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The reporter of "State-owned Assets Report" noticed that compared with previous years, this year's list showed two new changes.

This year, the number of state-owned enterprises on the list has slightly decreased.Some companies dropped off the list passively, while some companies voluntarily withdrew from the list.

"At a specific stage of enterprise development, scale is an important indicator to measure the strength of an enterprise. But as the concept of high-quality development has become more popular, some state-owned enterprises have begun to gradually downplay their scale complex," said Zhang Jinxin, general manager of the research and planning department of Chengtong Fund Management Co., Ltd.

The State-owned Assets Report noted that this year at leastAerospace Science and Technology、China Aerospace Science and Industry Corporation、Shandong Iron and Steel、Weichai PowerOther companies actively chose not to participate in the selection.China Merchants BankAmong the two independent nominees of China Merchants Group, only China Merchants Bank participated this year.

This transformation is not only a requirement for the company's own development, but also requires the optimization of the assessment system.

In recent years, the assessment policy of the State-owned Assets Supervision and Administration Commission of the State Council has changed from two profits and one rate to two profits and three rates, and then from two profits and four rates to one profit and five rates, continuously making efforts to promote central enterprises to improve their benefits and efficiency.

At the "Minister's Channel" of this year's two sessions, Zhang Yuzhuo, Party Secretary and Director of the State-owned Assets Supervision and Administration Commission of the State Council, said: "We have downplayed the assessment of scale. For example, some companies used to pursue the top 500 ranking, but the top 500 actually refers to the '500 largest' in terms of sales revenue. We are now working towards becoming stronger and better."

To this end, the meeting of the heads of central enterprises at the beginning of this year put forward the requirements of "five values" to guide enterprises to pay more attention to the improvement of value creation capabilities. At the seminar for the heads of central enterprises held on July 22, the State-owned Assets Supervision and Administration Commission of the State Council once again proposed that the economic added value indicators should continue to be fully reflected in the internal assessment of enterprises, and the awareness and habit of "calculating before investing" should be strengthened.

“Among the companies on this year’s list, China Merchants Bank, CNOOC,Zijin Mining, COSCO SHIPPING,China Coal Energy, China National Energy Group, China National Petroleum Corporation and other enterprises have profit margins of more than 5%. "Shen Haiyan, deputy director of the Research Center of China International Engineering Consulting Corporation, said that this shows that the construction of world-class enterprises is advancing in depth.

From another perspective, the list of central enterprises shortlisted for the Fortune Global 500 this year is further differentiated from the recently announced A-level central enterprises assessment list. Only 34 of the listed companies are A-level central enterprises, which means that the proportion of scale indicators in the assessment is indeed declining.

However, through the comparison between Chinese and foreign companies, it should be noted that state-owned enterprises in some industries still have a certain gap in profitability compared with their foreign counterparts. For example, there are 10 state-owned enterprises in the construction industry this year, of which 5 central enterprises occupy the top five in the world's construction companies. Over the years, the revenue scale of domestic construction companies has continued to grow, but the operating profit ratio is significantly lower than that of French companies such as Vinci and Yamato Housing Construction. In addition, some state-owned enterprises in strong cyclical industries are in a loss-making state.

This shows that state-owned enterprises still need to continue to increase their efforts to become stronger and better.

The just-concluded Third Plenary Session of the 20th CPC Central Committee placed core functions ahead of core competitiveness when deploying the reform of state-owned assets and state-owned enterprises, and made a series of arrangements around the core functions, such as continuously promoting the three concentrations of state-owned capital, further clarifying the functional positioning of different types of state-owned enterprises, establishing an evaluation system for state-owned enterprises to fulfill their strategic missions, and improving the classification assessment and evaluation system for state-owned enterprises.

State-owned enterprises, while shouldering economic responsibilities, are inherently political and social responsibilities, and should better serve national strategies in a market-based manner. In the 75 years since the founding of New China, we have created the world's most complete industrial system from scratch, among which state-owned enterprises, especially central enterprises, are often located at the key links of the industrial chain, playing a leading, driving and supporting role.

