COSCO is the logo of China COSCO (21.70, 0.00, 0.00%) Transportation (Group) Corporation (hereinafter referred to as COSCO Group). Not long ago, in the new round of Fortune 500 companies, COSCO Group ranked 488th with its "world's second largest shipping company". Thirteen years ago, COSCO Group registered and established Hong Kong (Hong Kong) Group Co., Ltd. (hereinafter referred to as “Xiangyuanâ€), the largest regional diversified economic entity in Hong Kong, to open a new strategy for Chinese enterprises to “go globalâ€. The situation took the lead in taking a critical step. In the past 13 years, "Xiangyuan" has been based in Hong Kong, relying on the huge institutional advantages of "one country, two systems" to become bigger and stronger, and to create a world-class fleet, which has effectively supported the status of Hong Kong's "International Shipping Center" and even more for COSCO Group. The world's top 500 companies have injected a strong momentum. How is “Xiangyuan†strong? In July, the reporter went to Hong Kong for an interview, please see - COSCO: the mystery of the fragrant ocean
COSCO Group: "Outstanding Master" of "going out"
In July, Hong Kong’s return to the motherland’s 10-year celebration was still strong. On the 52nd floor of COSCO Building in Hong Kong, I overlooked Victoria Bay from the office of Liu Guoyuan, the president of Xiangyuan. Her hustle and bustle, passionate romance, and agility were all coming...
In Victoria Bay, the world's busiest transport port, ships are shuttled to ships or containers with a blue COSCO logo, often in minutes. One month before the 10th anniversary of Hong Kong's return to the motherland, COSCO Hong Kong Shipping Company, which has about 150 dry bulk cargo fleets with more than 11.5 million DWT, has achieved a single monthly profit record of more than US$250 million. On the day of the 10th anniversary of Hong Kong's return to the motherland, on the day of the 10th anniversary of Hong Kong's return to the motherland, the Chief Executive of the Hong Kong SAR Government appointed Liu Guoyuan, the president of Xiangyuan, as a "gentle justice" - this is the first mainland stationed in Hong Kong. The senior executives of the company have won this title. "This is the honor of COSCO Group and 'Xiangyuan' and is a commendation for COSCO Group's contribution to Hong Kong's prosperity and stability." Liu Guoyuan said.
Hong Kong, which has a special status in the global economy, is recognized as one of the international shipping centers. The “Xiangyuanâ€, with its billions of dollars in total assets and its vitality and vitality, is the “leading†of the Hong Kong shipping industry. Undoubtedly it has a decisive weight. Her shipping main business fleet is not only the largest dry bulk shipping company in Hong Kong, but also one of the world's three largest dry bulk shipping companies. Its average efficiency level of single ship, tonnage and tons of goods is among the best in the international industry. Known as "a business card representing the status of Hong Kong's international shipping center", it has been awarded the "Maximum Ship Registration Gross Tonnage Award" issued by the Hong Kong SAR Government for 7 consecutive years. COSCO Pacific Co., Ltd., formerly known as "Xiangyuan", was a few years ago. Promoted to "Hong Kong Hang Seng Index constituent stocks", is the first shipping concept stock in Hong Kong's "blue chip stocks"; her assets are well-formed, integrating the four pillars of ship transportation, container leasing and manufacturing, terminal operations and ship services "With a number of related industries, the current debt ratio is only 12%. The main business income increased by 86.14% during the period of 2001-2006 compared with the "Ninth Five-Year Plan" period, and the total profit increased by four times compared with the "Ninth Five-Year Plan" period; In the large-scale industrial operation of COSCO Group, “Xiangyuan†uses one-third of the assets of COSCO Group, and contributes 45% of its total profits to the Group for many years... Today’s “Xiangyuan†is COSCO Group.
The door to risk: "the temper of the sea"
In 1994, COSCO Group invested in a strategic strategy of “going out†in Hong Kong: the establishment of “Xiangyuanâ€, integrating all the assets operated in Hong Kong, and building a platform for COSCO Group from multinational operations with the platform of Hong Kong’s global capital market structure. The forefront of the transformation of multinational companies!
