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CNMC Oriental: The Evolution of the Reform Model of State-owned Science and Technology Enterprises

author:State-owned assets report

Text · Reporter Wu Xiaoyan "State-owned Assets Report" magazine No. 3 in 2024

CNMC Oriental: The Evolution of the Reform Model of State-owned Science and Technology Enterprises

Most people may feel very unfamiliar when they hear tantalum, niobium, and beryllium, but the "Tiangong-1" target vehicle, the "Jiaolong" manned submersible, the "Chang'e" lunar probe, the "Shenzhou" series of manned space projects, the Long March 5B carrier rocket and other familiar "great powers" are inseparable from these rare metals. In fact, tantalum, niobium, beryllium products are widely used in electronics, metallurgy, chemical industry, aviation, aerospace, nuclear industry and other fields, is an indispensable important material. CNMC (Ningxia) Oriental Group Co., Ltd. (hereinafter referred to as "CNMC Oriental"), as a research unit of "two bombs and one satellite", is a state-owned science and technology enterprise mainly engaged in the research, development and production of high-tech products such as rare metals such as tantalum, niobium, beryllium and titanium. CNMC Oriental was established in 1965 in accordance with the national "three-line construction" deployment, and was established by relocating the tantalum, niobium and beryllium metal research laboratories of Beijing Nonferrous Metals Research Institute to Ningxia (code 905 factory). After nearly 60 years of development and precipitation, the company has a complete product chain system, and all kinds of products have strong market competitiveness in the industry. Today, this small factory with only more than 200 people in the third line of construction military industry has grown into one of the world's top three tantalum smelting and processing enterprises, and China's only beryllium material research and processing base. During the "Twelfth Five-Year Plan" period, CNMC Oriental once fell into the quagmire of development crisis, and the capital chain was almost broken. After learning from the pain, CNMC held several rounds of "big discussions" on development strategies, and put forward a development strategy focusing on "focusing on tantalum, niobium, and beryllium, leading the industry to guarantee the country, developing new materials, and driving innovation to become better and stronger", established a new pattern of coordinated development of seven industries such as tantalum, niobium, beryllium, and titanium, and played a set of development "combination punches" for deepening reform and scientific and technological innovation.

One

CNMC Oriental: The Evolution of the Reform Model of State-owned Science and Technology Enterprises

Deepen institutional reform and break down old barriers

After experiencing huge losses during the "12th Five-Year Plan" period and surviving during the "13th Five-Year Plan" period, CNMC Oriental will comprehensively deepen the reform as a "key move" for the development of the enterprise. Especially since it was selected as the "Science and Technology Reform Demonstration Action" in 2020, CNMC Oriental has taken medium and long-term incentives and three system reforms as the main line, led the "change" of action with the "change" of thought, and leveraged the "change" of development with the "change" of action. CNMC Oriental insists on doing something and not doing something, and has made great efforts to promote the "stalemate and difficulty", "pressure reduction and pressure drop" and "two non" divestment, and has successively withdrawn from real estate, grinding materials, photovoltaic materials and other industries. In the work of promoting the "four batches", the special governance of loss-making enterprises, and accelerating the resolution of problems left over from history, CNMC Oriental formulated a work plan in accordance with the "one enterprise, one policy, and comprehensive policy", and the team members divided labor and supervised to ensure the effective implementation of various measures, and properly resettled employees in a stable, legal, orderly and orderly manner through negotiation and internal retirement, organized and implemented the reform plan, strengthened the ideological guidance of employees and the resolution and mediation of contradictions, and ensured the smooth and orderly progress of the company's reform work. In view of the serious unreasonable asset-liability structure of the special material branch, the long-term loss of the industry, and the lack of confidence of cadres and employees, the debt optimization and adjustment will be carried out, and the enterprise will be promoted to reduce the burden and realize the light forward. Better development: speed up the disposal of inefficient and ineffective assets, and actively cooperate with local governments to promote the disposal of idle land and factory assets in Yinchuan and Dawukou parks...... In terms of the three system reforms, the Party Committee of CNMC actively supported the bold implementation of reforms by the management team, and in 2023, it fully completed the tenure system and contractual management of a total of 28 managers in 11 enterprises at all levels, opened up the career promotion channels for technical personnel, high-skilled talents and management personnel, and carried out competitive recruitment for 11 directly subordinate middle-level cadre positions, accounting for 64.7% of the newly promoted cadre positions, and effectively increased the market-oriented exit ratio of employees. At the same time, a performance-oriented salary distribution system was established, and the average performance-based salary base of employees increased by 4.8% year-on-year, and the average annual income of employees increased by 13% year-on-year. In terms of medium and long-term incentives, CNMC Oriental uses Ningxia CNMC Jinhang Titanium Industry Co., Ltd. (hereinafter referred to as "Jinhang Titanium Industry") as a pilot to implement equity incentives, supplemented by special performance awards. Incentive recipients can receive special performance awards based on their capital contributions and special contributions to the company's development, including the achievement of the company's performance goals and the achievement of personal assessment goals. Jinhang Titanium Industry has continuously improved the benefit sharing and risk sharing mechanism of employees, the company and shareholders, shared the fruits of reform and development, and shared the risks of market competition, formed a community of destiny with the interests of employees and enterprises, fully mobilized the initiative and enthusiasm of the core backbone, and not only successfully reversed the situation of continuous losses in the past 13 years, but also hit a record high in operating performance. "In 2021, our company implemented the equity incentive policy, 53 key employees held shares, everyone's enthusiasm is very strong, the ability of technical personnel to tackle key scientific and technological problems has been significantly improved, and the product yield has increased by 5% through continuous optimization of the production process, and the production capacity has been continuously upgraded. The company's operating level has also improved significantly, and the annual net profit has jumped from negative 20.83 million yuan in 2020 to 20.07 million yuan in 2022, turning losses into profits. At the same time, the company cashed in the special performance contribution award of 816,000 yuan, so that the employees who invested in the company enjoyed the reform dividend. Yang Yongquan, deputy general manager of Jinhang Titanium Industry Co., Ltd., introduced.

