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

Since the implementation of the three-year action for the reform of state-owned enterprises, the leading groups for the reform of state-owned enterprises in various places have made all-round efforts and made breakthroughs at multiple points, and the progress of completing the main tasks of the three-year action for the reform of local state-owned enterprises has exceeded 90%. In 2021, the total assets of enterprises supervised by the local State-owned Assets Supervision and Administration Commission reached 183.7 trillion yuan, and the operating income and net profit reached 35.4 trillion yuan and 1.5 trillion yuan, respectively, an increase of 19% and 27.4% year-on-year, and the economic benefits reached the best level in history.

What experiences and practices have been formed and what positive progress has been made in the reform of local state-owned enterprises? The reporter recently interviewed three enterprises, Baosteel, GAC and Shaanxi Fiberhome Electronics.

—Editor

Baosteel (Group) Company——

Follow the laws of the market and enhance endogenous power

Reporter Liu Zhiqiang

In February 2021, the company independently installed ammonium sulfate intelligent manufacturing electrical equipment, saving 28,168 yuan; In November 2021, the desulfurization cable was repaired, saving 15,090 yuan; In total, the annual saving exceeded 1 million yuan… A table detailing the cost reduction results of the industrial control network segment of Baosteel Coal and Coke Chemical Branch in 2021. “Starting by yourself, repairing old and recycling, and repairing equipment not only ‘cuts’ out the cost, but also makes the work more fulfilling.” Xing Gang, head of the industrial control network segment, said.

Reduce financial costs, manufacturing costs, logistics costs, labor costs, improve asset operation efficiency and work efficiency, since 2019, Baotou Iron and Steel (Group) Co., Ltd. has launched the implementation of the “four reductions and two mentions” project, clarifying tasks step by step, full participation, cost reduction and efficiency increase, and a cumulative reduction of various costs of more than 9 billion yuan.

“It’s more motivation when you’re under pressure.” In Xing Gang’s view, the implementation of cost reduction and efficiency increase is the incentive mechanism to improve the enthusiasm of employees, “everyone reduces costs by optimizing production processes, eliminating hidden dangers of equipment, etc., will receive special rewards, but also conducive to promotion to ranks, increase salaries, more motivation.” ”

As an old state-owned enterprise with a history of more than 60 years, Baoshan Steel suffered huge losses around 2016. In the three-year action of state-owned enterprise reform, under the guidance of the State-owned Assets Supervision and Administration Commission of Inner Mongolia Autonomous Region, Baogang played a “combined fist” of reform of slimming and fitness, reducing costs and increasing efficiency, and strategic transformation, gradually turning losses into profits and getting out of difficulties. In 2021, Baosteel achieved an operating income of 126.036 billion yuan and a profit of 10.36 billion yuan, an increase of 44.75% and 579.19% respectively over 2018, and all indicators reached the best level in history, becoming the first state-owned assets supervision enterprise in Inner Mongolia Autonomous Region with a revenue of more than 100 billion yuan.

“In a perfectly competitive industry, Baosteel must adopt greater reforms and touch deeper contradictions in order to turn around losses and get out of difficulties.” Wei Shuishi, secretary of the party committee and chairman of Baogang (Group) Company, believes that the essence of reform is to follow the laws of the market and let the market-oriented mechanism really play a role.

On the one hand, it is necessary to slim down and maintain health, deal with deadlocks, do a good job in the “subtraction” of resource allocation, and enhance market competitiveness.

In recent years, Baosteel has successively disposed of eight “zombie enterprises” through asset restructuring, property rights transfer, closure and bankruptcy, involving assets of 1.49 billion yuan. At the same time, scientifically dispose of inefficient and ineffective assets, and classify and revitalize idle assets. Since 2016, 402 idle assets have been publicly disposed of through market-oriented property rights trading platforms, with an asset appreciation of more than 32 million yuan. Immediately break through the simultaneous construction of more advanced and environmentally friendly production lines, Baosteel steadily achieve transformation and upgrading.

On the other hand, optimize incentives, scientifically delegate power, do a good job of “addition” in endogenous power, and enhance the development stamina of enterprises.

In November 2021, the researchers of Baotou Rare Earth Research Institute, a subsidiary of Baotou Steel, ushered in good news: the Institute established a joint venture to establish North Rare Earth Ruihong Company with the evaluation of the technical achievements of “rare earth PVC heat stabilizer” for 12.75 million yuan, and 70% of the equity formed by the technology was awarded to scientific researchers. “In addition to equity incentives, there are also timely rewards for short-term results, dividend incentives for achievement transformation, coupled with differentiated salary mechanisms and scientific research project ‘unveiling’ mechanisms, and incentives are becoming more and more sound and in place.” Li Bo, vice president of the Baotou Rare Earth Research Institute, said.

