General Secretary Xi Jinping has stressed that soes are the important material and political foundation of socialism with Chinese characteristics, and the "backbone" of the socialist economy with Chinese characteristics.

In 2021, the operating revenue of central enterprises reached 36.3 trillion yuan, up 19.5 percent year on year. The total profit reached 2.4 trillion yuan, up 30.3% year on year, and the main indexes hit the best level in history. Behind the impressive report is the deepening of soE reform. Since the launch of the soE reform in the three years since 2020, 70% of the targets and tasks have been successfully completed, and a series of important achievements have been made. The competitiveness, innovation, control, influence and resilience of the soE economy have been further enhanced.

We will fully implement the principle of "consistent implementation" and improve the quality of the construction and operation of the board of directors

The modern enterprise system with Chinese characteristics is more mature

By the end of November 2021, the world's largest alkaline water electrolytic cell with single cell capacity developed by China Huaneng successfully rolled off the production line, marking that China has successfully mastered the key technology of high-performance large-scale electrolytic hydrogen production equipment. The external directors of Huaneng have played an important role in achieving innovation results -- in November 2020, the external directors put forward suggestions on optimizing the layout of the Hydrogen energy industry of the Group in the survey. Since then, the Group has conducted several special studies and established hydrogen Energy Technology Company to accelerate relevant projects. In the past two years, China Huaneng has effectively promoted the scientific and efficient decision-making of the board of directors by playing the role of external directors as "decision-making experts and business consultants".

With the construction of board of directors as an important breakthrough, state-owned enterprises are speeding up the perfection of modern enterprise system. After three years of action, state-owned enterprises at all levels have basically completed the construction of boards of directors, and the majority of external directors at the level of central enterprises and local state-owned enterprises reached 99.3% and 94.2% respectively.

The board of directors should be widely covered, but also to enhance its functions. Many state-owned enterprises have actively explored -- CoSCO Shipping has adopted the combination of internal transfer and external selection, established the talent pool of external directors, and regularly organized director performance training and board work training; China Power Investment Corporation organized several rounds of public selection and recruitment within the group, and established a team of 46 full-time directors to fully realize the full-time external directors of secondary subsidiaries. Based on the function positioning of a state-owned capital investment company, SHENZHEN Investment Holding grants the board of directors the decision-making authority for domestic main business investment of no more than 20% of net assets.

General Secretary Xi Jinping has pointed out that upholding the Party's leadership over soes is a major political principle that must be consistently followed. The establishment of modern enterprise system is the direction of state-owned enterprise reform and must be consistent.

Through the implementation of the three-year action, the quality of the construction and operation of boards of directors of soes has been improved, and the strengthening of the Party's leadership and the improvement of corporate governance have achieved better unity. According to the characteristics of different issues, China Southern Power Grid innovatively explored three pre-research and discussion methods: "system review, comprehensive review, and one case and one discussion". State Power investment makes clear that the board of directors will authorize the meeting of chairman and general manager to make decisions on some non-major business matters. At present, all central enterprise groups and local enterprises, as well as the vast majority of central enterprises and major local sub-enterprises, have formulated lists to better clarify the boundaries of power and responsibility between Party organizations and boards of directors.

A series of major strategic reorganizations and professional integration have been completed

The structure layout is more optimized

General Secretary Xi Jinping stressed that we should adhere to the principles conducive to maintaining and increasing the value of state-owned assets, enhancing the competitiveness of the state-owned economy, and enhancing the functions of state-owned capital. We should encourage soes to deepen reform, improve their operation and management, strengthen supervision over state-owned assets, and unswervingly make them stronger, better, and larger.

Cnst.com and China Electric Equipment were established, Sinochem group and ChemChina jointly restructured, CETC restructured China Putian, Ansteel restructured Bensteel, national Pipe Network Group assets restructured smoothly, coal, medical and other fields of professional integration, Tianyiyun, offshore equipment innovation platform accelerated landing...... In 2021, the reorganization and integration of state-owned enterprises is fast and steady, and measures are frequent.

