Dong Lai Shun Group, a barbecue-based catering company, was founded in 1992 and is headquartered in Beijing.In 2015, Dong Lai Shun changed its own business entity to Dong Lai Shun Group Co Ltd through a share transfer and was listed on the Shenzhen Stock Exchange. However, the actual controller of Dong Lai Shun Group is the Beijing Municipal State-owned Assets Supervision and Administration Commission (SASAC), which holds 51% of the company's shares, and there are also four other state-owned enterprises holding shares in Dong Lai Shun. Therefore, Dong Lai Shun is considered to be a state-owned enterprise. It can be proved that Dong Lai Shun is a state-owned enterprise from the following aspects: 1. Market performance: although Dong Lai Shun has been listed, its market capitalization has been relatively stable due to its relationship with the SASAC. 2. Relevant policies: The Law of the People's Republic of China on State-owned Assets stipulates that the state-owned assets are subject to special protection and shall not be misappropriated, infringed upon or illegally disposed of. According to this law, Dong Lai Shun, as a controlled enterprise of SASAC, should receive special protection from the state.3. Official announcement: In the 2015 Dong Lai Shun M&A case, Beijing Municipal State-owned Assets Supervision and Administration Commission (SASAC) disclosed its holdings in Dong Lai Shun, which puts Dong Lai Shun under the supervision of state-owned assets.
What is the difference between a state-owned enterprise and a privately owned enterprise? State-owned enterprises are those funded or controlled by the state and local governments, and their ownership belongs to all the people. Private enterprises, on the other hand, are enterprises invested by private individuals, collectives or legal persons, and their ownership belongs to the investors. State-owned enterprises in the property rights, financing, personnel management and other aspects of a certain degree of specificity, by the government's direct or indirect domination and regulation.
While Dong Lai Shun has been listed on the stock exchange, its actual controller is the Beijing Municipal State-owned Assets Supervision and Administration Commission (SASAC), and it is therefore recognized as a state-owned enterprise. In practice, the difference between a state-owned enterprise and a private one is reflected in different ownership and management mechanisms.
Legal basis:
Article 64 of the Company Law of the People's Republic of China (PRC) states that the State-owned assets management department of the State Council shall exercise the right of capital contribution to wholly state-owned companies and state-owned holding companies in accordance with the laws, administrative regulations and statutes of the companies and shall supervise and administer the company's operation and management, economic efficiency and production safety.