Recently, the media exchange meeting of SASAC of the State Council about the progress of state-owned enterprise reformation in the first half of 2016 published the “Ten Reformation Pilot” of SASAC and CNBM again was listed as the pilot enterprise of central enterprise merger & reorganization and implementing the function and power of the Board of Directors.
In 2014, After CNBM became the “double pilot” enterprise of implementing the function and power of the Board of Directors and developing mixed ownership, it summarized and extracted a full set of enterprise reformation experience of equity structure design, attracting non-public capital, promoting harmonious development and realizing effective control and management. The Group adheres to the mode of “the operation of central enterprises in the market”, follows the fusion formula of “the strength of central enterprises + the vitality of private enterprises = competitiveness of enterprises” and “16 Chinese characters” mixed principle of “proper operation, mutual benefit and win-win result, mutual respect, long-term cooperation”, attracts 70 billion of social capital with 30 billion yuan of state-owned equity and levers 430 billion yuan of total asset with 85% of the coverage of mixed-ownership enterprises. Over 10 years, with the income and profit both increasing 100 times and over 40% of CAGR, the Group has been obtaining A-Level in the annual business performance evaluation of SASAC for seven consecutive years and has been listed among Global 500 for six consecutive years, making itself to be the largest comprehensive building material industry group in China and the leading enterprise in the global building material manufacturing and leading the structural adjustment, transformation and upgrading, energy conservation and emission reduction in the national building material industry.
Since the pilot of CNBM two years ago, CNBM has conducted investigation and study in advanced units of reformation, carried out the monographic study of construction of Party organization in mixed-ownership enterprises, state-owned enterprise innovation and fault-tolerant mechanism of state-owned reformation, put forward the reformation measures of “moderate, proper and effective mixture” and “three priorities of vitality, benefit and mechanism” and made clear the connotation of introducing market mechanism in order to put owners in the right place, give full play to the role of entrepreneurs and build the positive correlation between operators, interests of owners and enterprise performance. The in-depth reformation of the Group has obtained partial results. The first result is the further diversified reform in equity. BNBM, China Jushi, Triumph Science and other enterprises have all initially set up the coordinated-running and effectively balanced corporate legal person management system. The second result is the construction of professional manager system and complete promotion of identity conversion and to summarize two cores and six key points in the construction of professional manager system. Among them, two cores are respectively identity marketization and treatment contracting and six key points are that recruiting and selecting of the Board of Directors is an important way of market-oriented recruiting and selecting, professional managers are mainly converted from the existing managers of the company, the file relation of professional managers should be transferred to the department of social talent management, treatment and dismissal contracting are realized, professional managers with professional competence can still go back to enterprises to do other professional work based on the recruiting procedure after being dismissed by the contract and the file relation can be transferred to the original units according to their own wills when they are normally retired. The third result is to further regulate employee stock ownership and summarize four key points of it, which are that employee stock ownership needs to be carried out in enterprises mainly in human capital, employee stock ownership should be mainly backbone employee stock ownership and the channel of buy-back and exit should be established to ensure that shareholders are forever backbone, it is appropriate for employee stock ownership to get access to the platform of employee stock ownership and employee stock ownership is different from entrepreneur stock ownership because the former emphasizes human capital while the latter emphasizes primary input. The last result is the continuous development of the effective mechanism where Party organizations of mixed-ownership enterprises can play the political core role. CNBM insists on the organic integration of regulating legal person management system with giving full play to the political core role of the Party organization, actively explores the combination of the guidance of the Party committee in the Group with localized management, sets up the Party organization management mode of regional combination of Party organizations and the form of 1+N, makes innovation in the approaches and methods of giving full play to the political core role of the Party organizations in state-owned enterprises and effectively gives play to the role of Party construction work in promoting the reformation and development of enterprises and the pioneering and exemplary role of Party members in mixed-ownership enterprises. Study on the Development Practice of State-owned Mixed-ownership Enterprises – CNBM Group as an example has been selected in the study of Marxist theory of the Propaganda Department of the Central Committee of the CPC and 2015 summary topic of significant practice experience of construction projects.
Deepening the reformation of state-owned enterprises is an important fundamental and tractive reformation for the economic system reform. Ten pilots are the top priorities of the state-owned enterprise reformation for SASAC this year and an important measure of implementing 1+N serial documents. This time, the two pilots where CNBM is selected have significant meanings. The pilot of merger & reorganization needs to explore the effective pathway and ways of reorganization of central enterprises in order to provide beneficial reference of solving existing issues in restructuring and realizing the optimization of the allocation of resources and the improvement and upgrading of quality and efficiency. Based on the last pilot and with the latest spirit of 1+N serial documents, the pilot of implementing the function and power of the Board of Directors further implements the plan and investment administration authority of the Board of Directors, the recruitment and selection of senior executives, performance assessment and salary administration authority, total salary administration authority, significant financial affairs administration authority and other functions and power in order to make the Board of Directors more independent, authoritative and effective, give full play to the core role of the Board of Directors in managing the company and make the sound modern enterprise legal person management system.
Pilot is an important task of reformation and even an important way of reformation. Whether the pilot can make the first step and a smooth pathway is directly related to the effectiveness of reformation. As an enterprise of double pilots, CNBM will give full play to the initiative at the primary level, boldly explore, take active actions, increase the willpower of reformation, maintain the stamina of reformation, pay attention to the new situation and new problems in reformation, improve the ability of reformation to generate power accurately and land precisely, implement the reformation measures in a down-to-earth manner, give full play to the demonstration, breakthrough and leading role of pilot in comprehensive reformation, resolutely fight in this tough battle of reformation and make new contribution to the reformation of state-owned enterprises.
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