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s year to 3.9 billion yuan , compared to 2.8 billion yuan in 2007. The Taishan case represents the protection of minority shareholders through blocking a potentially expropriatory related party purchase agreement, while its continued profitability shows that market mechanisms external to the group function sufficiently well to ensure the company can survive, and even prosper, without group support. Liaotong Chemicals Liaoning Huajin Tongda Chemicals Company Limited is one of nine listed companies in the Norinco Group,18 which holds 51% of shares through a 60% stake of North Huajin Chemical Industries Group. Its growth rate over the 2007 to 2011 period is astonishing, with revenue growing from 3.4 billion yuan to 37.6 billion yuan. In 2011, it had the highest percentage, 91.85%, of purchases from related parties over total costs, buying almost six times the percentage of operating cost from related parties that it did in 2007. In 2008, Liaotong Chemical began to list ‘Norinco Finance’ as a related party. That is because, in 2008, it was floated four19 massive, long-term loans of 3.2 billion yuan (its 2008 total revenue was 3.7 billion). It also obtained 5.6 billion from two loans guaranteed by its controlling shareholders, Liaoning Huajin Chemical Group and its owner the group parent Norinco Group. Liaotong listed four subsidiary companies and 24 related parties held by North Huajin or Norinco. Aside from business-related entities such as import and export, fine chemicals and catalyst production firms, the related parties includes a hospital, a hotel, geotechnical and engineering design research companies and a finance company. Liaotong in 2009 began to sign a series of ‘Crude Oil Purchasing Agreements’ with Norinco-affiliated firms. In 2009 alone, it actually bought 2.89 billion yuan worth of crude oil, surpassing its entire operating revenue in cost. This practice was repeated in 2010 and 2011 when it purchased 16.10 billion and 27.02 billion yuan of crude respectively—raisingthe ratio of related party purchases to total cost close to 100%;. Sales to related parties similarly reflect a jump in company operations—in 2010 and 2011, operating revenue skyrocketed from 2.75 billion yuan to 23.93 billion yuan and 37.56 billion yuan.

Related party sales accounted for The full name of the China Ordnance Equipment Group Corporation (usually referred to as “China North Industries Group Corporation” (Norinco Group)), a SASAC owned central SOE. 19 The loan amounts were 325 million yuan, 1 billion yuan, 1.5 billion yuan and 400 million yuan, expiring in 2017, 2015, 2015 and 2015, respectively. 20% and 31% of this new income. Liaotong Chemical illustrates a massive business groupfinanced and -led expansion of Norinco group’s internal capabilities without influence of group-external institutions, markets or strategy. Sales of petrochemical products to group members guarantees the massive build up in production capacity will be covered by nonmarket demand. Norinco’s strategy represents a significant model of development among the NOPCs. Sinopec Versus SASAC Qiu Lin (2010), a well-known media commentator and industrial analyst, asked, tongue-incheek, ‘Who is Sinopec trying to bamboozle by selling its equity in real estate property for 1 yuan?’ In April, 2010, Sinopec indeed sold its 50% interest in Zhuhai Huarui Property Management and Construction Company held by Sinopec’s Yanshan Petrochemical subsidiary. In a stateme本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。