State-owned Assets Supervision and Administration Commission of the State-owned Enterprises’ 2019 Transcripts: Net Profits in Double-digit Growth for 3 Consecutive Years
On January 15th, at the press conference of the State Council, Peng Huagang, the secretary general and press spokesman of the State-owned Assets Supervision and Administration Commission of the State Council, introduced the economic operation of central enterprises in 2019. In 2019, the state-owned enterprises’ steady and progressive economic growth continued to consolidate, with net profit growth reaching double digits and the asset-liability ratio decreasing by 0.6 percentage points. At the same time, new progress has been made in the reform of state-owned enterprises, and a new three-year action plan will be released. It is expected that in 2020, the reform of state-owned enterprises will continue to advance in depth.
Achieved a net profit of 1.3 trillion assets and debt ratio fell 0.6 percentage points
In 2019, the accumulated revenue of central enterprises reached 30.8 trillion yuan, a year-on-year increase of 5.6%. Ten companies had revenue growth of more than 20%, and 29 companies had revenue growth of more than 10%.
In terms of net profit, in 2019, the central enterprises achieved a cumulative net profit of 1.3 trillion yuan, an increase of 10.8% year-on-year. The growth rate has steadily picked up since the second half of the year, and the net profit “guarantees 7 and 9” goal has been successfully completed; the cumulative total profit has reached 1.8 trillion Yuan, a year-on-year increase of 8.8%. There were 23 companies with net profit growth of more than 20% and 45 companies with net profit growth of more than 10%.
This is already the central enterprise’s double-digit net profit growth for three consecutive years. Peng Huagang said that the central enterprises have maintained good benefits, which can be summarized into four reasons: the favorable macroeconomic environment has created good conditions for the development of enterprises; the dividends of reform have been gradually released, which has added vitality to the development of enterprises; Speeding up the transition has increased the impetus for the development of enterprises; the party’s leadership and party building have been continuously strengthened, providing a strong guarantee for the development of enterprises.
At the same time, the operating quality of central enterprises has steadily improved. The profitability of the main business of central enterprises has been continuously improved. In 2019, the operating profit margin of central enterprises was 6.1%, a year-on-year increase of 0.1 percentage point. The return on capital has increased steadily. In 2019, the net profit attributable to the owners of central enterprises increased by 11.7% year-on-year, keeping pace with the growth rate of net profit; the return on state-owned capital was 5.2%, a year-on-year increase of 0.2 percentage points, and the level of shareholder returns further improved. In addition, the per capita ability to create benefits has been further improved. In 2019, the labor productivity of central enterprises will increase by 5.7% year-on-year, and the per capita profit will increase by 9% year-on-year.
The social contribution of central enterprises has also continued to increase. In 2019, the taxes paid by central enterprises were 2.2 trillion yuan, an increase of 3% year-on-year; the taxes paid by 37 enterprises increased by more than 10%, and the taxes paid by industries such as commerce and trade, mining, metallurgy, power generation, and construction increased rapidly.
In terms of investment, in 2019, central enterprises completed a fixed asset investment of 2.8 trillion yuan, a year-on-year increase of 7.6%, an increase of 2.7 percentage points from the previous year. Petroleum and petrochemical companies improved the infrastructure for natural gas production, supply, sales and storage, increased investment in oil and gas exploration, and fixed asset investment increased by 23.9% year-on-year; auto companies accelerated the development of new energy vehicles, reduced the time limit for vehicle replacement, and fixed asset investment increased by 77.3% year-on-year; coal enterprises We increased investment in winter heating and security, safe and efficient intelligent mining, and clean and efficient intensive use. Investment in fixed assets increased by 46.5% year-on-year.
At the same time, the asset-liability ratio of central enterprises continued to decline. At the end of 2019, the average asset-liability ratio of central enterprises was 65.1%, a decrease of 0.6 percentage points from the beginning of the year. The asset-liability ratio of 64 enterprises decreased from the beginning of the year, and the asset-liability ratio of the metallurgical, electric power, mining, and construction industries fell by more than 1 percentage point from the beginning of the year. At the end of 2019, the interest-bearing debt ratio of state-owned enterprises was 38.2%, a year-on-year decrease of 1.1 percentage points. Both the current ratio and quick ratio were improved, and the overall solvency remained stable.
State-owned enterprise reform
Three-year action plan for SOE reform is about to be released
2019 is also a year of rapid progress in the reform of state-owned enterprises. The modern enterprise system with Chinese characteristics has been continuously improved, and the reform of mixed ownership has been advanced in depth. A large number of reform leaders have emerged in the “Double Hundred Actions”. The separation and transfer of “three supply and one industry”, medical, educational institutions, and municipal communities has completed more than 98%. At the same time, the supply-side structural reform continued to deepen, and the reduction work was completed ahead of schedule, reducing the total number of legal entities by more than 14,000 households; the steel and coal capacity reduction tasks were fully completed; the restructuring of China Shipbuilding Industry and CSSC Heavy Industry, and the reorganization of Poly China Silk Corporation, the State Administration of Management The listing and establishment of the Internet company has further improved the efficiency of state-owned capital allocation and further optimized the overall function.
On November 12, 2019, the third meeting of the State-owned Enterprise Reform Leading Group of the State Council was convened. The meeting proposed that the next three years are a critical historical stage. It is necessary to implement the top-level design of state-owned enterprise reform and study and formulate a three-year action plan for state-owned enterprise reform. , Clearly put forward reform goals, timetables and road maps. The new three-year action plan will become the “programme of action” for the reform of state-owned enterprises and will be the focus of all parties in the market.
