Established on May 5, 1995, State Development & Investment Corp.,Ltd. (SDIC) is a state-owned investment holding company approved by state council. SDIC had a registered capital of 33.8 billion RMB yuan (5.1 billion USD). It has 493.6 billion RMB yuan (75.6 billion USD) in total assets, over 1 trillion RMB yuan (1461 billion USD) in the assets under management (AUM) in finance, and 40,000 plus employees by the end of 2017. Its gross revenue and total profit in 2017 were 101.1 billion RMB yuan (15.48 billion USD) and 18.2 billion RMB yuan (2.79billion USD) respectively. Since its Second Pioneering Campaign started in 2003, its gross profit has a growth annual rate of 22.6% for the past 15 years. SDIC has been graded A-class in the annual performance assessment conducted by SASAC for 13 consecutive years and appraised as “Excellently-Performing Enterprise” for four consecutive rounds. SDIC has played its unique role of investment guidance, restructuring and capital operation in China’s national economic development.
Since its establishment, SDIC has been improving its development strategy and asset mix, and gradually developed its four strategic business sectors, namely infrastructure-related industry, emerging industries, financial service & other services as well as international business. Infrastructure-related industry refers to energy industries such as power generation, communication such as road and port and the development of strategic and rarely-existed mineral resources. Emerging industries focuses on the synergy between fund investment and investment holding, targeting advanced manufacturing industry, health, municipal environmental protection, biomass energy, etc. Financial services refer to securities, banking, security fund, trust, insurance, guarantee, futures, financial company, financial leasing, etc. Consulting service refers to project engineering, asset management, consultancy, property management, etc. International business refers to overseas direct investment, international engineering contract and international trade, etc.
After 20 years of exploration and endeavor, SDIC has gradually developed a mode of operation featuring equity investment, equity management and equity operation and combination of asset operation and capital operation. Specifically, it is about obtaining equity through investment, increasing the value of invested-in enterprises through equity management, and gaining profits through equity transfer or equity operation. Eventually, the value of state-owned assets are maintained or increased.
SDIC practices a parent-subsidiary management system, with Mr. Wang Huisheng as Chairman (legal representative). It has 9 administrative departments and the office of Committee on State-owned Investment Companies of Investment Association of China at its headquarters, as well as 17 wholly-owned subsidiaries. In total, there are 145 tier-3 enterprises or above, which SDIC wholly owns or controls. Seven of the enterprises which SDIC controls are public companies, including SDIC Power Holding Co., Ltd. (600886.SH), SDIC Zhonglu Fruit Juice Co., Ltd. (600962.SH), SDIC Capital Management Co., Ltd. (600061.SH), China National Complete Plant Import & Export Corporation (000151.SZ), YAPP Automotive System Co., Ltd. (603013.SH), Hua Lien International (Holding) Co., Ltd. (00969.HK) and Zhongxin Fruit and Juice Limited (5EG.SGX). These companies forges “SDIC brand” in Chinese capital market.
Looking to the future, in line with the tenet of working for investors, for society and for employees, SDIC will serve the national strategies, play its leading role in key areas and industries, promote the layout of state-owned assets and restructuring, and push forward SOE reform of state-owned investment companies with a view to vigorously building itself into a world-class investment holding company.