2019 China Resources’Major Business Events Overview
2020-01-21,General Office

1.Shanghai MixC Tower Phase One Fund has successfully exited, and CR Capital Management partnered with CR Land to yield positive result

In January 2019, CR Capital Management’s Shanghai MixC Phase One Fund has successfully exited. The acquisition of its 4 Grade A office towers and ancillary commercial buildings of Shanghai MixC was officially completed on 7 January. The fund was set up at the end of 2013, with China Resources Capital Management as the fund manager, China Resources Land as the asset manager, GAW Capital Partners (the global well-known real estate private fund management company) and its consortium partners as the final purchaser. The cooperation achieved a mutually beneficial and win-win situation.

2.Pacific Coffee has launched the First Entrepreneurial Training Programme in the Greater Bay Area

Pacific Coffee has collaborated with Hong Kong College of Technology to launch “Beyond Dreams – First Entrepreneurial Training Programme of Pacific Coffee x HKCT @ the Greater Bay Area”. The programme will help young people from Hong Kong to start up business in the Greater Bay Area, which outlines strategies to integrate Hong Kong with national development.

3.CR Beer acquired Heineken at a consideration of HKD2.3 billion, making its market value increase by over 20 billion in half a year

On 30 April 2019, CR Beer announced that the acquisition of Heineken China Master Share was completed on 29 April 2019, and the Heineken TMLA and the Framework Agreement became fully effective in accordance with their respective terms and conditions. The estimated purchase price is approximately HKD2,355 million, and the Final Purchase Price will be determined or agreed following the delivery of the Completion Statement by the purchaser within 60 days after the date of Completion.

4.CR Ng Fung stabilized the supply of fresh pork amid the spread of African Swine Fever

On 10 May 2019 and 30 May 2019, Hong Kong Government made two separate announcements which declared Sheung Shui Slaughterhouse as an infected place upon detection of African Swine Fever virus. The emergency team of CR Ng Fung immediately responded to the spread of virus by launching the emergency plan, tackling it across the entire supply chain, from sourcing, slaughter and distribution to market.  CR Ng Fung took every effort to ensure the fresh pork supplies to Hong Kong is safe and stable, minimize the impact of suspension of fresh pork supply on Hong Kong.

5.The St. Regis Hong Kong has started operation, as a new landmark in Wan Chai

On 10 June 2019, CR Group launched the Grand Opening to announce The St. Regis Hong Kong has opened and started operation. The investment of high-end hotel, the newly opened St. Regis, is the way for China Resources to increase Hong Kong market penetration, aiming to deliver quality services with the brand of St. Regis and enhance the development of Hong Kong tourism. Such investment is the first step to expand the scale of investment in the Guangdong-Hong Kong-Macao Greater Bay Area, which demonstrates business remodeling of the Group has already made good progress.

6.China Resources Cement Investment Limited was included in two major stock indexes, being widely accepted by capital market

As of 17 June 2019, China Resources Cement Investments Limited (stock code: 1313) has been included in Hang Seng China Enterprises Index and Hang Seng China (Hong Kong-listed) 100 Index, which demonstrated that China Resources Cement was widely accepted by the capital market.

7.CR Gas collaborated with Ningbo Urban Construction Investment to invest in the Urban Gas Reconstruction Project

On 2 August 2019, CR Gas collaborated with Ningbo Urban Construction Investment and entered into a joint venture to invest in the Urban Gas Reconstruction Project. This Ningbo Project is a major project in the territory invested by CR Gas in addition to the projects such as Tianjin, Chongqing, Zhengzhou, Chengdu. It was also the largest reconstruction project in urban gas industry in mainland China in recent years.

8.CR Pharma Commercial joined hands with Mylan China as a step towards collaboration with the global pharmaceutical giants

On 12 August 2019, CR Pharma Commercial and Mylan China entered into a strategic cooperation agreement, in order to enforce supply-side structural reforms in mainland China, continue to enhance centralized pharmaceutical procurement system, and set up stable medicine supply system at the key hubs. This was a step to the collaboration with the global pharmaceutical giants.

