CUHK Consulting's Perspectives:
In March, the State-owned Assets Supervision and Administration Commission of the State Council selected and determined the first batch of enterprises to set sail in accordance with the "four new" (new track, new technology, new platform, and new mechanism) standards. In this context, Qihang Enterprise, as a focus on major national strategic areas, strategic emerging industries and future industries, is an important carrier for building future "unicorn" enterprises and science and technology leaders. The selection of the Sailing Enterprise releases an important signal that the SASAC will take the renewal of strategic emerging industries and the future industry setting action of central enterprises as the starting point in the next step, accelerate the layout of new fields and new tracks, cultivate and develop new quality productivity, and realize the strategic transformation in the layout and structure of central enterprises.
Quick Facts:
【Important Work Deployment】
- The first plenary meeting of the Leading Group for Comprehensively Deepening Reform of the State-owned Assets Supervision and Administration Commission of the State Council in 2024 was held
- What to do in 2024? Guangdong state-owned assets and state-owned enterprises clarify the "construction drawings" for high-quality development
【Construction of modern industrial system】
- The State-owned Assets Supervision and Administration Commission of the State Council has determined the first batch of enterprises to accelerate the development of new quality productivity
- Anhui state-owned assets and state-owned enterprises to speed up the "intelligent transformation and digital transformation" to promote industrial transformation and upgrading
- Hunan provincial state-owned enterprises have increased effective investment and accelerated the construction of a modern industrial system
【Optimization of state-owned capital layout】
- Since the beginning of this year, Chongqing Stock Exchange Group has completed 1,028 cases of stock asset revitalization, with a transaction volume of 3.438 billion yuan
[Social Responsibility and Carbon Peaking and Carbon Neutrality]
- At the local level, the construction of the country's first zero-carbon port! Shandong Port, Bohai Bay Port, and Weifang Port Area released a plan for the creation of a "zero-carbon port".
【Effectiveness of SOE Reform】
- Yunnan has promoted state-owned enterprises to become stronger and better with small-cut reforms
- The 2024 Chongqing State-owned Assets Work Report is released! The report card is "powerful", and the seven key tasks are "boosted"
[Market-oriented, open and cooperative]
- To create a model of win-win cooperation between banks and enterprises, Shounong Food Group signed a strategic cooperation agreement with Bank of Beijing
- A total of 261.43 billion yuan has been invested in the cooperation projects between central enterprises and local governments in Gansu
[Policy aspects]
- Notice of the Ministry of Finance on the issuance of the "Interim Measures for the Operation and Management of State-owned Equity and Cash Income of the Transfer and Enhancement of Social Security Funds".
- The State-owned Assets Supervision and Administration Commission of the State Council will soon issue the "Guiding Opinions on the High Standard Fulfillment of Social Responsibilities by Central Enterprises in the New Era"
First, the practical aspect
【Important Work Deployment】
1. Central level: The first plenary meeting of the SASAC Leading Group for Comprehensively Deepening Reform in 2024 was held
On March 29, the State-owned Assets Supervision and Administration Commission of the State Council held its first plenary meeting in 2024. The meeting proposed to actively carry out the "two non" and "two capital" related disposal and clearance work, strengthen tracking and monitoring and assessment constraints, establish and improve the long-term mechanism of identification and early warning and the green channel of departmental linkage, promote the revitalization and utilization of the stock of land of central enterprises, guide the central enterprises to develop strategic emerging industries according to local conditions and enterprise conditions, fully stimulate the initiative of scientific and technological personnel, improve the efficiency and quality of research and development of scientific and technological achievements, consolidate the main responsibility of enterprises, guide enterprises to take the initiative to increase reform efforts, and further promote the "one industry, one policy, one enterprise and one policy" Assessment, carry out medium and long-term assessment and incentives for research on original technologies and basic technologies, promote key core technologies in key areas to help break through the blockages of the industrial chain, highlight and strengthen the construction of the team of external directors, dynamically optimize the list of major business and management matters for party committees (party groups) in advance of research and discussion by stratification and classification, strengthen party building, and give full play to the role of grassroots party organizations as a fighting fortress, and vigorously promote reform and development. (News source: State-owned Xiaoxin)
2. Local level: what to do in 2024? Guangdong state-owned assets and state-owned enterprises clarify the "construction drawings" for high-quality development
On February 29, the Guangdong state-owned assets and state-owned enterprises study and implement the provincial high-quality development conference work conference was held, mobilizing the province's state-owned assets and state-owned enterprises to continue to become stronger, better and large-scale state-owned enterprises, and accelerate the high-quality development of Guangdong state-owned assets and state-owned enterprises.