The timing of COSCO Group's selection of this big chess choice was very favorable. At that time, the market orientation of China's reform and opening up led the tide of development. The “spill-over effect†of the new round of economic growth promoted the “Xiangyuan†madness of the initial creation: the beginning of the year. The listed company under its name was changed to “COSCO Pacificâ€, and the COSCO flag was launched in the Hong Kong capital market. Since then, “COSCO International†has been listed on the backdoor, opening a channel for the use of international capital to strengthen its own strength; With the rapid expansion of the scale of the industry, more than 560 companies established in just a few years, the industrial tentacles involved almost all the fields of “profitableâ€... It seems that everything is going smoothly and vigorously. “There are no projects that can’t be done, only The investment opportunity is unstoppable." The development enthusiasm is valuable, and the "Yingpan" is a big congratulation. However, at the beginning of the year, it is ready to taste the "sweetness" with the big hub of the world market, but it makes it difficult for the "Xiangyuan" to heat its head. Quietly buried: the soft constraints of the traditional property rights system in the bones can not contain the strong impulse of investment behavior, and rapidly expand The scale of the "diversified" industry and the main shipping business are gradually becoming more and more difficult to form a strong competitive advantage. The more and more spread the control of the "management hand" has become a dislocated wild horse; this state-owned enterprise giant wheel gradually becomes partial Airing...
All of this has been abruptly stopped with the unexpected financial turmoil in Asia. The squally slams hit Hong Kong, and “Xiangyuan†almost ran aground in the “Eye of the Stormâ€: the stock price of the listed companies in the holdings fell sharply, and 70% of the more than 130 projects with billions of assets became a pile of “asset garbageâ€. The capital chain is almost broken, and the safety of business operations is seriously threatened... "The pain of falling from the peak is really unforgettable. It is not the sea, the temper of the sea; the door to risk is not easy to understand the true meaning of the market economy." Liu Guoyuan said. At the end of 2000, he took over as the president of “Xiangyuanâ€, and “Xiangyuan†was still recovering from “healingâ€. At the same time, he began to carry out all-round reforms from the direction of industrial development, clear property rights system, internal governance structure and asset structure allocation. "How do we do what companies are required to do under full market conditions?"
After the wind and rain, "Xiangyuan" has set sail for a new look...
The door to opportunity: to identify the "Baltic shipping price index"
At the beginning of this century, the world shipping market was in a downturn. The “Baltic Sea Freight Price Indexâ€, which represents the prosperity of the international shipping market, was once below 1,000 points. “Xiangyuan†was “anti-operation†at this time, making an international industry. As a "dead chess" decision: 10 small Panamax or handy-type dry bulk carriers were built at a very low price in Hong Kong when they have not completely escaped the asset-liability dilemma. After 10 months, the world shipping market has warmed up, the price of the ship has risen sharply, and the “Xiangyuan†of just 10 new ships has just been obtained. It is easy to make profits by selling only a few of them in the form of “boats and boatsâ€. Dollar! The remaining few new ships have low cost of shipbuilding, and they have gained a competitive advantage from birth, becoming the “effect star†in the next few years. At the same time, “Xiangyuan†seizes the opportunity of the growth of shipping demand, accurately measures and grasps the proportion of self-operated and leased ratios, long-term and short-term leases in different time periods and price fluctuations, and skillfully uses the “combined capacity rental†strategy. In 2003, when it came out of the shipping trough, it was tens of millions of dollars. This year, COSCO Hong Kong Shipping Company showed a strong development momentum and made great contributions to the "Xiangyuan" out of the predicament. What all this marks is that “Xiangyuan†has made breakthroughs in implementing the adjustment of the industrial layout structure, “cutting the branches and strengthening the work†and highlighting the main business of shipping.
After the Asian financial turmoil, the “Xiangyuanâ€, which suffered from great pains, sought to survive, but it was precisely the advantageous industry that it owned. COSCO Hong Kong Shipping Company still opened the door to opportunity: in “Baltic Sea†The price index is extremely low and there are few shipping companies making money. COSCO Hong Kong Shipping Company has cultivated the low-cost advantage of long-term lean management and accurate judgment of the market sentiment of the “Baltic Shipping Price Indexâ€. Exquisite operation and efficiency, still maintain a certain profit! This discovery made the people of "Xiangyuan" determined to "big surgery" on the industrial structure: cut off a batch of more than 560 enterprises, "close, stop, transfer, transfer", according to the size of the relationship with the shipping industry and the excellent rate of assets. The level of the company is to sort out, integrate and categorize the remaining enterprises. Based on the principle of “mainly attacking tripleâ€, the company will combine and integrate according to the key industry development of the main shipping industry, key resources for operation and key customer service. Funds, quality assets, management focus, and information services have been greatly tilted toward the “tripleâ€. This big move of “cutting the branches and strengthening the work†has strengthened the core competitiveness and main business advantages of “Xiangyuan†and greatly expanded the profit growth and efficiency-building space of “Xiangyuanâ€. In 2003, according to the strategic deployment of COSCO Group, COSCO Hong Kong Shipping Company implemented the “Hong Kong-Shenzhen Restructuring†with Shenzhen Ocean Shipping Company to cultivate Shenzhen Ocean Shipping Company into China’s second largest coastal transportation fleet, and is booming in China’s coastal bulk cargo. The transportation market has occupied a considerable share; at the same time, “Xiangyuan†relies on the high qualifications obtained by the strong profitability of the shipping industry, and uses the gaps in international shipping demand growth and low chartering fees to implement “big-handedly†From the strategy of transferring capacity to controlling capacity, long-term lease and control of Capesize vessels, a very large-scale "Good Hope" fleet has been created in a very short period of time; in Australia, the United States, the European Union, Japan, South Africa. The region has developed a number of large foreign customers and opened up a large international market... The “Xiangyuan†main business fleet has achieved higher than the market and better than its peers by virtue of the rising opportunities in the international shipping market and outstanding operational and efficiency. Performance, repeatedly creating new highs.
