Most popular to restart the reform of state-owned

2022-07-23
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Can Changhong Group realize its long cherished wish of restarting the reform of state-owned enterprises

at this time, Changhong, which has been constrained by system problems for many years, started the reform of state-owned enterprises, hoping to realize the "decentralization + burden reduction" of the government by reorganizing Changhong Group into Sichuan Changhong Electronic Group Holding Co., Ltd., appropriately adjusting and expanding the decision-making power of the electronic group, studying and formulating medium and long-term incentive management measures for the electronic group holding company, and actively introducing various strategic investors. On the evening of August 18, Changhong and Midea released their semi annual report at the same time. Changhong lost 180million yuan and Midea made a net profit of 6.6 billion yuan. The former is a state-owned enterprise, while the latter is a private enterprise. Both of them have fought in the earliest open and fully competitive industry of home appliances for many years, and have also fought hand to hand for several times. Today, it is shocking to see such a difference in performance

at this time, Changhong, which has been constrained by system problems for many years, started the reform of state-owned enterprises, hoping to realize the decentralization and burden reduction of the government by reorganizing Changhong Group into Sichuan Changhong Electronic Group Holding Co., Ltd., appropriately adjusting and expanding the decision-making power of the electronic group, studying and formulating medium and long-term incentive management measures for the electronic group holding company, and actively introducing various strategic investors

however, now that the home appliance industry has gone through a glorious era of rapid development, it is constantly floating and sinking in a red sea. At this time, whether Changhong's late state-owned enterprise reform can be successfully implemented and bring it a bright future of breaking the cocoon into a butterfly remains to be tested by time

Changhong's property right reform has been shelved twice.

in the era when Ni Runfeng was in charge of Changhong, Changhong twice proposed a property right reform plan, but failed. The status quo of everyone's iron rice bowl in Changhong, a state-owned enterprise, has not changed

Ni Runfeng is an indispensable figure in the history of Chinese household appliances. He has been in charge of Changhong for 17 years. In 1989, he instigated the first price war in China's TV industry. He fought hand-in-hand with Japanese brands by 30% and won a big victory; In 1998, Changhong launched the CPT hoarding event, which triggered a resource war among domestic color TV enterprises

but it was this godfather of household appliances who finally left in frustration and left an unpaid wish for Changhong property right reform. Some media reported that the real reason for Ni Runfeng's resignation may be the differences between the management led by Ni Runfeng and the major shareholders (local government) in Changhong's property right reform

as early as 1999, Changhong formulated a privatization plan, the core of which is the reduction of state-owned shares. The goal is to gradually make Changhong's listed companies a diversified public company with state-owned shares accounting for no more than 20%, including the management's purchase of state-owned shares (MBO). Later, with the relevant state departments stopping the reduction of state-owned shares, the plan failed

in may, 2002, Ni Runfeng proposed privatization again, but due to the differences between the management and major shareholders on the privatization mode, the plan test has high repeatability; The latter is cheap to put aside

correspondingly, TCL, the rival enterprise, realized curve MBO in 2002 under the leadership of Lidongsheng. In january2004, TCL group was listed as a whole. Lidongsheng owned 144.5 million shares of TCL group, and his net worth exceeded 1billion yuan at one stroke. In the same year, Ni Runfeng retired at the age of 60. His annual salary before retirement was more than 1.2 million yuan. After retirement, he could only get a pension of 1000 yuan per month

the departure of Ni Runfeng brought Changhong's efforts in property rights reform to an abrupt end. After the nature of state-owned enterprises gained the upper hand, the enterprise's character, which was ready to rush into the market competition with wolves, gradually became docile

according to insiders, ten years ago, Changhong often asked how to protect the experimental machine. It works six days a week. Now it works five days a week. It is different from most home appliance enterprises that operate at full power every day

in addition, the status quo of everyone's iron rice bowl in Changhong, a state-owned enterprise, has not changed. It is difficult for the company's boss to decide whether an ordinary employee will go or stay. Changhong insiders said that the dismissal was unreasonable in Changhong's corporate culture and public opinion

liubuchen, an expert in home appliances, said that over the years, Changhong has left a deep impression on people that it is moving forward with a heavy load. When it competes with others, a big weakness is that it is constrained by the system, making Changhong look like a dancer in chains. The state-owned enterprises, whether they make money or lose money, are all covered by the state, which leads to Changhong's weak market awareness. Under the pure state-owned system, it is difficult to compete symmetrically with those counterparts who pack light

this was the main reason for Ni Runfeng to strive for privatization in those years, and it is also the main consideration for Changhong to start the reform of state-owned enterprises

some senior executives will be replaced.

