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CEFC China Energy (Chinese: 中国华信能源) is a private Chinese conglomerate. With revenue of 263 billion CNY (40 billion USD or 33 billion EUR) in 2014 the company is among the 10 largest private companies in China.[3] In 2014 the company generated revenue mainly from oil and gas (60%) and financial services (25%),[2] but operates also in a wide range of other sectors like transport infrastructure, forestry, asset management, hotel management, warehousing services, real estate development and logistics services.[1] A large portion of CEFC's assets is concentrated in overseas markets.[1] Since 2013 the company has been listed on the Fortune Global 500 list.[4] It rose from a rank of 342 in 2015 to 229 in June 2016.[5] Most of the company is owned by Shanghai Energy Fund Investment Ltd (SEFI), which is registered under Ye Jianming, the chairman of CEFC.[1] Czech President Miloš Zeman has appointed CEFC's founder Ye Jianming as his economic adviser.[6] The company is linked to the People's Liberation Army.[7][8]

CEFC China Energy
Private
Industry Oil and gas, Financial services
Headquarters Shanghai, China
Area served
Worldwide
Key people
Revenue Increase CN¥263 billion (2015)[2]
Number of employees
30 000 (2015)[2]
Website http://www.cefc.co

InvestmentsEdit

In May 2015, the company acquired a 5% stake in J&T Finance Group.[9] This increased to 9.9% in September 2015.[10] In 2017 company applied to acquire 50% J&T Finance Group, but the deal has been refused by Czech National Bank because of lack of sufficient information on the origin of most of the funding for the deal.[11][12]

In September 2015, the company acquired multiple assets in the Czech Republic - a majority stake in brewery Pivovary Lobkowicz Group (cs), a 10% stake in airline Travel Service, 60% in football club SK Slavia Prague and real-estate assets in Prague - the building of the former Živnostenská banka at Na příkopě street and Martinický palác (cs) at Hradčany.[13] CEFC also bought a stake of between 50 and 90 per cent in Czech online travel agent Invia in March 2016, probably with a view to capitalising on the rapidly increasing numbers of Chinese tourists visiting Prague.[14]

In 2017, CEFC bought a 14.16 % stake in Russia's largest oil producer Rosneft for about $9 billion.[15][16]

2018 takeoverEdit

In 2018, after its chairman Ye was detained for questioning on the order of the Chinese president Xi Jinping,[17][18] South China Morning Post reported that "Shanghai Guosheng Group (zh), a portfolio and investment agency controlled by Shanghai’s municipal government, had taken control of CEFC China Energy".[19][20] The state controlled CITIC Group acquired 49% of CEFC Shanghai, a subsidiary of CEFC China Energy; in turn, CEFC Shanghai owns CEFC Europe.[21][22] In April 2018, CEFC announced they may lay off half of its 30,000-strong staff; staff have not been paid for two months.[23]

In May 2018, CITIC Group announced they will repay ca 450 million euros owed by CEFC Europe to finance and banking group J&T within days[24] but since the debt has not been paid a week later, J&T announced it had taken over shareholder rights and installed crisis management at CEFC Europe.[25] Several days later, CEFC Shanghai defaulted on $327 millions in bond payments, and offered to make the payments six months after the maturity date.[26]

