Huaneng Guicheng: Striving for "Industry Finance Synergy" Practice and Innovation, Striving to Create a High Quality Development New Road of "Industrial Central Enterprises Running Trusts"
2024-07-01
In November 2008, with the support of the Guizhou Provincial Party Committee and Government, as well as the former China Banking Regulatory Commission, China Huaneng Group increased its capital and controlled the company. The former Qianlong International Trust Investment Co., Ltd. was restructured and renamed as Huaneng Guicheng Trust Co., Ltd. (hereinafter referred to as "Huaneng Guicheng"), which was officially put into operation in March 2009. In the past sixteen years, Huaneng Guicheng has adhered to the mission of developing industrial central enterprises, continuously improved the quality and efficiency of financial services for the real economy, achieved the integration of party building and business development, coordinated industrial development with financial support, and embarked on a high-quality development path of building a new ecosystem of industry and finance, and continuously writing new chapters. The choice of history: Industrial central enterprises can also run finance well, accelerate the construction of a modern industrial system, and establish a modern enterprise system, which cannot be separated from the strong support of high-quality financial development. Huaneng Group's decision to increase its capital and control the trust company is based on the requirements of modern industrial system construction, optimization and adjustment of the financial industry layout, and the need to enhance the ability to actively serve its main business and the real economy, which is an important strategic decision made by state-owned enterprises and central enterprises. From a historical perspective, the timely and favorable actions taken at that time not only protected state-owned assets from loss, but also explored new paths for the coordinated development of industry and finance of Huaneng Group. It also refreshed a new situation where central industrial enterprises can operate finance and do a good job in finance. Opportunities come for those who are prepared. In recent years, Huaneng Group has further leveraged the synergy between industry and finance, effectively promoted structural adjustment and transformation and upgrading, enhanced industry competitive advantages, and deepened the reform and development of state-owned backbone energy central enterprises; The industrial advantages, development advantages, and brand advantages of Huaneng Group itself have also continued the red blood and injected new momentum into the rebirth of Huaneng Guicheng. Since the restructuring, Huaneng Guicheng has gone through various stages such as overcoming difficulties (2008-2010), catching up with and transforming (2011-2014), transforming and developing (2015-2020), and exploring new paths (2021 present). In improving corporate governance, it has strengthened the leadership of the Party, deeply cultivated the resource endowment of energy state-owned enterprises, focused on the group and service industry, closely grasped the theme of high-quality development, focused on the "secondary entrepreneurship" strategic goal, anchored and accurately entered the front-end industry and field, closely focused on and quickly integrated into high-end leading industries and enterprise ecosystems, and comprehensively utilized various financial tools to revitalize the assets of the power industry, promote green and low-carbon transformation of energy, support carbon peaking, and carbon neutrality. Continuously injecting financial vitality. Faced with the complex and ever-changing market environment and industry situation, Huaneng Guicheng firmly adheres to the concept of Huaneng Financial's "leading goose culture", serves without dependence, seeks survival, strives for strength, controls risks, and strives for innovation. As of the end of 2023, it has issued a total trust scale of 6239.233 billion yuan and fully redeemed 5737.468 billion yuan upon maturity; Accumulated operating revenue of 42.854 billion yuan and profit of 34.898 billion yuan; Net assets of 27.763 billion yuan; Accumulated tax contributions to local areas exceeding 20 billion yuan; Has been rated as the highest level in industry ratings and credit ratings for public market entities; Won the "May Day Labor Award of the National Financial System", "exemplary organization of Central Enterprises" awarded by the State owned Assets Supervision and Administration Commission of the State Council and the Ministry of Human Resources and Social Security of the People's Republic of China "," National Outstanding Trust Company "and other awards; We have obtained various innovative business qualifications in the industry, such as the trustee qualification for non-financial enterprise debt financing instruments, the underwriting qualification for non-financial enterprise debt financing instruments, and the manager qualification for asset support special plans. Our comprehensive development strength has remained at the forefront of the industry, and we have become a trust company with exemplary and leading significance in industry transformation. The transformation of Huaneng Guicheng has given rise to a new pattern of innovative development among leading institutions in the domestic trust industry, and