Henan Shenhuo Group M & A Strategy

Henan shenhuo Corporation (Group) is new developing energy enterprises, and a state-run large-scale enterprise group taking coal, generating electricity, electrolytic aluminium as staple, 520 key enterprises in the whole country, 100 tops of coal enterprise of the whole country will rank the 32nd in 2005, one of the 7 coal leading enterprises Henan Province, the pillar enterprises of Shangqiu. There are total assets of 10,500 million yuan now, the income from sales is nearly 8 billion yuan in 2006. The company can be divided into three stages mainly while developing: Former stage of mineral bureau, taking coal as the core to develop diversified economy industry stage, realization coal electric aluminium recycle economy stage. Henan shenhuo group form coal electric aluminium many family property develop simultaneously, structure reasonable industrial pattern already at present. Inherit the thinking of development of" develop coal electric aluminium, pair exceeds 20 billion ", with the gradual implementation of " eleven five is planned ", the shenhuo group will stress the staple, will train one's own key competitiveness emphatically, form coal - electricity -aluminium finally - aluminium process the integrated industry chain, become the extremely potential super-huge enterprise group.shenhuo group since established, go through enterprise primitive accumulation, a series of economic activities, operation of capital and person who annex of enterprise successively, have the scale of the large and medium-sized enterprise. Analyze, it is a complicated system engineering to merge through heavy takeover several times of the shenhuo group, merge and hide the enormous business opportunity and potential risk in enterprises grow up. According to the reality of the shenhuo group, we implement the main measure that enterprises merge: Strip it with the related degree of close assisting enterprises of staple, make it managed, assumed sole responsibility for its profits or losses independently; Do not have related industry of assistmg with the staple to withdraw from; Combine coals reserve resources, tamp and manage the foundation integratively; Size up the situation, annex the aluminum smelter of Yongcheng, construct the coal basic framework of electric aluminium industry; Build new aluminium electricity, strengthen aluminium industry's business scale; Implement expansion in low cost, annex, purchase Qinyang qinao aluminium industry, realize electrolytic aluminium further expansion of scale; Advance the deeply processed process of electrolytic aluminium actively, make great efforts to make the intact aluminium industry's system. Annex, recombinate through enterprise, realize coal electric aluminium real to deal in integratively, make coal electric aluminium into the intact industry chain from the property right, the shenhuo group fully utilizes the listed company—Operation platform of " shenhuo share ", coal electric aluminium industry's assets recombinate to shenhuo group, realize resource-sharing, have complementary advantages. This not merely helps to evade the market risk, improve enterprise's overall profit level, and it is possible to fully utilize the capital market, offer to enterprises for speeding up the development of enterprise. We further improve the coal according to the development strategy of " develop coal electric aluminium, pair and exceed 20 billion "—Electricity—Aluminium—Process the integrated management mode, continue extending the roller chain of the industry with aluminium. To eleven five the end, the shenhuo group makes great efforts to turn oneself into the coal integrated coordinated development of electric aluminium, total assets and annual income from sales pair exceed 20 billion, profits tax exceed yuan of domestic first-class full-length enterprise groups.