ReferencesEdit

  1. ^ a b c d Staff Reporter (11 July 2014). "Mysterious Shanghai private firms makes Fortune Global 500". WantChinaTimes. Archived from the original on 15 July 2014. Retrieved 7 September 2015. 
  2. ^ a b c "Corporate Profile". CEFC China. Retrieved 27 December 2017. 
  3. ^ "Top 10 private companies in China". China Daily. 20 August 2014. Retrieved 7 September 2015. 
  4. ^ Fortune Global 500
  5. ^ "2016年财富世界500强最新排行榜名单 财富世界500强中国110家上榜-理财产品 - 南方财富网". www.southmoney.com. Retrieved 2016-07-24. 
  6. ^ "China’s CEFC has big ambitions, but little known about ownership, funding". Reuters. 13 January 2017.
  7. ^ "Opaque Chinese oil group makes clear gains in former Soviet bloc". Financial Times. 13 September 2017.
  8. ^ "Who’s that 39-year-old paying HK$1.4 billion for three office floors?". South China Morning Post. 21 February 2017.
  9. ^ "China's CEFC takes stake in Czech-Slovak J&T Finance Group". Reuters. 14 May 2015. Retrieved 7 September 2015. 
  10. ^ Čínský konglomerát CEFC už má v J&T desetinu. Usiluje o 30 procent http://ekonomika.idnes.cz/cinska-cefc-zvysila-podil-v-j-t-na-deset-procent-chce-30-procent-pu0-/ekonomika.aspx?c=A150903_135502_ekonomika_rts, Retrieved 25 March 2016
  11. ^ Muller, Robert (2018-01-04). "China's CEFC hits regulatory hurdle in pursuit of Czech JTFG stake:..." Reuters. Retrieved 2018-03-09. 
  12. ^ Johnstone, Chris. "CEFC faces obstacle to Czech purchase of J&T Financial Group stake | Radio Prague". Retrieved 2018-03-09. 
  13. ^ Hovet, Jason. "China's CEFC adds to Czech buying spree with airline, brewery deals". Reuters. Retrieved 7 September 2015. Johnston, Raymond (4 September 2015). "Chinese firm CEFC buys majority stake in Slavia Praha". Prague Post. Retrieved 7 September 2015. 
  14. ^ Čínská CEFC kupuje podíl v Invii, chce nabídnout servis čínským turistům, iDnes.cz, http://ekonomika.idnes.cz/cinska-skupina-cefc-ovladne-on-line-obchodnika-se-zajezdy-invii-pvn-/ekonomika.aspx?c=A160322_173841_ekonomika_rts, Retrieved 25 March 2016
  15. ^ "Why an Enigmatic Chinese Company Just Spent $9 Billion on a Stake in Rosneft". Bloomberg. 2 October 2017.
  16. ^ "China Deepens Oil Ties With Russia in $9 Billion Rosneft Deal". Bloomberg.com. 2017-09-08. Retrieved 2018-03-09. 
  17. ^ http://www.scmp.com/business/companies/article/2135238/china-detain-cefc-founder-ye-jianming-stocks
  18. ^ https://www.reuters.com/article/us-china-cefc-probe/chinas-cefc-chairman-investigated-for-suspected-economic-crimes-source-idUSKCN1GD3O9
  19. ^ http://www.scmp.com/business/companies/article/2135420/guosheng-puts-cefc-under-state-ward-crackdown-intensifies
  20. ^ https://uk.reuters.com/article/us-china-cefc-probe/chinas-cefc-taken-over-by-shanghai-government-agency-scmp-report-idUKKCN1GE0X3
  21. ^ https://www.reuters.com/article/us-china-cefc-czech/cefc-chinas-chairman-to-step-down-citic-in-talks-to-buy-stake-in-unit-idUSKBN1GW0HB
  22. ^ https://uk.reuters.com/article/us-china-cefc-probe/chinas-cefc-taken-over-by-shanghai-government-agency-scmp-report-idUKKCN1GE0X3
  23. ^ https://www.reuters.com/article/us-china-cefc-staff/down-and-out-cefc-staff-go-unpaid-as-once-high-flying-company-flounders-idUSKBN1I42UM
  24. ^ https://www.reuters.com/article/china-cefc-czech-citic/update-1-chinas-citic-to-pay-cefc-europes-450-mln-euro-debt-cefc-official-idUSL8N1SG7V8
  25. ^ https://uk.reuters.com/article/china-cefc-czech/update-1-jt-private-investments-says-takes-over-shareholder-rights-in-cefc-europe-idUKL5N1SO6E5
  26. ^ https://www.reuters.com/article/china-bonds-cefc/update-1-cefc-shanghai-international-defaults-on-327-mln-in-bond-payments-idUSL3N1SS3NB