COSCO and CNOOC failed to reach a level in 2012 central enterprise assessment
2015-07-24 Read 1017

at the end of last week, the state owned assets supervision and Administration Commission (SASAC) announced the results of the 2012 annual business performance assessment of the heads of central enterprises. 44 central enterprises, such as "three barrels of oil", were rated a, while most of the air transportation, water transportation and iron and steel enterprises were not rated a.

among the 44 A-level enterprises, in addition to PetroChina, Sinopec, CNOOC, China Mobile and State Grid, Huadian Group, China Telecom, Datang Group, China Electronics, China Power Investment and China Coal Science and Engineering Co., Ltd. have become the newly elected A-level enterprises.

however, eight A-level central enterprises in 2011, including AVIC group, China Southern Airlines Group, China Eastern Airlines Group, China Coal Group, China shipbuilding industry, Sinoma Group, China gold and CGN, failed to continue to be rated as A-level in 2012.

last year, air transportation, water transportation and iron and steel enterprises were almost out of class A. Affected by the slowdown of macroeconomic growth and the high level of aviation oil, the profits of AVIC group, China Southern Airlines Group and China Eastern Airlines Group fell last year, and the net profits of listed companies fell by double digits. In the case of general loss of iron and steel industry, Anshan Iron and Steel Group, one of the three central iron and steel enterprises, suffered huge losses. Although Baosteel Group and WISCO group made profits, their main business profits declined.

among shipping enterprises, COSCO Group, Sinotrans Changhang group and CNOOC Group did not appear in A-level except for China Merchants Group.

according to a person from the comprehensive Bureau of the state owned assets supervision and Administration Commission, the causes of losses or sharp decline in performance of central enterprises are very complex. Some are blind expansion due to too good market expectations, some are affected by systemic risks in the downturn of the industry, and some are due to management problems. When SASAC assesses central enterprises, it will compare with the same business of enterprises in the same industry to ensure fairness and objectivity. For industries with excess capacity, the basic requirement of SASAC for central enterprises is that the capital chain should not be broken. Secondly, it is necessary to gradually adjust the industrial structure, improve the value chain, encourage central enterprises to divest non main and non core assets, and improve the level of enterprise resource allocation.

since the establishment of the state owned assets supervision and Administration Commission of the State Council in 2003, the "Interim Measures for the assessment of the business performance of the persons in charge of central enterprises" has been used to assess the business performance of the persons in charge of central enterprises. The assessment includes annual assessment and three-year term assessment. The final results of annual and term business performance assessment are divided into five levels: A, B, C, D and E, and the assessment results are taken as an important basis for the salary, appointment and removal of the person in charge of the central enterprise.

at the end of last week, the state owned assets supervision and Administration Commission (SASAC) announced the results of the 2012 annual business performance assessment of the heads of central enterprises. 44 central enterprises, including "three barrels of oil", were rated as A-class, while most of the air transportation, water transportation and iron and steel enterprises were not rated as A-class.

among the 44 A-level enterprises, in addition to PetroChina, Sinopec, CNOOC, China Mobile and State Grid, Huadian Group, China Telecom, Datang Group, China Electronics, China Power Investment and China Coal Science and Engineering Co., Ltd. have become the newly elected A-level enterprises.

however, eight A-level central enterprises in 2011, including AVIC group, China Southern Airlines Group, China Eastern Airlines Group, China Coal Group, China shipbuilding industry, Sinoma Group, China gold and CGN, failed to continue to be rated as A-level in 2012.

last year, air transportation, water transportation and iron and steel enterprises were almost out of class A. Affected by the slowdown of macroeconomic growth and the high level of aviation oil, the profits of AVIC group, China Southern Airlines Group and China Eastern Airlines Group fell last year, and the net profits of listed companies fell by double digits. In the case of general loss of iron and steel industry, Anshan Iron and Steel Group, one of the three central iron and steel enterprises, suffered huge losses. Although Baosteel Group and WISCO group made profits, their main business profits declined.

among shipping enterprises, COSCO Group, Sinotrans Changhang group and CNOOC Group did not appear in A-level except for China Merchants Group.

according to a person from the comprehensive Bureau of the state owned assets supervision and Administration Commission, the causes of losses or sharp decline in performance of central enterprises are very complex. Some are blind expansion due to too good market expectations, some are affected by systemic risks in the downturn of the industry, and some are due to management problems. When SASAC assesses central enterprises, it will compare with the same business of enterprises in the same industry to ensure fairness and objectivity. For industries with excess capacity, the basic requirement of SASAC for central enterprises is that the capital chain should not be broken. Secondly, it is necessary to gradually adjust the industrial structure, improve the value chain, encourage central enterprises to divest non main and non core assets, and improve the level of enterprise resource allocation.

since the establishment of the state owned assets supervision and Administration Commission of the State Council in 2003, the "Interim Measures for the assessment of the business performance of the persons in charge of central enterprises" has been used to assess the business performance of the persons in charge of central enterprises. The assessment includes annual assessment and three-year term assessment. The final results of annual and term business performance assessment are divided into five levels: A, B, C, D and E, and the assessment results are taken as an important basis for the salary, appointment and removal of the person in charge of the central enterprise.