Harbin Industrial Investment Group promotes mixed-ownership reform

A new round of state-owned enterprise reforms proves 2018 to be a breakthrough year for Harbin, Heilongjiang province. The reforms will strengthen urban construction, guarantee the improvement of people's livelihood, and cultivate a number of first-class domestic enterprises and globally recognized enterprises.

As the "big player" in Harbin, with the largest number and most significant tasks in the mixed-ownership reform of state-owned enterprises, Harbin Industrial Investment Group has developed a "roadmap" for mixed reforms according to the three-year timetable formulated by the municipal State-owned Assets Supervision and Administration Commission. 

The Group has exited from being a one state-controlled, state-owned equity enterprise as of February of this year. 

It has formulated an information communication system, regular meeting system, work report system, training guidance system, and evaluation system. It has also kept track of the progress of its affiliated companies to continue the reform of state-owned enterprises and to help them solve any problems that arise.

Harbin Industrial Investment Group currently has 46 affiliated enterprises, including 17 solely state-owned enterprises, 9 state-controlled enterprises, 6 state-owned enterprises, and 14 state-owned shareholding enterprises.

During the reform process, the state-owned capital of Harbin Industrial Investment Group's 46 affiliated enterprises will be concentrated in the city's leading industries as well as the strategically emerging industries in accordance with the "one enterprise, one policy" approach.

According to the reform plan, the Group will introduce foreign capital to competitive enterprises with market potential to augment and strengthen them. However, foreign capital will be withdrawn from enterprises with little to no production capacity, market potential, or significantly competitive technological products. 

Meanwhile, the reforms will hasten the deconstruction of "zombie enterprises" through bankruptcy, liquidation, asset realization, equity transfer, etc, in order to achieve of the transformation from the current focus on industrial management to equity and value management and risk control.　　

The Group plans to carry out mixed-ownership reform in 15 enterprises. Among them, four enterprises are in the process of increasing their capital and expanding shares. Eleven enterprises, including Harbin No.1 Tool Manufacture Co, plan to reduce state-owned shares. Ten enterprises, including Harbin Songjiang Electric Co, plan to withdraw completely to become privately-owned businesses. 

According to the plan, Harbin Industrial Investment Group will conduct step-by-step reforms of four enterprises and host the liquidation of three companies. For the other 14 companies participating in the joint venture, the Group will transfer shares of state-owned capital, or the companies will choose the proper time to withdraw. Of these 46 companies, 29 have initiated reforms this year.