The backbone of the company is strong and strong - after 2003, the stocks of the two Hong Kong-listed companies controlled by "Xiangyuan" have strode into the rising channel; the increasing strength has allowed "Xiangyuan" to spare the asset replacement portfolio. , the high-debt rate stone block that puts the financial storm on the body; "Xiangyuan" under the ship service, terminal management, container leasing, logistics, ship coating, ship trade and insurance, freight services, information technology, etc. The industry chain associated with the main business has been actively growing together...
At COSCO Hong Kong Shipping Company, look at the complex fluctuations in the “Baltic Shipping Price Index†chart, and listen to how they describe their own capacity based on the infinite changes in market sentiment, reference prices and costs. It is like listening to a superb intellectual game class in the short-term and different combinations of renting out, and seizing the market opportunity, renting a boat at a low price, subletting, etc. in order to obtain the most profitable operation. This is a quiz that they are playing a game with the agile nerves of the world shipping market every day. It is this kind of competition that leads “Xiangyuan†to create the “strongest body†and connects its main development trunk with the world shipping market. Make a bigger and stronger correct course...
The door to management: "The wind is coming, it is the embankment, the opportunity is coming, it is the sail"
The two interrelated events that occurred in 2001 have been repeatedly mentioned by the "Xiangyuan" people: First, the "Hong Kong Management Professional Association" with a history of more than 40 years of international reputation has participated in the selection in accordance with international management quality standards. The company conducted an independent review and selection, and finally awarded its highest award “Hong Kong Quality Management Award†to COSCO Hong Kong Shipping Company under the “Xiangyuanâ€, which made COSCO Hong Kong Shipping Company the only one of the thousands of Chinese-funded enterprises in Hong Kong. This award-winning company is also the only one in Hong Kong shipping companies. This year, the leading company of shipping companies that strengthened the main business status in the “Xiangyuan†adjustment became the leader of “Xiangyuan†out of the development trough. The "Hong Kong Management Professional Association", which is in line with the US "Bao Liezhi National Quality Award", sent experts to scrutinize the management status of COSCO Hong Kong Shipping Company with the latest standards of "Seven Major Items 39". Surprisingly: the management of this Chinese-funded enterprise is strict, detailed, lively and excellent. It is not inferior to the internationally renowned and well-known enterprises in their eyes. It has many innovations and characteristics, such as the implementation of COSCO Hong Kong Shipping Company. The “tire management†created in Lean Management incorporates shipping, maritime, aircraft, crew, finance, business and other aspects into the “high-quality and efficient management system of “full process control systemâ€, relying on the “two-eight rule†(20 % of key customers contribute 80% of the profits. Winning the high-profit "main attack triple" (key market, key sources of supply, key customers) business model, experts are amazed. “Xiangyuan†said: “COSCO Hong Kong Shipping Company has won the Hong Kong Quality Management Award, which reminds us that we must have a 'management door'!â€
The second thing is that this year, "Xiangyuan" launched a basic work for the first time: reviewing and revising more than 150 pieces of scattered and unrelated management regulations formulated by the whole group since the establishment of "Xiangyuan". According to the requirements of modern enterprise system construction, we will focus on the overall goal of building, strengthening core competitiveness and forming an industrial development pattern with shipping business as the main framework, from clarifying property rights, norms and The system integration of management systems and regulations, including regulatory decision-making, investment, capital, finance, personnel, business management, and incentive behavior, compiled the "COSCO Hong Kong Group Rules and Regulations." “This is the first 'management charter' of 'Xiangyuan', which laid the institutional foundation for the expansion of 'Xiangyuan'.†At the same time, “Xiangyuan†summed up the management experience and compiled it into “Deepening the Enterpriseâ€. The Guiding Opinions on Management and Management is used to guide the operation and management activities of subordinate enterprises and to continuously innovate and improve in practice. For example, the "tire management" of COSCO Hong Kong Shipping Co., Ltd., the integration of the "one division, two divisions, one division and two systems" management model for the shipping business in Shenzhen and Hong Kong, the combined capacity to lease and develop key markets, customers and sources of supply. "Differentiated management" and the "source management" of industrial and trade companies to prevent operational risks, the "discovery of profit areas" for cultivating high-quality assets, etc., and the management and innovation experience that brought great benefits to "Xiangyuan" through "compilation" Transformed into the entire "Xiangyuan" seeking to strengthen the management of wealth.
