On July 21, the State-owned Assets Supervision and Administration Commission of the State Council held a meeting to deepen the reform of state-owned capital investment companies. Zhou Yuxian, Secretary of the Party Committee and Chairman of China Building Materials Group, attended the meeting as one of the representatives of six central enterprises and made an exchange speech. "State-owned enterprise reform" public number pushed the group to promote the reform of state-owned capital investment company pilot innovative initiatives and remarkable results.

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china building materials:

Deepening the Reform of Capital Investment System

Build a world-class material industry investment company

Centering on the functional positioning of investment companies, CNBM focuses on the goal of "building a world-class material industry investment company", speeds up the establishment and improvement of the state-owned capital investment management system, and strives to realize the "three major changes" from managing enterprises to managing capital, from building materials to comprehensive materials, and from the local market to the global layout. Gradually develop into the world's largest basic building materials manufacturer, the world's leading new material developer and comprehensive service provider.

Repositioning Group Headquarters and Secondary Platform from a Capital Investment Perspective

Strengthen the top-level design, the group headquarters as the main body to implement the investment functions of state-owned capital investment companies, around the pre-investment management forward, investment management sinking, post-investment management strengthening, to create a closed-loop system of investment management. The headquarters is responsible for the formulation of industrial investment strategies, the allocation of industrial resources, the operation of capital investment, the implementation of risk prevention and control, and the spirit of "combining management and management" to enter the main battlefield of strategic emerging industries and innovative industrial layout. become the operator of the "increment" of state-owned capital investment. For the "stock" of capital, that is, the group's existing secondary enterprises, implement "capital layout optimization", carry out the main business of secondary enterprises, delimit the "runway" of each enterprise, integrate and optimize similar businesses, reorganize the industrial organization structure, and give resources Classification tilt, so that each secondary enterprise gradually becomes a professional platform with elite main business, clear boundaries, and full concentration of industrial chain elements and resources, and the core competitiveness and industrial chain control are continuously enhanced, at present, 70% of the work has been completed.

Constructing the Capital Ecology of the Main Strategy of Service Group

Initiate the establishment of China Building Materials (Anhui) New Materials Industry Investment Fund

Within the group, clarify the functional positioning of different industrial platforms, build the group's internal capital ecosystem, use the "cash cow" business to help and feed the "Tomorrow Star" business, vigorously develop the new material industry, and focus on serving national defense construction, major national projects and The main battlefield of the national economy has formed a batch of independent innovative products to achieve mass production, and a large number of new materials are widely used in major national projects such as aerospace, ships, and nuclear industry. New materials industry revenue scale and efficiency ratio continued to improve, in 2020 new materials revenue, net profit in the group accounted for 19%, 36%, January-June this year, respectively, 23%, 41%, of which special new materials annual sales revenue is expected to exceed 2 billion yuan.

Outside the group, in view of the risks such as long research and development cycle of new materials, high risks of technical products and difficult market introduction, the group, together with external investors such as financial capital and social capital, initiated the establishment of a new materials industry fund of 15 billion yuan to open up the "valley of death" for the transformation of scientific and technological achievements ". The Group's investment in carbon fiber enterprises in the complex eagle, the third generation of semiconductor enterprises Shandong Tianyue two new materials enterprises science and technology board listing applications have been accepted.

Strengthen capital circulation and income collection

To carry out equity operation, speed up the integration of homogeneous business of listed companies, and promote the rational circulation of state-owned capital, the integration of 5 cement enterprises and 3 engineering service enterprises has completed the approval and evaluation of economic behavior of SASAC respectively, and all of them have been approved by the shareholders' meeting of listed companies. After the completion of the reorganization, Tianshan shares will become the largest asset purchase project in the history of A shares, and Sinoma International will become the largest cement engineering service listed company in A shares. Gradually increase the proportion of income collection, improve the ability to allocate resources, the proportion of income collection of secondary companies in 2018 is only 15% of the profit distribution, in 2019 to 30%, in 2020 listed secondary enterprises to 35%, non-listed secondary enterprises to 50%.

Establish a business model that implements control through capital ties.

