What Factors Affect Asset Class Performance?

The case analysis of performance management allows everyone to enter into the role, observe and think from the standpoint of the main role in the case, and experience it from the ground, thereby generating a sense of reality, stress, and urgency, and achieving the practical effect of being there in person Analyze and propose the decision-making plan of the enterprise from a comprehensive and comprehensive perspective.

Performance Evaluation Management Measures

Performance management case analysis allows everyone to "enter the role" and observe and stand on the main role of the case

Overview

The cases presented a unique and numerous specific management scenarios in front of us, provided us with a real training ground, and allowed us to have access to a large number of practical performance management issues.

advantage

This is very beneficial to improve the manager's ability to analyze and solve various performance management problems, and enhance their skills in dealing with various practical problems. The effect is similar to the "rehearsal" of the theater, "exercises" in the military, and medical school. The "clinical" is average. Case teaching methods have been included since this century

Guangsheng Assets Enterprise Performance Management (BPM) Application Cases

Business performance management (BPM) means that managers use certain methods and systems to ensure that the performance results of the company and its subsystems (departments, processes, work teams, and individual employees) are consistent with the company's strategic goals and promote The process of achieving corporate strategic goals.

Business Intelligence (BI): Business Intelligence is software that enables companies to acquire, analyze, and share information at any point in time to understand their own operations. An integrated business intelligence suite can quickly obtain data from discrete data sources, organize data, and analyze data to produce relevant information. Relevant information is distributed throughout the enterprise organization to improve business decisions and reduce the time it takes for a company to move from awareness to action.

Balanced Scorecard (BSC): The Balanced Scorecard was developed by Professor Kaplan of Harvard University in the early 1990s based on the strategy of ubiquitous corporate strategies often out of line with annual goals or budgets. Excellent tool, it is a new development of target management theory and practice, highlighting two points: one is the generalization of strategic and business goals into four categories, namely finance, customers, internal processes and learning and growth; The second is to establish an antecedent and lag relationship between different types of targets or different indicators of the same type of targets, thereby forming a causal relationship chain between targets and indicators. To obtain "effects", companies must first control "causes" ".

Group background

Guangsheng Asset Management Co., Ltd. (hereinafter referred to as Guangsheng Company) is one of the four asset management companies directly affiliated to Guangdong Province. It officially opened for business on December 30, 1999. It holds and operates the army, armed police, politics and law on behalf of the provincial government. The government handed over state-owned assets such as the enterprise and the former Provincial Electronics Industry Corporation, the central government to Guangdong's non-ferrous metal enterprises, and China Telecom. Guangsheng Asset Management Company has a total assets of 28.13 billion yuan and a registered capital of 1 billion yuan. There are 10 first-tier group companies, 4 directly affiliated units, 118 second-tier wholly-owned and holding companies, and 22 other (including equity participation) companies. The above-mentioned enterprises are mainly engaged in the electronic information industry, non-ferrous metal (extraction) industry, engineering construction industry, hotel and tourism industry, real estate industry, and medical and pharmaceutical industry, mainly distributed in more economically developed cities such as Guangzhou, Shenzhen, and Zhuhai.

(Organization chart of Guangsheng company)

Group management model and strategic goals

Due to the complexity of the members of Guangsheng Company, the basic conditions are different. At the beginning of the establishment, various member companies had experienced decentralized management, decentralized management, and independent management. It was difficult for the group headquarters to implement effective supervision.

In order to achieve the corporate goals of the Guangdong Provincial Government and the Provincial State-owned Assets Supervision and Administration Commission, improve the operating efficiency and effectiveness of state-owned assets, maintain the ability to maintain and increase the value of state-owned assets for a long time, and continuously maintain and increase the level of return of state-owned capital. The board of directors of Guangsheng Company proposed the following development strategies:

"With development as the theme, structural adjustment as the main line, reform and restructuring and technological progress as the driving force, and capital management as the main business direction, we comprehensively promote the reform and development of Guangsheng Asset Management Company."

