How does SDIC invest for China
Our reporter Qi Hui
In March of this year, the large-scale drone company Fengniao Technology, led by the National Advanced Manufacturing Industry Investment Fund managed by the SDIC Innovation Investment Management Co., Ltd., under the SDIC Group, achieved the first flight of a ton-level large-scale drone.
(Photo provided by the enterprise)
As the only investment company among central SOEs and the first batch of pilot state-owned capital investment companies, last year, the State Development and Investment Group Co., Ltd. (hereinafter referred to as the "SDIC Group") not only effectively responded to the impact of the new crown pneumonia epidemic, achieved good performance, but also served as a state-owned enterprise. New steps have been taken in reforming the way.
“One of the most important genes of SDIC is innovation.” Bai Tao, secretary of the party group and chairman of SDIC, said that SDIC’s 2020 total profit, net profit and other operating indicators have reached record highs and have been awarded the responsibility of central enterprises for 16 consecutive years. The man’s business performance was assessed at A-level, and a qualified answer sheet was handed in.
Where to invest the money
"20 meters underground, with woods and grasslands, a vibrant scene..." In Erhai Lake, Dali, Yunnan alone, China Water Environment Group, which was acquired by SDIC, invested in five such sinking reclaimed water plants.
When it comes to investment companies, people often think of capital markets and equity financing.
However, in Bai Tao’s view, as a state-owned capital investment company, SDIC has to serve the national strategy as its mission, optimize the layout of state-owned capital, enhance industrial competitiveness, and continue to promote state-owned capital to be important for national security, the lifeline of the national economy, and the people’s livelihood. Concentration of industries and key areas.
In particular, the development of strategic emerging industries is taken as a strategic choice to accelerate business layout optimization and structural adjustment.
However, the cultivation period of strategic emerging industries is longer, the risks are greater, and the amount of investment is also huge.
It is very difficult to achieve a balance between serving the country's strategic development and maintaining and increasing the value of state-owned assets.
How to do?
SDIC has adopted the "two-wheel drive" of direct investment and fund investment.
On the one hand, increase investment and cooperate with key scientific research institutes to focus on the deployment of new materials, medicine and health, advanced manufacturing, new infrastructure, intelligent technology, ecological and environmental protection and other fields.
For example, the cooperation between Yalong River Hydropower and Tsinghua University to build the world's deepest and largest dark matter laboratory-China Jinping Underground Laboratory has promoted my country's pace toward the world's leading field of basic science.
On the other hand, it is actively exploring effective ways to cultivate and develop strategic emerging industries with equity investment funds.
The fund management company under the SDIC Group manages a total of 32 funds, focusing on high-end equipment, industrial robots, information technology, new materials, medicine and medical care. The total scale is about 190 billion yuan, nearly 600 projects have been invested, and they are listed on the Science and Technology Innovation Board. There are 46 companies, most of which are projects and industry leaders that break through industrial bottlenecks, break international technical barriers, and overcome "stuck neck" technologies and key components.
According to Bai Tao, according to the plan, by the end of the "14th Five-Year Plan" period, the contribution of strategic emerging industries to the company's profits will increase from the current 20% to 30% to 35%.
Where does the vitality come from
In 2020, SDIC has 5 secondary subsidiaries to recruit from the whole society.
Only the five professional manager positions of SDIC Gaoxin, a strategic emerging industry investment platform under the SDIC Group, had 709 applications.
"Five people out of the 709 people, the competition is very fierce." Bai Tao said.
In recent years, deepening the reform of state-owned enterprises has made great achievements, but there are also many obstacles that have not been overcome.
For example, the evaluation mechanism and the incentive mechanism cannot be used effectively, and the lack of vitality limits the competitiveness of enterprises.
SDIC Electronic Engineering Institute, founded in 1953, faced such a problem.
Lou Yu, chairman of the SDIC Electronic Engineering Institute, said that although an old company has strong technical accumulation, its traditional operating system is not conducive to market competition.
Last year, the Institute of Electronic Engineering was selected by the SDIC as a pilot project to implement a professional manager system, recruiting talents from the society.
"This shocked us a lot." Lou Yu said that this recruitment took out the positions of general manager and 4 deputy general managers, which is equivalent to the original management team collectively "standing up.
The market-based selection and employment mechanism has completely eliminated the barriers to seniority and talent introduction.
“A deputy general manager of the secondary unit of SDIC Electronic Engineering Institute stood out from the competition and became the new general manager of the Electronic Engineering Institute. Our chief technology officer has also entered the leadership team in this reform, which is very good for technological innovation enterprises. Demonstration role." Lou Yu said.
In order to enhance vitality, SDIC has introduced medium and long-term incentive management measures, focusing on the implementation of various medium and long-term incentives such as tenure incentives, equity incentives, and follow-up investment.
Set tenure performance targets in subsidiaries such as SDIC Power and SDIC Biotechnology, cash rewards based on performance evaluation results, implement stock option incentive plans in Shenzhou High-speed Railway, and implement restricted stock incentive plans in Yapp’s shares.
These measures have effectively stimulated the creativity and endogenous motivation of employees.
In the first two months of this year, SDIC achieved a total of 25 billion yuan in operating income, a year-on-year increase of 46%; total profits of 4.3 billion yuan, a record high in the same period, a year-on-year increase of 96%; net profit of 3.7 billion yuan, a year-on-year increase of 111%.
How to "mix" the structure
In December 2019, SDIC Hi-tech introduced 4 strategic investors, completed the equity diversification reform, and introduced capital of 5.5 billion yuan.
The reform of mixed ownership is an important task of the reform of state-owned enterprises.
However, how to reform, how to balance the concepts and interests of state-owned enterprises and private enterprises?
"Mixed reform must do a good job in the'three combinations'." Bai Tao said, it is necessary to combine the regulation of state-owned enterprises with the flexibility of private enterprises, the fairness of state-owned enterprises and the efficiency of private enterprises, the constraints of state-owned enterprises and the incentives of private enterprises.
In addition to the introduction of strategic investors by SDIC Hi-tech, SDIC also actively develops a mixed-ownership economy through fund investment and equity investment, leveraging a large amount of social capital into the national economy and people's livelihood, strategic emerging industries and other fields.
In the past two years, SDIC has successively acquired a number of industry-leading companies such as China Water Environment Group, Shenzhou High-speed Railway, Bolin Co., Ltd., and Meiya Baike, and implemented differentiated management that is different from state-owned and state-holding companies.
Through the "mixing" of equity, the enthusiasm of various capital entities is fully mobilized, which effectively stimulates the vitality of enterprise development and forms a community of interests of "national advancement".
Take Pollin shares of SDIC Gaoxin Holdings as an example.
SDIC Gaoxin holds 34% of Pollin shares, and non-state shareholders hold more than 50% of the shares. They have a greater say in company decision-making, and they have strong motivation and ability to manage the company and significantly improve corporate efficiency.
According to Wu Weiwei, Chairman of SDIC Hi-tech, SDIC Hi-tech is also actively playing a role. It maintains close cooperation with the original team of Pollin Co., and uses capital as a link to help companies develop markets, standardize management, increase credit and empowerment, and realize capitalization. Entered a virtuous circle.
In 2020, the net profit of Pollin shares doubled.
At present, the proportion of its export income has reached 50%, and it has replaced many products and technologies that originally needed to be imported.
As of the end of 2020, among the 444 companies within the scope of the SDIC Group's consolidated statements, according to the calculation of penetration, the number of mixed ownership companies reached 316, with the number of households and assets accounting for more than 70%.
Our reporter Qi Hui