While stimulating the enthusiasm of scientific research personnel, Baogang also delegated the authority of each unit to introduce high-level talents by itself, especially for the talents urgently needed for enterprise development. In 2021, Baotou Rare Earth Research Institute established the Hangzhou Branch with the support of the group to create a “talent enclave”. “The establishment of branches can not only strengthen the docking and cooperation with local universities and scientific research institutions, but also effectively solve the problem of talent introduction.” Li Bo told reporters that in the past two years, the branch has attracted many high-level talents to join, “In December last year, we successfully hired high-end talents in the rare earth industry and professors of Zhejiang University to serve as the dean of the rare earth research institute, realizing the professionalization of cadre employment.” ”

Ability determines position, efficiency determines employment, contribution determines salary, in recent years, Baosteel has carried out three system reforms in depth to comprehensively enhance the endogenous power of the enterprise——

Let cadres go up and down. In the Inner Mongolia Autonomous Region, it took the lead in promoting market-oriented selection and employment and contractual management, taking out 53 full-time posts and 178 deputy positions, openly recruiting talents and talents to the public, signing responsibility letters with the managers of 100 holding subsidiaries, and scientifically and rationally setting contractual indicators.

Enable employees to get in and out. Improve differentiated assessment and evaluation mechanisms, implement rigid withdrawal for those who are incompetent, and terminate labor contracts for those who violate discipline and law.

Let the income increase or decrease. Salary distribution comprehensively highlights marketization, no longer simply “looking at identity” and “looking at rank”, employees’ monthly income fluctuations reach more than 10%, and the salary gap of middle-level cadres reaches nearly 8 times. Since 2016, the income of on-the-job employees has increased by 62%.

“Through reform, Baoshan Steel has gradually embarked on a benign development track and has the conditions and foundation to move to a higher level. In the next step, we must steadily deepen reform and continue to move forward towards the goal of building a first-class domestic enterprise. Wei said.

GAC Group——

Improve the governance mechanism and enhance competitiveness

Reporter Wang Zheng

Recently, GAC AION’s reform measures have been frequent: 794 important technical personnel and management personnel have been included in the scope of employee equity incentives, accounting for about 20%; At the same time, strategic investors such as Chengtong Group and Nanwang Kinetic Energy were introduced to raise 2.566 billion yuan, laying the foundation for completing the A round of financing and shareholding system reform before the third quarter of this year.

“The establishment of a more market-oriented corporate governance structure, a more competitive equity structure and a long-term incentive mechanism to fully stimulate the vitality of the enterprise and the enthusiasm of the majority of employees is the main purpose of GAC AION’s mixed ownership reform.” The relevant person in charge of Guangzhou Automobile Group Co., Ltd. said.

In recent years, as the first large-scale state-controlled automobile group listed on A+H shares in China, GAC Group has continued to make efforts in new corporate governance mechanisms and actively explored the construction of a modern enterprise system with Chinese characteristics.

——Jianqiang Jianyou Board of Directors forges the main body of corporate governance decision-making.

How to promote the diversified source, reasonable structure, effective checks and balances, and efficient operation of the board of directors is a major issue in the construction of the GAC Group’s modern corporate system.

In order to build an excellent board of directors, GAC Group strengthens the top-level design and improves the director selection and appointment system. Broaden talent introduction channels and establish a talent pool of directors; Adhere to the best of the best, and strictly screen the candidates for directors. At present, among the 11-member director team of the Group, 3 outside directors are executives in the automotive industry and financial fields nominated by minority shareholders, and 4 independent directors are well-known experts in the fields of law, financial accounting and strategic management at home and abroad. At the same time, the Group has also established a team of 160 outside directors, and promoted the establishment of boards of directors for all 108 subsidiaries at all levels included in the scope of construction, with 100% of outside directors constituting the majority.

In order to strengthen the protection of directors’ performance of duties and fully implement the functions and powers of the board of directors, the GAC Group has improved relevant systems, established a mechanism for tracking and feedback directors’ opinions, and formulated measures for the management of board of directors’ funds, so as to provide strong guarantees for directors to perform their duties. Implement the major decision-making power of the board of directors, give play to the role of four special committees under the board of directors: strategy, audit, remuneration and assessment, and nomination, and ensure that the decision-making power and supervision power of the board of directors are implemented.

— Promoting the reform of professional managers and driving the transformation of governance mechanisms.

How to establish a more market-oriented personnel selection and employment mechanism through the pilot of professional managers at the group level is another major issue for the GAC Group to cope with the fierce market competition.

In July 2018, GAC Group became the first municipal state-owned enterprise in Guangzhou to implement the professional manager reform, and completed the selection and recruitment of eight professional managers in three batches through internal transfer and open recruitment. On April 2 this year, the Group openly recruited 3 deputy general managers, achieving a new breakthrough in the reform of professional managers of the Group.

Through the reform of professional managers, the GAC Group has clarified that the investment amount of major projects under CNY 500 million in the management plan shall be determined by the management level in 27 general managers and 7 deputy management positions will exercise their authority, giving the management level the right to operate more flexibly and quickly to respond to market changes.

