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.

"Since the launch of the three-year soE reform campaign, breakthrough progress has been made in soE reform, which has provided strong support for strengthening, improving and expanding soe, and further enhanced the competitiveness, innovation, control, influence and resilience of the soE economy." Hao Peng, party secretary and director of the State-owned Assets supervision and Administration Commission (SASAC) of The State Council, said the state-owned assets and state-owned enterprises (SOES) system will make good achievements and win the three-year soE reform campaign with greater strength.

We will improve the modern enterprise system with Chinese characteristics and the state capital supervision system

Better systems and mechanisms

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.

In the past three years, state-owned assets and state-owned enterprises (soes) have adhered to the principle of "consistent implementation of the two principles" and accelerated the improvement of the modern enterprise system with Chinese characteristics.

-- Party leadership has been strengthened in an all-round way.

In the modern state-owned enterprise system with Chinese characteristics, the "special" is to integrate the leadership of the Party into every link of corporate governance and embed the party organization in the corporate governance structure. Through the three-year campaign, the legal position of party organizations in the corporate governance structure of state-owned enterprises has been clarified and implemented. At present, all central enterprise groups, local enterprises, the vast majority of central enterprises and major local subsidiaries have drawn up a list of major operational and management issues for pre-study and discussion. The boundaries of power and responsibility between Party organizations and boards of directors have become clearer, and decision-making procedures have become more standardized.

-- The board of directors should be fully established.

Guide the subsidiary company to complete the revision of the rules of procedure of the board of directors and the list of rights and responsibilities, and strictly implement the requirements of "all the directors and all the external directors attend at least half of the meeting"; Establish a talent pool of 182 external directors and carry out "team system" appointment; Newly established external director management department...... In recent years, China's construction industry has taken multiple measures to make the operation of the board of directors more standardized and decision-making more efficient.

Should be built to build, balanced construction. At present, 12,900 subsidiaries of central enterprises and 26,300 subsidiaries of local state-owned enterprises have set up boards of directors, with the majority of outside directors accounting for 99.6 percent and 96.7 percent, respectively.

-- Improving the mechanism for managers to exercise their power and perform their duties.

Since it was put into production in 2010, it has been in the red for 10 consecutive years and turned into a profit of 21.94 million yuan in 2021. The business improvement of The Central China Copper industry, which belongs to Chinalco Group, depends on the reform of professional manager system: 2 members of the original management team quit, 2 members of the team were introduced by market, and a new middle-level cadre was selected as professional manager. During the three-year campaign, Chinalco carried out the reform on 149 managers of 51 subordinate enterprises, which helped many enterprises to recover from difficulties.

We extended the management system whereby boards of directors delegate authority to managers and introduced the professional manager system. A series of reform measures were taken to better leverage the positive role of managers in planning, implementing and strengthening management.

As a result of the three-year campaign, the modern enterprise system with Chinese characteristics has become more mature and established, and the state assets supervision system, which focuses on capital management, has been further improved. At present, 37 local sasAC commissions have completed the formulation and improvement of their power and responsibility lists, and 35 local SASAC commissions have delegated power to different enterprises by category. Sasac's at all levels have gradually realized the "three combinations" of capital management and Party construction management, investor responsibility and state-owned assets supervision, and intra-party supervision and investor supervision.

We will push ahead with restructuring and integration, accelerate transformation and upgrading, and continue to lose weight and keep fit

The structure layout is more optimized

In the first quarter of this year, the operating revenue of central enterprises reached 9 trillion yuan, up 15.4 percent year on year. Net profit reached 472.33 billion yuan, up 13.7% year on year. This achievement against the background of increasing downward economic pressure is closely related to the strengthening of the strength of central enterprises. In the three years since the launch of the campaign, state-owned assets and soes have accelerated the optimization and restructuring of the distribution of the state-owned economy, making it more efficient to allocate resources and strengthening the major national strategy of providing services.

-- Comprehensive progress has been made in strategic restructuring, specialization and integration, and state-owned capital has gained stronger control over important industries.

In the first quarter of this year, the output of mining and smelting separation increased by more than 15%, and the total operating revenue and profit increased by 41% and 65.7% year-on-year respectively. This good performance belongs to China Rare Earth Group Co., LTD., which was just established in December 2021. Formed by the integration of the rare earth sector of Aluminum Corporation of China, Minmetals Corporation of China, Ganzhou Rare Earth And other companies, China Rare Earth has opened up the upstream and downstream of the rare earth industry chain, and will strive to build a first-class rare earth enterprise group in the future.

Reorganization and integration are conducive to optimizing the distribution of state-owned capital and improving the efficiency of state-owned capital allocation. In the three years of action, there are many similar "actions"

At the level of central enterprises, China Star network, China Electric Equipment and China Logistics Group were established, Sinochem group and ChemChina were jointly restructured, CETC was restructured to China Putian, Ansteel was restructured to Bensteel, and the national pipe network asset restructuring was successfully completed. At the level of local enterprises, fujian, Sichuan and other places promote the "strong combination" of enterprises in transportation, construction and other fields to build industrial groups.

- Industrial transformation and upgrading were accelerated, and State-Owned enterprises became more competitive in the market.

