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[General Introduction]
China Gaoxin Investment Group
Corporation (hereinafter referred to as “Gaoxin Group”) originated from
the Light Industry and Textile Export Products Capital Construction
Projects Office of former State Planning Commission, which was
established in 1987. Gaoxin Group was founded in 1999, and now the group
has developed into a SASAC (State-owned Assets Supervision and
Administration Commission of the State Council) charged corporation, an
enterprise group specially designated in the state plan, and a state
innovative pilot corporation. Gaoxin group has also become into an
investment holding enterprise specialized in high-tech industrial
investment among the central state-held corporations.
Since 1999 Gaoxin Group has
become state investor representative of high-tech industrialization
projects and the implement platform of state high-tech industrial
development strategy. Through the investment of state capital and own
funds, Gaoxin Group has led and guided a large amount of social funds
into the high-tech industry with a proportion of 1:15, cultivating and
supporting a lot of small-sized and medium-sized enterprises with
international competitive and independent intellectual property rights.
Gaoxin Group has now developed into one of high-tech industrial
investment corporations with the largest scale and the most competitive
edge. In national high-tech industrial field, Gaoxin Group has shown the
influence of state-owned economy and initially founded the brand of
“China Gaoxin”.
By the end of 2007, Gaoxin
Group has 2.939 billion RMB registered capital, about 3,000 staffs, 22
wholly owned and holding subsidiaries (including 1 listed company), and
shares of 85 companies. Gaoxin Group mainly invest in high-tech
industrial, such as new material, medical, software system integration,
precision mechanism component, bioengineering and environment
protection; Gaoxin Group also invest in traditional areas, including
international trade, logistics, investment consultation, information
network and other relevant trade and service.
In 2007 under the correct
leadership of SASAC, with the great guidance of the board of
supervisors, in accordance with arrangement of SASAC in central
state-held corporations reform and development, as well as the general
requirement for their second tenure, Gaoxin Group has firmly established
and implemented the concept of scientific and harmonious development,
continuously made the principal high-tech work more skillful and
comprehensive, actively expanded the business of assets operation and
management, constantly reinforced the base of innovative enterprises,
made effort to enhance the development status and social image, sturdily
done well all the jobs of reform, development and stability, and
continuously realized the steady, healthy and harmonious development.
[Main Standards]
The year of 2007 is the first
year of central state-held corporations’ second achievement assessment
tenure, and after realizing the best economic targets in 2006, Gaoxin
Group has made new progress in 2007. Principal revenue grew steadily to
4.5 billion RMB, 7% increased compared with 2006, total profit enhanced
slightly to 220 million RMB, 10% increased compared with 2006, total
assets expanded continuously to 6.88 billion RMB, 22% increased compared
with 2006.
[Reform and Development]
First Gaoxin Group has
strengthened strategic management as its primary function, by setting up
the new three year rolling development plan, adjusting and revising the
development strategy, major tasks and guarantee measures both of the
group and subsidiaries, and having several multi-layers and in-depth
discussion about the key strategic problems including the long-term
development of Gaoxin Group and so on.
Second Gaoxin Group has
innovated the achievement assessment management. Concerning the
operation achievement assessment management of subsidiaries, Gaoxin
Group has added not only the group internal comparison, but also the
horizontal comparison, in which the management difficulty coefficient of
different types of enterprises has been adopted. Gaoxin Group has also
encouraged the subordinate enterprises to try out EVA assessment system
and increased the reward to the enterprises that make outstanding
contributions and have higher net-capital profit rate.
Third Gaoxin Group has
conformed to the requirement of modern financial management, by
enhancing subsidiaries’ financial analysis and supervision, perfecting
financial budgeting and auditing approach. Gaoxin Group has adopted the
method of centralized financing and credit awarding, which will not only
increase the financing power, but also reduce the relevant risk. Gaoxin
Group has improved the financing method through issuing short-term
financing bond and establishing the bank-enterprise cooperation model
with China Development Bank. Gaoxin Group has also upgrated network
system of financial management and the result is that corporation’s
financial information construction has reached to a new level.
Fourth Gaoxin Group has
deepened human resources management, by respecting to the salary control
of subsidiaries’ high management, and further defining the constitution,
confirmation, fulfillment and supervision procedures. Gaoxin Group has
changed the former non-performance-linked distribution mode of
headquarter staff, and regulated the labor employment and personnel
management system.
Fifth Gaoxin Group has
developed the internal auditing supervision, by improving the auditing
management method of subsidiaries and strengthening the level of
implementation.
Sixth Gaoxin Group has
perfected the legal risk prevention mechanism. Seasoned with the new
Law of Corporation, Gaoxin Group has formulated the models of
Articles of Association of non-listed joint-stock company and
limited company. Gaoxin Group has organized the law learning, attached
great importance to develop the guarantee function that legal matters
plays in business decision-making and management. The law consciousness
of Gaoxin Group has been generally improving.