Since the 18th National Congress of the Communist Party of China, the layout and structure of the state-owned economy have been continuously optimized and its core functions have been continuously enhanced.State-owned enterprises, especially central enterprises, should further play their role in scientific and technological innovation, industrial control, and security support.

Shen Haiyan said that in recent years, thanks to the continuous optimization of the layout of the state-owned economy, my country's strategic support capabilities in important resources, energy, food, network, national defense and other fields have been continuously enhanced, and the pillar industries of the national economy such as petrochemicals, building materials, machinery, automobiles, electronics, and construction have continued to grow bigger and stronger. The public service capabilities in basic livelihood fields such as biomedicine, life health, and transportation have been significantly improved. She gave an example that the State Grid ranked third on the list for the third consecutive year.SinopecIts ranking continued to rise to fifth place, and Hangzhou Industrial Investment Group, which serves new industries and new tracks, was listed for the first time.

Judging from this year's list,BYD, Chery, Geely and other private enterprises in the field of new energy vehicles have performed well. Wang Zhile, a special writer for Fortune Chinese, believes that Huawei, BYD andCATLChinese companies such as China are already highly competitive world-class enterprises.

"It can be said that the continuously consolidated industrial base of central enterprises has provided strong support and guarantee for the rapid rise of a number of outstanding private enterprises," said Jiang Yu, a researcher at the Development Research Center of the State Council.

In 2023, a number of central enterprises participated in the industrial integration and co-chaining action, and further strengthened the close cooperation with enterprises of all types of ownership in the upstream and downstream of the industrial chain in a market-oriented manner. At present, it has driven the coordinated development of more than 5,700 business entities. In terms of supply chain collaboration, 96% of the more than 2 million enterprises in the upstream and downstream of the supply chain directly driven by central enterprises are private small and medium-sized enterprises.

At present, against the backdrop of complex and severe international and domestic situations, state-owned enterprises, especially central enterprises, continue to increase their efforts in industrial leadership.

"In the next step, we will improve the institutional rules for cooperation between state-owned enterprises and other types of enterprises, continue to carry out coordinated development and project promotion between state-owned enterprises and private enterprises, guide state-owned enterprises to build a collaborative and win-win supply chain ecosystem, encourage state-owned enterprises to expand the open sharing of innovation resources, give full play to the resource advantages of state-owned enterprises, private enterprises and other types of enterprises, continue to deepen cooperation and achieve common development." Lin Qingmiao, director of the Enterprise Reform Bureau of the State-owned Assets Supervision and Administration Commission of the State Council, said at a thematic press conference held by the State Council Information Office.

Liu Shaowei, head of the Financial Supervision and Operation Evaluation Bureau of the State-owned Assets Supervision and Administration Commission of the State Council, also mentioned that in the next five years, central enterprises are expected to arrange large-scale equipment renovation with a total investment of more than 3 trillion yuan. "We require central enterprises to treat all types of enterprises equally when purchasing equipment, insist on buying equipment with the best technical level and the highest cost-effectiveness, and let equipment suppliers with both good quality and price stand out."

However, it should be noted that most of the state-owned enterprises on the list are still in traditional industries, and their ability to lead and drive emerging industries and future industries is still insufficient.

According to the requirements of the Third Plenary Session of the 20th CPC Central Committee, in the next round of reforms, we will continue to push state-owned capital to concentrate in important industries and key areas related to national security and the lifeline of the national economy, in areas related to national economy and people's livelihood, public services, emergency response capabilities, and public welfare, and in forward-looking strategic emerging industries.

2024

The State-owned Assets Supervision and Administration Commission of the State Council44

Central enterprises (and their subsidiaries) listed in the Fortune Global 500

Full list

2024

Local SASAC supervision36

Full list of state-owned enterprises in the Fortune Global 500