-- Promoting strategic restructuring among central soes, between central soes and local soes, and among local soes, and accelerating the optimization of the distribution and restructuring of the state-owned economy.

In May 2021, Sinochem group and ChemChina realized "strong combination" through reorganization, and became an "industrial giant" with assets of over one trillion yuan and employees of over 200,000 people, enhancing the core competitiveness of central enterprises in the fields of provenance and chemical industry. After the reorganization, China has completed the agricultural seed industry plate integration.

The key to achieve the goal of "1+1 > 2" is integration and integration. In the past three years, CSSC has continued to push forward the organizational reform of the group headquarters, the professional reorganization and integration of ship-marine service industry and think tank institutions, and set up the major project management center, future Development Research Center and equipment support center to stimulate chemical reactions through internal integration. Shandong Port Group reorganizes and integrates the port resources in the province, classifies and reorganizes the non-traditional loading and unloading businesses of various units, sets up several plate groups, implements business franchise, and alleviates the problems of homogeneous competition and resource waste.

-- Promoting professional integration and increasing industrial concentration and core competitiveness of enterprises.

On December 6, 2021, China Logistics Group Co., LTD was established. The shareholding diversification of the central enterprise on the basis of the integration of the former China Iron Materials and China Chengtong logistics sector, the simultaneous introduction of China Eastern Airlines, CoSCO Shipping, China Merchants and other strategic investors. China's logistics business covers warehousing, transportation, packaging, cross-border e-commerce, international trade and other formats, laying a foundation for building a world-class modern logistics enterprise.

On December 23, 2021, another new state-owned enterprise, China Rare Earth Group Co., LTD., was established in Ganzhou, Jiangxi province. China's rare earths by companies such as chinalco, China minmetals, ganzhou rare earth, rare earth sector integration will focus on science and technology research and development, exploration and development of rare earth smelting, separation, deep processing and the downstream application, such as complete sets of equipment, import and export trade business, and rare earth industry chain upstream and downstream and communication connection between different areas, efforts to build first-class rare earth enterprise groups.

In 2022, the State-owned Assets Supervision and Administration Commission of the State Council will focus on promoting professional integration among and within various enterprises to accelerate the formation of a number of large enterprises with clear sectors and strong core competitiveness.

Improve the incentive mechanism for science and technology, and create a "source" of original technology and a "long" industrial chain

Innovation is gaining momentum

China's manned space mission has been reported frequently, tianyun-1 has landed on Mars, and breakthroughs have been made in key core technologies such as power chip Fuxi, polepath micro drill and Polepath milling cutter. From major projects to key components, central enterprises have been involved in every technological innovation.

General Secretary Xi Jinping pointed out that State-Owned enterprises, especially those affiliated to the central government, must strengthen their capacity for independent innovation, research and development and master more important tools of the country.

In the past three years, state investment and state-owned enterprises have taken a multi-pronged approach to deepen reform and unleash innovation at a faster pace.

"In urban renewal and rural revitalization projects, we advocate that whoever has the ability reveals the list, and apply the horse-racing mechanism to tackle key technological problems of major projects such as the Sichuan-Tibet Railway. We advocate that whoever has the ability comes first." China Construction said that under the promotion of scientific research investment and effective incentives, enterprises have harvested a number of intelligent construction technologies such as aerial building machine and intelligent tower building machine, greatly improving the level of lean construction.

Relevant exploration is making extensive progress. In 2021, the Research Institute affiliated to CNOOC started a number of key scientific research projects of the system of "disclosing the list and taking charge of it". There are no thresholds for post, rank or title, and researchers can unveil the list after formulating an implementation plan based on the list content. After the project manager is "in charge", he is not restricted by the salary level of the original post during the project operation, and the "project manager post award" is implemented to realize the "separation of ranks". Aiming at the key core technologies, Shandong Heavy Set up the project of "opening the list and taking charge of it", adopted the internal open bidding mechanism, defined the award amount of the project and set standardized incentive rules.

