[China]Top 500 in the world! State-owned enterprises' ten-year report card →
Economic Daily 2022-06-18
On June 17, the The Publicity Department of the Central Committee of the Communist Party of China (CPC) held a series of press conferences on the theme of "This Decade in China" to introduce the reform and development of state-owned enterprises in the new era. "This decade has been the decade in which the modern enterprise system with Chinese characteristics has matured and taken shape, and the decade in which state-owned enterprises have seen the most comprehensive development, the most significant increase in vitality and efficiency, and the most obvious optimisation of their layout and structure." Weng Jie Ming, Deputy Director of the State-owned Assets Supervision and Administration Commission of the State Council, said.
State-owned enterprises are the top pillars of a large country. A panoramic scan of the achievements of ten years of SOE reform and development through 10 sets of data.
96 SOEs entered the world's top 500 last year
"An important sign of the promising results of the high-quality development of state-owned enterprises is that substantial steps have been taken in building world-class enterprises." Weng Jie Ming said.
The number of China's state-owned enterprises entering the world's top 500 has grown from 65 in 2012 to 96 in 2021. SOEs have created a number of industry leaders with strong competitiveness in fields such as shipping, steel, energy, construction, water transport and equipment manufacturing.
State-owned enterprises have strongly strengthened our economy. By the end of 2021, the total assets of enterprises under the supervision of the State-owned Assets System reached RMB 259.3 trillion, an increase of 2.6 times over the end of 2012, with an average annual growth rate of 15.4%. from 2012 to 2021, enterprises under the supervision of the State-owned Assets System achieved a cumulative added value of RMB 111.4 trillion, with an average annual growth rate of 9%, exceeding the average annual growth rate of GDP by 2.3 percentage.
Net profit of central enterprises doubled
Central enterprises highlighted quality first and prioritized efficiency, accelerated the transformation of development mode, and continued to reach a new level of comprehensive strength and operational efficiency. By the end of 2021, the total assets of central enterprises amounted to RMB 75.6 trillion, an increase of 141.1% over the end of 2012, crossing the four consecutive marks of RMB 40 trillion, 50 trillion, 60 trillion and 70 trillion.
From 2012 to 2021, the net profit of central enterprises grew from RMB 0.9 trillion to RMB 1.8 trillion, an average annual growth of 7.9%. the operating income profit margin of central enterprises in 2021 was 6.8%, an increase of 1.8 percentage points over 2012; the R&D investment intensity was 2.5%, an increase of 0.8 percentage points over 2012; the total staff labour productivity was 694,000 yuan per person, an increase of 82% over The asset-liability ratio was generally stable within the control line and has continued to decline in recent years.
26 groups of 47 central enterprises implemented restructuring and integration
Focusing on the functions of strategic security, industrial leadership, national livelihood and public services, state-owned central enterprises have vigorously promoted strategic restructuring and professional integration. Since the 18th Party Congress, 26 groups of 47 central enterprises have been restructured and integrated in accordance with market-based principles, and the number of central enterprises has been adjusted from 117 to 97.
In-depth efforts were made to slim down the body and accelerate the disposal of non-main businesses and inefficient and ineffective assets that do not possess advantages. By the end of 2021, the number of sub-enterprise households engaged in their main business will reach 93%, the proportion of investment in their main business will reach 97%, and the proportion of business revenue in areas related to national security, the lifeblood of the national economy and the people's livelihood of the country will exceed 70%.
More than 20 million retirees have basically achieved socialised management
The reform of state-owned enterprises over the past ten years, especially the in-depth implementation of the three-year action for the reform of state-owned enterprises, has effectively solved a number of problems that had long been wanted but not solved. The corporate restructuring was fully completed. The Party's leadership and corporate governance have been organically unified, and state-owned enterprises have fully completed the incorporation of Party building into their charters.
The divestment of social functions of enterprises and the resolution of historical legacy issues were fully completed. The separation and transfer of more than 20,000 public service institutions and 15 million families of employees from "three supply and one property"(water supply, power supply, heating and property management) in enterprises under the supervision of the State-owned Assets Supervision and Administration System (SASAC) nationwide was basically completed, and over 20 million retirees were basically managed socially, effectively solving the long-standing problem of the lack of separation between government and enterprises and the unification of social enterprises.
