CMIG Powers Economic Transformation across China, Getting Hainan Project Started in 20 Days

  The Bund Square, where China Minsheng Investment Group (“CMIG”) is headquartered in, has welcomed visiting of political leaders from several provinces and cities of China in the first half of this year. All of them came to visit CMIG - a private enterprise, with a similar purpose, namely expecting the shareholders of CMIG to boost the economic restructuring and industrial transformation and upgrading of their local regions.  

  On July 17, one of CMIG’s units - CMIG Drawin Technology Group Limited (“CMIG Drawin”) – held a groundbreaking ceremony for the Green Building Science & Technology Park in Haikou National Hi-tech Industrial Development Zone. The project, with a planned investment of CNY300 million, was successfully launched in Haikou in less than 20 days, from agreement signing to construction commencement. With this project in place, CMIG started to boost the advancement of Hainan Province by expanding its business. In the future, CMIG will also join hands with its shareholders to forge water-born aircraft operation network, and assist Haikou in forming the Qiongzhou Strait “one-hour economic circle”.  

  Additionally, the journalist has learnt from CMIG that in the first half year alone, together with its shareholders, CMIG has reached strategic cooperation intents with a dozen provinces or cities, including Tianjin, Guangzhou, Wuhan and the Guangxi Zhuang Autonomous Region.

  CMIG, which leads the cluster development of private businesses, is planning to make a “bow-and-arrow”-shape layout in China, wherein the longitudinal bow stretches along the coastal regions, from Beijing and Tianjin in the north, passing through Shandong, Shanghai, and all the way to Guangzhou, Hainan and Guangxi in the south; and the lateral arrow covers regions along the Yangtze River, including Shanghai, Jiangsu, Zhejiang, Wuhan, Sichuan, Chongqing and the entire Yangtze River Economic Belt. Having set up a head office in Nanning, CMIG plans to found headquarters of North China, South China and Central China respectively in Tianjin, Guangzhou and Wuhan, in a bid to fuel local economic development.

  What are the details about Hainan Project launched at such a rapid speed?

  Prefabricated building is one of the pillar industries of CMIG, and the other two are new energy and home-based elderly care. And why did CMIG choose to expand business in Hainan?

  Just as Chinese President Xi Jinping put it, “nature is the true treasure”, CMIG and Hainan share the identical model and direction in terms of green development, and this also explains why CMIG’s development in Hainan has won strong support from both the provincial government and the municipal government of Haikou, Zhong Jipeng, Head of CMIG’s Hainan Project and Secretary of the Board of Directors, remarked.

  To put it simple, by using the prefabricated building, all the components that can be disassembled in the construction site are made on the production lines of factories in advance per the uniform standard, which will then be assembled at the construction site. It can be understood as “building houses like manufacturing cars or piling up building blocks”. This kind of efficient construction, which saves resources and is friendly to the environment, is greatly advocated and promoted by the state, and highlighted in Hainan Province as a green construction industry.

  In recent years, Hainan has been seeking development in a scientific and environmentally friendly manner, and building itself into an international tourism island. During the “13th Five-year Plan” period, it gives priority to the characteristic industry system that covers 12 key sectors, including low-carbon manufacturing industry, and the introduction of prefabricated building will vigorously boost its green development.

  In 2016, Hainan Provincial People’s Government has issued the Guiding Opinions of Hainan Province on Accelerating Modernized Development of Construction Industry. The Opinions have clarified the substantial significance of construction industry modernization to the establishment and green development of Hainan international tourism island. A goal was proposed: “by 2020, the proportion of buildings constructed in modernized ways shall account for 10% of the total construction area during the same period, the precast rate of new single buildings (the weights of precast structures in structures such as wall, beam and column, slab, stair and balcony) shall be no less than 20%, and the finished houses shall occupy more than 25% of the new residential projects”.

  CMIG said over the past year, namely up to April 2017, 573,000 square meters of the new construction area, accounting for 2.55% of the total, are prefabricated buildings, getting Hainan off to a good start to promote this model. The enabling policy environment and good market opportunity in Hainan have attracted stationing of domestically advanced businesses that engage in prefabricated building, including CMIG Drawin.

  CMIG’s “98754” model

  Jiang Bingsheng, chief operating officer of CMIG Drawin introduced that, the park will be free from emissions by using renewable energy technology, circulating water use technology, fog gun curing system and low noise technology. The “98754” model will help to boost the green development of Hainan in a more environmentally-friendly manner.

  By adopting the “98754” model, the construction of the park can save 90% construction wastes, 80% water, 70% supplies inventory, 50% on-site workers, and 40% construction period compared with traditional methods.

   “Haikou Green Building Science & Technology Park is an important project of CMIG Drawin in making its national layout,” Jiang said, and such parks have also been built in more than a dozen cities including Changsha, Shanghai, Nanjing, Hangzhou, Shenzhen, Foshan and Pingdingshan, to launch prefabricated building projects.

  It has been learnt that with a planned investment of CNY300 million, the park will be equipped with five centers, including a manufacturing center of complete set of components and structures for residential houses, an exhibition center for energy efficient prefabricated buildings, a manufacturing center of new building materials, a manufacturing center of underground pipe racks for cities, and a digital logistical center. The main business covers production and sales of new materials, new processes, new technologies and new equipment for energy efficient prefabricated building and smart building, technology consultancy of industrialization and modernization of the construction industry; development and operation of energy efficient prefabricated building; general assembly and construction of intelligent and industrialized engineering. After put into operation, it will produce 200,000 cubic meters of precast concrete (PC) annually, to vigorously boost the modernization of construction industry in Hainan.

   “This year we plan to add another ten domestic areas into the project, and our aim is to build more green building science and technology parks to cover all the regions in China, so that the environmentally-friendly technology can benefit more areas,” Jiang added.

  Zhong said prefabricated building, as one of three characteristic industries of CMIG, is not only crucial to the supply-side reform, but also attracting global attention. Hence he is strongly bullish about the future development the park in Haikou.

  The park is set to serve the real economy in Hainan

  As to the cooperation between CMIG and Hainan, Zhong Jipeng, head of CMIG’s Hainan project and Secretary of the Board of Directors, said CMIG led its shareholder representatives to visit Hainan for three times, proposing investing there when meeting with provincial leaders. In terms of the envision of CMIG and its shareholders in promoting cultural, financial and prefabricated building development in Hainan, Shen Xiaoming, provincial governor of Hainan said the plan aligns with the development outlook of Hainan and will help to boost Hainan’s vision to become an international tourism island.

  The construction of the park in Haikou marks CMIG begins to contribute to forming a sustainable business model in Hainan and boosting the province’s economic transformation and upgrading, by leveraging its resources and capitals and serving the real economy.

  CMIG said apart from prefabricated building, CMIG plans to team up with other several shareholding enterprises to build the water-borne aircraft operation network and navigation town in Haikou, and Qiongzhou Strait “one-hour economic circle” by investing several billion yuan, thereby powering the construction of “international tourism island”. Not only being necessary to enforce the supply-side reform, this move also supplements new and efficient traffic modes, and helps to build a complete multi-dimensional traffic network, to attract more tourists to Hainan.  

  Since the first half of this year, CMIG has led multiple shareholding enterprises to reach a strategic cooperation intents with a dozen provinces and cities including Tianjin, Guangzhou, Wuhan and the Guangxi Zhuang Autonomous Region, to introduce its three industries of new energy, prefabricated building and home-based elderly care, and three featured business of insurance, leasing and asset management. At the same time, the company will also strive to advance the cluster development of local industries by pooling the shareholders’ strengths in resources and experiences.