has greatly enhanced the influence of central enterprises in the trust industry and even the entire financial industry. It has effectively formed a synergistic demonstration effect of industry and finance complementing and supporting each other. Exploration of Practice: Opportunities in the industry are also opportunities in the trust industry. As an important part of the financial industry, the trust industry is closely related to the real economy. As a financial institution that spans the credit market, capital market, and real economy, trust companies can leverage their unique institutional, functional, and innovative advantages to provide high-quality and comprehensive financial services to the real economy through the integration of industry and finance. The opportunity of industry is the opportunity of trust. In recent years, heavyweight policies such as new regulations on trust classification, new regulations on remote operations, and new regulations on regulatory rating have been introduced, and the trust industry is undergoing reshaping in terms of regulatory concepts, industry rules, and business models. Huaneng Guicheng actively adapts to and integrates into the ever-changing policy environment, always adhering to the development direction of "relying on the group, serving the main business, integrating industry and finance, and scientific development" and the strategic positioning of "financial support industry", focusing on the trust main responsibility main business, focusing on the financial services industry, and establishing a group business headquarters at the beginning of restructuring and operation, responsible for deepening the integration of industry and finance business; Synchronize the layout towards high-end industries, promote the restart of "secondary entrepreneurship", and select industry tracks based on national strategic guidance. Looking back at the development process of Huaneng Guicheng's industry finance collaboration, it is also a microcosm of trust companies relying on industries and adapting to changes in the industry. Before 2015, the company's industry finance service tools were relatively single, mainly focusing on bank trust cooperation business; After 2015, as the company entered a new stage of transformation and development, the "Industry Finance Service Toolbox", which includes various financial instruments such as asset securitization, perpetual trust, supply chain finance, photovoltaic funds, and industrial resource collaboration projects, became increasingly complete. The ability and quality of industry finance collaboration services for the development of central enterprise groups have significantly improved. To this day, the cumulative scale of Huaneng Guicheng's integrated industry and finance business has exceeded 130 billion yuan, including innovative projects for the first order of Huaneng Group and the first order in the market, and has participated in multiple major projects that reflect "Guicheng speed" and "Guicheng endurance". The "Huaneng Group Renewable Energy Subsidy ABCP" issued by Huaneng Guicheng is one of the "group's first" successful implementation of industry finance collaboration using asset securitization tools. ABCP is a sub product of enterprise asset securitization business in the interbank market, with important characteristics of "rolling issuance" and "shortening the term". This product has been issued since 2021, with a total of 17 issues and renewals of notes, with an issuance scale of 10.42 billion yuan. The lowest historical issuance interest rate for a single issue is 1.73%, far below the market standard for the same period. It not only successfully responded to the group's demand for renewable energy subsidies in wind and photovoltaic power generation projects, but also improved the utilization of funds, reduced financing costs, and supported new effective investments; Moreover, its pooled basic assets can reduce approximately 1.6 million tons of carbon dioxide annually, save nearly 630000 tons of standard coal, promote green and low-carbon energy transformation, achieve a virtuous cycle of economic and financial ecology, and become an important practice for the service group to support the implementation of the "carbon peak", "carbon neutrality", and "new leading green transformation" strategic tasks. In ensuring the national economy and people's livelihood, and meeting the needs of the group, Huaneng Guicheng has never been absent. In September 2022, coal prices remained high. With the approval of the State Council, relevant institutions may issue special energy supply bonds to the market to supplement equity funds to central power generation enterprises. In order to maintain national energy security and stable economic operation, and to support the construction of Huaneng Group's energy supply capacity, Huaneng Guicheng has taken advantage of the "Guicheng speed" of sustainable trust. With its fast response ability, it has established fund trusts in a very short period of time and distributed a total of 32.495 billion yuan in sustainable trust investments to multiple regional companies. While providing guaranteed funds to various regional companies, it has also effectively reduced the asset liability ratio, introduced low-cost, long-term equity funds, supported the group's energy supply task, and promoted the green and sustainable development