Nearly 70 central enterprises laid out new infrastructure
State-owned enterprises are pushing ahead with the upgrading of traditional industries and the layout of new industries to expand the space for high-quality development. In the past five years, the average annual growth rate of investment by central enterprises in strategic emerging areas such as new energy, new materials and 5G applications exceeded 20%.
More than 700 subsidiaries of nearly 70 central enterprises have increased their layout in the field of new infrastructure, with an investment of more than RMB 400 billion in 2021 and more than 1,300 investment projects planned during the 14th Five-Year Plan period, with a total investment of more than RMB 10 trillion.
Over 700 national R&D platforms have been built
Promoting high-level scientific and technological self-reliance and self-improvement, state-owned enterprises play the role of a national team. In the past ten years, central enterprises have built more than 700 national R&D platforms and seven innovation consortia, and invested a total of RMB 6.2 trillion in R&D, with an average annual growth rate of more than 10%. at the end of 2021, there were 1.07 million R&D personnel, an increase of 53% over the end of 2012, and 241 academicians of the two academies, accounting for about 1/7 of the total number of academicians in China.
In recent years, central enterprises have achieved a number of major achievements of world advanced level, represented by manned spaceflight, lunar exploration project, deep-sea exploration, Beidou navigation, 5G application and domestic aircraft carrier, and built a number of landmark major projects such as Hong Kong-Zhuhai-Macao Bridge, Baihetan Hydropower Station and Deep Sea No. 1 oil and gas field, which have greatly boosted the confidence and self-improvement of the Chinese nation in terms of ambition, backbone and strength.
Over RMB 2.5 trillion yuan of social capital was introduced for restructuring and reorganisation
Since 2013, the restructuring and reorganisation of state-owned enterprises has brought in more than RMB 2.5 trillion of social capital of all kinds, with the number of enterprises under mixed ownership in central and local state-owned enterprises now accounting for more than 70% and 54% respectively, and a large number of enterprises using mixed ownership to promote reform, improve corporate governance, enhance the level of standardised operations, and deeply transform their mechanisms, resulting in a significant increase in vitality and effectiveness. A large number of enterprises have improved their corporate governance, enhanced their standardised operations, and transformed their mechanisms in depth.
" The next step, we will adhere to the principle of 'three according to, three suitable, three not ', according to the local policy, according to the industry policy, according to the enterprise policy, suitable for the sole, suitable for control, suitable for participation, not to engage in pulling together, not to engage in full coverage, not to set a timetable, and actively and steadily deepen the mixed ownership system reform." Peng Huagang, secretary-general of the State-owned Assets Supervision and Administration Commission of the State Council, said.
Central enterprises' overseas assets total nearly 8 trillion yuan
With a focus on building a "Belt and Road" with high quality, state-owned enterprises have continued to enhance their global resource allocation capabilities.
A number of landmark projects such as the Piraeus Port in Greece and the China-Laos Railway have successfully landed and are operating well; a number of high-quality products such as high-speed rail and nuclear power have gone out of China, which have strongly driven upstream and downstream enterprises in the industrial chain to go out together.
Transfer of 1.2 trillion yuan of state-owned capital to replenish the National Social Security Fund
"During the 13th Five-Year Plan period, state-owned enterprises have paid a total of 17.6 trillion yuan in taxes and fees, accounting for about a quarter of the national tax revenue during the same period. 76 central enterprises have transferred 1.2 trillion yuan of state-owned capital to replenish the national social security fund.
Since 2016, SASAC and central enterprises have sent 37,000 cadres to work in poverty alleviation, invested hundreds of billions of yuan in helping the 248 key counties targeted for poverty alleviation and development, and lifted all of them out of poverty.
Participation in over 900 projects in Xiongan New Area
In implementing major national regional development strategies, state-owned central enterprises have focused on serving major regional strategies such as the coordinated development of Beijing, Tianjin and Hebei, the integrated development of the Yangtze River Delta, the construction of the Guangdong-Hong Kong-Macao Greater Bay Area, the development of the Yangtze River Economic Belt, the ecological protection and high-quality development of the Yellow River Basin, and carried out in-depth central-territory cooperation.