Li Jinming, Chairman of Guangdong Guangsheng Asset Management Co., Ltd.

According to the above strategic goals, the manager team of Guangsheng Company put forward the following development strategies:

"By the end of 2002, we lay a solid foundation through adjustments and standardization actions. By the end of 2005, we have achieved considerable development and improved the overall strength of the company. By 2010, we will build a wholly-owned and holding company of Guangsheng Company with electronic information and mining, engineering and construction. And the four leading industries of real estate, hotel properties and medical and pharmaceutical industries.

Zhong Jinsong, General Manager of Guangdong Sheng Asset Management Co., Ltd.

Specific ideas:

Concentrating resources to accelerate development: four leading industries (electronic information, non-ferrous metal mining and processing, engineering and construction real estate, hotel tourism and related industries), fostering a professional, intensive, and large-scale group enterprise, and establishing Guangsheng's key support Object and development direction.

Comprehensively promote asset management and accelerate capital expansion: First, relying on the use of "Zhongjin Lingnan" listed companies to inject high-quality assets and excellent projects, revitalize existing assets and invigorate state-owned equity, and give full play to the financing role of listed companies in the capital market to achieve asset optimization Reorganization and reasonable expansion of capital; the second is the listing of the second board (or the Hong Kong Growth Enterprise Market) of enterprises that focus on the development of high-tech projects and more powerful and promising prospects; the third is the further use of tangible and intangible assets to achieve bank-enterprise cooperation and conduct domestic and international cooperation. Financing.

To sum up, the management mode of the company group will show the following characteristics of the strategic control mode:

Emphasizing the high degree of integration between the authorized business methods of subordinate enterprise groups and the timely and regular monitoring methods of asset management companies as investors;

From the focus point of control, it mainly emphasizes that the asset management company releases annual indicators through a comprehensive budget and the deployment of resources to support the achievement of annual goals and the completion of action plans; through the financial or accounting information of subordinate companies at any time or regularly Query, report and analyze, find exceptions and abnormalities in the implementation of the plan and take timely action;

From the KPI of performance evaluation, it focuses on financial indicators and gives due consideration to business indicators.

Link: Tips for Strategic Management

The formulation of strategic goals has a close relationship with other management stages of the enterprise, and constitutes a corporate performance management cycle guided by strategic goals, as shown in the figure:

Enterprise performance management cycle diagram

Enterprise performance management cycle diagram

The cycle includes decomposing strategic goals into annual goals, and drawing up an action plan to achieve the annual goals; preparing annual budgets for resource allocation according to the input requirements for human, financial and material resources in the action plan; monitoring and reporting on the implementation of the budget; Analyze the report to understand the company's operating risk, financial risk, actual and target or budget differences, and form an evaluation of the company's performance based on the report. The results of the analysis and evaluation may affect the actual implementation process. It may also affect the adjustment of annual goals, the adjustment of strategic goals, and the formulation of future goals.

Risks to achieving strategic goals

After the strategic objective is determined, Guangsheng Company is facing how to achieve the strategic objective, how to avoid or reduce the risks and uncertainties in the process of achieving the strategic objective, and to ensure that the human, financial and material resources of the entire company system are effectively Applying to achieve the strategic goals of the enterprise, these are the problems that the enterprise must face and solve:

1.The Group's supervision: how to make the headquarters authorize the state-owned assets to operate member enterprises while ensuring that the state-owned investors (that is, the clients of the assets) have the supervision and right to know the managers of the member enterprises (that is, the trustees) , Reduce the information asymmetry, lag between the client and the trustee, and the risk and function dislocation in the investor's decision.

2. Operational and strategic decision-making questions: Does the group company need to adjust its resource input in different industries or maintain the current situation? Or gradually withdraw from the industry? Is an investment project feasible and what is the return on investment? Group member companies In what ways are you doing worse than your industry competitors? What are the reasons and how can you change them?