According to the data at the meeting, in 2023, the total assets of Guangdong state-owned assets supervision enterprises will reach 17.69 trillion yuan, the annual operating income will be nearly 4 trillion yuan, and the total profit will be nearly 200 billion yuan, ranking among the top in the country, and 6 local state-owned assets supervision enterprises will enter the Fortune Global 500. Five enterprises were included in the list of world-class demonstration enterprises and professional leading demonstration enterprises created by the State-owned Assets Supervision and Administration Commission of the State Council, and the number of "scientific reform enterprises" and "double hundred enterprises" reached 39 and 27 respectively, ranking first in the country.
In 2024, Guangdong state-owned enterprises will "accelerate the realization of quality, efficiency, and power changes in state-owned assets and state-owned enterprises, and strive to stimulate a new atmosphere and break new paths". Moving towards the "new", the new quality of productivity is the first "killer feature" of state-owned assets and state-owned enterprises. The meeting revealed that in 2024, Guangdong state-owned assets and state-owned enterprises will vigorously promote the mutual promotion of industrial science and technology, and accelerate the development of new quality productivity. Towards "green", "green beauty" embroidered into a new picture of high-quality development of state-owned assets and state-owned enterprises. This meeting made specific arrangements for comprehensively promoting rural greening and strengthening the responsibility of state-owned enterprises in green development. Climbing to the "high", talent is the "key one". The meeting proposed that it is necessary to improve the talent selection, cultivation and retention mechanism and give full play to the strategic supporting role of talents. (News source: Southern Net)
【Construction of modern industrial system】
1. Central level: The State-owned Assets Supervision and Administration Commission of the State Council has determined the first batch of enterprises to accelerate the development of new quality productivity
The State-owned Assets Supervision and Administration Commission of the State Council recently selected and determined the first batch of enterprises to set sail in accordance with the "four new" (new track, new technology, new platform, and new mechanism) standards, accelerate the layout of new fields and new tracks, and cultivate and develop new quality productivity. It is understood that since last year, the State-owned Assets Supervision and Administration Commission of the State Council has focused on accelerating the cultivation of innovative state-owned enterprises, launched the implementation of the Qihang Enterprise Cultivation Project, focusing on major national strategic areas, strategic emerging industries and future industries, focusing on the selection of a number of potential and foundation start-up enterprises, fully authorized in management, fully agglomerated in elements, and fully guaranteed in incentives, so as to accelerate the shaping of new kinetic energy and new advantages, and create future "unicorn" enterprises and science and technology leaders. (Source: State-owned Assets Supervision and Administration Commission of the State Council)
2. Local level: Anhui state-owned assets and state-owned enterprises to accelerate the "intelligent transformation and digital transformation" to promote industrial transformation and upgrading
In recent years, the State-owned Assets Supervision and Administration Commission of Anhui Province has actively built a "strong manufacturing province" and "digital Anhui", built a "2+3+N" development pattern, and promoted provincial enterprises to accelerate the implementation of intelligent transformation and digital transformation.
Two action plans were issued. Implement the Action Plan for the Innovation and Development of the Industrial Internet of Provincial Enterprises (2021-2023), take the acceleration of the construction of major network infrastructure as the starting point, strengthen the basic support, and implement the Special Action Plan for the Digital Transformation of Provincial Enterprises (2021-2025), comprehensively innovate and apply new models and new formats, accelerate the construction of the industrial Internet system, and promote the release of new momentum in traditional industries.
