The supply-side reform of central enterprises has shown practical results (Rui Finance)
To reduce overcapacity, "solve stalemate and manage difficulties", reduce management levels, reduce the number of legal persons, strip enterprises to run social functions, and solve historical problems... In recent years, the supply-side structural reform of central enterprises has continued to deepen.
"Solved a large number of long-term problems that have not been resolved, and achieved significant progress in important areas and key links in the reform of state-owned enterprises." At the media briefing held a few days ago, the deputy director of the Office of the State-owned Enterprise Reform Leading Group of the State Council and the State-owned Assets Weng Jieming, deputy director of the committee, commented.
The reporter learned from the meeting that the reform of central enterprises in many fields has achieved positive results and the foundation for high-quality development has been further consolidated.
Decapacity tasks completed ahead of schedule
“The coal industry was severely oversupply around 2015, and almost the entire industry suffered losses, and the situation was grim.” Speaking of the situation a few years ago, Zhao Rongzhe, member of the Standing Committee of the Party Committee and Chief Accountant of China Coal Group, recalled.
During the "13th Five-Year Plan" period, overcapacity reduction was listed as the primary task of supply-side structural reform.
China Coal Group took the initiative to guide the orderly exit of outdated coal production capacity. Over the past few years, it has closed 11 mines and exited production capacity of 24.5 million tons, reduced the production capacity of 6 mines by 23.06 million tons, and accumulated 47.56 million tons of coal overcapacity, and overfulfilled the task of reducing production capacity.
The group's total profit has also changed from a loss of 4 billion yuan in 2015 to an estimated profit of 15 billion yuan this year.
Over the past few years, the overcapacity reduction work of central enterprises has achieved tangible results.
It was introduced at the meeting that since 2016, central enterprises have closed and withdrawn 16.44 million tons of steel production capacity, 119 million tons of coal production capacity, integrated 240 million tons of coal resources, properly diverted and relocated 120,000 employees, and completed the overall goal of reducing production capacity ahead of schedule.
This will bring not only the improvement of economic efficiency, but also the optimization of the layout of central enterprises and the enhancement of market competitiveness.
"At present, a new structure of the central iron and steel enterprise is formed, which is dominated by two world-class professional steel companies in China Baowu and Anshan Iron and Steel, and the emerging Jihua Group is characterized by cast pipes; it has changed the distribution and homogenization of coal resources of central enterprises. The situation of repeated construction has basically achieved the goal of non-coal enterprises withdrawing from the coal industry in principle." said Weng Jieming.
In addition, China's Baowu crude steel production exceeded 100 million tons; 24 10 million tons coal mining enterprises of the National Energy Group were selected into the National Green Mine List... The leading role of central enterprises in the industry has been further enhanced.
Breakthrough in solving historical problems
On December 23, 2020, Ansteel Group and Anshan City, Liaoning Province signed the "Agreement on the Free Transfer of Equity Interests in Large Collective Reform and Restructuring Enterprises in Ansteel Plants". More than 110 companies that implemented restructuring and restructuring were officially transferred to Anshan City, and collective enterprises were resettled. There were 152,000 employees and collective retirees, marking the completion of the collective reform of Anshan Iron and Steel Plant.
"The Ansteel plant management group is a historical problem that has been trying to solve for many years but has not been solved. The successful completion of this task in the '13th Five-Year Plan' has laid the foundation for the development of the enterprise and boosted our confidence and confidence in future development. Determined." said Li Baoqing, deputy secretary of the Ansteel Party Committee.
Stripping off corporate social functions was once a difficult point in the reform of many state-owned enterprises.
"The key to supply-side structural reform is to remove invalid supply. In the past, state-owned enterprises had long assumed social management functions. However, as the government's public management functions have strengthened, there has been a gap between the services provided by enterprises and government services, and reform is imperative." Jemin said.
As of the end of November 2020, the “three supplies and one industry” (water supply, power supply, heating and property management), the separation and transfer of functions such as municipal and community management, and the deepening reform of education and medical institutions have basically been completed; 92.1% of the chemical management was completed; 98.1% of the collective reform of the factory and office was completed, and a total of 1.712 million in-service employees were resettled.
According to reports, this round of reforms directly reduces the burden on enterprises by 150 billion yuan each year, and solves the shortcomings of large and complete state-owned enterprises, but small and complete.
According to estimates by the State Grid and China Southern Power Grid, the separation and transfer of power supply functions will reduce the burden on state-owned enterprises by 11 billion yuan each year.
The divestiture of social functions will transform the 243 billion yuan of assets involved in the social functions of state-owned enterprises across the country into main business assets, and promote the strengthening and expansion of state-owned capital and state-owned enterprises.
More solid foundation for high-quality development
Unclear numbers, bloated institutions, long management chains... In the past, some central enterprises had problems in these aspects.
Since 2016, the SASAC has comprehensively promoted the work of “compressing management levels and reducing the number of legal persons”.
Up to now, the management level of all central enterprises is controlled within 5 (including 5 levels), and the total number of legal persons has decreased by more than 17,000, and the reduction ratio has exceeded 30%.
In China Railway Group, a total of 377 corporate enterprises have been reduced since 2016, with a reduction ratio of 34.9% and 13,000 employees.
"This has saved 510 million yuan in management costs, recovered and attracted 9.32 billion yuan in funds, and effectively improved the economic efficiency and development quality of the enterprise." said Ren Hongpeng, vice president of China Railway.
Since the start of the reduction work, the central enterprises have reduced labor costs by 35 billion yuan, reduced management costs by 29.8 billion yuan, and increased the overall labor productivity from 446,000 yuan to 593,000 yuan, an increase of more than 30%.
By reducing the management level, the central SOE group headquarters instructions are more timely and accurately transmitted to the "nervous endings" of the grassroots units, and the group's management and control capabilities have been continuously enhanced.
In addition, in 2016, the State-owned Assets Supervision and Administration Commission clearly used three years to basically complete the disposal and governance tasks of "zombie enterprises" and extremely poor enterprises.
As of the end of 2019, the 2,041 sub-enterprises included in the scope of the work of “solving deadlocks and resolving difficulties” have achieved operating losses and basically completed their main tasks.
"From the perspective of practical results, this work has accelerated the restructuring, transformation and upgrading of central enterprises, resolved local debt risks, and consolidated the foundation for high-quality development." Weng Jieming said that in 2021, it will be deployed in accordance with the three-year action plan for state-owned enterprise reform It is required to guide and promote local and central enterprises to make persistent efforts to ensure the comprehensive completion of various reform tasks.
Li Jie