Remarkable Achievements in the “Twelfth Five-Year Plan” Period, New Chapter for the Next Five Years
Release Date:2016-02-26 15:52:53

The Group held its 2016 annual convention on economic work and staff representatives’ conference

The Group held its 2016 annual convention on economic work and staff representatives’ conference at the hall on the third floor in the annex building of IFC on the morning of January 27. There were around 400 participants, which include: members of the Group’s leadership teams and board of supervisors; staff from the headquarters; the middle-level deputy administrative staff and chairmen of the labor unions of Yuexiu Financial Holding, Yuexiu Property, Yuexiu REIT, Yuexiu Transport, Guangzhou Paper Group, and Yuexiu Development; members of business entities under Yuexiu Financial Holding; all the representatives of the Group’s Employees Assembly. Mr. Zhou Jianjun, Director of the Municipal SASAC, attended the convention and delivered a speech in his busy schedule. The conference was hosted by Tan Sima, Deputy General Manager of the Group.   

I. Highlights in the six sectors.

Firstly, the Group’s deputy GM and Yuexiu Financial Holding’s GM Wang Shuhui, Yuexiu Property’s Operation GM and Urban Construction Co., LIMITED ‘s GM Ou Shao, Yuexiu REIT’s President Lin Deliang, Yuexiu Transport’s GM He Boqing, Guangzhou Paper Group’s GM Zhou Yun, Yuexiu Development’s GM Shang Yuying summarized the characteristics, highlights and shortcomings of their work in 2015 as well as making a report on their annual work arrangements in the coming 2016, respectively on behalf of their business sectors.

Yuexiu Financial Holding has the Group’s largest asset size and brings out the most economic benefits. In 2015, its main operational indicators increased significantly. The sectors of banking and securities played the leading roles and achieved substantial growth momentum. Guangzhou Securities has returned as an A-class broker, and its market-making business on the New Third Board ranks first in the whole industry.

Yuexiu Property bucked the trend and carried out its national business layout for the Group’s successful strategic transformation. Its real estate revenue exceeded 20 billion yuan for the first time and reached 21.4 billion yuan in 2015. Contract sales hit 24.85 billion yuan and grew by 12.9 percent year-on-year, setting a new record.

Yuexiu REIT achieved a breakthrough in both internal interaction and external acquisitions. Its assets reached about 30 billion yuan, five times that at the start of the “Twelfth Five-Year Plan” period (6 billion yuan). The REIT business also saw a steady growth in 2015.

Yuexiu Transport launched three new expressway projects (Changsha-Zhuzhou, Weishi-Xuchang, Suizhou-Yueyang), and its asset structure was further optimized. It also expanded the assets, increased the revenue and enhanced the potential of economic development, acting as the Group’s “stabilizer”.

Guangzhou Paper Group dealt with the dilemma of the industry’s excess capacity in an effective way. It resolved the issues on management and development after receiving the reimbursement from the Haizhu Plant and cleared its way to transformational development.

The new sectors firmly enforced the Group’s strategies and stabilized the growth of their business.

II. Focus on quality to increase benefits. Integrate innovation to advance the development.

Afterwards, on behalf of the management teams, the Group’s GM Zhu Chunxiu made a report entitled “Focus on quality and increase benefits; Integrate innovation and advance the development”, regarding the managers’ work schedules in 2016. The report briefly reviewed the Group's performance during the period of "Twelfth Five-Year Plan". By the end of 2015, the Group’s total assets had reached 400.08 billion yuan, 143.2 percent more than planned, 3.4 times that in 2010, the compound growth rate during “Twelfth Five-Year Plan” was 27.8 percent, and the asset scale had exceeded the average level of the central enterprises; the operating revenue reached 40.2 billion yuan, 11.42 percent more than planned, 2.5 times that in 2010, and the compound growth rate was 19.1 percent; the total profit reached 8.388 billion yuan, 25.95 percent more than planned, 2.2 times that in 2010, and the compound growth rate was 18.1 percent. The group's assets scale and economic benefits had jumped to a higher stage. It’s not easy to achieve such results under the background of the changeable global economy and the new normal of the domestic economy in China. During the "Twelfth Five Year Plan" period, the Financial Holding sector rose quickly and the Group moved towards the transformation and upgrading of high-end services. Its capacity of investment and financing increased significantly, and the capital operation has been strengthened constantly. The system and mechanism of the Group has been gradually kept in line with the market. Its management system of risk control has been continuously improved, and the organizational capabilities were enhanced greatly. The basic management reached a new level, and the Party Construction is consolidated. The Group’s soft power continued to be reinforced, showing a good momentum of sustained, healthy and rapid development.

