Gu Shengzu Goes To New China Research Field To Investigate State-Owned Enterprise Reform And Mechanism Innovation

Gu Shengzu, vice chairman of the Standing Committee of the National People's Congress, vice chairman of the finance and Economic Commission, and vice chairman of the Central Committee of the people's Republic of China, visited Xinxing China Group Co., Ltd. to investigate the reform of state-owned enterprises and the mechanism innovation.

Xu Jianhua, vice general manager of Xinxing China Group Co., Ltd., received Gu Shengzu and his party for in-depth exchanges on deepening the reform of state-owned enterprises, promoting the innovation of management mode, and establishing incentive and restraint mechanisms.

During the survey, the group leaders reported on the progress made by the company in perfecting the modern enterprise system, adhering to the management of technological innovation, promoting the management of plates, and continuing to create a big political work pattern in recent years.

Gu Shengzu said that to speed up the reform and innovation development of state-owned enterprises, it is very important to establish a modern enterprise system, reconstruct incentive and restraint mechanisms, and stimulate entrepreneurship and managers' entrepreneurial spirit.

Xinxing China Group Co., Ltd. is a large state-owned sole proprietorship company with assets management, capital operation and production and operation. It has four major business plates, including metallurgical casting, light industrial textile, equipment manufacturing, trade and logistics, and is the world's first production base for ductile iron pipe production and sales.

R & D production base.

As a pilot central enterprise of the first board of directors, Xinxing China Group adopts the management and control mode of "strategic control + financial control", and implements the three level legal person system.

Xinjihua group has 70 thousand employees, and its assets are over 100 billion. The total amount of employees, the size of state-owned assets, the total operating income and profits are ranked 50 in the central business camp.

In 2015,

The business income reached 204 billion 666 million yuan and the total profit was 4 billion 913 million yuan. In the 2005-2015 years, the operating income of the group company increased by 28.93% annually, the profit increased by 18.81% per year, and the average annual growth of net assets was 18.29%.

The incentive and restriction of modern enterprise system to managers and managers is carried out through corporate governance structure.

State owned enterprises have been pformed into "corporatization", clearly dividing shareholders and board of directors.

On the one hand, it creates a dynamic environment for entrepreneurs, and forms an internal incentive to enable entrepreneurs to be released. On the other hand, it forms an effective division of labor and restrictive relations.

We should carry out the system of professional managers, combine internal training with external introduction, unlock the channels for the pformation of existing managers and professional managers, rationally increase the proportion of market selection and appointment, and speed up the establishment of exit mechanism.

A market-oriented salary distribution mechanism is adopted for the professional managers hired by the market, and various ways are adopted to explore and improve the medium and long term incentive mechanism.

We should create mechanisms and environments that support reform, encourage innovation, allow trial and error, and tolerate failure.