Beijing, May 16 (Xinhua) -- China Securities Journal published an article titled "Two special actions to Expand the scope of state-owned Enterprise Reform" on Monday. According to the article, the State-owned Assets Supervision and Administration Commission of the State Council, 15 news, the "science reform action" and the "Double Hundred action" of state-owned enterprise reform both expanded. Through this expansion, the total number of "science reform enterprises" has reached 672, and the total number of "double hundred enterprises" has reached 580. As the "vanguard" of the reform of state-owned enterprises, relevant enterprises included in the special action may usher in new breakthroughs in the reform of mixed-use reform, reorganization, listing, medium - and long-term incentives, etc.

"Science reform enterprises" to expand the encirclement

As the "national character" science and innovation board reserve army - "science and reform enterprises" to expand the encircle. 15, The State Council SASAC Party Committee member, deputy director Weng Jieming said in the "Science reform action" to expand the perimeter deepening site promotion meeting, recently, SASAC to "science reform enterprises" to expand the perimeter adjustment, from 439 to 672 households.

Since 2020, the State-owned Assets Supervision and Administration Commission of the State Council has organized and implemented the "Scientific Reform Action" to promote scientific and technological innovation through institutional reform, which has made remarkable achievements in the past three years.

In terms of enterprise efficiency, in 2022, the operating revenue and net profit of "science reform enterprises" increased by 33.6% and 40.9%, respectively, compared with 2020, 3.6 percentage points and 5.2 percentage points higher than that of central enterprises. Overall labor productivity increased by 30.1% over 2020.

In terms of medium - and long-term incentives, by the end of 2022, 89 percent of "science and technology reform enterprises" had flexibly provided various forms of medium - and long-term incentives to core talents in key positions at their own level or at their subsidiaries, covering 116,000 people.

Further progress was made in the "Scientific Reform Action" to strengthen weak links and forge long ones. Weng Jieming pointed out that the innovation and creation vitality of scientific and technological talents should be fully stimulated. Encourage R&D investment to be 100% or higher as profit, and based on this, determine the total salary of the innovation team. For high-end scientific and technological talents in short supply, the salary agreement system of "one person, one policy" can be adopted on the basis of the market benchmark. We will increase the coverage and precision of medium - and long-term incentives to ensure that key personnel are properly stimulated. Support "science and technology reform enterprises" to properly carry out employee stock ownership, and allow the scientific and technological backbone of "science and technology reform enterprises" to hold the stock rights of subsidiaries in accordance with the relevant provisions of the "Ten Science and Technology Reform regulations".

Actually raise the level of return on capital

The "Double Hundred Action" field promotion meeting was held on the same day as the "Scientific Reform Action" field promotion meeting. Weng Jieming introduced, recently, the State-owned Assets Supervision and Administration Commission of the "double hundred enterprises" to enrich the expansion, from 449 households to 580 households.

Since the implementation of the "Double 100 Action Plan", the relevant results have shown good performance: in 2022, the "Double 100" enterprises achieved 14.3 trillion yuan in operating revenue and 673.27 billion yuan in net profit, up 29.7% and 35.6% over 2020 respectively; The labor productivity of all employees reached 1.052 million yuan/person, far exceeding the average level of central enterprises.

In terms of mixed-ownership reform and listing, 30.8% of the "Double hundred enterprises" have carried out mixed-ownership reform in an orderly manner, and some have been listed successfully. At present, 292 of the "double hundred enterprises" are listed companies, effectively expanding the function of state capital.

"Fresh blood has been added to the Double 100 team, which also puts forward higher requirements for further deepening the Double 100 campaign." Benjamin said.

In the integration of specialization, Weng Jieming said, "double hundred enterprises" to focus on the main industry, further strengthen, do specialized, improve the core competitiveness of the effort. We will highlight major responsibilities and industries, and accelerate horizontal integration of similar businesses and vertical integration of the upstream and downstream of the industrial chain. Adhering to the foundation of the real economy, the "Double hundred enterprises" should gradually increase the proportion of manufacturing assets in the total assets of enterprises based on their positioning in the national industrial chain and supply chain. We will resolutely prevent "multiple levels", "multiple levels" and "multiple debts". We will intensify efforts to deal with enterprises with "two types of non-production", "two types of capital" and excessively long management chains, and take the path of professional development more firmly.

We should actively promote listing to optimize the ownership structure. We should strengthen the incubation and cultivation of high-quality assets, support qualified "double hundred enterprises" to actively carry out financing and listing, increase capital and expand shares. Especially for artificial intelligence, chip and other new fields and new track enterprises, we can optimize the ownership structure and shorten the cultivation period of entering the new track through acquisition, merger, investment and other ways.

We need to raise the level of return on capital. This year, the State-owned Assets Supervision and Administration Commission put forward the "one profit five rate", these are the core indicators reflecting the high-quality development of enterprises, "two hundred enterprises" to ensure that in the first phalanx.

State-owned listed companies profit quality is expected to improve

A number of "science and technology reform enterprises" and "two hundred enterprises" disclosed the new progress of reform.

Li Peng, deputy Secretary of the Party Committee and general manager of China Southern Grid Digital Grid Group Co., LTD., introduced that the company adheres to the integration of resources and strives to build professional group combat capability. Focus on the cultivation of core competence, integrate more than 30 business units in the same field, reorganize 4 leading enterprises in the subdivision field, incubate 2 small champions in the Blue Ocean market, and continue to strengthen the main business.

"The company was born due to reform, focusing on business integration and corporate governance, and doing a good job in top-level design to promote high-quality mixed reform." Liu Zubin, Secretary of the Party Committee and chairman of China Southern Air Logistics Co., LTD., introduced that in 2020, the company introduced 7 investors with strong complementarity in capital, technology and management to implement the mixed reform, and implemented the key employee shareholding simultaneously, attracting 3.355 billion yuan of capital. The company is accelerating its push to go public.

Gao Ruidong, chief macro economist of Everbright Securities, believes that A new round of state-owned enterprise reform will further improve the profit quality of A-share state-owned listed companies. The proposed valuation system with Chinese characteristics is expected to further improve the valuation level of state-owned enterprises. Under the resonance of the two, the revaluation of state-owned enterprises this year will usher in new opportunities.

Yi Bin, chief strategist at the Western Securities Research and Development Center, said that the reform of state-owned enterprises is sustainable, and the improvement of their intrinsic value and the shaping of their core competitiveness are expected to push the "special valuation of China" to become a sustainable market in the next three years.

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