Promote the construction of three industrial Internet platforms. Guide leading enterprises in the industry to give full play to their advantages, deepen the aggregation of industrial resource elements, and build an industrial Internet platform in subdivided fields. By the end of 2023, the provincial manufacturing enterprises have completed the construction of 1 double-cross comprehensive platform, 5 industry characteristic platforms, and 6 enterprise-level industrial Internet platforms.
Build N digital transformation demonstration projects. Focusing on core areas such as improving production efficiency, reducing effective costs, and enhancing innovation capabilities, based on the characteristics and differentiated needs of different industries, we will accelerate the deep integration of information technologies such as artificial intelligence, cloud computing, 5G, and the Internet of Things with the whole process and all elements of manufacturing, optimize business processes, and implement 42 digital transformation projects for provincial manufacturing enterprises in 2023. (Source: State-owned Assets Supervision and Administration Commission of the State Council)
3. At the local level: Hunan provincial state-owned enterprises have increased effective investment to accelerate the construction of a modern industrial system
Recently, the Hunan Provincial Enterprise Investment Work Conference disclosed that the state-owned assets and state-owned enterprises in Hunan Province will vigorously expand effective investment and accelerate the construction of a modern industrial system of Hunan state-owned assets in accordance with the "3974" (300 billion yuan of new industry revenue, 9 key development industries, more than 7 chain main enterprises, and 4 100 billion-level enterprises). In 2024, the State-owned Assets Supervision and Administration Commission of Hunan Province will focus on cultivating and expanding strategic emerging industries, vigorously promoting the upgrading and transformation of traditional industries, and improving the resilience and safety of industrial and supply chains, focusing on the implementation of the "Ten Hundred Thousand" project, and paving and promoting the construction of "Top Ten Infrastructure Projects", "Top Ten Industrial Projects" and 107 key projects in 2024. (Source: State-owned Assets Supervision and Administration Commission of the State Council)
【Optimization of state-owned capital layout】
1. Local level: Serving the revitalization of state-owned assets to speed up and increase efficiency Since the beginning of this year, Chongqing Stock Exchange Group has completed 1,028 cases of stock asset revitalization, with a transaction volume of 3.438 billion yuan
Since 2021, the property rights market of Chongqing Stock Exchange Group has completed a total of 21,700 stock asset revitalization projects, with a transaction volume of 131.51 billion yuan.
Specifically, in terms of serving the revitalization of existing state-owned assets, Chongqing Stock Exchange Group has taken the following measures:
Find out the bottom number and promote the revitalization - a total of 20 municipal state-owned enterprises such as high-speed group, mechanical and electrical group, real estate group and other stock assets, research and judgment of revitalization measures, a total of more than 60 municipal state-owned enterprises and their subsidiaries to improve the stock assets project plan, solve the price settlement, the exercise of the right of first refusal and other project problems. Categorical policies to accelerate the revitalization - the "Special Work Plan for the Revitalization of State-owned Assets in Service Stock" was formulated, and 10 measures were formed in four aspects: organizational guarantee, service optimization, market promotion, and digital empowerment. In addition, for different types of assets, it also sorts out the list of common problems and risk warnings, and does a good job in the whole chain of one-stop services such as consulting and counseling, program design, market promotion, and transaction organization with "one enterprise and one policy" to help improve the efficiency of revitalization. Sunshine Transaction Compliance Revitalization - Improve the functions of the Chongqing Property Rights APP, the state-owned property rights trading system, and the Chongqing Property Rights Trading Network, upgrade and optimize market-oriented services such as "online + offline" promotion meetings, project roadshows, and video anchors, and reduce human intervention and promote Sunshine transactions with the "Internet + market allocation" transaction model. (Source: Chongqing State-owned Assets Supervision and Administration Commission)
[Social Responsibility and Carbon Peaking and Carbon Neutrality]
1. Local level: to build the country's first zero-carbon port! Shandong Port, Bohai Bay Port, and Weifang Port Area released a plan for the creation of a "zero-carbon port".