Mr. Zhu also summarized the overall achievements of the Group in 2015:

Firstly, “Three Guarantees” were fully achieved and the Group’s development has reached a new level. The annual targets in terms of total assets, operating revenue and total profit were all over-fulfilled with contrarian growths. The layouts of its major industries have been continuously optimized, the financing of the Group was above norm and its fund demand has been met by issuing corporate bonds.

Secondly, “Three Breakthroughs” were promoted comprehensively and the Group has developed in a new way. Major breakthroughs were made in its resources integration and business layouts. The “Jinchan Project” was approved, Yuexiu Property furthered its joint venture and cooperation, Yuexiu REIT completed the acquisition of its first foreign project, and there were “ins-and-outs” of Yuexiu Transport’s assets. Breakthroughs were achieved in the reform and innovation of institutional mechanism and the long-term incentive mechanism has gained initial results. There were also new breakthroughs in optimizing its business modes. The Group tried to set up a mechanism of business collaboration, both innovated and optimized its financing sectors, and explored the business mode of “Internet Plus”.  

Thirdly, “Three Promotions” were highly effective and the upgrading of the Group’s management gained new momentum. It remarkably improved the abilities of cost controlling, organizing, risks preventing and handling.    

Fourthly, new progress has been made in the construction of the Party's working style and an honest administration as well as building its corporate culture by strengthening the Party’s leadership.

Regarding the work in 2016, the General Manager explicitly put forward the major work of “Focus on quality and increase benefits; integrate innovation and advance the development” and the main line of “Three Guarantees, Three Breakthroughs and Eight Promotions”. Firstly, fulfill “Three Guarantees” with all strength. Overcome difficulties and guarantee the fulfillment of annual operation targets and quality efficiency. Increase direct financing and guarantee fund demand and its safety. Firmly stick to strategic orientation and guarantee the stable investment in its core industries. Secondly, focus on “Three Breakthroughs” as follows: substantial breakthrough in optimization of business mode; major breakthrough in resources integration and assets optimization; and new breakthrough in the reform and innovation of institutional mechanism. Thirdly, carry forward “Eight Promotions” with full force in the following aspects: cost control, management of customer resources, operation of commercial real estates, organizing, risk control, management of exchange rate risk, incubation at headquarters. Further upgrade the Group’s management level by means of informatization.  

III. Enhance the confidence in development and create a new pattern.

The Group’s Chairman Zhang Zhaoxing then delivered an important speech. He highly appreciated the Group’s achievements during the “Twelfth Five-Year Plan” period and highlighted the followings:

Firstly, the major business indicators bucked the trend and doubled. The scale of total assets grew rapidly, and the Group realized leap-forward development during the period and surpassed the average level of central enterprises for the second year in a row. The operating revenue also made great strides year after year and set new records. The amount of total profit has exceeded 8.3 billion yuan, and the structure of profit continued to be optimized as the proportion of high-end services’ contribution increased constantly.  

Secondly, there were significant achievements in transformation and upgrading towards high-end services. The Group’s investment and financing took great effects. After a series of major projects of resources integration in the overall sense, the main assets have been securitized and the industrial layouts continued to be optimized.

Thirdly, the Group firmly promoted its market-oriented reform of system and mechanism and improved its organizational ability in accordance with the requirements of the modern enterprise system, and reaped strong support for its reform and development.

Fourthly, consolidate the sense of risk control and specify the measures continuously.

Fifthly, significant results have been obtained in the Party Construction. The Group emphasized upholding, strengthening and improving the Party’s leadership and it took great effects.

Sixthly, “Value Creating” headquarters have been built. The Group has constantly improved its ability of providing services, supporting the business, and making specialized guidance for its industrial sectors.

Seventhly, the construction of corporate culture and the Group’s brands has been enhanced overall. The continuous growth of the Group’s soft power has ensured its rapid development.

