"Innovation" is one of the five most frequently used words in the 2021 Government Work Report. From "adhering to the core position of innovation in the overall situation of China's modernization construction", to "relying on innovation to promote the high-quality development of the real economy", to "promoting the integration and innovation of large and medium-sized enterprises", and then to "enhancing the technological innovation ability of enterprises and stimulating the innovation vitality of talents"......

Opening "14th Five-Year Plan"
Zhou Yuxian explained in detail the new sample of China's building materials innovation drive.

Wen/Enterprise Observer reporter Zhang Yu.

Zhou Yuxian, Party Secretary and Chairman of China Building Materials Group

Innovation is the outstanding feature and important advantage of China National Building Materials Group. Innovation-driven so that the enterprise in the extraordinary 2020 is still full of momentum, strong growth, full-year net profit growth of 35%, total profit growth of 32%, net cash flow from operating activities of 70 billion yuan, net profit, compensation, interest, taxes and fees total social contribution of 87.5 billion yuan.

As for the secret of China's building materials innovation, Zhou Yuxian introduced: "to realize the organic unity and coordinated development of scientific and technological innovation, mechanism innovation, management innovation and business model innovation, so that the vitality of innovation is bursting out, the achievements of innovation are fully protected, the value of innovation is greater, and the efficiency of the allocation of innovation resources is greatly improved, this is an inevitable choice for CNBM to implement the innovation-driven development strategy, build new advantages in participating in international competition and cooperation, and build a new pattern of high-quality development."

The SASAC's Research Symposium on Accelerating the Digital Development of Enterprises was held in China Building Materials, fully affirming the "I'm Looking for a Car" logistics platform.

Scientific and technological innovation:
Adhere to the balance and unity of strategic rationality and economic rationality.

The 2021 Government Work Report proposes to promote the deep integration of scientific and technological innovation with the real economy, give better play to the role of innovation-driven development, strengthen the dominant position of enterprises in innovation, improve the incentive mechanism for property rights of scientific and technological achievements, and use market-oriented mechanisms to encourage enterprise innovation. For China National Building Materials Group, the advantages of scientific and technological innovation are obvious:It has 26 national scientific research institutes, 38000 scientific research personnel and 13500 valid patents. As the first completion unit, it has won 6 first prizes of national scientific and technological progress, 7 national technological invention awards, 63 second prizes of national scientific and technological progress and 4 Chinese industrial awards.In 2020, China Building Materials completed the annual goal of 9 scientific and technological research tasks of the State-owned Assets Supervision and Administration Commission, conquered a number of "stuck neck" technologies, launched 2 major projects, formulated and issued 3 international standards, and the national cement technology center was fully capped. The award, China Patent Award, China Industry Award, National Manufacturing Individual Champion, etc. have won a number of major scientific and technological awards and honors, which have effectively enhanced the sense of scientific and technological innovation of enterprises.

In terms of the transformation of scientific and technological innovation achievements, China Building Materials Group has successfully realized the industrial production of 0.03mm flexible foldable glass, the first line of Xining carbon fiber project has been successfully trial-produced at one time, breaking through 85 m and 86 m long all-glass fiber offshore wind turbine blades, the world's third independent research and development and production of silicon nitride ceramic bearing balls by hot isostatic pressing sintering technology, and the successful production of China's first 8.5 generation large screen TFT glass has been introduced into the market, the self-developed low-heat special cement has been successfully used in a number of national key projects such as Wudongde Hydropower Station.

China National Building Materials Group Innovation-driven New Material Business Booming

For China Building Materials Group, which has innovative genes, Zhou Yuxian introduced three things about the layout of scientific and technological innovation in 2021:

The first is to bravely shoulder the national responsibility and speed up the "stuck neck" technology in the field of important materials."China Building Materials is a central enterprise, and it is obligatory to assume national responsibility." Zhou Yuxian said, for example, "On February 22, General Secretary Xi Jinping met with representatives of the participants in the Chang 'e -5 mission and visited the exhibition of the results of the lunar exploration project. There was one scientist from the China Building Materials Institute and three new materials. Products, including radiation-resistant ultraviolet filter quartz glass, high-purity radiation-resistant quartz glass, and photomask quartz glass developed with this technology. We also provided a storage tank bracket and an engine bracket for Chang 'e -5 lunar exploration project, which were not on display this time."