Additional points for annual assessment, R&D expenses shall be treated as profit addition, capital injection, and total salary shall be separately listed...... During the three-year campaign, state investment and state-owned enterprises generally formulated and implemented mechanisms to encourage and guarantee scientific and technological innovation. By 2021, 2.5 percent of central government enterprises will invest in R&D, with industrial enterprises accounting for 2.9 percent.

Innovative policy packages have been implemented, and solid steps have been taken to develop "source areas" and "chain length". In 2021, the STATE-OWNED Assets Supervision and Administration Commission (SASAC) issued the guidelines on promoting central government enterprises to be the source of original technology and the long chain of modern industrial chain, and identified the first batch of 29 source enterprises and six chain enterprises. Relevant enterprises adhere to the guidance of national strategic needs, focus on key technologies, generic technologies and cutting-edge technologies in the industry, and make positive contributions to the self-reliance and self-improvement of high-level science and technology.

We will promote the tenure system for managers and management by contract, and deepen reform of the three systems

The operating mechanism is more flexible

In January 2021, a signing ceremony was held in China Eastern airlines -- the group leaders signed the appointment agreement and performance responsibility letter with the GENERAL manager of the RESEARCH and development Center and China United Airlines respectively, marking the prelude of the tenure system and contractual management. One year later, 97.8 percent of the subsidiaries of China Eastern Airlines Group signed contracts.

There's a big difference between signing and not signing. Compared with the previous performance appraisal, the term system and contractual management increase the term contract, the appraisal is more rigid, the pressure is more solid -- set the "double 70" exit clause, "the annual appraisal can not reach 70 points of the percent system", "the annual main index can not reach 70%", the management personnel must quit when the continuous assessment fails to reach the standard.

At present, 97.3 percent of subsidiaries of central enterprises and 94.7 percent of local state-owned enterprises have signed contracts with their managers, basically establishing a new type of business responsibility system with Chinese characteristics under the modern enterprise system. This year, the management term system and contractual management in the state-owned enterprise system to achieve full coverage, high quality, all assessment units, will be included in the scope of contractual management.

Soe reform aims to optimize the operation mechanism and stimulate the potential of employees. With the implementation of the three-year action plan, three institutional reforms have been deepened.

Cadres can rise and fall. In July 2021, CNOOC started three system reforms with the greatest intensity since 2003. All middle-level cadres "stand up and sit down", "non-excellent must be transferred", and more than 11% of cadres whose comprehensive performance did not reach "excellent" were transferred to business posts. In 2021, 42.9 percent of central enterprises and 37.7 percent of local soes will compete for new positions, while 4.5 percent will be adjusted at the end of the year, and 3 percent will quit due to incompetence.

Employees can come in and go out. In 2021, STATE Power Investment promoted the transformation of surplus personnel in traditional industries to "three new" businesses, realizing the transformation of more than 5,400 people in the whole year, revitalizing human capital. Some power supply bureaus of China Southern Power Grid have implemented the management mechanism of post rotation, post demotion, post waiting and exit.

Income can rise and fall. China Railway Construction Continues to promote the incentive of sharing excess profits in the project department of the engineering contracting sector. 20% of the key staff will distribute 80% of the excess profits, breaking the "big pot" at the level of the project department. Yunnan Yuntianhua implements excess profit sharing for key employees, innovation achievement incentive for technical research and development personnel, performance bundling incentive for new business teams, so that employees with large contributions can obtain corresponding income.

General Secretary Xi Jinping stressed that we should unswervingly deepen soE reform, focus on institutional and institutional innovation, speed up the establishment of a modern enterprise system, give full play to the enthusiasm, initiative and creativity of soE talents, and stimulate the vitality of various factors of production. State-owned Assets Supervision and Administration Commission of the State Council is responsible for comrades, said the strong leadership of the CPC Central Committee with comrade xi for the core, insist on socialism with Chinese characteristics in jinping new era as the instruction, will focus on the key problems overcome difficult, three years of battle run-off of state-owned enterprises reform action, ensure, withstand the test of history and practice reform effect has been made with concrete actions to meet the party's great victory at 20.

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