"The best enterprise management is not the most complete system regulation, but the kind of management that has a keen sense of market risks, opportunities to transform each other and quickly make correct decisions." Opening the "Xiangyuan" management system integration Liu Guoyuan said. He believes that with the expansion of the scale of enterprises, the complete management system has a tendency to "effectively internalize the vitality and decay", and "Xiangyuan" must be bigger and stronger. To effectively cope with the strong competition in the world shipping market, it must be active. Explore ways to manage this trend. In “Xiangyuanâ€, the management encourages each employee and department to establish “25-character†management with “efficiency as the center, market as the theme, service as the means, management as the foundation, and the team as the foundation†through various effective channels. Management philosophy, this is the "living soul" in the "Xiangyuan" management system and the norms that people consciously follow. All management systems and norms are controlled by this concept and constantly improved and updated as a guide; "Xiangyuan" The management system has the characteristics of “flatteningâ€, with fewer vertical levels and more horizontal links. The balance of powers and responsibilities of each management part is balanced, and the checks and balances are effective and flexible. The horizontal investment organization, such as the Investment Risk Management Committee and the Corporate Governance Committee, is interspersed with the company. Run all key management links to timely monitor and continuously activate and promote the implementation of management systems and regulations; “Xiangyuan†management system and system are still open, not only many management system regulations introduce and link laws and regulations in Hong Kong and the Mainland, but also invite Hong Kong's legal institutions consult and review the company's operations. "In Hong Kong's complete market environment, 'Xiangyuan' can survive and develop without lawyers, accountants and appraisers at any time. Often ask Hong Kong's local 'three divisions' to use 'eyes' to 'Xiangyuan' to look at the loopholes Less!" Liu Guoyuan said. In addition, strengthening corporate culture construction, actively drawing on and introducing foreign advanced management experience, are also the focus and efforts of “Xiangyuan†to consolidate the management foundation for making bigger and stronger enterprises.
In the interview of “Xiangyuanâ€, the reporter heard such a thing: “Xiangyuan†Industry and Trade Company is the world's largest professional company that produces container boxes, and has undertaken a large-scale business for the production of box labels for an internationally renowned container shipping company. According to the 12 “Confirmation Process for Customer Drawingsâ€, the company found more than ten design doubts on the box drawing, and finally got the other party’s confirmation and made corrections, which saved a large amount. loss. This example of "details determine success or failure" is common among hundreds of companies under the company. It is also dependent on this kind of lean management that does not “run, run, drip, leakâ€. The industry and trade company has delivered more than ten excellent assets in its “incubation†for several years, contributing to the growth of “Xiangyuan†strength. In the past 7 years, “Xiangyuan†has not experienced a serious mistake in various important management levels such as major investment decisions, capital operations, financial operations, and enterprise operations. The hundreds of companies and enterprises controlled by the company have formed an integrated operation as a whole. Provide development momentum for “Xiangyuan†to become bigger and stronger. "Management Hand" is strong, let "Xiangyuan" sail a steep increase in the "capture of catching the moon"...