2014 marks the beginning of the third state-owned enterprise reform. The core of the new round of Changhong reform is only one: the government gives enterprises more power and deregulation, especially in terms of financial and personnel rights involving some major project investments

2004, after Ni Runfeng quit, Zhaoyong, the former vice mayor of Mianyang City, was transferred to Changhong as the new leader. Zhaoyong, who just took over, told the media that (Changhong) is not a stagnant water, but also a calm water. What Mianyang and Changhong need most is passion

at the working conference on deepening the reform of state-owned assets and state-owned enterprises in Sichuan Province in early July this year, Zhaoyong, chairman of Changhong, once again said that the company had some problems in industrial transformation and upgrading, corporate governance structure, internal control, introduction of high-end talents, etc. Under the cross-border impact of Internet, traditional household appliances are facing the test of life and death

one month later, Changhong disclosed relevant information about the state-owned enterprise reform plan proposed by the major shareholder Changhong Group

on August 3, 2014, Changhong announced that Changhong Group had drawn up a plan to deepen reform and accelerate transformation and upgrading, mainly involving six aspects: Changhong Group was reorganized into Sichuan Changhong Electronics Group Holding Co., Ltd; Appropriately adjust and expand the power to examine and approve major investments in the holding company of the electronics group; Study and formulate medium and long-term incentive management measures; Actively introduce various strategic investors and enterprise legal persons, promote the diversification of property rights, and vigorously develop the mixed ownership economy; Deepen the reform of labor system, personnel system and distribution system; Build an intelligent industry ecology, redefine products and services based on people, and comprehensively implement mechanism and system reform and industrial transformation and upgrading

this plan is currently under consideration by the state owned assets supervision and Administration Commission of Sichuan Province. A person familiar with the matter said that the review results were originally scheduled to be released around August 19. At present, it has been postponed

although the final review result has not yet been released, Changhong has begun to take action internally

some Changhong insiders disclosed that the change of senior management level during the reform is not small. Less than half of the 22 senior management levels will be replaced, and the vacancies will be filled by people within Changhong system or recruited from the public. According to public information, Changhong has launched the 600000 annual salary global Deputy master plan at the beginning of the year

at the executive level, Changhong has begun to vigorously promote the product manager responsibility system. It is equivalent to de administration. The product manager is the largest, and can be responsible for all the chains of the whole business, solving the problem of cross departmental cooperation. The above-mentioned person said that the salary mechanism will also be changed accordingly

these adjustments are in line with Zhao Yong's previous statement. On May 28, Zhaoyong, chairman of Changhong Group, said at the shareholders' meeting of Changhong, Sichuan, that strategic restructuring or exit should be carried out for subsidiaries that do not conform to the company's strategy and are a drag on development. The public will see substantial changes in this year's election

previously, Sichuan magazine party building said that there was only one core of the new round of Changhong reform: the government deregulated enterprises, especially in terms of financial and personnel rights involving some major project investments. At the same time, the government also cleaned up the burden of a large number of retired employees generated by mergers and acquisitions during the development of Changhong over the past 50 years, which is summarized as decentralization + burden reduction

personnel and performance resistance should follow the principle of "first up, then down"

in the fully competitive industry of home appliances, Changhong is the only enterprise that lags behind due to system problems. Its future resistance mainly comes from two aspects, one is people, the other is performance

in the past 20 years, the home appliance industry has experienced brutal competition in the 1990s and civilized growth after China's entry into WTO. Now it is in a new era surrounded by factors such as RMB appreciation, withdrawal of subsidy policies, Internet invasion, etc. all enterprises have entered an unprecedented period of confusion

for Changhong, who is also confused and needs to give consideration to reform, there are many obstacles. Resistance mainly comes from two aspects, one is people, the other is performance

liubuchen, an expert in home appliances, said that the concept of state-owned enterprises for so many years may solidify the thinking of the management. If we suddenly want to reform, these people will become the greatest resistance

some people with deep investment in the industry said that the heavy burden of state-owned enterprises is government, which is afraid of causing mass incidents. If the employees of state-owned enterprises make trouble and protest, the government will be very passive. Therefore, like many central enterprises, Changhong has assumed the image of the government, but at the same time, it has to fight against complete private enterprises and joint-stock enterprises in the market. This is very painful

even if the personnel adjustment is solved and the original group is brought to the market, it is doubtful whether they can compete with Midea, Gree and Haier. Just like the plants in the greenhouse, they have always been taken care of. Once the shed is opened, the wind and rain will blow. Can they compete with the plants growing in the wild? Liubuchen said

in terms of performance, Changhong faces great pressure in transformation

Changhong's latest semi annual report shows that the net profit attributable to the shareholders of the listed company decreased by 179.73% year-on-year, from profit to loss of 181million yuan, and after deducting non recurring profits and losses, the loss was 420million yuan

liubuchen said that at the end of the year or next year, Changhong will really start to implement the reform, some industrial sectors may withdraw, and the retained industrial sectors may also change due to the adjustment of people, so the business performance will inevitably be affected. For example, in 2011, Midea Group started internal adjustment, and in the second year, Midea's revenue fell from 93.1 billion to 68billion. It is expected that the painful period of Changhong's reform may also last for about three years

however, this is a price worth paying. Eliminate the past edema instead of muscle, and present a healthy body. Although you are thin, you will develop faster with more muscle, Liu said

however, behind Changhong's all-out efforts, it is also carrying a 100 billion plan. Sichuan Province has put forward the hope that Changhong's revenue will reach 100billion yuan in 2013 and 200billion yuan in 2017. However, in the transformation and downsizing period, it is obviously impossible to achieve both performance and results. It is also doubtful whether the Sichuan provincial government and Changhong can stand the loneliness and wait to break their cocoons and become butterflies

liubuchen said that Changhong's reform largely depends on the determination of Sichuan SASAC, the competent department of Changhong Group. For Changhong, too many opportunities have been lost. This reform can only succeed, not fail

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