Central enterprises sign military warrants: this years net profit target is 9percent higher than last years.

 Central enterprises sign military warrants: this years net profit target is 9percent higher than last years.

The signing of the responsibility letter clearly shows that the net profit target of the central enterprises in 2019 is 9% higher than that of the previous year; among them, the total net profit target of 20 central enterprises such as aerospace science and technology, China Electrical Science and PetroChina in 2019 is 12% higher than that of the previous year.

There is a solid foundation for central enterprises to achieve their goals

Why should we make clear the experience goal of the central enterprises in the new year by signing the letter of responsibility? To solve this problem, the revised Measures for Assessing the Operating Performance of the Leaders of Central Enterprises issued in March this year explicitly mentioned it.

Article 4 of the assessment method, which has been implemented since April 1 this year, clearly stipulates that the annual performance assessment and tenure performance assessment shall be carried out by the way in which the director of the SASASAC or his authorized representative signs a business performance responsibility letter with the principal person in charge of the enterprise. The collective signing of the management performance responsibility letter by the central enterprises is also the first time since the newly revised assessment method was issued and implemented.

Why should the signing of this performance responsibility document set a target of 9% increase in net profit of central enterprises over the previous year? In this regard, the signing ceremony of the business performance responsibility letter was clear. SASAC and the central enterprises strengthened the guidance of performance evaluation, highlighted the priority of quality first, innovation-driven development, supply-side structural reform, highlighted the differential assessment of sub-functions and highlighted sustainable development. The annual and term assessment objectives determined generally reflected the overall tone and high quality of the work of striving for progress in a stable way. Quantity development requirements.

From the report card actually handed over by the central enterprises for a period of time before, the 9% target set this time should be said to be more reasonable. For example, according to the economic operation of central enterprises reported by SASASAC at the beginning of this year in 2018, the net profit of central enterprises in the whole year of last year was 1.2 trillion yuan, an increase of 15.7% over the same period of last year. From this point of view, the 9% growth target set this year should be realistic and achievable.

In addition, according to the information disclosed at the ceremony, there is no one size fits all situation in the profit targets of major central enterprises, and some of them have set higher targets. For example, 20 enterprises such as China Electrical Science, PetroChina, State Grid and State Energy Group have made it clear that the total net profit target for 2019 is 12% higher than that of the previous year.

Loosening measures can stimulate vitality

In order to achieve sustainable high-speed profit growth, in what areas do central enterprises need to continue to make efforts?

At the signing ceremony of the responsibility document, Hao Peng pointed out that steady growth should be the top priority, responsibility implementation should be done well, situation research and judgment should be strengthened, cost reduction and efficiency increase should be made efforts to ensure the completion of production and operation objectives. We should strengthen management upgrading, study management experience and control mode of world-class enterprises, establish and improve compliance management system, and effectively prevent and resolve major risks.

In addition, we should accelerate the pace of innovation, aim at tackling key problems and not relax, take the initiative to undertake national scientific research tasks, strengthen talent incentives, and realize the autonomous control of key core technologies and products as soon as possible. We should continue to deepen reform, speed up the construction of a modern state-owned enterprise system with Chinese characteristics, actively promote the reform of mixed ownership, speed up the establishment of a flexible and efficient market-oriented operation mechanism, and constantly stimulate enterprise development momentum and endogenous vitality.

In recent years, a series of loosening measures issued intensively by the state-owned assets regulatory authorities will strongly stimulate the innovation power of state-owned enterprises and state-owned enterprises, thus helping them better achieve the goal of reasonable profit growth. For example, the List of Authorized Decentralization issued by SASASAC on June 5 (2019 edition) puts forward 35 measures for authorized decentralization. Li Jin, Executive Director of China Enterprise Research Institute, commented on this: With the advancement of the reform of state-owned assets and decentralization, the enthusiasm and vitality of the company will be deeply stimulated.

From the list of authorization issued last week, many of the measures involved directly hit the pain point of the central enterprises, which can effectively improve the profitability of the central enterprises from all aspects. For example, the list clearly supports the market-oriented salary distribution system for the professional managers selected by the enterprises affiliated to the central enterprises. The total salary level is determined by the board of directors of the corresponding sub-enterprises according to the relevant national policies, referring to the salary level of similar comparable personnel in the domestic market, and taking into account the factors such as enterprise development strategy, business objectives and effectiveness, salary strategy and so on, as well as the professional managers. Through consultation, we can adopt various ways to explore and improve the medium- and long-term incentive mechanism.

Source: Daily Economic News Author: Li Keyus Responsible Editor: Wang Xiaowu_NF