The door to "integration": 1+1>2 effect
14 years ago, COSCO Group supported the establishment of “Xiangyuanâ€, and injected its wholly-owned container business, Florent Group Co., Ltd. into “Xiangyuan†Group and listed on the Hong Kong Stock Exchange, which was the first breakthrough for COSCO to enter the Hong Kong capital market. . In the past few years, “Xiangyuan†has used the various methods such as equity participation to integrate the similar industries within the listed company named “COSCO Pacificâ€, and the original container fleet has been scaled from 600,000 TEU in 2000. The box has grown to 1 million TEU in 2005, and the terminal business has expanded to 19 large ports in China and abroad, making these two business segments among the top five in the world, and owning 49% of the largest logistics companies in China and the largest in the world. The container manufacturing enterprise has a 16.3% interest, and the company's market capitalization has nearly doubled. In 2003, it became a constituent of the Hong Kong Hang Seng Index. In 2005, China COSCO Holdings Co., Ltd. (hereinafter referred to as “China COSCO Holdingsâ€), a subsidiary of COSCO Group, was listed on the Hong Kong Stock Exchange. “Xiangyuan†will transfer this COSCO Pacific, which holds 52% of its high-quality assets, to the capital transfer. The way to return to "China COSCO Holdings", its successful listing, contributed to COSCO Group's capital platform and listed flagship; on June 26 this year, "China COSCO Holdings" returned to the mainland A-share market, with a price-earnings ratio of 98.67 times And the frozen funds of 1,629 billion yuan, set a new record in the history of the A-share market!
The above-mentioned capital integration operation in the history of the development of COSCO in the past 50 years is described by Wei Jiafu, president of COSCO Group, as “a successful attempt to practice the development strategy of COSCO Group as a 'system integrator'.†The mainland capital market people called the president of “Overseas Blue Chip Company's Return to the Front Runner†to deeply study the development trend of the world shipping industry. He believes that “system integration†of “business integration, asset integration, business ideas and strategic integration†is "Xiangyuan" is precisely the forerunner of COSCO's earliest development path.
As early as a few years ago, "Xiangyuan" jumped out of the inertia of the company's scale expansion "starting from scratch, starting from the market", focusing on external asset mergers and acquisitions and industrial integration to achieve scale expansion. With the active support of COSCO Group, they successfully integrated their assets and business with COSCO Hong Kong Shipping Company and Shenzhen Ocean Shipping Company. The latter's fleet, capital, manpower and other resources are in line with their own management, marketing and efficiency advantages. The combination brought about the “integration†effect of scale expansion, business synergy, management upgrade, market expansion, etc. “Xiangyuan†not only formed the first fleet of China’s coastal transportation for the entire “COSCO Departmentâ€, but also filled COSCO Shipping. ( 28.29,0.00,0.00%) The blank of the main business development broke the monopoly of China's coastal transportation market. It also flourished in this market and gained nearly RMB 1 billion in just a few years.
The savvy aspect of "Xiangyuan" is that they take the road of "system integration" and choose more Hong Kong capital markets with international financial capital, because "system integration" has the function of capital market and has "maximizing results". Positive effect. The above-mentioned industrial integration of COSCO Pacific to realize capital appreciation and transfer to “China COSCO Holdings†is another example. The Hong Kong listed company “Xiangyuanâ€, a Hong Kong listed company, is another example. This company was once a listed company specializing in the real estate industry. In 1997, it was bought and sold by “Xiangyuanâ€. In the Asian financial turmoil, the stock price plummeted, causing “Xiangyuan†to suffer significant capital losses. However, "Xiangyuan" did not give up this precious "channel" that links its industrial capital with the international capital market. They started from adjusting the industrial layout and establishing the main business. In a few years, the advantages of the shipping industry were successively driven. A number of high-quality industries with ship services as the core are integrated into the industrial chain by means of equity transfer and other capital operation methods, and are injected into COSCO International, gradually divesting and replacing non-performing assets, and promoting the company's efficiency growth and shareholder return. After the establishment of the market positioning of the ship service industry, the stock price of “COSCO International†rose sharply. “Xiangyuan†not only digested the heavy debt, but also obtained a rich return of funds from the capital interaction combination. Greater capital strength to strengthen the industry backbone and optimize the industrial structure.
In the large industrial cluster of COSCO Group, “Xiangyuan†has the strongest “partial compliance to the whole situation†and is the most praised by the policy makers of COSCO Group. In the past ten years, “Xiangyuan†transferred more than ten high-quality assets of its own high-efficiency ability to the brothers of COSCO, and accepted a number of non-quality assets in the COSCO system for digestion and transformation. However, “Xiangyuan†is more willing to change their perspective to understand their behavior: to implement the “system integration†strategy for the parent company COSCO Group to deliver high-quality assets, and COSCO Group has provided itself with greater “system integrationâ€. Space and big opportunities! The optimization of "big system" and the optimization of "subsystem" form a benign interaction, and the vitality of "COSCO Series" is multiplied, and there is a vast atmosphere of sailing the world shipping market! This is indeed the great wisdom that Xiangyuan seeks for development...
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