To build a world-class comprehensive chemical enterprise

On July 2, Syngenta Group Co., Ltd. released its prospectus and began the process of listing on China's science and Technology Innovation Board, drawing high attention from all walks of life.



Syngenta Group, a subsidiary of Sinochem Holding Co., Ltd. in the life science sector, is the world's first plant protection company and the world's third seed company. The listing of Syngenta Group is another major event in the reform and development process of Sinochem following the reorganization of Sinochem Group Co., Ltd. and China National Chemical Group Co., Ltd. into Sinochem Holding Co., Ltd. on May 8.



"The new company is the largest chemical company in the world, but not the one with the strongest core competitiveness. Therefore, we are determined to develop into a global chemical company with scale, technology, whole industry chain and strong innovation ability." "Said Ning Gaoning, chairman of Sinochem.



Take the two reorganization as an opportunity



Optimize business layout



After the restructuring, Sinochem has assets of 1.4 trillion yuan and 220,000 employees worldwide. Its business scope covers eight fields: life science, material science, basic chemical industry, environmental science, rubber and tire, machinery and equipment, urban operation and industrial finance. The establishment of Sinochem is of great significance for optimizing the structure and distribution of state-owned economy, facilitating China's agricultural modernization and enhancing the market competitiveness of the chemical industry.



"Starting a new company from a high starting point means heavier tasks and greater responsibility. The physical merger has to become a chemical merger to really form a new company." "Ning Gaoning said.



Sinochem is constantly optimizing its business layout to achieve the strategic goal of building a world-class comprehensive chemical enterprise driven by science and technology and guided by life science and material science, supported by basic chemical industry, supported by environmental science and supported by science and technology.



It is understood that the agricultural business as the first restructuring and integration of the plate, synergistic value has been initially shown, performance growth faster than the main global competitors. Since the restructuring, Syngenta has taken more than 400 initiatives across business units. According to the prospectus, Syngenta achieved strong growth momentum in the first quarter of 2021, with operating revenue up 10.8% and net profit up 44.91% year-on-year.



At the same time, China Chemistry promotes the independent innovation of seed industry and leads the establishment of the National Corn Seed Industry Technology Innovation Center to promote the industrialization of biological breeding. We will innovate and develop the business model of the Integrated Agricultural Service Platform (MAP), solve the mismatch between supply and demand of high-quality agricultural products, help farmers grow high-quality agricultural products and sell them at good prices, and contribute to high-quality agricultural development in China.



China's sinochem also actively promote upgrading and intensive development, achieved the integration of oil refining business transformation and upgrading, forming oil refining capacity 15 million tons/year, 1 million tons/year ethylene production capacity, actively cultivate chemical new material, new energy, biological and environmental four strategic emerging industries, through mergers and acquisitions luxi group become China chemical new materials industry leading enterprises, Initially formed quanzhou, Liaocheng, Lianyungang and other integrated bases. At the same time, a number of characteristic bases will be built to develop pillar industries such as pesticides, animal nutrition and silicone, and emerging industries such as lithium batteries and electronic chemicals.



In the process of implementing the new development pattern of domestic and international double-circulation, Sinochem also actively promotes the introduction of advanced production capacity from overseas such as Norway's Elkem and France's Adissu, improves the domestic supply chain, improves the marketing model and opens up the domestic market.



In order to mix into transition breakthrough



Improve market competitiveness



In recent years, mixed ownership reform has become an important starting point for Enterprises under Sinochem to improve their competitiveness and the efficiency of state capital allocation.



According to the head of China's Sinochem Reform Office, in addition to the listed Syngenta Group, the energy and finance business units introduced five investors in 2019, completed the fundraising of 11.55 billion yuan and 2.55 billion yuan, Sinochem energy became the "double hundred enterprises" in the year to raise the largest amount of enterprises, is promoting A share listing.



According to penetrating statistics, the rate of mixed-use reform in Sinochemic has exceeded 78%, and the rate of asset-backed securitization has reached nearly 50%. Sinochemic is promoting reform through mixed-use, speeding up the improvement of the modern enterprise system with Chinese characteristics, promoting market-based reform of systems and mechanisms, and building a fully competitive and dynamic market-based business entity.



It is understood that Sinochem Energy has improved the corporate governance structure and operation mechanism, promoted the completion of the cadre tenure system and contractual management, carried out the integrated rank and salary system reform in an orderly manner, and won grade A in the three system reform evaluations of "double Hundred Enterprises".



Sinochem international has taken multiple measures to strengthen incentives, granting 53.24 million restricted stock incentives to 257 key employees, and launching competition for department director positions to maximize the motivation of employees' entrepreneurship and innovation.



China Jinmao introduced Ping An as an active shareholder to participate in corporate governance, explored the implementation of differentiated authorization and decentralization, deepened the reform of service-oriented headquarters, and gave full play to the advantages of equity diversification to provide a strong driving force for development.



The concept of the supremacy of science



We will promote technological innovation and transformation



At a press conference following sinochem's inaugural meeting, Ning gaoning introduced the new company's logo, which features a peony flower with four characters -- Science comes first.



"We want to be a company that really pursues technology, pursues science, pursues exploration, pursues innovative things. If there is no innovation, no research and development, no new products, we will not do mergers and acquisitions, no investment, no duplication of construction, this philosophy should be implemented in all of the company's business." "Ning Gaoning said.



It is understood that in 2020, The r&d expenses of Sinochem Group and the sales revenue of new products of comprehensive chemical business more than doubled compared with 2017. Sinochem was awarded the second place of Class A in the evaluation results of patent quality of central enterprises. The achievements of the fluorine-containing new material HP-1 high temperature heat pump working medium independently developed by Sinochem have reached the international level, the key technical indicators of the high shielding rubber formula have made a breakthrough, the original pesticide Baozhuo has become the first brand of acaricide in China, and many scientific and technological enterprises have achieved reform results.



Taking Shenyang Chemical Industry Research Institute Co., LTD. As an example, the leadership took the lead in innovation under the above rate, introduced high-level talents from outside, carried out diversification incentive, science and technology system reform and other measures to stimulate the enterprise vitality. In 2020, the business performance was increased by more than 2 times against the trend, and the company was rated as one of the top 100 enterprises of national science and technology innovation.



"We will continue to invest in technology, research and development, innovation and creation in a long-term and tenacious manner, and compete with world-class enterprises." Ning Gaoning said that all links should be benchmarked, especially benchmarking technology, research and development and innovation, and benchmarking's role in promoting social economy.



The founding of Sinochem opened a new chapter in the development of China's chemical industry is also a milestone in the history of the development of China's chemical industry. Sinochem, predictably, China will further undertake to promote the development of Chinese agriculture with high quality, speed up the chemical new materials industry board and other important task, on the road towards a world-class comprehensive chemical enterprise, and constantly strengthen the key technology research for provenance, chemical industry and other fields, in the protection of the industrial chain, supply chain security and stability, etc, create more value.