3. Performance evaluation questions for member companies: As a state-owned asset management company, what indicators should be used to evaluate the group member companies in order to achieve the short-term capital gains and value-added goals, and the long-term state-value preservation and appreciation of state-owned assets? How much are the specific values of these indicators reasonable? It is obviously inappropriate and unfair to use the same standards for different industries and enterprises. How to determine the evaluation standards for different industries?

4. Business Expansion and Personnel Ability: For the needs of social stability, how to quickly resolve business operation standardization and management under the premise of not adjusting the existing personnel structure of a large number of military transferred family members and original employees of group companies. The problem of institutionalization? How to avoid the rapid increase in workload caused by rapid business development, which will lead to the deterioration of labor conditions and the consequences of rising management costs?

Management change and information needs

Faced with the challenges of these issues, Guangsheng started reforms from two aspects: one is market-oriented, and by the end of 2002, it has streamlined the group organization, and closed down, stopped, and stopped enterprises that are not efficient and have no market competitiveness. "Merge and transfer", reducing the original number of nearly 510 companies to more than 160; on the other hand, it proposed a long-term information system plan, established the goal of promoting management modernization with informationization, and deployed in accordance with the PDCA management cycle. Implementation, while paying attention to the results of each stage to support the decision-making of group managers.

"The core of enterprise management is financial management ... In order to achieve standardized financial accounting processing, unified information caliber, institutionalized and standardized work processes, and ensure that the information is real, real-time, and legal, building a group financial information platform is to establish an ERP system for group decision analysis. Original intention. "

Ma Jianhua, Director of the Chief Financial Officer's Office / Deputy Minister of Planning and Finance of Guangdong Guangsheng Asset Management Co., Ltd.

Guangsheng's Group Management Informationization Plan

Management Informationization Planning

However, the following difficulties must be overcome to achieve group financial information management:

Off-site supervision: Decentralized business locations spread across multiple provinces, municipalities, autonomous regions, and Hong Kong Special Administrative Regions across the country. Decentralized financial information leads to untimely access to the group's overall information;

Industry diversification: The Group is involved in more than 20 industries in four major sectors, including electronic information, non-ferrous metal mining and processing, construction real estate, and hotel tourism. They have different operating characteristics. In the past, different industry financial systems were implemented, resulting in poor comparability of the group's financial information.

Many levels of management: Despite the optimization of the organizational structure, there are still as many as five levels at the level of accounting. It is very difficult to summarize financial information and combine accounting statements.

The professional qualities of financial personnel are uneven, and it is difficult to implement standardized management;

Diversified financial systems: There are dozens of types of financial software used by member companies, and the versions are not uniform, which makes it difficult to collect and query financial data, form "islands of information," and make it difficult to integrate data and centrally monitor information.

In order to achieve the long-term goal of information system planning, Guangsheng Company and UFIDA have adopted the "overall planning and batch implementation" on-line arrangements for the information management of member enterprises. achieved success:

First application review:

Starting from late July 2003 and ending at the end of December 2004, Guangsheng's headquarters invested tens of millions of yuan to cover UFIDA ERP-NC centralized financial accounting and office automation solutions to all 118 subsidiaries of the group in four batches , Supports the financial organization operation of more than 1,000 people in the group, and 300 people operate online at the same time, achieving centralized storage and management of the group's financial data and unified specifications of financial accounting work, such as the setting of the account system and the selection of fixed asset accounting methods. Strict controls have been implemented to improve the informatization ability and professional quality of financial personnel.

Through centralized accounting monitoring and coordination with the accounting of different member companies to build a solid information foundation, ensure that the data used for reporting, analysis, and evaluation is authentic, reliable, and consistent, and the quality is credible. It is particularly worth mentioning that before the financial and accounting modules went online, Guangsheng Company first did a lot of work on the unification of the financial and accounting systems, for the application of the business layer and subsequent system applications such as reporting, analysis and evaluation. Provided the cornerstone.

