SOE giant to spread its wings overseas
Updated: 2013-05-30 10:51
By Hu Haiyan (China Daily)
In spite of US government sanctions, China Poly Group Corporation, one of the country's most influential State-owned enterprises, plans to expand its international operations to maintain double-digit year-on-year revenue growth in the next five years.
In February the US government imposed sanctions on Poly Technology, accusing it of being involved in dubious arms sales.
Chen Hongsheng, chairman of Poly Group, said the accusation was rootless and that although Poly was an SOE, it was a wholly market-oriented company.
"It is absolutely groundless and unreasonable that the United States imposed the sanctions according to its own laws or regulations," he told China Daily. "We have strictly observed China's laws and regulations as well as relative international laws and treaties and never helped any countries or regions develop any banned weapons."
He vowed to maintain expansion and diversification of the group's businesses.
"Immersed in the fierce competition of market economy and following effective strategies over the past 15 years, our group has developed so fast," he said. "To keep this momentum, we will continue to adhere to the strategies of limited diversification and tap the overseas market further."
Established in February 1992, Poly Group is parent to hundreds of subsidiaries from sectors as diverse as military and civilian trade, real estate, culture and arts, and mineral resources.
Last year, it recorded revenue of more than 380 billion yuan ($62 billion), 43.7 percent higher than the year before. Its profit was 18.7 billion yuan, 28 percent higher, ranking it among the top 20 SOEs.
Compared with 15 years ago when the group achieved just 10 billion yuan in sales and 120 million yuan in profits, this was "a huge leap in performance", Chen said.
Most of the group's investments and businesses remain low-key, but Chen is confident about the group's overseas growth.
Poly has invested heavily in overseas mineral resources, he said. The group also has operated construction projects, including some in Africa.
"Though the revenue from its international activities is not big compared with our total assets scale, with the further development in the group's overseas construction projects, our international trading businesses will continue to grow," Chen said.
He also said that although it is an SOE, Poly is still considering foreign investors to make the ownership more diversified and the decision-making process more democratic.
"Actually, we have introduced some foreign investors into our financial company," he said. "They can bring in some new ideas and management expertise to our group, which is beneficial for our long-term development."
Jiang Yingchun, the general manager of Poly Culture Group Co, said the company is planning more cultural exchange activities and mergers and acquisitions overseas, and expanding its auction business internationally.
(China Daily USA 05/30/2013 page13)