Peng Huagang said that the three-year action plan is being formulated, and there are three main considerations in drafting. First, through the formulation and implementation of the three-year action plan, better implementation of the new requirements and deployment of the Fourth Plenary Session of the 19th CPC Central Committee. The second is to better promote the implementation of the “1 + N” policy system for SOE reform. There are imbalances in the implementation of some policies. The three-year action plan can better promote the implementation of related policies, and in accordance with the requirements of complementing shortcomings and strengths and weaknesses, better promote the solution of key and difficult issues. The third is to better summarize and advance the advanced experience and typical models emerging from the reform process, and upgrade some of the experiences and practices extracted from the previous reform process into reformed policies and systems.
With the implementation of the three-year action plan, the comprehensive effectiveness of the reform of state-owned enterprises will be further improved, some shortcomings and weaknesses will be effectively solved, the governance system of state-owned enterprises will be more mature, and the state-owned enterprises will be more dynamic and efficient. The state-owned economy’s competitiveness, innovation, control, influence, and ability to resist risks will be further strengthened.
The third meeting of the State-owned Enterprise Reform Leadership Group of the State Council has determined the overall direction of the three-year action plan. Mechanism, increase labor productivity and return on capital, and other key areas and key links, put forward clear tasks and measures, and develop quantitative and assessable specific indicators.
The famous state-owned enterprise policy research expert Li Jin said in an interview with a reporter from the Beijing News that the current state-owned enterprise reform has problems in some aspects that are not specific, the time is not clear, the route is not clear, and specific indicators cannot be quantified or evaluated. These requirements reflect The clear implementation purpose and intention. Develop quantifiable and assessable standards, including quantified standards for mixed ownership reform, “mixed” standards, “reformed” standards, as well as “decentralized” and “managed” standards in the state-owned asset regulatory authorization system.
Central enterprise restructuring
Reorganization of 41 enterprises has been completed
Promoting the further optimization and adjustment of state-owned capital is an important task in the reform of state-owned enterprises. In recent years, the pace of restructuring and integration of central enterprises has accelerated. Since the 18th National Congress of the Communist Party of China, 22 groups and 41 companies have been reorganized and integrated. WISCO, China Ocean Shipping and China Shipping, the merger of the “two ships”, etc. Peng Huagang said that this year will further promote the strategic reorganization of central enterprises, especially in professional reorganization. As for which enterprises will be reorganized, they should be carried out in accordance with the needs of the enterprise’s own development.
Specialized reorganization is one of the important types of central enterprise reorganization. Zhou Lisha, a researcher at the SASAC Research Center, told the Beijing News that the integration of similar businesses is conducive to promoting economies of scale, eliminating internal competition, improving resource efficiency, and promoting the integration of similar businesses in a professional manner, which is an inevitable requirement for reorganization and integration.
On December 9, 2019, the National Petroleum and Natural Gas Pipeline Network Group Co., Ltd. (hereinafter referred to as the “National Pipeline Network Corporation”) was officially established, which is a typical case of professional reorganization. After the China Tower and China Airlines, the third company Newly established central SOEs based on the principle of professional reorganization.
The establishment of the National Pipe Network Company also means that the oil and gas pipeline network that previously belonged to the “three barrels of oil” was thus interconnected. According to the relevant person in charge of the company, the main responsibility of the national pipeline network company is to be responsible for the investment and construction of national oil and gas trunk pipelines and some gas storage and peak shaving facilities. , Responsible for the pipeline transportation of crude oil, refined oil and natural gas, and uniformly responsible for the national oil and gas trunk pipeline operation and scheduling, regularly disclose the remaining pipeline and storage capacity to the society, and achieve the fair opening of infrastructure to all eligible users.
Zhou Lisha said that through business integration, issues such as repetitive investment, vicious competition, and decentralization of power before the reorganization will be effectively solved. At the same time, business integration can also improve the efficiency of resource allocation, effectively reduce operating costs, and promote the steady improvement of the operating performance of reorganized enterprises.
Transfer of state assets
The transfer of equity by the central SOEs to the social security fund has been basically completed.
The transfer of state-owned capital to social security funds is also accelerating. In November 2017, the “Implementation Plan for Transferring Part of State-owned Capital to Enrich Social Security Funds” was promulgated, and it was decided to transfer some of the basic endowment insurance funds for employees of state-owned capital enrichment enterprises. For financial institutions, the transfer ratio is uniformly 10% of the state-owned equity of the enterprise.
In 2018, the central enterprise level has transferred in two batches. In 2019, the size of state-owned capital transferred by central enterprises to social security funds has increased significantly. According to Peng Huagang, since the central government launched the pilot in 2018, it has transferred four consecutive batches of equity to social security funds. So far, 67 central enterprises have completed the transfer of equity to social security funds, and have accumulated plans to transfer 1.1 trillion state-owned capital. According to the requirements of the State Council, central enterprises have basically completed the task of transferring social security funds.
Peng Huagang also said that the next step of work is to promote enterprises to better improve efficiency, create benefits and create value, so that the equity transferred to the social security fund can obtain tangible benefits.
Beijing News reporter Gu Zhijuan editor Chen Li proofreading Fu Chunyu