Shandong Port Bohai Bay Port and the Water Transport Research Institute of the Ministry of Transport of the People's Republic of China released the "Shandong Port Weifang Port Zero-carbon Port Creation Plan", marking the birth of the country's first zero-carbon port creation plan and the first port-wide carbon neutrality certification. The plan focuses on the integrated development of port and energy, lays out tasks from the three aspects of structural adjustment, strong technology and heavy management, and lays out 8 areas to create tasks and create 5 highlights in the three directions of "adjusting structure, strengthening technology and heavy management", striving to achieve the goal of zero-carbon port 2.0 by the end of 2024, building the country's first zero-carbon port at the port level, and striving to take the lead in the industry to build a zero-carbon port 3.0 demonstration zone of Weifang Port characterized by "green and low-carbon development of the whole logistics chain". The Weifang Port Area of Bohai Bay Port in Shandong Province will achieve carbon neutrality through emission reduction measures and carbon credit offsets, and the carbon neutrality commitment and the corresponding carbon neutrality management plan, in line with the PAS2060 requirements, have been awarded the Commitment Carbon Neutrality Certificate by China Classification Society Quality Certification Co., Ltd. Shandong Port will take this opportunity to comprehensively promote the construction of zero-carbon ports and practice the "double carbon" goal with practical actions. (Source: State-owned Assets Supervision and Administration Commission of the State Council)
【Effectiveness of SOE Reform】
1. Local level: Yunnan has promoted state-owned enterprises to become stronger and better with small-cut reforms
In recent years, the State-owned Assets Supervision and Administration Commission of Yunnan Province and provincial enterprises have adhered to the orientation of high-quality development, adhered to market-oriented reforms, made small incisions, made efforts in depth, and continuously promoted the quality and efficiency of the development of state-owned enterprises.
Upgrading old assets. Relevant statistics show that as of the end of December 2023, the total assets of enterprises supervised by the State-owned Assets Supervision and Administration Commission of Yunnan Province increased by 4.58% year-on-year to 3.27 trillion yuan, with a cumulative income of 726.217 billion yuan, the cumulative investment in fixed assets increased by 2.52% year-on-year to 132.664 billion yuan, and the taxes and fees paid increased by 0.31% year-on-year to 26.355 billion yuan, playing a leading role and strategic supporting role in the state-owned economy.
"1+N" new management model. Under the framework of the modern enterprise system, in accordance with the market-oriented rules and the principle of "one enterprise and one policy", Yunnan Provincial Equity Company tailors management methods, management agreements, and combines direct management and entrusted management to realize the closed management of "nomination, selection, management, assessment, and secondary distribution of performance compensation", and gradually form an effective model of "1+N" equity representative management.
Strengthen management and work together to open a new situation. Yunnan Ronghe Holdings is guided by the reform goal, relying on the industrial development platform of Ronghe Holdings, making breakthroughs in vertically integrated management, and constantly stimulating the endogenous power of enterprise reform. At the same time, the integration of the two-level management institutions of Ronghe Holdings and Yunnan Civil Explosives has reduced the original 13 functional departments at the two levels to 9, streamlined the organization, reduced the levels, and recruited all employees to continuously improve the company's operational efficiency. (Source: Yunnan SASAC)
2. Local level: The 2024 Chongqing State-owned Assets Work Report is released!
On February 28, at the 2024 Chongqing State-owned Assets and State-owned Enterprises Work Conference, Chongqing SASAC summarized the achievements in 2023 and introduced the key tasks in 2024.
In 2023, the operating efficiency of state-owned enterprises in Chongqing increased significantly, with the operating income of state-owned enterprises in Chongqing increasing by 6.1% year-on-year and the total profit increasing by 3.9% year-on-year. The city has handled 278 cases of asset confirmation of municipal state-owned enterprises in batches, revitalized 56.5 billion yuan of stock assets through equity transfer, sale and lease, introduction of war investment, securitization and other means, and recovered 25.4 billion yuan of funds.
