Yicai:

In the past year, what progress have central SOEs made in promoting strategic restructuring and professional integration? In the coming year, which key areas will they focus on for restructurings and business integration? Thank you.

Li Bing:

I'll answer these questions. In 2023, the SASAC implemented the arrangements of the 20th CPC National Congress on accelerating efforts to improve the layout of the state-owned sector and adjust its structure. The SASAC intensified its efforts in restructuring the central SOEs and integrating their businesses, yielding positive results in four areas. First, we supported the implementation of national strategies and enhanced our capabilities. We have made continuous progress in optimizing resource allocation in fields such as data and information, leveraging the role of central SOEs as the "national team" to serve the needs of national strategies more effectively. Second, we improved the efficiency of resource allocation and the quality of development. We integrated cruise operation resources to establish platform companies and strengthened professional operational capabilities. The first domestically-built large cruise ship, Adora Magic City, completed its successful maiden voyage for commercial purposes. We facilitated the transfer of China International Water & Electric Corp, a subsidiary of China Three Gorges Corp, to China Communications Construction Co, and the transfer of National Bio Energy Group, under State Grid Corporation of China, to State Power Investment Corporation. We also promoted China Huaneng Group to conduct pilot operation and maintenance services for 22 new energy projects for 13 central SOEs. These efforts enabled companies to focus on their core businesses and achieve high-quality development. Third, we focused on nurturing new growth drivers and promoting the development of strategic emerging industries. We guided central SOEs to focus on mergers and integration, making innovation breakthroughs, and internal collaboration, so as to accelerate the development of strategic emerging industries. We held two centralized signing ceremonies for 25 key projects in business integration, covering strategic emerging industries like environmental protection, biotechnology, and new energy vehicles. Fourth, we have been gathering innovative resources and strengthening research and development capabilities. China Electronics Technology Group Corp completed restructuring of China Hualu Group Co Ltd, consolidating its strengths in the field of electronic information and enhancing its ability to supply key technological products. This helped to shore up key links in industrial chains and created synergistic advantages in areas such as smart manufacturing and data storage.

Next, the SASAC will, in accordance with the requirements outlined by the action plan guiding SOEs to deepen reform, focusing on the goal of steadfastly improving, expanding, and strengthening SOEs, further advance the work of restructuring and integration to deliver a substantive result. First, we will strengthen overall planning and enhance the effectiveness of restructuring and integration. Starting from improving the layout of the state-owned sector and adjusting its structure, and in line with the implementation of the 14th Five-Year Plan, we will carry out overall planning for the main directions and key tasks of restructuring and integration, improving the layout and adjusting the structure in a planned way and with the right pace. Second, we will give priority to serving national strategies and advance strategic restructuring and the establishment of new central SOEs in a prudent manner. We will focus on implementing strategies for innovation-driven development, coordinated regional development, and boosting China's strength in science and technology, manufacturing and cyberspace during the strategic restructuring and the establishment of new central SOEs. We will continue to promote the concentration of state-owned capital in important industries related to national security and the lifeline of the national economy, in important industries related to the national economy and people's livelihood, such as the provision of public services, emergency capacity building, and public welfare, and in forward-looking strategic emerging industries, and fully leverage the role of state-owned capital and central SOEs as the backbone and ballast of the economy. Third, we will focus on developing strategic emerging industries and vigorously promote professional integration. By leveraging the leading role of central SOEs, and in line with the characteristics of the integrated development of strategic emerging industry clusters, we will make greater efforts to conduct professional integration in the fields such as information communication, new energy, and equipment manufacturing. We will actively explore new arenas, seize new highlands, and shape new advantages by deepening strategic cooperation in the industrial chain ecosystem, and expediting our efforts to modernize the industrial system. Thank you.