of thermal power enterprises. All of these, one by one, are the constituent forces of the financial sector of Huaneng Group, supporting industrial development has always been hidden in the genes of Huaneng Guicheng. How to more effectively serve the real economy and draw the "second curve" of trust transformation has become the original intention and historical choice of Huaneng Guicheng's differentiated transformation and development path for many years. Huaneng Guicheng supports the group in issuing the first batch of national carbon neutral bonds; The Inner Mongolia Huadian REIT project, which has been running for more than a year, has become the first REIT project in the interbank market in Inner Mongolia and also the first REIT project of Huadian Group in Inner Mongolia, introducing equity funds of 2.001 billion yuan; By introducing a trust as a trustee in bond issuance, Huaneng Guicheng provided support for the second phase of the group's ultra short term financing bond issuance in 2021, greatly improving the liquidity of non-financial enterprise debt financing instruments and reducing financing costs; In 2016, Huaneng Guicheng opened up the first coal supply chain finance business of Huaneng Group, playing a demonstrative role in the subsequent operation of similar projects by the group's affiliated enterprises, achieving a win-win situation for all parties... In the process of engaging in industry finance collaboration, Huaneng Guicheng has a resolute vision and firm steps, always anchoring the innovative role of asset securitization tools, exploring new paths in supply chain finance, promoting the expansion and improvement of ABCP and public REITs, and providing financial support for the group to revitalize existing assets, enhance reinvestment capabilities, and attract financial water. When the trust industry is undergoing transformation, the first mover advantage accumulated by Huaneng Guicheng due to the synergy of industry and finance gradually becomes apparent, and the development strategy is also clearer. Starting from the strategic needs of the group, it is an important prerequisite for trust to have success. Huaneng Guicheng conforms to the trend of energy transformation, coordinates the "3-6" development strategy of Huaneng Group, insists on providing high-quality financial services for the high-quality development of Huaneng Group's main business, and strives for changes and adaptability at the historical intersection of trust industry transformation. With the high comprehensiveness, flexibility, and adaptability of trusts, it utilizes the advantages of multiple tools such as equity, debt, and asset securitization to meet the financial service needs of the real industry. By introducing phased funds such as trust loans, project financing, etc., it meets the financing needs of different development stages, scenarios, and entities of the group, which not only helps the group improve its capital structure but also expands its capital scale. Following the development logic of the group's industry is an important path for trust innovation. Huaneng Guicheng focuses on providing higher quality industry finance collaborative services for the group, actively investing in the clean energy field and energy structure transformation and upgrading, continuously expanding the communication and response channels between the capital, asset, and client sides that are conducive to industrial needs, and connecting a group of excellent suppliers and partners on the group's industrial chain through financial and capital cooperation. Especially in the process of serving high-end leading industrial enterprises, diversified financial instruments are used as a medium to strategically coordinate with the development of the group's industry. Emphasis is placed on connecting the resources and capabilities of the company's industrial customers with the support of the group's new energy development. Good at discovering, striving for, and actively matching the company's industrial customers with the group to carry out new energy project cooperation. This not only promotes the complementary effect of industrial and financial services and business innovation, but also achieves deep synergy with the group's industrial development, doing everything in trust to achieve "blood circulation" for entities and "communication" for development. Following the red cultural context of the group is a solid foundation for the trust's "soul casting". Huaneng Guicheng fully adheres to the requirements of the Central Financial Work Conference of "honesty and trustworthiness, seeking benefits with righteousness, prudence and prudence, integrity and innovation, and compliance with the law", organically integrates the industry culture of "relying on trust" with Huaneng's "three color mission", fully leverages the functional role of central enterprises, and insists on allocating more financial resources to areas and enterprises that are of great significance to national and regional high-quality development and people's livelihood security; Seriously fulfilling the social responsibility of central enterprises, participating in local poverty alleviation funds (limited partnerships) with a cumulative investment scale exceeding 23 billion yuan, no
Edit：Lubaikang Responsible editor：Chenze
Source：Xinhua network
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