CNMC Oriental: The Evolution of the Reform Model of State-owned Science and Technology Enterprises

On the basis of the success of the pilot project, CNMC Oriental has fully liberalized the reform toolkit, and measures such as mixed ownership reform, equity incentives, employee stock ownership, co-investment of key employees, leading the establishment, and excess profit sharing have been effective in various subsidiaries. Among them, CNMC Oriental Innovation led the implementation of the establishment of enterprises, which accelerated the organic combination of the transformation of scientific and technological achievements and equity incentives. After a year of preparation and promotion, Ningxia Oriental Intelligent Manufacturing Technology Co., Ltd. (hereinafter referred to as "Oriental Intelligent Manufacturing"), a leading and founding enterprise, came into being. CNMC Oriental carefully selected 6 core backbone members to hold 9.47% of the company's equity at the price of scientific and technological achievements, led by Li Xiaoping, deputy director of the former tantalum and niobium products branch, using the advantages of tantalum and niobium raw materials to expand the company's additive manufacturing industry chain, and founded this technology-based company specializing in tantalum and niobium and its alloy 3D printing powders and 3D printing products. In order to better promote the implementation of the establishment of enterprises, CNMC has introduced a medium and long-term incentive plan to reward personnel who have completed the transformation of scientific and technological achievements through the way of equity rewards for the valuation of scientific and technological achievements. In the year of its establishment, Dongfang Zhizhi achieved a net profit of 2.1 million yuan, and achieved rapid industrialization and marketization of scientific and technological achievements, becoming the first company in China with large-format multi-laser scanning refractory metal processing capabilities. In addition, CNMC also makes full use of the financing function of the listing platform to focus on the development of its main business, guides listed companies to effectively play the role of the capital market in serving the development of enterprises and optimizing the allocation of resources, realizes the integrated development and mutual promotion of industrial operation and capital operation, and helps to strengthen and refine the main business. Its subordinate Ningxia Oriental Tantalum Co., Ltd. (hereinafter referred to as "Oriental Tantalum") gave full play to the platform financing function of listed companies, raised 675 million yuan for the first time, and implemented the equity incentive plan of listed companies in 2023, with 163 incentive recipients contributing 23.6655 million yuan to subscribe for 5.1138 million shares of Oriental Tantalum. After a year of hard work, Jinhang Titanium Industry also successfully introduced four central enterprise investment institutions, namely China Minmetals' Entrepreneurship and Entrepreneurship Fund, China Chengtong's National Adjustment and Combat New Fund, China Nonferrous Metals Industry Association's CNMC Xincai and CNMC Assets in December 2023, to complete the first round of mixed reform.

