The State-owned Assets Supervision and Administration Commission issued an announcement a few days ago and decided to adjust the main business of China National Salt Corporation. Salt Chemical has officially become one of the company's three main businesses, which will create conditions for the government to continue to expand in the chemical industry. After adjustment, the main business of Zhongyan was changed to mining, salt production and related salt chemical production; salt specialty and related products trade; salt industry survey, engineering design, related product technology development and services. The SASAC requires that China National Salt Corporation should further strengthen strategic planning and management, optimize resource allocation, highlight main businesses, improve core competitiveness of enterprises, and strictly control non-primary investment according to the adjusted main business. According to public information, Zhongyan is the main production and operation entity of the nation's salt franchise, the leading company in the salt industry in China, and the only central enterprise, the largest salt company in Asia, and an important domestic chemical company, and a top 500 Chinese company. With 9 chemical bases and 11 salt production bases, the salt output is more than 13 million tons, accounting for about 20% of the country's total output, ranking the top three in the world. Prior to this, Zhongyan had been operating in the chemical industry for eight years. In 2004, the company formally entered the field of salt chemical industry, and through the extension of the industrial chain, it strengthened the construction of salt chemical base. “The company successfully reorganized Inner Mongolia Jilantai Salinization Co., Ltd., Yabulai Salinization Co., Ltd., Hunan Zhuzhou Chemical Group, Shanxi Yuncheng Salinization Bureau. , Anhui Hefei Hong Sifang, Jiangsu Zhenjiang Salt Chemicals Co., Ltd., and Changzhou Chemical Plant have realized the strategic layout of the east, west, and west of salt chemical industry.†The company has controlled two listed companies, Lan Tai Industrial and Nanchang ST. According to statistics, in 2011, Zhongyan achieved an operating income of 28.41 billion yuan, a year-on-year increase of 53.8%, and a net profit of 720 million yuan, an increase of 46.9% over the previous year. In the specific business segment, salt franchise realized operating income of 6.33 billion yuan, an increase of 31.7% year-on-year; salt and salt chemical business revenue of 21.94 billion yuan, an increase of 59%; emerging business operating income of 1.11 billion yuan, an increase of 121.9% . A few days ago, an announcement by the company’s listed company Lan Tai Industrial revealed that China’s salt industry is undergoing structural adjustment in the north. The industry expects that the increase in salt industry will provide more government support for Zhongyan’s future expansion of salt chemical industry. . Zhong Qing, general manager of Yanqing Guo, said to the media earlier: “In the future, we will use 10 years to speed up the transformation of development methods, focusing on the development of salt and inorganic salt chemicals, and achieving a leap towards world-class salinization industry.†Although salt chemical contributes about 60% of operating income for Zhongshang, the profits created by this segment of the business are embarrassing. Based on its net profit of 600 million yuan in 2009, the net profit contributed by the salt franchise was 430 million yuan, accounting for about 70% of the total, and the performance of the salt chemical business was unsatisfactory. China Salt did not publish the relevant figures for 2011 net profit. In recent years, with the domestic voice calling for the abolition of the salt industry's franchise system, the pressure on China National Salt is obvious. On the other hand, the integration of central SOEs led by the SASAC is also considered to be the destiny of Zhongyan. In order to avoid mergers and reorganizations, the company’s steps toward the RMB 100 billion central SOE have to be significantly accelerated.
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