The reform of the system and mechanism continued to deepen, and the "Ten Measures" and "One Enterprise One Policy" were introduced to promote the quality and increment of 15 state-owned listed companies and the advancement of industries. Chongqing has signed strategic cooperation agreements with 36 central enterprises, forming 254 projects under negotiation and 120 reserve cooperation projects. State-owned enterprises have played an important role in serving major strategies, increased scientific and technological innovation, and arranged 192 million yuan of special innovation funds to support 17 major innovation projects. The leading function of modern industry is prominent, and the output value of new products of manufacturing enterprises is 12.18 billion yuan, accounting for 25% of the total industrial output value. The strategic supply capacity of key areas has been enhanced, the temperature control and grain storage of the Municipal Grain Reserve Company has covered a warehouse capacity of 2.485 million tons, and the passenger volume of urban rail transit of Chongqing Communications Development and Investment Group has increased by 44.5%. At the same time, state-owned enterprises also contribute to rural revitalization and promote green transformation. In 2024, Chongqing's state-owned assets and state-owned enterprise system will iteratively promote the overall arrangement of "1+4+4" reform, focus on enhancing core functions and improving core competitiveness, and resolutely win the battle of state-owned enterprise reform in accordance with the idea of "stop loss, slimming, quality improvement, and efficiency". (Source: State-owned Assets Supervision and Administration Commission of the State Council)
[Market-oriented, open and cooperative]
1. Local level: to create a model of win-win cooperation between banks and enterprises! Shounong Food Group signed a strategic cooperation agreement with Bank of Beijing
On March 8, Shounong Food Group and Bank of Beijing held a signing ceremony for a strategic cooperation agreement. The signing of the strategic cooperation agreement will open a new chapter in the deepening cooperation between the two sides. The two sides will closely focus on the national strategic deployment, the overall development of the capital and the responsibilities and missions of municipal state-owned enterprises, strengthen strategic coordination and lead the direction of cooperation in high-quality development, and jointly build a bridge for financial services to the real economy from the aspects of optimizing the supply of financial services, strengthening "diversified" financial security, and exploring "deep" cooperation and innovation, so as to jointly enhance the ability of value creation and gather new momentum for high-quality economic development. Inject new vitality, serve the development of the capital and the food supply guarantee of the capital in the new era, and create a model of win-win cooperation between banks and enterprises. (News source: State-owned assets Jingjing)
2. Local level: Gansu central enterprises and local cooperation projects have completed a total investment of 261.43 billion yuan
Recently, the Gansu Provincial Conference on the Coordination and Promotion of Central and Local Cooperation Projects in the First Quarter of 2024 was held in Lanzhou. At the meeting, it was reported that as of January 31, 2024, 233 of the 276 cooperation projects signed since 2021 have been started (of which 86 have been completed and put into operation), with a start-up rate of 84.42%, and an investment of 113.829 billion yuan will be completed in 2023, 85.61% of the annual plan of 132.955 billion yuan will be completed, and a cumulative investment of 261.43 billion yuan will be completed, and 35.47% of the total investment plan of 737.079 billion yuan will be completed.
The scale of cooperation projects between central enterprises and local governments in Gansu has been expanding, and the top five central enterprises with new investment in Gansu are China National Nuclear Corporation, China Huaneng, China Huadian, State Grid and China Resources Group. 26 central enterprises, including Aviation Industry, CNOOC, Dongfang Electric, China Minmetals and China Railway Construction, have an operating rate of more than 90%. The investment intensity of cooperation projects between central enterprises and local governments continued to increase, with an investment of 113.829 billion yuan in 2023, an increase of 35.6% from 83.95 billion yuan in 2022. In 2023, 39 new projects will be completed and put into operation, including 38 industrial projects, which will strongly support and drive the province's above-scale industries to continue to maintain stable growth. (Source: State-owned Assets Supervision and Administration Commission of the State Council)
Second, the policy aspect
1. At the central level: the notice of the Ministry of Finance and other three departments on the issuance of the "Interim Measures for the Operation and Management of State-owned Equity and Cash Income of the Transfer and Enhancement of the Social Security Fund".
