How did Chinese Central enterprises operate in the first half of the year? What's new in the reform? How to achieve the target of 6.5% annual profit growth in the second half of the year? The State-owned Assets Supervision and Administration Commission of the State Council delivered a new message at a press conference held at the State Information Office on July 22.

We will stick to the 6.5% growth rate for the whole year

Better THAN expected -- so commented Peng Huagang, Secretary general and spokesperson of the State-owned Assets Supervision and Administration Commission of the State Council, on the economic performance of central enterprises in the first half of the year.

Data from the State-owned Assets Supervision and Administration Commission shows that from January to June, the operating revenue of central enterprises reached 19.2 trillion yuan, up 12% year on year; The total profit reached 1.4 trillion yuan, up 7.1% year on year; Net profit reached 1.1 trillion yuan, up 6.1 percent year on year. Among them, 43 companies saw double-digit growth in operating revenue and 56 companies saw double-digit growth in net profit.

This "report card" did not come easily. Affected by factors such as the Ukraine crisis and COVID-19 outbreak, the economic performance of central enterprises recorded negative growth in April.

An extraordinary response to an extraordinary time. Ten specific hard measures are put forward from the aspects of accelerating the resumption of production, increasing effective investment, vigorously reducing costs and increasing efficiency, and deepening deficit management. To carry out centralized supervision and guidance for all central enterprises with the largest scale, the widest coverage, the longest duration, the largest number of participants and the most comprehensive content in recent years... The State-owned Assets Supervision and Administration Commission (SASAC) introduced a package of measures to make every effort to improve the quality and efficiency of central enterprises and ensure steady growth.

In June, the total profits of central enterprises reached 366.6 billion yuan, up 18.2 percent year on year, rapidly reversing the downward trend of monthly profits. The completed investment in fixed assets was 332.4 billion yuan, the largest since the beginning of the year, up 14.1 percent year-on-year.

"The business situation of central enterprises in the second half of the year is still very complex, and there are many difficulties and challenges." Peng Huagang said that the trend of stable and sound development of central government enterprises will not change, and the goal of two increases, one control and three improvements will not be wavered, and the annual economic performance growth of 6.5 percent will not change. We will strive to give full play to the role of stabilizer and ballast in stabilizing the macroeconomic market.

According to the disclosure, SASAC combined with the second half of the situation of the study, according to the actual situation of central enterprises, adhere to the goal oriented, problem oriented, further refined the second half of the central enterprises to improve the quality and efficiency of stable growth measures. At the same time, we will further guide the central enterprises to expand the market to increase revenue, cut costs and reduce expenditure, tap the potential of all links of production and operation, strengthen the rigid constraints on the budget, do a good job of asset activation, and continue to improve the efficiency of asset allocation and operation. In addition, we will further strengthen research and supervision, improve incentive and restraint mechanisms, and do a good job in policy coordination to create a favorable external environment for the steady growth of central enterprises.

Reform will continue to focus on integration

This year marks the end of a three-year campaign to reform state-owned enterprises. Data from the State-owned Assets Supervision and Administration Commission (SASAC) showed that by the end of June, the completion rate of reform tasks and measures at both the central enterprises and provincial levels had exceeded 95%, and the main tasks of the three-year campaign had been basically completed.

Peng Huagang said that the second half of the year will continue to deepen reform to release reform dividends. We will deepen reform of the three systems, ensure that the three-energy mechanism is implemented on a larger scale and at a deeper level to produce results, and continue to stimulate the dynamism of enterprises. Continue to pay special attention to the integration of fusion, solve the homogeneity between the central enterprise competition, redundant construction and other issues, resolutely exit has no competitive advantage, lack of development potential of the "two" business and inefficient invalid assets, constantly promote resource to concentrate in business enterprise, concentration and the chain length to the advantage of enterprise, further improve the state-owned capital allocation efficiency.

In June this year, the sasac issued by notice pilot enterprises of the state-owned capital investment company has adjusted optimization, clear bao wu iron and steel group co., LTD., China national development investment group co., LTD., China merchants group co., LTD., China resources (group) co., LTD. And China building materials group co., LTD., five companies such as formal to state-owned capital investment company.