Two

Focus on fighting new industries and accumulate new momentum

Strategic emerging industries represent the direction of a new round of scientific and technological revolution and industrial transformation, and are also the key areas for the country to cultivate new momentum for development and win new competitive advantages in the future. In 2023, the State-owned Assets Supervision and Administration Commission of the State Council will deploy central enterprises to accelerate the development of strategic emerging industries, including integrated circuits, new generation mobile communication technology, biotechnology, new energy, new energy vehicles, new materials and other fields. This also allows CNMC to see the infinite possibilities of future development - ultra-high purity tantalum powder, ultra-high purity tantalum niobium metal, high-purity titanium sputtering target, high-purity silver target developed by CNMC for high-purity tantalum targets, etc., are used in integrated circuits, beryllium copper foil is used in a new generation of mobile communication technology, biomedical materials are used in biotechnology, silver powder and silver paste for photovoltaic cells, sodium-ion energy storage batteries are used in new energy, low-beryllium copper alloy is used in new energy vehicles, beryllium nickel alloy, high-purity beryllium oxide ceramic materials, ultra-high purity metal, beryllium alloy, Anti-oxidation coatings and other applications for new materials...... Every product and technology is closely related to the new industry. Focusing on the major needs of the country and adhering to the principle of "innovation-led, application-driven, systematic layout, engineering promotion, and open cooperation", CNMC quickly established the "Leading Group for Accelerating the Development of Strategic Emerging Industries and Future Industries Special Work of CNMC Oriental" to accelerate the layout of 2 tasks of high-purity tantalum powder materials and beryllium and beryllium alloy materials in the field of advanced non-ferrous metal materials in new industries, and 3 tasks such as superconducting materials and nano-silver powder in the field of cutting-edge materials in the future manufacturing industry. In addition, CNMC also continues to optimize its industrial structure and strive to enhance the core competitiveness of the industrial chain and supply chain. The technical transformation of tantalum and niobium plate and strip products production line, the technical transformation of niobium superconducting cavity with an annual output of 100 pieces, the technical transformation of pyrometallurgical product production line, and the construction of additive manufacturing tantalum and niobium and its alloy production line have all entered the preliminary design and equipment bidding and procurement stage. In order to further promote the strategy of rejuvenating the enterprise through science and technology, strengthening the enterprise with talents, and innovation-driven development, CNMC has established the Science and Technology Management Committee and the Science and Technology Innovation Committee of the Board of Directors, formulated 122 scientific and technological innovation measures, continuously strengthened the top-level design of scientific and technological innovation, and improved the standardization and organizational guarantee ability of scientific and technological innovation. In 2023, CNMC will compile and release 22 systems, including the Measures for the Management of Scientific and Technological Projects, the Measures for the Management of Scientific and Technological Achievements, and the Measures for the Assessment and Management of Scientific and Technological Work, to realize the all-round, whole-process and life-cycle management of scientific and technological innovation, further strengthen the standardization of scientific and technological innovation work, and improve the ability of original innovation, integrated innovation, and the ability of introduction, digestion, absorption and re-innovation. CNMC adjusted the scientific and technological content and special planning of the "14th Five-Year Development Plan", greatly increased the target of R&D investment, and ensured the smooth development of scientific and technological innovation. The intensity of R&D investment increased from an average of less than 2% in the "12th Five-Year Plan" to 5.4% at the end of the "13th Five-Year Plan", and the investment in science and technology accounted for 6.12% of the main business income in 2022, and the R&D investment in 2023 increased by 19.39% to 185 million yuan, a record high. CNMC Oriental has always adhered to leading the development of enterprises with scientific and technological innovation, and has vigorously optimized the structure of scientific and technological talents and further strengthened the construction of talent team through extensive production, learning and research cooperation with various scientific research institutes, relying on innovation platforms such as the State Key Laboratory and the National Engineering Technology Center, and using the "project + talent" training model. In terms of strengthening the introduction of talents, the policy of "three-year protection period for salary" has been implemented for talents with bachelor's degree or above, and the proportion of high-level talents with master's degree or above has repeatedly reached a record high. In terms of broadening the channels of talent training, we have established a school-enterprise dual tutor system, sent a total of 5 people