Link: Tips for Business Intelligence BI

Three pillars of BPM technology

Online analysis and processing: The English abbreviation for online analysis and processing is OLAP, or Online Analytical Processing, which enables analysts, managers or executives to transform the raw data from multiple perspectives, which can be truly understood by users, and A type of software technology that quickly and consistently accesses information that truly reflects the characteristics of an enterprise's dimensions, thereby gaining a deeper understanding of the data. OLAP analysis refers to the processing of any logical analysis and statistical analysis related to the application through methods such as slicing and dicing, drilling, rotation and rotation. The characteristics of this technology are: the ability to quickly obtain remote data through industry-leading network protocols; the compressed dimension data can be easily moved; detailed data can be queried based on the aggregated data; standard data access interfaces are provided; and it is tightly integrated with the data warehouse Support for multi-dimensional databases with multiple structures; open system; support for Web-based applications.

Data warehouse technology: Data Warehouse English abbreviation DW, or Data Warehouse, is a subject-oriented, integrated, time-varying, non-volatile data collection whose information spans the entire organization and provides data integration across the enterprise. Its technical characteristics are: standardized use tools; the ability to centrally extract data; management and maintenance based on metadata; data built for business needs; job management functions; graphical interfaces; and procedures for automatically loading data Code; reserved interface can be used to customize other functions.

Data mining technology: Data mining English abbreviation DM, or Data Mining, uses knowledge discovery and reasoning to find hidden patterns and associations between data, constructs intelligent models, analyzes, predicts, and infers, and displays the results with visual tools. Its application areas are as follows: It uses knowledge discovery and reasoning to find hidden patterns and associations between data, constructs intelligent models, analyzes, predicts, and infers, and displays the results with visual tools.

Application of BPM information tools

"If the biggest mistake in an enterprise is a mistake in decision-making, it is necessary to introduce external experts and scientific methods to participate in decision-making to a greater extent. The most important thing of UFIDA ERP-NC is the intelligent analysis and data mining of experts with deep levels. The functions ... can also be applied to the business and management requirements of local users ... This is also the determinant of our adoption of UFIDA's BPM solution after many investigations. "

Ma Jianhua, Director of the Chief Financial Officer's Office / Deputy Minister of Planning and Finance of Guangdong Guangsheng Asset Management Co., Ltd.

The realization of centralized financial accounting only provides accurate, timely, reasonable and legal basic data for the group's decision analysis. For Guangsheng Company, more importantly, it uses this as a platform to realize the comprehensive analysis of the group's financial information. The evaluation system of the balanced scorecard implemented the performance evaluation of key leaders of member companies in the group in 2005.

The second-phase enterprise performance management project implementation project of the strategic cooperation between UF and Guangsheng, from August 2004 to October 2004, was divided into two batches of training and went online, covering 118 member companies under Guangsheng Company.

Application framework of Guangsheng's enterprise performance management solution

Application architecture for performance management solutions

Guangsheng Company established a key application model of BPM with UFIDA ERP-NC / enterprise performance management solution, which consists of three parts:

1. Business processing layer: The lowest layer includes general ledger and fixed asset management modules. The application of this layer mainly solves the problems of accounting monitoring, accounting, fixed asset value management and physical management of Guangsheng company's entire system members.

2. Business intelligence layer: the middle part, how to efficiently and accurately extract the "two-dimensional" structured data in the business processing system and transform it into the "multi-dimensional" data structure required in BPM applications, including the "ETL" developed by UFIDA itself Tools (data extraction, conversion, and loading), third-party OLAP (online analysis and processing, actually Hyperion's Essbase) Server, and metadata management.

3. Performance management: the top part, including strategic intelligence, performance evaluation and financial analysis. It is used to analyze and evaluate the company's operating costs, expenses and key indicators using statistical analysis models.

The design of Guangsheng's key performance indicators (KPIs) is also consistent with its strategic goals.