9.Runke Microelectronics Fund was set up to promote the development of microelectronics in China

On 20 August 2019, the Group held the Development Roundtable on Semiconductor Investment and Signing Ceremony of Runke Microelectronics in Shenzhen, and Runke Microelectronics Fund was set up. By way of innovation, the Group promotes the development of microelectronics in China, captures the investment strategy window in the coming years. Various types of industries create complementary advantages and develop resources with synergy, to contribute in revitalizing the national microelectronics industry and develop into a world-class IDM semiconductor company.

10.CR Bank has commenced successful issuance amounted to RMB3 billion of micro financial bonds, to promote the development of micro enterprises in the Greater Bay Area

On 26 August 2019, CR Bank has commenced successful issuance amounted to RMB3 billion of the first tranche of micro enterprise loan specific financial bonds in 2019, in the national interbank bond market in China.  The bond was well received by investors with 3.19 times subscription, demonstrating the overwhelming levels of subscription. This also indicated an active response to the national call of “supporting the development of micro enterprise, committing to inclusive finance”, to optimize the allocation of financial resources, lead and enforce the measures on the development of economy in the Guangdong-Hong Kong-Macao Greater Bay Area.

11.CR Health restructured Liaoning Health Industry Group to create thousands of accommodations for patients

On the afternoon of 29 August 2019, CR Health and Liaoning State-Owned Assets Supervision and Administration Commission entered into a strategic restructuring agreement for Liaoning Health Industry Group. The scope of cooperation included 30 medical institutions that created 10193 accommodations for patients. Both parties worked together to create a model of structural reform of state-owned medical institutions, and promote the development of health industry in Liaoning.

12.Guangzhou Nansha China Resources International Logistics Co., Ltd. was inaugurated, established Nansha International Logistics Hub

On the afternoon of 29 September 2019, the inauguration ceremony of Guangzhou Nansha China Resources International Logistics Co., Ltd. and Guangzhou Nansha Modern Agriculture Group was successfully held. The  ceremony meant the establishment of Nansha International Logistics Hub of CR Enterprise in the Guangdong-Hong Kong-Macao Greater Bay Area. The project was to establish a trading platform integrated with information and financial services, for “gaining a foothold in Nansha”, “serving the Greater Bay Area”, “having mainland China as its hinterland”, “warehousing center for delivery services”, “sufficient liquidity in trading” and “producing and processing”. This helped to improve the Group’s business plans for the Greater Bay Area, create new business growth segments, in order to improve the Group’s competitiveness and influence in the Greater Bay Area.

13.CR Trust was awarded “Best Ten Innovative Family Trust Management Awards 2019” 

On 18 and 19 of November 2019, the 14th 21st Century Annual Finance Summit of Asia and Financial Competitiveness Awards was held in Beijing, CR Trust scored the best out of dozens of participating financial institutions and won the “Top Ten Innovative Family Trust Management Awards 2019”. In 2019, CR Trust committed to family trust management with the focus of developing cooperation channels, shaping business model, strengthening system, designing innovative products. Up to date, CR Trust has already established over 200 projects, for providing super-high-end customers with comprehensive wealth preservation and inheritance services.

14.CRC Yibao has become partner to the national team /TEAM CHINA

On the afternoon of 28 November 2019, the General Administration of Sport of China announced that CRC Yibao has become partner with national team /TEAM CHINA. CRA Yibao supplied funding, drinking water, sports drinks and all non-alcoholic drinks to over 70 national sports teams and members of delegations, to ensure the quality service and protection in the tournament. In last October, CRC Yibao was the sponsor for the 7th CISM Military World Games, to provide the game with full services and support. CRC Yibao was considered the brand of “the Chinese spirit of sport” after giving supports to several national sport games and matches.

15.CR Sanjiu successfully acquired Aonuo Pharmaceutical, to create children’s health leading brand and a variety of products

On 28 November, CR Sanjiu acquired 100% share of Aonuo Pharmaceutical from Harbin Gloria Pharmaceuticals. This acquisition helped to supplement the mainstream leading brands and products in the market, improve the Consumer Healthcare (CHC) business, quickly create children’s health leading brand and a variety of products. As a result, CR Sanjiu achieved a more diversified customer base, effective synergy of product, brand and channel resources.