[Major Projects]
First the capital operation
of holding high tech enterprises is pushed forward steadily. Inner
Mongolia Free Han & Mongolia Pharmaceutical Co., Ltd. has presented its
listing application to China Securities Regulatory Commission; Hunan
Huitong Advanced Materials Co., Ltd. has passed the listing coach and
accepted by Securities Supervision organization; Shenzhen Gaoxin Modern
intellectual Co., Ltd. has started its listing operation in Venture
Board; Guangdong Gaoxin Kaite Precision Machinery Co., Ltd. has
developed the work of increasing capital and share, and stock system
reform.
Second 20th
anniversary activities of Gaoxin Group have been successfully held. To
inherit from the history and forge ahead into the future, Gaoxin Group
has developed a series of 20th anniversary activities with
the topic of “discovery & innovation”. Former Member of the CPC Central
Committee Political Bureau and Vice Premier Zeng Peiyan has inscribed
for Gaoxin Group’s 20th anniversary: “According to the
requirement of Scientific development concept, continuously increasing
the ability of independent innovation, developing State investment
guidance function, accelerating the high-tech industrial development,
making new contributions for the industrial structure adjustment and
make the national economy develop well and fast.”
Third Gaoxin Group has been
actively declaring state innovative experimental enterprise. To further
perfect the development conditions of high-tech industry and improve the
scientific innovation function, Gaoxin Group has reported the
application materials to SASAC and the Ministry of Science and
Technology.
Fourth Gaoxin Group has
recommended itself the state-owned enterprise representative to SASAC,
systematically and completely introducing its production and management
performance in recent years, and its method, achievement and experiences
during the procedure of developing high-tech industrial investment.
Fifth Gaoxin Group has been
focusing on and participating in the reorganization of listed companies.
While making effort to push the holding high-tech companies to be
listed, Gaoxin Group has taken an active attitude to participate in the
reorganization of the listed company, continuously increasing its assets
securitization. Gaoxin Group has been involved in the reorganization of
2 listed companies, and practically done the risk control and risk
prevention well.
Sixth Gaoxin Group has been
positively taking stake in high-tech enterprises. To push more high-tech
enterprises to enter into the capital market, Gaoxin Group has held the
capital operation exchange meeting of high-tech enterprises, and
participated in the stock system reform and listing operation of several
companies to be listed, such as Dalian Luming Co., Ltd., Tianjin Motimo
Membrane Co., Ltd., Yangtze River Runfa Co., Ltd., Gansu Zhengsheng
bioengineering Co., Ltd., Beijing Lisichen technology Co., Ltd. and so
on.
Seventh Gaoxin Group has been
carrying out the state deployment of energy saving and pollution
reduction, studying and arranging the target in office tenure.
[Significant Innovations]
First Gaoxin Group has been
accelerating the construction of initial business risk investment
platform, and innovating the new way to develop state investment holding
companies. The development strategy of Gaoxin Group is to lead the
formation of a large number of small-sized and medium-sized enterprises,
which have international competitive and independent intellectual
property rights. Gaoxin Group has developed venture investment, further
expanded the development strategy of Gaoxin Group, and gradually created
the investment philosophy of “discovering value, adding value and
realizing value”. Through investing, merging and acquiring the
enterprises which are in start-up stage and fast-growth stage, an
investment pattern of scientific innovation and business model
innovation was formed. Gaoxin Group has also been continuously pushing
the information net construction of small-sized and medium-size
enterprises.
Second the holding high-tech
companies have achieved a great deal of positive results. Gaoxin
Zhangtong Co., Ltd. has developed the ultra-thin and ultra-fine internal
screw copper coil pipes, high precision brass pipes and bars; The
provincial key laboratory of Hunan Xiang Ceramics Science & Art
Corporation has passed the assessment organized by Provincial Science &
Technology Department; Guangdong Gaoxin Kaite Precision Machinery Co.,
Ltd. has finished the preparation of technical innovation of 50,000
meters’ imported machinery; Inner Monglia Free Pharmaceutical Co., Ltd.
has completed on-the-spot assessment and standard review with its
Ruanganpian Chinese caterpillar fungus substitution project; Shenzhen
subway project of Shenzhen Gaoxin Modern Joint-stock Company has been
granted 6A classification by the authority due to its reliable operation
and excellent technical performance. By the end of 2007, the holding
companies of Gaoxin Group have built one State Key laboratory, one State
high technology achievement industrial base, one State Torch Program
industrial base and totally five Provincial engineering technology
research centers, Key laboratories and enterprise technology centers;
drafted and worked out 13 State standards, 4 professional standards. In
2007, 31 patents have been newly applied for, including 17 invention
patents and 14 utility model patents.
