Based on three platforms, Hangzhou Capital shows new responsibilities and new actions.

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Stick to the new era and work hard for a new journey. Report to the 20th CPC National Congress of the Party pointed out that we should deepen the reform of state-owned assets and state-owned enterprises, speed up the layout optimization and structural adjustment of the state-owned economy, promote the state-owned capital and state-owned enterprises to become stronger, better and bigger, and enhance the core competitiveness of enterprises.

On November 28th, Hangzhou State-owned Capital Investment and Operation Co., Ltd. (referred to as "Hangzhou Capital"), the first municipal state-owned capital investment and operation platform in Hangzhou, celebrated its fourth anniversary. Guided by Socialism with Chinese characteristics Thought of the Supreme Leader in the New Era, Hangzhou Capital resolutely implements the decision-making arrangements of the municipal party committee and municipal government, bases itself on the functional orientation of "strategic investment platform, state-owned capital value management platform and state-owned state-owned enterprise deepening reform service platform", strives for innovation, gives full play to the leading role and amplification effect of state-owned capital, and helps Hangzhou’s industrial transformation and urban comprehensive energy level improvement with the optimized layout of state-owned economy, which is demonstrated in the practice of vigorously promoting "two firsts" in Hangzhou.

Be stronger and bigger, speed up the construction of a new development pattern

Accelerate the construction of a new development pattern and focus on promoting high-quality development. Four years ago, Hangzhou Capital came into being.

As the first "two-type company" at the municipal level, Hangzhou Capital is positioned as "the promoter of state-owned enterprise reform and the guide of industrial transformation", assisting the SASAC to perform the responsibilities of investor and carry out the operation of state-owned capital, implement the strategic adjustment of state-owned capital, and improve the allocation efficiency and operation quality of state-owned capital. Focusing on the functions of the three platforms, the company has built a "one body and two wings" business pattern of headquarters+investment and operation, and carried out state-owned capital operation management and strategic investment.

After four years’ efforts, by the end of October 2022, the company’s consolidated assets totaled 82.096 billion yuan and its consolidated net assets were 39.893 billion yuan. From January to October 2022, the consolidated revenue was 38.577 billion yuan, up 29.53% year-on-year, and the total consolidated profit was 3.949 billion yuan, up 19.32% year-on-year.

At present, Hangzhou Capital has consolidated 148 subordinate companies through equity transfer, direct investment, establishment of industrial funds, mergers and acquisitions, etc., including 9 key first-tier subsidiaries, including 4 wholly-owned subsidiaries, 5 holding companies, and 6 shareholding companies, with double AAA main credit rating. It is the largest shareholder of listed companies Hangyang Group Co., Ltd., Hangzhou Turbine Power Group Co., Ltd. and Digital Source Technology Co., Ltd., and the second shareholder of East China Pharmaceutical Co., Ltd.

Guided by the spirit of the 20th National Congress of the Communist Party of China, Hangzhou is paying close attention to the primary task of high-quality development. Efforts will be made to build five industrial ecological circles, to build a modern service industry system focusing on "two places and four centers", to strive for a comprehensive national science center, and to build the first choice for the transfer and transformation of scientific and technological achievements. As a new force to promote high-quality industrial development in Hangzhou, Hangzhou Capital, driven by studying and implementing the spirit of the 20th Party Congress, systematically grasps the new mission and tasks entrusted to state-owned enterprises, and strives to contribute to building a Chinese-style modern city model.

Capital empowerment to build a strategic investment platform

In May this year, with the cooperation of Hangzhou Capital, Sequoia China RMB Seventh Science and Technology Fund signed a contract to land in Hangzhou. Relying on its rich international innovation resources, Sequoia China hopes to build an empowerment platform in Hangzhou, focusing on the fields of science and technology, medical care and health, consumer services, etc., and leveraging the long-term experience of excavating and incubating in professional fields to help innovative enterprises grow, it will inject surging power into Hangzhou’s innovation ecology. Recently, the CEO Summit of Sequoia Capital was held in Hangzhou. This is the first time that Sequoia Capital has held a summit in a city other than Shenzhen and Guangzhou. It also reflects internationally renowned investment institutions and is optimistic about Hangzhou, a city of innovation and vitality.

Innovation wins. To fully implement the new development concept, we must lead high-quality development with innovation drive and build new kinetic energy for industrial development and economic development with innovation drive. Hangzhou Capital actively plays the role of a strategic investment platform, undertakes the establishment and management of the Hangzhou Innovation Fund with a scale of 100 billion, is responsible for investing in strategic emerging industries, practices the role of a leader in industrial transformation, and exerts the leading role and amplification effect of state-owned capital through direct investment and fund investment, so as to promote the development of more social capital to key industries in Hangzhou.