As a whole, there were remarkable achievements in the Group’s reform and development during the “Twelfth Five-Year Plan” period. Its overall competitiveness, influence, vitality and endogenous force have been obviously improved. The mandatory quota and soft power have made rapid progress. It handed in a satisfactory “answer sheet” to the Municipal Party Committee and Government, the Municipal SASAC and the staff, which further boosts our confidence in the Group’s development.   

Chairman Zhang stressed that the Group should proceed with confidence in the face of new economic norm and fiercer competition in the industry during the period of “Thirteenth Five-Year Plan”. Firstly, the achievements made in the “Twelfth Five-Year Plan” period have laid a solid foundation for the future development. Secondly, the Group has the powerful backing from the Municipal Party Committee and Government, the Municipal SASAC, which has been approved by its development in the last years. Thirdly, there are late-mover advantages in the industries, few bad debts in banking and the highest provision rate in Hong Kong. Securities capitals are supplemented in a timely manner, and the subsequent power is sufficient. The scale of real estate is suitable, so there is no bondage of ultra large scale, and the land resources are amassed in first and second tier cities. The performance of traffic and transport is in a stable condition. With determination and confidence, we will firmly adhere to the strategies and achieve big breakthroughs.

Mr. Zhang made a profound analysis of the Group's internal and external environment and the challenges, and put forward the further requirements on the work arrangements:

Firstly, seize the opportunities, devote ourselves to business schedules in 2016, and lay a stable foundation for “Thirteenth Five-Year Plan”. Secondly, further clarify the business model of the industry. Thirdly, further improve the quality and efficiency of the development of the main business. Continue to strengthen the management of cost control, enhance the vitality of the asset inventory, balance the scorecard evaluation system, and strengthen the efficiency indicators. Fourthly, advance the construction of organizational capacity. Human capital is the essential factor of an enterprise’s business, so we must make greater progress in the long-term incentive mechanism of project co-investment and stock ownership. Fifthly, adhere to the comprehensive management of risk control, and bring risk control to the center of enterprise management. Keep on strengthening the construction of an honest administration and create an atmosphere of integrity and decency. Sixthly, boost the management of customer resources and capability of information supporting. Take customers’ demand as the starting point, and provide products and services that are needed on the market. Enhance the integration of all the customers’ data, accelerate preliminary planning and build platforms for information to support the business. Seventhly, make best use of the Party’s leading role in the development of enterprises, and carry out the work of Party Construction.

IV. Solidarity of the leading teams and commendable achievements.

At last, Zhou Jianjun, Director of the Municipal SASAC, made an important speech. On behalf of the Municipal SASAC, Mr. Zhou fully affirmed the Group’s achievements in 2015 and during the “Twelfth Five-Year Plan” period. He said that the Group’s leading teams show solidarity, and take the lead in the marketization of institutional mechanisms. There were commendable achievements in the four aspects of “Optimize the industrial layouts, and focus on the main industry” , “Resources integration, mergers and acquisitions”, “Capital operation” and “Reform of institutional mechanism” during the “Twelfth Five-Year Plan” period. He also made proposals and requests for the development of the Group. Firstly, make careful arrangements for “Thirteenth Five-Year Plan”, and make adjustments and benchmarking according to the changes of economic environment. Secondly, focus on and upgrade the innovation-driven development. Develop the Group into the vanguard and the benchmark for the state-owned enterprises in Guangzhou in the aspects of industry model and institutional innovation. Thirdly, strengthen the "Three Capital Operation" and optimize the Group’s main industries. Grasp the opportunity of the reform of state owned enterprises, and strive for greater development in the "Three Capital Operation"(the capital operation, resource integration and reorganization of assets). Fourthly, prepared itself to enhance the level of internationalization. The Group should continue to leverage the advantages of its cross-border operations, and actively look for opportunities to expand overseas business. Fifthly, build a comprehensive system of risk management and control. Try to control the risk of production, operation of enterprises and the construction of an honest and clean government, and ensure sustained and healthy development of the enterprises. The Municipal SASAC will work with Yuexiu Group to explore the reform of its system and mechanisms to promote the reform of mixed ownership, and continue to support its development and growth.