This year marks the beginning of the 14th Five-Year Plan. What new breakthroughs have been made in the reform and development of central government enterprises? The three-year soE reform campaign will come to an end next year. How is the progress? Hao Peng, party secretary and director of the State-owned Assets Supervision and Administration Commission (SASAC) of The State Council, said at a meeting of heads of central enterprises on December 18 that central enterprises have delivered a bright "report card" in the first year.

The soe reform has achieved remarkable results in the past three years

Behind the good start of the 14th Five-Year Plan is the positive progress made by central enterprises in all aspects of their work.

The soE reform has achieved remarkable results in the past three years. At present, at the level of central enterprise groups and 98.2% of its subsidiaries, the board of directors should be established to the full, and nearly 90% of qualified second - and third-tier subsidiaries have realized the majority of outside directors. China Star network, China Electric Equipment, China Logistics Group appearance, Sinochem group and ChemChina implementation of restructuring, Putian merged into the Electricity Division, Anshan steel and Bensteel, rare earth, coal and other fields of professional integration in-depth implementation...... Since the beginning of this year, the strategic reorganization and professional integration of central enterprises have been fast-forward. Substantial breakthroughs were made in the reform of the three systems, including the establishment of a tenure system for managers and a management system based on contractual arrangements. 83.6 percent of subsidiaries signed contracts, up 54.3 percentage points from the beginning of the year. The 70% target set in the three-year soE reform was successfully achieved, providing strong impetus for the high-quality development of enterprises.

Major scientific and technological innovations and major projects have yielded fruitful results. China's manned space flight has attracted worldwide attention. Tianyun-1 landed on Mars, and for the first time a Chinese man entered his own space station. The main battle ships were concentrated and the J-20 was deployed on a large scale. The large Shenhai 1 gas field was put into operation, the first units of Baihetan Hydropower Station were put into operation, hualong 1 was put into commercial operation, and the Shidaowan high temperature gas-cooled reactor nuclear power plant demonstration project will soon be connected to the grid. The 600km-per-hour maglev train rolled off the production line, the Lalin section of sichuan-Tibet Railway was put into operation, and the China-Laos Railway opened successfully... A series of national treasures forged by central enterprises have greatly inspired the Chinese nation's self-confident ambition, backbone and confidence.

Take on important tasks bravely. We made every effort to ensure the production and supply of COVID-19 vaccine. We rushed to assist Henan province in flood control and emergency relief. In particular, we worked hard to ensure energy supply regardless of conditions or costs.

The quality and efficiency of enterprise development were further improved

Hao Peng, secretary of the Party Committee and director of the State-owned Assets Supervision and Administration Commission of the State Council, said that over the past year, central enterprises have focused on building a new development pattern, highlighting high-quality development and serving the "six stable" and "six guarantees", and the quality and efficiency of enterprise development has been further improved.

Economies of scale and operational quality were further improved. From January to November, central government enterprises made 2.3 trillion yuan in profits and 1.75 trillion yuan in net profits. Operating revenue margin 7.1%, up 1.1 percentage points year on year; R&d investment intensity 2.3%, 0.1 percentage points higher than last year; Annualized total labor productivity was 679,000 yuan/person, up 20.7% year on year. By the end of November, the debt-to-asset ratio of central soes stood at 65.1 percent, basically stable.

The distribution of strategic emerging industries was further accelerated. We will implement a number of digital collaborative innovation platforms such as new energy vehicles, Beidou, e-commerce, and blockchain, build an autonomous controllable Tianyi Cloud, and intensify efforts to promote strategic emerging industries such as new energy and 5G applications. In the first three quarters, central enterprises invested 726.7 billion yuan in strategic emerging industries, up 6.3 percent year on year.

Tax contributions increased further. From January to November, central enterprises paid 2.2 trillion yuan in taxes, up 19.1 percent year on year. Taxes and fees paid by enterprises in petroleum and petrochemical, metallurgy, coal, military and transportation industries increased by more than 20%.

We will take solid actions over the past three years to release the effectiveness of reform. From January to November, central enterprises disposed of 37.58 billion yuan of inefficient and invalid assets through the property market. Since the beginning of this year, central government enterprises have carried out the "Double Hundred Campaign", "demonstrative campaign" and "comprehensive regional reform trials", and continuously deepened the campaign to improve world-class management standards.

Striving to achieve "Two increases, one control and three improvements"

"Central government enterprises, as the stabilizers and ballast stones of the national economy, must take the initiative to ensure stability and make progress while maintaining stability next year." 'Generally speaking, China's economy is resilient,' Mr. Hao said. 'The fundamentals of long-term growth will not change, nor will the high-quality development of central enterprises.' However, the epidemic remains the biggest destabilizing factor affecting the world economy, and there will be significantly more difficulties and challenges next year. "We should not only face up to the difficulties, but also strengthen our confidence and do our work well."

According to the report, next year, central soes will strive to achieve "two increase, one control and three increase", namely, total profit and net profit growth faster than the national economy, control the asset-liability ratio, and further increase revenue margins, overall labor productivity, and r&d investment intensity.

Hao Peng said that the current reform still exists imbalance, insufficient, not in place, the next step to go all out to bite hard bones, pay close attention to the results of the reform.

Outstanding management mechanism transformation is the key. Hao peng pointed out that next year, sasAC will promote the construction of professional, responsible, standardized and efficient boards of directors in central enterprises, and effectively implement the functions and powers of the boards. We will fully implement the tenure system for managers and contract management to enhance the vitality and efficiency of enterprises.

We will accelerate strategic restructuring and specialized integration of central government enterprises. According to the COMMISSION, professional integration across industries, fields and enterprises will be deepened next year, and collaborative development platforms for Marine equipment, new energy enterprises, industrial Internet, logistics big data and air cargo will be strengthened. We will encourage mixed ownership enterprises to change their operating mechanisms in depth, and continue to explore differentiated management and control. At the same time, important reform measures and experience have been institutionalized, and important requirements for SOE reform have been incorporated into corporate charters and corporate systems, so as to make institutions in all areas more mature and formalized.

Source: State-owned Assets And Administration Commission of The State Council