Financial KPI: reflects the asset and capital investment return status of member companies; profitability status; asset operating efficiency; financial stability; sustainable development capabilities;

Non-financial KPIs: Design and measure around content related to the achievement of strategic goals and financial KPIs. In addition, Guangsheng Company has invested and managed companies of different industries and different sizes. Therefore, the selection of performance evaluation criteria also takes into account different industries and different enterprise sizes.

"UFIDA ERP-NC's BPM solution combines advanced performance management concepts at home and abroad, and has become an important auxiliary tool for the rapid and stable development of Guangsheng Company."

Ye Lili, Deputy General Manager, Guangdong Guangsheng Asset Management Co., Ltd.

In the application of Guangsheng's enterprise performance management, there are several points worth learning from:

1. Different industries adopt different performance evaluation standards

The UFIDA BPM solution provides standard financial indicator values for enterprises by industry and size issued by the Ministry of Finance. At the same time, according to the latest financial data of more than 1,500 listed companies, the system calculates the standard values of financial indicators by industry, and can analyze and evaluate the applicable industry indicators and standard values for each enterprise.

2. Select the performance evaluation system applicable to state-owned asset management companies

The UFIDA BPM solution provides an evaluation system based on the Efficiency Coefficient Method based on the Enterprise Performance Evaluation Operation Rules promulgated by the Ministry of Finance, and five evaluation standards, which are particularly suitable for the performance evaluation system of state-owned asset management companies. At the same time, the system allows Guangsheng to choose three different evaluation criteria based on the industry characteristics of the companies it invests in:

Standard 1: Standard values of financial indicators by industry issued by the Ministry of Finance each year;

Standard 2: Standard values of financial indicators calculated according to the financial data of listed companies by industry according to the principle of normal distribution;

Standard three: custom industry standard values

Scoring Table of Basic Performance Evaluation Index of Guangsheng Company

3. Use different analysis methods for different analysis topics

Guangsheng Company uses UFIDA BPM system to perform real-time and dynamic contrast analysis, factor analysis, structural analysis, trend analysis, and ratio analysis. It breaks the limitation of single manual analysis method with low efficiency.

Structural analysis and historical comparative analysis of management costs and other costs

Because Guangsheng's accounting subjects are unified to the second level, that is, only the third level subjects can be set by member companies. Therefore, the group's cost of member companies can not only perform horizontal comparison analysis, vertical structure analysis, and history of different units. Comparative analysis of data, and the range of analysis can be randomly selected, and the results change dynamically.

For example, through the structural analysis and historical comparative analysis of the group's management expenses, we can find the main reasons for the increase in management costs and the detailed expenses with the largest increase, which provides a basis for Guangsheng's control of operating costs.

Management cost analysis

Multidimensional analysis online-management expense analysis

Factor analysis of key financial indicators such as return on equity

Utilizing the expert factor analysis function provided by the UFIDA BPM solution, Guangsheng can trace the causes of the key financial indicators of member companies, and the system automatically gives the factors that affect the indicators, as well as the degree of impact, to provide corporate managers with internal management optimization direction.

For example, the analysis of the return on shareholder equity, the system analyzes the degree of change in different years from the aspects of sales profit margin, total asset turnover rate and equity multiplier, compared with the industry average, and the impact on the return on shareholder equity. It explains the root of the change and points out the key improvement goals.

Expert analysis chart of the reasons for the change in the return on investment of Zhongjin Lingnan Company of the listed company of Guangsheng Holdings

Forecast growth of important asset indicators such as bank deposits

The strategic goal of Guangsheng Company is to take capital operation as the main business direction and comprehensively promote the reform and development of Guangsheng Asset Management Company. Therefore, in the course of business operation, real-time monitoring and dynamic prediction of company asset growth are important tools for business managers to adjust business strategies and improve business results.

For example, using multiple applications of multiple regression analysis and seasonal index analysis, Guangsheng can make predictions on various asset data including bank deposits.