In order to further standardize the operation and management of the transfer and enrichment of the state-owned equity and cash income of the social security fund, the Ministry of Finance, the Ministry of Human Resources and Social Security, and the State-owned Assets Supervision and Administration Commission of the State Council jointly issued the "Interim Measures for the Operation and Management of the State-owned Equity and Cash Income of the Transfer and Enrichment of the Social Security Fund".
According to the Measures, state-owned equity refers to the transfer of state-owned equity in central and local state-owned and state-controlled large and medium-sized enterprises and financial institutions. Cash income refers to the transfer of state-owned equity dividends of central and local state-owned and state-controlled large and medium-sized enterprises and financial institutions, as well as cash income formed through the operation of state-owned equity and dividends.
The Measures make it clear that cash proceeds are limited to investment within the territory of the People's Republic of China, and each undertaking entity is the subject of cash proceeds investment and operation. Among them, the cash income at the central level is invested and operated by the National Council for Social Security Fund. The cash income held by the undertaking entity shall be handed over according to the expenditure needs of the basic pension insurance fund, and shall be specially used to make up for the gap in the basic pension insurance fund for enterprise employees. The scope of cash income investment managed by the National Council for Social Security Fund includes: deposits and interest rates, credit fixed income, stocks, and equity products.
Considering that the National Council for Social Security Fund has rich experience in investment and operation and good investment performance, in order to give full play to the scale of investment, the "Measures" stipulate that the local level will not be less than 50% of the accumulated cash income at the end of the previous year, entrusted to the National Council for Social Security Fund investment and operation, and the remaining part will be invested and operated by the local undertaking entities within a limited range. (News source: Guangming.com)
Related interpretations:
The relevant person in charge of the Ministry of Finance said that the promulgation of the "Measures" is conducive to standardizing the operation and management of the transferred state-owned capital, ensuring the safety of the transferred state-owned equity and cash income, and also providing a basis for the undertaking entity to carry out the operation and management of state-owned equity and cash income. At the same time, the Measures broaden the investment scope of cash income, which is conducive to maintaining and increasing the value of cash income, enhancing the country's ability to cope with population aging and achieving sustainable development, and the people's confidence in the social security system.
It is understood that in November 2017, the State Council issued a document clearly requiring the transfer of 10% of the state-owned shares of central and local state-owned and state-controlled large and medium-sized enterprises and financial institutions to make up for the gap in the basic pension insurance fund for enterprise employees formed by the implementation of the policy of deemed payment period. At present, the national transfer work has been basically completed, and the lock-up period for the transfer of state-owned equity received by most of the undertaking entities has expired, and the cash dividends of the transferred equity have begun to be collected and the scale has increased year by year, and it is necessary to further obtain income through the operation and management of state-owned equity and cash income.
According to the relevant person in charge of the Ministry of Finance, the transfer of part of the state-owned capital to enrich the social security fund is an important measure taken by the mainland to enhance the sustainability of the basic pension insurance system on the basis of considering the reform of the basic pension insurance system and deepening the reform of state-owned enterprises. (News source: CCTV News)
2. At the central level: the State-owned Assets Supervision and Administration Commission of the State Council will soon issue the "Guiding Opinions on the High Standard Fulfillment of Social Responsibilities by Central Enterprises in the New Era"
The construction of ESG (environmental, social responsibility and corporate governance) of central enterprises is about to usher in a new boost from the "policy side". The "Securities Daily" reporter exclusively learned that the State-owned Assets Supervision and Administration Commission of the State Council will soon issue the "Guiding Opinions on the High Standard Fulfillment of Social Responsibilities of Central Enterprises in the New Era" to promote the ESG construction of central enterprises. (News source: Securities Daily)
Focusing on the reform practice of state-owned enterprises, we always pay attention to the changes in the reform policies of state-owned enterprises, and are committed to helping managers of state-owned assets and state-owned enterprises to gain insight into the latest changes.
Author: CUHK Consulting
Source: CUHK Graduate School of Consulting
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