Training Course for Directors and Supervisors of China Building Materials Group

The Group insists on the transformation to a "capital investment company", the control of the invested enterprises continues to migrate to the corporate governance model, reducing the interference in the daily operation of the enterprise, mainly through the dispatched equity directors and supervisors to manage the capital, the establishment of a 70-person dispatched directors and supervisors bank, in the invested enterprises to hold 135 directors and supervisors positions. Reduce the administrative management mode of "red head documents" and manage equity more through corporate governance. The board of directors of the funded enterprises has gradually become the main body of strategy, decision-making and risk prevention. At the same time, adhere to the concept of modern enterprise management and control with Chinese characteristics, maintain penetration management in party building, discipline inspection, auditing, inspection, safety and environmental protection, and establish a "2422" operating data penetration mechanism on the basis of the SASAC's "two benefits and four rates" to achieve decentralization and control "double in place".

Deepen the reform of the mechanism to stimulate the vitality of the funded enterprises.

China National Building Materials Group held the signing ceremony of "two books and one agreement" for the board of directors and managers.

Combined with the three-year action of state-owned enterprise reform, the group continues to strengthen the reform of market-oriented operation mechanism, and fully stimulates and releases the endogenous vitality of the enterprises at all levels. The relative holding mixed ownership enterprises with perfect corporate governance shall be fully authorized and decentralized, and the functions and powers such as investment in the main business and selection and appointment of management members in the plan shall be transferred to the board of directors of the enterprise, and the group shall no longer approve it. The group headquarters "above rate" to promote the tenure system and contractual management members, quantitative assessment indicators of more than 80%, is expected to be completed by September 30, all sub-enterprises. Strengthen performance orientation and reasonably widen the salary income gap, with the annual salary gap of the heads of secondary enterprises up to five times in 2020. A diversified incentive and restraint system has been established, and eight incentive "toolboxes" in five categories have been launched. The cumulative number of incentives for various equity incentive tools exceeds 1700. A mechanism for the transformation of scientific and technological achievements has been established, and the scientific and technological achievements independently developed by the group are divided into three categories: A, B and C. For Class C achievements that can be transformed externally, more than 50% of the income from the transformation of achievements is allocated to the original completion team and the current transformation team of the achievements, thus achieving good results.

Through the above measures, the underlying logic of China Building Materials to carry out the pilot of state-owned capital investment companies has been initially constructed, leading China Building Materials to burst out new vitality and new momentum, showing a new look.

First, the overall strength is stronger. Cement, commercial mixing, gypsum board, glass fiber, wind turbine blades, engineering and technical services and other 7 main business scale in the world. The world's top 500 ranking rose to 187. In 2020, the operating results reached a record high, with net profit of 20.1 billion billion yuan, up 35% YoY, total profit of 30.6 billion billion yuan, up 30% YoY, and net cash flow from operating activities of 69.7 billion billion yuan, up 8% YoY. In the SASAC 2020 business performance assessment and party building work responsibility system assessment to obtain "double A", the board of directors standardized operation evaluation as excellent. From January to June this year, net profit and total profit increased by 20% year-on-year, and net cash flow from operating activities increased by 28% year-on-year, achieving a good start to the "14th Five-Year Plan.

Second, the ecological structure of capital is more perfect. "Ballasts" basic building materials business to do better and stronger, operating income accounted for nearly half, net profit contribution continued to exceed 60%. New materials business ran out of "acceleration", "14th Five-Year Plan" end revenue, profit is expected to increase to 150 billion yuan, 20 billion yuan or more. The engineering and technical service business continues to implement the "international and domestic double cycle" strategy. The global market share of cement glass engineering exceeds 65%, and it has presided over the formulation of 23 international standards and 8 standards "going out".

Third, the leading ability is more prominent. A large number of new materials such as high-performance carbon fiber and glass fiber, information display glass, wind turbine blades, special cement and high-performance concrete, lithium battery diaphragms, nitride ceramics, artificial crystals, etc. have achieved industrial mass production, and the "national material" pattern has initially taken shape. Innovative achievements in the field of materials have emerged one after another, winning 4 China Industrial Awards, 12 national manufacturing individual championships, a total of 15000 valid patents, and related high-value patents have won national patent gold and silver awards.