engineering, a wholly-owned subsidiary, intend to jointly fund and establish China Ocean Engineering Equipment Technology Development Co., Ltd., with a registered capital of 20 billion yuan, focusing on Engineering technology research and development in the field of marine engineering equipment. From the perspective of shareholding ratio, China Shipbuilding has invested 3.8 billion yuan in cash, holding 19% of the shares, and PetroChina, Sinopec, and CNOOC also participated in the investment.

New companies led by state-owned enterprises settled in Shanghai

According to disclosures, China Offshore Technology is jointly funded by ten companies with a registered capital of 20 billion yuan. As an innovative professional technology company in the field of marine engineering equipment in China, the company will mainly focus on engineering technology research and development in the field of marine engineering equipment, including focusing on the overall design of marine equipment and equipment assembly, so as to enhance the international competitiveness of China's marine equipment industry. , Information technology empowers, accelerates the improvement of the intelligent level of marine engineering, and the development, promotion and application of marine engineering equipment related software.

On the whole, this investment is also dominated by state-owned enterprises, with local state-owned assets in Shanghai jointly participating.

Among them, China Shipbuilding has the highest amount of cash contributions, reaching 3.8 billion yuan holding 19% of the shares, and CIMC Offshore Engineering and other joint stock companies each contributed 1.8 billion yuan in cash, each holding 9% of the shares. Among them, China Merchants Investment Development, a subsidiary of China Merchants Group, also participates in the investment. At the same time, China Merchants Group, through its subsidiary China Merchants Group International (CIMC) Investment Co., Ltd., holds 24.49% of CIMC Group and ranks the second largest shareholder. This capital contribution also constitutes a related party transaction.

In addition, the “three barrels of oil” China National Petroleum Corporation, Sinopec, China National Offshore Oil Corporation, and China COSCO Shipping, CRRC and China Communications The registered address is in Huangpu District, Shanghai. China Offshore Engineering has set up a board of directors with 11 members, and the chairman of the board will also be recommended by China Shipbuilding.

On the same day, the headquarters of China Shipbuilding Corporation announced that it would move from Beijing to Shanghai. It is understood that, starting from the second half of this year, China State Shipbuilding Corporation has continuously accelerated the adjustment of its industrial layout in Shanghai, and promoted the accumulation and development of marine innovative resources in Shanghai. Lei Fanpei, Chairman of China State Shipbuilding Corporation, introduced that the relocation of the CSSC headquarters to Shanghai will make Shanghai the only city in the world where the headquarters of large ships, steel, port machinery, docks, and shipping companies gather, and the industrial chain and supply chain agglomeration effect More prominent, it will also promote China Shipbuilding Corporation to accelerate the construction of a world-class shipping group.

CIMC said that through this cooperative investment, it will actively participate in the establishment of China's offshore technology, combine its own advantages in the marine industry, and incorporate the group's marine-related business resources and capabilities, which is conducive to accelerating technological innovation and achievement transformation. The application will further assist the upgrading and transformation of the Group's offshore engineering business, and make greater contributions to the development of the national offshore engineering equipment industry and the construction of a maritime power.

According to the investment progress, the first phase of the new company’s capital is 2 billion yuan, and all shareholders will invest in currency according to their shareholding ratio. The capital in place is mainly used to meet the needs of coordinating resources, building an innovation system, and promoting key technology research; the remaining registered capital will be in business Fully paid within 30 years from the date of issuance of the license. There is currently no remaining capital subscription plan.

Offshore business gradually resumed growth

In addition to participating in the investment in China Offshore Technology, CIMC has made frequent investments in 2021.

Following CIMC Offshore’s introduction of state-owned assets in Yantai in July, on December 16, the holding subsidiary of CIMC Singapore Raffles, the wholly-owned subsidiary Southern CIMC and Yantai Guofeng Group jointly funded the establishment of Yantai CIMC Raffles Marine Technology Group Co., Ltd., focusing on the development of high-end offshore oil and gas production equipment, offshore wind power, sea water desalination and other new marine businesses. The registered capital of Ocean Technology Group is 5 billion yuan, of which Raffles Singapore and Southern China Group invested 4.165 billion yuan, accounting for 83.3% of the equity of Ocean Technology Group; Yantai Guofeng Group invested 835 million yuan, accounting for 16.7% of Ocean Technology Group Equity.

CIMC pointed out that for the offshore engineering sector of the group, this transaction can bring incremental cash and reduce the asset-liability ratio of the offshore engineering sector of the group. More importantly, it can bring important resources for the development of the marine industry in Yantai. , To further promote the upgrading and transformation of the Group's offshore engineering business.

On the other hand, Shenzhen State-owned Assets has previously expressed that it will cooperate with CIMC Offshore in new marine industries, including deep-sea aquaculture, offshore wind power, offshore cultural tourism and other new marine industry development directions; all parties may jointly develop such Capital operation methods such as equity cooperation enhance the value of synergy.

At the 2021 Overseas Investment Promotion Conference, ten key Qianhai investment projects including China Ocean Technology Group were officially launched, and CIMC and Qianhai Administration reached a strategic cooperation intention to jointly build China Ocean Technology Group. It is reported that China Ocean Technology Group (preparatory) will, by undertaking the national marine development strategic mission, fully integrate into Shenzhen's regional planning for building a global ocean center city, and through scientific research innovation and development, seize the opportunity to undertake major national science and technology projects and create champion products .

Mai Boliang, Chairman and CEO of CIMC Group, also introduced that Shenzhen is positioned as a global ocean center city. As one of the representative companies in the global ocean economy, CIMC will contribute its own strength to Shenzhen. CIMC will fully coordinate and cooperate with Shenzhen-owned state-owned enterprises, which has a very broad development space and abilities.

In addition, Mai Boliang said at the August performance exchange meeting that offshore engineering should substantially reduce losses in 2021, the loss of the stock platform is decreasing, and the shipyard part will also reduce losses or even turn losses into profits; in addition, the company's offshore wind power, offshore fishery, etc. The proportion of business increased.

In the first three quarters of 2021, CIMC offshore wind power related equipment is developing rapidly under the dual benefits of the global energy consumption transition wave and the dual-carbon policy goal. The Group's marine engineering business has newly added effective orders of US$1.271 billion, of which oil and gas production platforms are US$387 million, offshore wind power and clean energy are US$373 million, and the cumulative value of orders in hand is US$1.817 billion, a significant increase compared to the same period last year. Editor/Sang Xiaomei