In the field of ecological and environmental protection, layout of water treatment, solid waste treatment and other businesses; In the field of new materials, invest in leading enterprises of ceramic matrix composites; In the field of digital economy, m&a of leading enterprises in electronic data forensics industry... In recent years, SDIC has actively cultivated and developed emerging industries through direct investment and fund investment.

China Southern Power Grid continues to increase investment in power grid and related new infrastructure construction, with an annual investment of more than 100 billion yuan. More than 90 percent of new investment by enterprises in Jiangsu and Ningbo, Zhejiang, went into advanced manufacturing, new energy and modern services. Over the past three years, state-owned assets and soes have increased investment in strategic emerging industries, generating stronger growth momentum.

-- Non-competitive state capital will be withdrawn in a scientific and orderly manner, and more soes will be able to travel lightly.

From huge losses to profitability, and then last year all the indicators hit the best level in history, Baotou Steel (Group) company depends on the reform of slimming and health, reducing costs and increasing efficiency. In recent years, Baotou Steel has established and improved the exit mechanism of inferior enterprises, and "cleared out" zombie enterprises and loss-making enterprises by means of asset reorganization, property rights transfer, closure and bankruptcy, so as to promote the revitalization of assets and stop losses.

Slim and fit, pack light. From 2016 to the end of 2021, central government enterprises reduced the number of legal person households by more than 19,000, accounting for 38.3 percent of the total number of central government enterprises. The main tasks of eliminating "non-essential, non-competitive" and "non-essential" assets (inefficient and ineffective assets) have basically been completed. The disposal rate of "zombie enterprises" on the national list has exceeded 95%, and losses of key loss-making subsidiaries have decreased by 83.8% in the past three years.

In the past three years, the mixed-ownership reform of soes has been deepened. In 2021, central government enterprises carried out more than 890 mixed-use reform projects through market-oriented means, attracting more than 380 billion yuan of private capital. Enterprises engaged in mixed-ownership reform adhere to the principle of promoting reform through mixed ownership, and have made positive progress in improving corporate governance, market-based selection and staffing, medium - and long-term incentives, and performance appraisal of all employees.

Managers can go up and down, employees can go in and out, incomes can go up and down

There is more endogenous impetus

We will build the Hong Kong-Zhuhai-Macao Bridge and other major projects, develop the Tiankun Self-propelled cutter suction dredger and other "national treasures", and make breakthroughs in key core technologies such as long Bridges, tunnels and Marine equipment. In recent years, CCCC has made a series of innovative achievements.

"On the one hand, we will increase investment in R&D to 3 percent. On the other hand, we should deepen reform and give the 'position' to the market and the 'salary' to the performance." The relevant person in charge of China Communications Group listed a set of data: the proportion of the management personnel at all levels of subsidiaries' late adjustment and incompetent exit reached 8.89%; The salary gap between leaders of different units is up to 3 times.

In the past three years, state-owned assets and state-owned enterprises have stepped up efforts to improve their market-based operating mechanisms, effectively stimulating the endogenous impetus of enterprises.

-- Promoting the tenure system for managers and management by contract so that managers can be promoted and demoted.

China Minmetals implements the "double benchmarking double 70" contractual management mode. If the annual performance assessment of the management members fails to reach 70 points (full score of 100) or the completion rate of the main indicators of the annual performance assessment is less than 70%, the directors of the company shall be dismissed in time. China Energy Conservation has set scientific and challenging contractual targets for management members, and performance pay is "strongly linked" to performance appraisal results... By the end of March, all central enterprise groups and 97.3 percent of local enterprises had established a tenure system and contractual management system for their subsidiaries' managers. 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.

-- Promoting market-based employment across the board to allow employees to enter and leave the company.

State-owned Assets Supervision and Administration Commission of Shaanxi Province comprehensively promoted market-oriented employment. Among the first-level enterprises and sub-enterprises at all levels, 99.3% established open recruitment system. China Southern Power Grid implements post rotation, post demotion, post waiting and exit management mechanism to smooth the exit channel of employees... Since the beginning of this year, central enterprise groups and their subsidiaries have publicly recruited 99.5 percent of their new employees. Local enterprises and sub-enterprises at all levels publicly recruited staff accounted for 99.6% of the total number of new employees.

-- We will improve incentive and restraint mechanisms to ensure that income increases and decreases.

"Since the implementation of the shareholding by key employees, more and more researchers have gone out of the office to the workshop of the steel mill, climbed the blast furnace, toured the production line, and explored intelligent upgrading schemes." In the opinion of Yu Mukui, head of INFORMATION intelligent manufacturing Division of MCC saidi, the scientific incentive mechanism has ignited the enthusiasm of employees and provided strong support for enterprises to build industrial Internet platform and explore new market space.

China Guoxin has implemented equity incentive plans in all its listed companies, and China Southern Airlines has established differentiated compensation flexibility mechanism by classification... A series of incentive and restraint measures have better mobilized the enthusiasm of officials and staff, and significantly improved the input-output efficiency. In 2021, the total labor productivity of central enterprises reached 694,000 yuan per person, up 17.5 percent year on year.

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