Focusing on the need of optimizing the industrial layout and upgrading the industrial energy level in Hangzhou, Hangzhou Capital actively carries out strategic investment to boost the development of "concentration, accumulation and cluster" of the industry. Up to now, 40 foreign investment projects have been completed, with a total investment of 25.728 billion yuan, including 16.807 billion yuan from the fund and 8.921 billion yuan from the project, with a total investment of 9.739 billion yuan. Hangzhou Innovation Fund, which took the lead in establishing and operating, has established 13 funds, with a total scale exceeding 62.73 billion yuan, including 2 industry parent funds with a scale of 25 billion yuan; There are 7 sub-funds with a scale of 22.645 billion yuan; There are 4 special sub-funds with a scale of 15.085 billion yuan. It has reached cooperation with a number of head institutions such as Sequoia Capital, CITIC Group, CICC Capital and Tiger Bio. The investment has landed a number of high-quality projects, which has effectively boosted the layout development of Hangzhou in integrated circuits, digital economy, biomedicine, new energy and other industries.

Recruit big, attract strong, and lay out five industrial chains at a high position

Seizing the commanding heights of emerging industries is to win the initiative of future development.

Report to the 20th CPC National Congress, the Communist Party of China, proposed to promote the development of strategic emerging industries integration clusters and build a number of new growth engines such as new generation information technology, artificial intelligence, biotechnology, new energy, new materials, high-end equipment and environmental protection.

Today’s investment promotion is tomorrow’s industry. Hangzhou Capital gives full play to its own characteristic advantages, relies on the linkage between cities and districts and its own industrial advantages, actively attracts major industrial projects to land in Hangzhou around the five major industrial chains, and promotes the construction of characteristic industrial parks and incubators with the concept of "one industry, one park, one fund".

Recently, the zero-run car that landed on the Hong Kong Stock Exchange handed over its first report card. In the first three quarters, the company achieved revenue of 4.288 billion yuan, a year-on-year increase of 398.5%, and the delivery of new cars will soon exceed 100,000 units. The rapid development of zero-running cars is also inseparable from the good industrial ecology created by Hangzhou. The new project of zero-run automobile intelligent factory has blossomed in Hangzhou, among which Hangzhou Capital dominates the support of 3 billion yuan strategic investment in urban areas. The new project of Zero Run New Energy Vehicle Intelligent Factory in Dajiangdong is currently under construction. The total investment of the project is 4 billion yuan, and it is planned to start production in 2023. Hangzhou’s vigorously developed new energy automobile industry will add new kinetic energy.

Recruit big and attract strong, and the project is king. Up to now, Hangzhou Innovation Fund has invested in 35 projects in Hangzhou, such as Shimai Pharmaceutical Co., Ltd. and Anbang Security Co., Ltd., inciting the total scale of social capital to 16.206 billion yuan, and actively tracking and promoting a number of major industrial projects.

Hangzhou Innovation Fund closely focuses on five industrial chains, namely intelligent IOT, biomedicine, high-end equipment, new materials and green energy, to realize the integration of "fund chain, innovation chain and industrial chain" and build an industrial chain and ecological circle with voice and competitiveness. In the intelligent IOT industry, it participates in the Pre-IPO round of financing of central control information, provides the overall solution of smart city construction in the whole life cycle, and plans to declare the IPO of GEM; In terms of biomedicine, we participated in Tiger Biomedical Fund and Beida Biomedical Fund, focusing on innovative medical devices, biomedicine, medical informationization, medical services and other fields to promote the transformation and upgrading of Hangzhou’s life and health industry; In terms of high-end equipment, the industrial chain layout of upstream materials, equipment, midstream chip design and downstream wafer foundry has been completed; In terms of new materials, through the sub-fund investment of 100 million yuan to support the research and development innovation of Jingjing New Materials Technology Company; In terms of green energy, we will actively connect with projects such as China Forestry Group and Carbon Exchange.

Deepening reform, innovation and development of state-owned enterprises and increasing vitality

Reform promotes development, and work hard to undertake the mission. As a product of deepening the reform of state-owned assets and state-owned enterprises, Hangzhou Capital actively promotes the three-year reform of state-owned enterprises, adheres to the strategic positioning of excellent state-owned capital value management platform, gives full play to the role of active shareholders, stimulates the vitality of subordinate enterprises through reform, and empowers state-owned enterprises to innovate and develop.

Hangzhou Capital helps enterprises to become bigger and stronger through equity operation management, and participates in the capital increase and share expansion of Hangzhou Oxygen Special Gas Co., Ltd. to introduce strategic investors, so as to help Hangzhou Oxygen Co., Ltd. seize market opportunities to make the special gas business sector better and stronger; Overall planning for deepening the reform work of Hangzhou Steam Turbine Group, laying the foundation for the company and enterprises in the system to set sail for the next step; Promote the construction of East China Pharmaceutical Life and Health Industrial Park, attract innovative drug research and development project teams, and become a new highland of biomedicine. The equity incentive plan for employees of Hangzhou Oxygen, Hangzhou Steam Turbine and Huadong Pharmaceutical has greatly stimulated the development vitality of enterprises. Hangzhou Capital also actively participated in the mixed reform of central and local enterprises under the State Grid, and invested in Hangzhou Electric Power Equipment Manufacturing Co., Ltd.. Through a series of measures, the core competitiveness, innovation, control, influence and anti-risk ability of enterprises owned by Hangzhou Capital have been significantly improved. At present, Hangzhou Capital has owned four "Kunpeng" enterprises, namely Hangzhou Oxygen, Hangzhou Steam Turbine, East China Medicine and Electric Power Equipment Manufacturing Company, and four "Little Giant" enterprises specializing in specialty and novelty.