The second is to adhere to the balance and unity of strategic rationality and economic rationality."It is also necessary to create good economic benefits so that we can better assume national responsibilities." China National Building Materials will further increase investment in innovation to promote the high-end, intelligent, and green development of the industry, especially to promote the new material business to increase the yield, accelerate market introduction, and increase the scale of output. "Our high-performance carbon fiber, 0.03mm flexible foldable glass, lithium battery separator, silicon nitride ceramic, low dielectric ultra-fine electronic yarn, etc. all need to further expand the scale and improve efficiency." Zhou Yuxuan said.

The third is to further strengthen the construction of innovation incentive mechanism.Zhou Yuxian stressed that in recent years, we should continue to explore and form a business model that makes innovation a strong support for the long-term profitability of the material investment group on the basis of the past A and B innovation experience in the fields of basic building materials, new materials and engineering services, and make it more and more clear. For example, "the incentive method for Class C achievements that are not strongly related to the main business, Sinoma High-tech Artificial Crystal Institute tried the transformation and incubation mechanism of scientific and technological achievements to attract enterprises upstream and downstream of the industrial chain, and started the construction of a specialized artificial crystal double innovation base in Jinan, Shandong. At present, it has attracted and incubated more than 20 enterprises, greatly improving the quality of technology transfer, shortening the transfer cycle, and transforming scientific and technological achievements into society to create greater wealth."

Mechanism innovation:
Industrial investment follows the logic of doing industry

"In-depth implementation of the three-year reform of state-owned enterprises, stronger and better state-owned capital and state-owned enterprises" is one of the important tasks in the 2021 "Government Work Report" to further promote reforms in key areas and stimulate the vitality of market players.

As a pilot project of state-owned capital investment company in the field of building materials, China National Building Materials Group proposes to change from asset management to capital management. How to turn it into? China National Building Materials Group has been exploring in practice.

"In 2020, our reform is mainly two things, one is to further promote the pilot work of state-owned capital investment, establish the '4335' guiding principles, sort out and determine the strategy and main business of secondary enterprises, and explore the implementation of equity management by sending directors and supervisors." Zhou Yuxian said, "The second is to start the reform of state-owned enterprises for three years."

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China National Building Materials Group "4335" Guiding Principles
"4", establish four concepts, namely, the concept of good management of equity, the concept of deepening reform, the concept of innovation-driven, and the concept of marketization;
"3", the establishment of three closed-loop systems, namely, a closed-loop system of incentive and restraint mechanisms with compensation as the core, a closed-loop system of investment management before and after investment, and a closed-loop system of comprehensive supervision and management before and after investment;
"3", to achieve three changes, namely, the management of enterprises to the management of capital, building materials to integrated materials, the local market to the global layout of the transformation;
"5", to create a "five forces" enterprise, that is, competitiveness, innovation, control, influence, anti-risk ability.

China National Building Materials Group Headquarters "4335" Guiding Principles
"4", establish four concepts, namely, the concept of good management of equity, the concept of equity management through the corporate governance structure, the concept of equity management through the dispatch of directors and supervisors, and the concept of capital flow and income collection;
"3", the establishment of three closed-loop systems, namely, a closed-loop system of incentive and restraint mechanisms with compensation as the core, a closed-loop system of investment management before and after investment, and a closed-loop system of comprehensive supervision and management before and after investment;
"3", three continue to be firmly adhered to, namely, the idea of reform, the concept of innovation, the principle of marketization;
"5", to clarify the five major functions of the headquarters, namely, strategic guidance, resource allocation, capital operation, risk prevention and control, and party building.

Regarding the deployment of work in 2021, Zhou Yuxian emphasized that it is necessary to continue to solidly promote the three-year reform of state-owned enterprises, establish a market-oriented, differentiated, and precise employment mechanism and incentive mechanism, and create a professional platform for the market-oriented operation of state-owned capital in the materials industry.