The GAC Group has also established a selection and employment system at the management level, which is “able to enter and exit, go up and down, and be high and low”, formulated a salary management mechanism for professional managers that “double-benchmarks salary and performance, and combines short-term and long-term”, and strictly implemented the rigid payment principle of “performance increase, salary increase, performance reduction and salary reduction” for professional managers, market-oriented salary distribution principle of “incremental performance and incremental compensation” and differentiated post remuneration principle. At the same time, the medium- and long-term incentive mechanism will be improved, and in 2020, a total of 3.5 million shares of stock options and restricted shares will be granted to professional managers.

In recent years, the construction of a modern enterprise system with Chinese characteristics has led the GAC Group to achieve high-quality development. In 2021, GAC Group achieved revenue of CNY 429.8 billion and total profit of CNY 26.2 billion, ranking 176th among the world’s top 500 companies. From January to April this year, the cumulative sales of the two own brands, GAC Trumpchi and GAC Aion, were 111,000 and 55,000 units, respectively, up 10.6% and 112.6% y/y.

Shaanxi Fiberhome Electronics——

Transform the R&D model and stimulate innovation vitality

Reporter Zhang Danhua

Walking into the exhibition hall of Shaanxi Fiberhome Electronics Co., Ltd., a blue communication hat is particularly eye-catching. The Shenzhou 13 astronauts who returned to Earth not long ago wore this comfortable elastic mesh cap. “When astronauts are out of the capsule, the spacesuit communication cap and voice device we developed play a key role.” Song Tao, chairman of Fiberhome Electronics, told reporters that the astronauts’ communication caps and voice processing devices are wrapped in spacesuits, and through voice signal processing, active noise reduction and other technologies, they can overcome the noise inside the spacesuit, allowing astronauts to pick up and receive voice more clearly.

High-tech products are inseparable from the active contribution of scientific researchers. Since the implementation of the three-year action of state-owned enterprise reform, Fiberhome Electronics, which belongs to Shaanxi Electronic Information Group, has actively explored a new mode of scientific research management and taken multiple measures to stimulate the vitality of the scientific research team.

“Before the reform, the biggest problem we faced was the shortage of talent.” The company is located in Baoji City, Shaanxi Province, and some well-known college graduates are reluctant to come to work, which once gave Song Tao a headache.

“Where talents are willing to work, we build R&D centers.” In order to attract more outstanding scientific research talents, Fiberhome has established a R&D center in Beijing Zhongguancun Integrated Circuit Industrial Park, formed a strategic layout of R&D based on Beijing-Xi’an-Baoji, and established special scientific research centers in Chengdu, Nanjing, Guangzhou and other places, thus attracting high-tech talents to become an important force for enterprise innovation.

While improving the layout, Fiberhome also changes the traditional scientific research project management mode and stimulates the innovation vitality of scientific researchers through the project manager responsibility system.

According to reports, in the traditional R & D model, the chief technical engineer, as the first person in charge of the project, looks for the scientific and technological applications required by the market, and then hands over the R & D center to be responsible for technical research. The R&D team is only responsible for the technology, and does not undertake marketing, financial and other functions, which sometimes leads to the problem of low willingness to cooperate with the technical chief engineer, and cannot quickly respond to market demand.

Different from the traditional R&D model, the project manager responsibility system takes the research project manager as the core. Whether it is a technical chief engineer or a R&D personnel, after accurately locating the market demand, they can become the first responsible person of the project through the “unveiling” mechanism, sign a project target responsibility letter with the company, and clarify the rights and responsibilities. In this way, the project manager is given autonomy such as team formation, project performance appraisal and reward distribution, actively responds to customer needs externally, and is responsible for product research and development internally, forming an organizational system of flat composite functions.

“The traditional model is vertical management, where everything has to be instructed, and my phone rings all day long. Since the implementation of the project manager system, my phone has quieted down a lot. Song Tao said with a smile.

Company executives have received fewer requests, but the innovation vitality of grassroots scientific research institutions is more sufficient. At the beginning of 2021, after the overall project of the development of the joint search and rescue system of Fiberhome was launched, the project manager who “unveiled the leader” formed a project team of more than 10 people from the “resource pool” of the company’s R&D center. After that, the project team successfully bid for the outside world, and everyone worked together with full energy. After the successful bidding, the company gave the team a reward of 700,000 yuan in accordance with relevant regulations. Expect a good profit after the project is completed, so that there will be more revenue. The project manager said.

Effective incentives come from scientific mechanisms. In the three-year action, Fiberhome broke the “big pot of rice” and divided the salary of scientific researchers into three items: basic salary, performance and profit commission after the completion of the project, the latter two of which are linked to the scientific research projects engaged in by individuals, and “the bottom is not supported, the upper is not capped”, and the transformation from “payroll” to “earning wages” has been realized. In 2021, the salary gap of the company’s R&D personnel widened to 7 times, and the salary of some R&D personnel exceeded that of the company’s executives.

Deepening the reform has fully burst out the innovation vitality of scientific researchers, and Fiberhome has also reaped innovative achievements such as the joint search and rescue system and a certain lifesaving radio. In the past three years, the company has obtained a total of 107 patents, including 43 invention patents, 4 national standards, and was successfully selected as a single champion enterprise in Shaanxi Province.

Source: People’s Daily

High-quality product recommendation: UL2651 PVC Flat Cable.