Guided by scientific and technological innovation, the development of enterprises has continuously enhanced its vitality. Hangyang Group accelerated the transformation to service-oriented manufacturing industry, achieved new breakthroughs in the fields of new energy, new materials and hydrogen energy, was selected as the national "Science and Technology Reform Demonstration Enterprise" and was identified as the national benchmark enterprise by the State-owned Assets Supervision and Administration Commission of the State Council; Hangzhou Steam Turbine Group successfully developed 1.5 million tons/year industrial steam turbine for driving ethylene plant, setting a new record for the first set in the world, and entered the commanding heights of gas turbine research and development in the industry, and achieved phased results; Hangzhou Electric Power Equipment Manufacturing Co., Ltd. completed the research and development of uninterrupted operation products and new mobile energy storage vehicles; Digital Hangzhou Company helps Hangzhou’s urban brain construction, develops and operates epidemic prevention site codes, and promotes Hangzhou to build a global digital transformation highland.

Mining value from shutting down and turning back. Hangzhou Capital set up a unified disposal platform for inefficient and ineffective assets at the municipal level, launched a special campaign to clean up small and weak state-owned enterprises, gradually accepted the equity and physical assets that are difficult to be disposed of by municipal state-owned enterprises through vertical integration, horizontal merger and entrusted disposal, and actively explored and promoted the deepening of market-oriented disposal mode. At present, 21 equity assets and 13 physical assets have been disposed of, and the state-owned assets have been revitalized by over 180 million yuan.

Keep in mind the mission and join hands in the new journey of common prosperity

Common prosperity is the essential requirement of socialism and an important feature of Chinese modernization. With the mission of state-owned and state-owned enterprises, Do not forget your initiative mind, the capital of Hangzhou, actively fulfilled its social responsibilities, and made positive efforts in supporting the prevention and control of first-line epidemics, uniting villages and towns, Spring Breeze Action, helping enterprises to bail out difficulties, and fully safeguarding the Asian Games, and bravely shouldered the responsibility of state-owned enterprises.

Recently, Hangzhou Electric Power Equipment Manufacturing Co., Ltd., a subsidiary of Hangzhou Capital, received a thank-you letter from Baojia Village, Langchuan Township, Chun ‘an County. Hangzhou Electric Power Equipment Manufacturing Co., Ltd. combined with its own technical characteristics and advantages, installed complete sets of photovoltaic power generation equipment for the party-mass service center building in Baojia Village. The company also invested about 172 million yuan to build the Maoshangang centralized photovoltaic power station project in Zhangcun, Zhongzhou Town, Chun ‘an County, and explored the dual-purpose comprehensive use mode of photovoltaic power generation on the shed, planting tea, blueberries and Chinese herbal medicines under the shed to help local farmers get rich.

Hangzhou Capital has integrated the concepts of social responsibility and common prosperity into corporate culture and strategic planning, and realized the "symbiosis and common benefit" between social responsibility and business operation. While helping with real money, sincerity and practical work, Hangzhou Capital has actively promoted wealth with the concept of development, and explored a number of projects featuring common prosperity. For example, important subsidiaries of Hangzhou Capital and System have actively participated in the activities of "Hundred Societies and Hundred Enterprises Building Hundred Villages", and have completed pairing work with nine villages including Changchuan Village, Yinjiang Village, xinfeng village and Yaoshan Village. We also jointly invested in Fuling Technology with jiande city to help introduce high-end manufacturing industry projects.

Strive for a new journey and set sail again. The 20th National Congress of the Communist Party of China sounded the clarion call for building a socialist modernization power in an all-round way. Hangzhou Capital will thoroughly study and implement the spirit of the 20th Party Congress, conscientiously implement the important exposition spirit of the Supreme Leader General Secretary on the reform and development of state-owned enterprises, continue to promote the gathering of state-owned capital in the five major industrial chains of our city under the leadership of the municipal party committee and municipal government, and expand the scale and strategic support capacity of Hangzhou Innovation Fund. We will increase investment attraction, support key industries to strengthen the chain and make up the chain, and lay out each subdivision track in depth to lead the layout of state-owned capital to be further optimized. Continue to deepen the reform of state-owned enterprises and build a world-class enterprise. With the mission of state-owned assets and state-owned enterprises, we will help Hangzhou to accelerate the construction of a world-class socialist modern international metropolis and show its head geese in the "two firsts".