to study for doctoral degrees, and jointly trained 35 master's degrees in engineering and management with universities to promote the rapid growth of all kinds of talents. In terms of scientific research team building, 3 provincial-level scientific and technological innovation teams and 10 company-level scientific research teams have been established, and at the same time, 1 national skill master studio and 4 Ningxia Hui Autonomous Region innovation studios have been set up successively to carry out apprenticeship talent training projects, and the theoretical and practical level of skilled talents has been further improved. In order to fully stimulate the innovation vitality of scientific and technological and skilled talents, CNMC has formulated the "Salary Incentive Plan for Scientific and Technological and Skilled Personnel", implemented a separate policy on the total salary of scientific and technological talents, promoted the remuneration to the backbone of science and technology, and positively encouraged the leaders of subsidiaries with remarkable performance and scientific and technological personnel who have made outstanding contributions with the principle of "how much contribution can be made, how much benefit there is". At the same time, CNMC has innovatively implemented the "three not less than" salary incentives for the leadership team and all technical and skilled personnel of its subsidiaries, that is, the salary level of special experts who have made outstanding contributions shall not be lower than the salary level of the main team of the group company, the salary level of the main experts who have made important contributions shall not be lower than the average salary level of the deputy team of the group company, and the salary level of skilled personnel who have made important contributions shall not be lower than the average salary level of the deputy team of the group company. In 2023, 1 skilled person will enjoy the deputy treatment of the group's leadership team. In addition, CNMC has also set up scientific and technological projects and scientific and technological achievements declaration awards and matching awards to stimulate the initiative and enthusiasm of scientific and technological personnel with a positive incentive system, and in 2023, more than 4.87 million yuan will be awarded for various scientific and technological special awards, building an effective scientific and technological incentive mechanism and a mechanism for the transformation of scientific and technological achievements, laying a solid foundation for scientific and technological innovation. In order to improve the intellectual property management system of innovation management and improve the core competitiveness of the enterprise, CNMC has also formulated and revised the relevant systems and supporting intellectual property incentive and reward mechanisms, and introduced the global patent database and R&D information database Eureka system. In recent years, while forming new technologies and new products, CNMC has carried out process technology digestion and re-innovation, formed a number of new technologies and new processes with independent intellectual property rights, and broken through a number of "bottlenecks" in the field of beryllium, tantalum and niobium Technical problems: The high-stability beryllium material developed has reached the international leading level and has been successfully applied to the key materials and parts of the national defense and military industry; the beryllium material for the first wall plate of the International Thermonuclear Experimental Reactor (ITER) has become the first supplier to provide beryllium tile qualification for the ITER project, marking the company's beryllium manufacturing level has achieved a historic leap from following to leading; the research and development of precision casting and powder metallurgy beryllium aluminum alloy has filled the domestic gap and accelerated the development of the mainland aerospace field; the research and development of ultra-high purity tantalum target with a purity of 5N has broken through the foreign technical barriers and product monopolyHigh-purity tantalum powder has formed a new economic growth point for high-purity tantalum targets, biomedical tantalum substitutes have been successfully applied to human bones for the first time, and 12-inch tantalum targets have accelerated the process of localization substitution...... In 2023, CNMC will increase its annual scientific and technological efficiency by a total of 120.1 million yuan, with an annual target completion rate of 198%, enabling the development of enterprises with scientific and technological efficiency and a more solid foundation for the high-quality development of the enterprise. As the "eldest son" of China's tantalum and niobium industry and the "cradle" of China's beryllium industry, in the future, CNMC Oriental will rely on its industrial and technological advantages to promote the formation of new quality productivity, continue to take the road of advancement of technology-based enterprises, and better serve the major national strategies.

CNMC Oriental: The Evolution of the Reform Model of State-owned Science and Technology Enterprises
CNMC Oriental: The Evolution of the Reform Model of State-owned Science and Technology Enterprises
CNMC Oriental: The Evolution of the Reform Model of State-owned Science and Technology Enterprises
CNMC Oriental: The Evolution of the Reform Model of State-owned Science and Technology Enterprises

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