16.The landmark project for Belt and Road, the construction of “Three Centers”of CR Land Xi’an was completed

On 30 November 2019, the construction of Xi'an Olympic Sports Center was completed. After that, the Xi'an Silk Road International Conference Center, Xi'an International Exhibition Center Phase One, three projects of Xi'an Olympic Sports Center were completed after 2-year construction. The landmark project for Belt and Road “Three Centers”  was built, which not only ensured the successful hosting of the 14th National Games of the People's Republic of China and other international conferences, but also improved the image of Xi’an and as a support for developing Xi’an into an international community.

17.CR Medical partners with China National Heavy Duty Truck Group to enforce the reform of state-owned hospital in Jinan

On 4 December 2019, CR Medical partners with China National Heavy Duty Truck Group (CNHTC) entered into an agreement in relation to the reform of CNHTC Hospital under CNHTC. CR Medical partners CNHTC jointly invested and established a new hospital, while CNHTC (with capital contribution using the assets of CNHTC Hospital) holding 25% equity interest and CR Medical (with capital contribution in cash) holding 75% equity interest, and took over the assets, manpower, and medical operations of CNHTC Hospital. This was an important measure for both parties to further implement the reform of state-owned enterprises, and further strengthen business plans of CR Medical for Shandong and the geographic layout.

18.CR Chemical Materials published its first academic article on International SCI Journal “polymer”

On 5 December, CR Chemical Materials cooperated with Federal Institute for Materials Research and testing, IMDEA Materials Institute and Kazan Federal University to publish an academic article on SCI monthly Journal "polymer". Dr. Kang Nian Jun of China Resources New Materials Research Institute contributed his efforts into the article with the research in relation to Layered Double Hydroxide (LDH) and Poly-L-lactic acid (PLLA). The research result was significant for improving the barrier properties of polyester packaging materials with layered nanomaterials as fillers. “polymer” is a leading scientific journal in macromolecule area.

19.CR Double Crane held the 80th Anniversary Ceremony, specified the culture blueprint of the Taihang Spirit in the next century

In 2019, CR Double Crane launched a series of year-long activities to celebrate its 80th anniversary, and held a ceremony of the 80th anniversary in Beijing on 9 December. During the period, the “Taihang Spirit” in the new era specified "the spirit of dedication to the country, the spirit of hard work for achieving sustainable growth, the spirit of pioneering innovation, and the pursuit of excellence in craftsmanship". CR Double Crane urged its employees to set themselves as an example to respond to the “Taihang Spirit”, in order to develop CR Double Crane into a world-class pharmaceutical company.

20.CR Power’s wind power connected to the grid network, the capacity exceeded 9 million kWh

On 12 December, With Hubei Suixian Longquan Wind Farm # 15, # 16, # 18 connected to the grid, the capacity growth of wind power connected to the grid was over 9 million kWh, while the capacity growth of wind power connected to the grid was over 7 million kWh in 2018.  In May 2019, there were only 381 days and 198 days respectively exceeding 8 million kWh, which achieved a result of new wind power grid-connected capacity exceeding 2 million kWh. As a result, the speed of wind power construction and development have further accelerated, the clean energy increased in proportion, and the business structure was further optimized.

It effectively helped the implementation of the strategic objectives of “13th five-year plan” and as the basis for developing the CR Power into a world-class clean energy enterprise.

21.CR Jiangzhong won the National Science and Technology Progress Award Second Prize

On 18 December, CR Jiangzhong with its aim of “modernizing traditional Chinese medicine manufacturing - key technologies of oral solid dosage of Chinese medicine” won the National Science and Technology Progress Award Second Prize. This technology resolved the key problems in manufacturing oral solid dosage of traditional Chinese medicine, achieved upgrade of the modernization of traditional Chinese medicine manufacturing, met the realistic needs of green manufacturing of traditional Chinese medicine that significantly improved the quality of traditional Chinese medicine in China, and promoted the technological progress and high-quality development.

22.The profitability of CR Vanguard exceeded expectations and achieved the goal of reversing loss into profit

In 2019, based on the changes in consumer shopping behaviors, CR Vanguard adjusted its business structure, improved its operation quality, and committed to the transformative and innovative development, in order to achieve better returns on its operations. The core business continued to maintain rapid growth, the operating profit exceeded its best level during the “13th five-year plan” period, and successfully made profits. The proportion of sales and profit ratio of innovative operation reached double digits, and the overall trend of various operating indicators was positive.