Experts believe that state-owned capital investment companies have a distinct industrial driving function and need to focus on cultivating industrial competitiveness, focusing on playing a role in important industries and key areas, and solving the adjustment of the layout and structure of the national economy.

As a pilot in the field of building materials, China Building Materials Group naturally has to shoulder the responsibility of promoting the long-term development of the materials industry.

However, in the process of product innovation in new materials and other fields, Zhou Yuxian felt that the success of a product development requires huge investment and a long time. To cultivate a profitable industry, not only the cycle is long, but also there is the risk of technology and products being replaced; even if the scale is large, if the product cost cannot be reduced, it is still difficult to achieve industrialization.

From the perspective of investment, scientific and technological research and development is full of various unknown risks. The traditional scientific research and development model invested by the government or enterprises has been difficult to adapt to the needs. Therefore, Zhou Yuxian proposed the introduction of venture capital for research and development and the creation of a scientific and technological innovation guidance fund platform. New concept.

He said that the cultivation of a project must go through the stages of germination, growth, and maturity, and the industrial transformation of a scientific and technological achievement must go through what the industry calls the "valley of death". In the early stage of project industrialization, VC (venture capital), PE (private equity investment) and angel investment can be attracted to participate, which not only raises the funds needed for development, but also spreads the risk of project failure.

When the project industrialization of the medium or relatively mature period, and then "buy" back. Although it is more expensive at this time, "it is more concerned about the sustainable long-term development of the industry". He believes that this is the operational logic of industrial investment companies. On the contrary, if we use the logic of PE and VC investors to make industrial investment, the logic will be reversed, and to a certain extent, it will also curb the path of technological innovation.

To play the card of "innovation-driven development" of state-owned capital investment companies, in addition to innovative investment logic, the key depends on talents.And how to "make good use of" talents, China Building Materials also has its own practice.

Zhou Yuxian once said at the 2020 China Top 500 Enterprises Summit Forum that it is necessary to provide strong support for entrepreneurs to start their own businesses through the dual incentives of spiritual and material in the system. The "system" here is the medium-and long-term incentive and restraint guidance issued by China Building Materials Group in 2020, which brings together various incentive policies and related documents issued by the State Council, forms a toolbox of medium-and long-term incentive system, defines five categories and eight incentive tools, and establishes a multi-level and systematic positive incentive system. Enterprises can choose suitable incentive methods according to their own characteristics and requirements, which greatly mobilizes the enthusiasm and creativity of entrepreneurs.

But Zhou Yuxian reminded that to establish a truly effective medium and long-term incentive mechanism, it is necessary to open up the existing two joints. First, the corporate governance structure of the enterprise itself needs to be sound and standardized. For example, some enterprises do not have a board of directors, so they cannot achieve a majority of external directors and cannot meet the requirements of the corporate governance structure proposed in the three-year action plan. In this case, if the medium-and long-term incentives are forced, the effect may be counterproductive. The second is to truly establish a "three-energy" mechanism, that is, positions can be up and down, employees can enter and leave, and salaries can be high and low, otherwise the reform and development of enterprises will lack motivation, not to mention incentives.

Business model innovation:
Industry Digitalization and Digital Industrialization Parallel

China Building Materials Group vigorously build green smart factories to help the country achieve carbon peak and carbon neutrality as soon as possible.

"Innovation is not only technological innovation and mechanism innovation, but also business model innovation." Zhou Yuxian also stressed in the interview,"The innovation of China's building materials is not only the innovation of new materials, but also the basic building materials and cement must use innovation to continuously improve their competitiveness."

With the continuous progress of the Internet era, the deep integration of information technology and the real economy has become unstoppable. The draft outline of the 14th five-year Plan also proposes to speed up digital development, create new advantages in the digital economy, promote digital industrialization and industrial digital transformation, and build a digital China.

In innovative practice, China National Building Materials has always adhered to the "Internet" thinking, applied new technologies, and boosted the transformation and upgrading of basic building materials and new materials industries to the industrial Internet. During the spread of the global new crown epidemic in 2020, China's building materials industry Internet demonstrated to the world the technology and strength of the industry leader, deeply shocked the world counterparts. At the beginning of the year, a famous French cement company updated and upgraded a cement production line that had been in operation for more than 60 years. China Building Materials sent unmanned aerial vehicles to collect structural data by laser scanning, generate point cloud models, send them back to Beijing, and then carry out three-dimensional design. Factory installation has also achieved a high degree of consistency between on-site construction and intelligent simulation. The final delivery to the French side is a digital smart factory with a full life cycle.

