COFCO expects 2017 profit to exceed 10 billion

After experiencing the first phase of reform, the performance of COFCO has been significantly improved. Recently, version 2.0 of the reform has also started.

COFCO official website shows that from January to November 2017, COFCO total profit of 98 billion yuan, an increase of 78%, the annual profit is expected to more than 10 billion, achieved the best performance in COFCO history. In 2018, the Group will speed up the reform with the ultimate goal of achieving overall listing and becoming “a world-class food merchant.”

In the new phase of the reform plan, through capital stimulation, improving asset allocation and further highlighting the core business, it is still the focus of COFCO’s reform. To be specific, COFCO will further improve the layout of global warehousing and logistics facilities and accelerate the integration of domestic and overseas businesses in accordance with the four core core businesses of grain, oil, sugar and cotton. It plans to securitize high-quality assets of the core businesses through joint-stock reform , Taking capital as a link to promote development and building a core industry team with international competitiveness.

Promoting mixed ownership reform remains the focus of COFCO’s 2.0 reform era. COFCO plans to complete 10 diversified shareholdings by the end of 2018 and to change the inefficiency, high cost, and unfit state-of-the-art of state-owned enterprises through new institutional mechanisms.

According to the “13th Five-Year Plan” of COFCO, COFCO will promote the overall listing of the four major sectors of grain, oil, food, finance and real estate in 2019. Its 2020 goal is to achieve revenue of 750 billion yuan, total assets of 600 billion yuan, total profit of 15 billion yuan.