The reorganization and establishment of state-owned capital investment and management companies is an important measure to promote the reform of the authorized management system of state-owned capital. Since the Third Plenary session of the 18th CPC Central Committee, the State-owned Assets Supervision and Administration Commission has selected 19 enterprises in three batches to launch trials of state-owned capital investment companies.

"In the next step, we will continue to promote the deepening of reform, accelerate the cultivation, mature one, transform one solid, and eventually form a central enterprise pattern of three types of state-owned capital investment companies, operating companies and industrial groups with distinct functions, clear division of labor and coordinated development." Peng Huagang said.

Failure to guarantee a veto vote

Recently, due to the acceleration of the resumption of work and production and the impact of the continuous high temperature weather, the national electricity load has hit a record high, the issue of energy supply has attracted social attention.

Peng Huagang said that the State-owned assets supervision and Administration Commission since the end of September last year set up a special supply working group, many times to the frontline supervision and implementation, increase the assessment of the supply, the supply of weak, one vote veto. We will actively assist with relevant policy support and urge relevant central enterprises to do their best to increase production and supply and stabilize the market and prices.

By July 12, central enterprises had produced 570 million tons of coal, an increase of 8.1 percent year-on-year. The implementation rate of medium - and long-term contracts for thermal coal exceeded 96 percent, generating over 60 billion yuan in profits for downstream enterprises. Stockpiles of thermal coal at the central power plant were 100 million tons, up from 35.27 million tons a year earlier, and available for 24 days, up from 8.4 days a year earlier, a record high for this period.

Unplanned outage of units and obstructed power generation output are also better than the level of the same period in previous years. At present, all the generating units should be produced, and the power supply is safe and stable. In the first half of the year, central enterprises generated 2.6 trillion kilowatt-hours of electricity, up 2.2 percent year on year.

Peng Huagang said, the next step, SASAC will supervise and guide the central enterprises to further enhance the peak power supply capacity, optimize the power supply program, strengthen the supply measures to implement, better play the role of energy power supply national team main force, to maintain social stability and the smooth operation of the economy to make greater contribution.

The scale of rent reduction in the first half of the year exceeded that of the whole of 2020

In the first half of this year, the State-owned Assets Supervision and Administration Commission (SASAC) issued 27 specific measures in seven areas to help small and medium-sized enterprises solve their difficulties and promote coordinated development, which not only help small and medium-sized enterprises meet their urgent needs with real money, but also make the pie bigger together.

Data showed that by the end of June, central enterprises had reduced rent by 10.44 billion yuan, benefiting 160,000 tenants, already exceeding the scale of rent cuts for the whole of 2020. This includes a rent cut of 5.61 billion yuan for tenants in county-level administrative areas at high risk of COVID-19, benefiting 39,000 households.

Help reduce the operating costs of small and medium-sized enterprises. The central grid enterprises have reduced the electricity price by 10.7 billion yuan on behalf of small and micro enterprises. Central communications enterprises implemented measures to cut fees as soon as possible, benefiting 15.18 million subscribers. In particular, the Internet, broadband and dedicated line rates of micro, small and medium-sized enterprises have been reduced by 8.6 percent and 6.2 percent respectively compared with December last year.

By the end of June, China FAW, Dongfeng two enterprises have basically completed the main work of commercial truck consumer loan extension, loan extension 361,000, for truck drivers and other short-term repayment pressure of nearly 50 billion yuan.

At the same time, central enterprises will give full play to the driving role of state capital, focus on expanding effective investment, unleash demand for orders, and actively purchase quality products and services from small and medium-sized enterprises. According to the introduction, the online supervision system of procurement transactions of central enterprises is also accelerating the construction, which directly drives more than 2 million supply chain enterprises and indirectly radiates nearly 7 million. A total of 7,098 projects have been participated in the E-Star Innovation and Entrepreneurship Competition, supporting 19,800 small and medium-sized enterprises in the upstream and downstream of the industrial chain and creating 24,000 jobs.

Source: State-owned Assets Supervision and Administration Commission of the State Council