Zhou Yuxian also cited two examples: a green and environmentally friendly intelligent cement factory was built in the south of Huaikan. There are more than 10000 monitoring points in the entire line, including sensor monitoring of energy, temperature, safety, emissions, etc. The automation control of the entire cloud platform; a glass fiber intelligent manufacturing base has been built in Tongxiang, Zhejiang to realize the digitization and intelligence of production and operation, the introduction of 157 innovative applications and technologies has successfully created a smart factory for industrial 4.0 with a connectivity rate of 98.6 percent.

But China National Building Materials Group did not stop there,Not only to promote the digitalization of the industry, but also to achieve digital industrialization.On February 2, at the enterprise digital development research symposium organized by the State-owned Assets Supervision and Administration Commission, Deputy Director Weng Jieming fully affirmed the "I find a car" logistics platform of China National Building Materials, and believed that "a better digital business model has been explored. The existing logistics system of central enterprises is highly complementary, and the system connection between the logistics industry and the manufacturing industry has been realized, and the three-chain combination of industrial chain, logistics chain and capital chain". The "I look for a car" project has opened a window for the digital industrialization of China's building materials.

In early 2020, the outbreak of the new crown epidemic, China Building Materials Group's Ningxia Building Materials to create a "I find a car" logistics platform, to the plight of truck drivers to provide great convenience. It has changed the traditional way of truck drivers receiving orders face to face. After the driver is registered, it is very convenient to find the business nearby. The platform provides convenience for drivers free of charge and is welcomed by the majority of drivers. By word of mouth alone, the number of registrations has exceeded 380000.

At the same time, this platform makes the internal logistics of China National Building Materials Group, which has an annual demand for nearly 2 billion tons of cargo transportation, more smooth, and the cost is greatly reduced.

According to Lunan Zhonglian statistics, the move can reduce the cost of cement transportation by 2 to 5 yuan per ton. The group produces 0.4 billion tons of cement every year. If the transportation cost is reduced by 3 yuan per ton of cement, it will bring a net profit of 1.2 billion yuan. In addition, bulk products such as glass fiber, glass and gypsum board can reduce the cost of the group by 2 billion yuan on the whole, which also means that it can bring about a net profit growth of nearly 10%.

With the help of technical means, the platform can also obtain real-time vehicle information through satellite positioning on the vehicle. If the vehicle is parked for more than 15 minutes, an alarm will be triggered, and the phenomenon of "cross-shipment" can be completely eliminated.

Through centralized procurement of oil products, accessories, insurance and other automotive supplies, the platform not only reduces the cost of drivers, but also realizes the self-sufficiency of the platform.

In Zhou Yuxian's view, there are many businesses within the group that have huge collaborative innovation space, such as collaborative procurement, research and development, internationalization, etc., which can lead to a substantial reduction in costs. At the same time, the big data formed in the collaborative process will also be deeply mined, thus further promoting digital industrialization.

"I look for a car" is a silhouette of the group's vigorous promotion of business collaboration and cement Internet. It is also in line with the group's development concept of "high-end, intelligent, and green", and has a good room for growth.Weng Jieming, deputy director of the State-owned Assets Supervision and Administration Commission of the State Council, asked the platform to further improve its digital level and service capabilities, and strive to explore new experiences in the reform and digital development of "Double Hundred Enterprises.

Under the innovation-driven strategy, China National Building Materials Group has been looking for a breakthrough direction for innovation. Zhou Yuxian said: 2021 is the first year of the "14th Five-Year Plan" and the beginning of the new journey of building a modern socialist country in an all-round way. The group must go all out to deepen reform, innovation-driven, structural adjustment, quality improvement and efficiency, and strengthening Party building and other aspects have intensified efforts, started well, started well, worked hard to complete the annual goals and tasks, and celebrated the centenary of the Communist Party of China with outstanding achievements!