Analysis method provided by UFIDA BPM solution

Financial multi-dimensional analysis (financial monitoring room): typical display methods of business intelligence are used, such as chart linkage, highlighting (pre-warning mechanism), filtering, slicing, rotating, drilling, custom drilling paths and their drilling, etc., to assist Decision analysts analyze the financial statements they care about, a certain part of the general ledger, and different types of financial KPIs, etc. according to the selected period, company, and situation (actual, plan, difference, and borrower balance) dimensions to achieve the aforementioned Different analysis methods of trends, factors, contrasts, structures, etc .;

Expert analysis: This module can not only analyze the return on investment, profitability, asset management efficiency, debt repayment ability of a single company according to the company and period selected by the user, and according to the structure of DuPont ratio analysis, and automatically form charts, documents, tables and tables. Reports, and can analyze the realization of the company's economic value added, the distribution of group economic benefits, segment reports, etc .;

Statistical forecasting: Based on statistical forecasting tools such as index smoothing, moving average, and multiple regression, Guangsheng can arbitrarily select the indicators that need to be predicted, the historical period involved in the sample observations, and the future period to be predicted. And observations automatically generate forecast tables and graphs.

Application benefits

"As the first batch of users using UFIDA ERP-NC BPM solutions, they have deeply felt the changes in the way financial management works with informatization. I believe that with the increase of data in the system, performance evaluation and incentive mechanisms and operations will be established in the group. Cost analysis is playing an increasing role. "

Ma Jianhua, Director of the Chief Financial Officer's Office / Deputy Minister of Planning and Finance of Guangdong Guangsheng Asset Management Co., Ltd.

Guangsheng company not only enables a specific member company to analyze its own overall performance by applying UFIDA BPM enterprise performance management solution, but also allows its superior management unit to conduct separate and overall analysis of it and its sibling units. Analyze and evaluate. Finally, the headquarters of Guangsheng Company conducts the overall analysis and evaluation of the group, and evaluates the operating performance of the first-level group.

The scheme reflects the characteristics of Guangsheng centralized management and hierarchical decentralized management. It is particularly effective in helping large group companies to reduce operating risks, improve the response to changes in the external operating environment, and optimize internal management. Through the implementation of the enterprise performance management system, Promote Guangsheng's internal strategic management to a new level.

The application project adopts the BPM solution before the BPM solution is adopted. First, the value of specific application functions is strategic information (industry standards and listed company peer data). Manually find industry standards. Provide enterprise performance evaluation within 5 seconds. Manually prepare data for each company. It takes 1 to 2 days. Most of the data is automatically extracted from 4 to 6 hours of performance score calculation. Expert reviews are processed online. Performance score calculation is 2 to 3 minutes. Online multi-dimensional financial analysis. Previously, it was difficult to use limited fixed reports and simple analysis. Do dynamic analysis of data from a multidimensional perspective. Dynamic variable tables and linkage graphics display; each table is opened within 5 seconds ; multi-dimensional tables, data drilling, custom drilling, slicing, rotation and other analysis methods. Expert analysis In the case that the report data is ready, if a professional writes a comprehensive analysis report by hand, at least one person from each company will do 3 to 6 hours , and it is completely impossible to perform a complete analysis of nearly 200 companies on a regular basis. . The report data is automatically extracted, and within one minute , each company's graphic and textual reports are formed. The analysis can be for the historical period, can be competitors, can be budget statistics statistical forecasting has not previously used statistical forecasting tools for forecasting; if you use EXCEL, the analyst must spend considerable time learning how to apply common statistical forecasting functions or formulas Enter the relevant parameters and observations manually, and master the use of statistical prediction within 5 minutes . Observed values are automatically collected by the system, and only a few parameters need to be entered manually. Can analyze any indicator data in the general ledger. Second, the management methods to ensure the value of state-owned assets management decisions to achieve the goal of increasing the value of state-owned capital Weak and strong The external industry data assistance for group investment decisions is relatively inadequate Analyze the reasons for changes in the economic benefits of subordinate member companies to facilitate the management of exceptional matters Strong not only measures and analyzes the annual benefits created by enterprises for national shareholders, but also measures and analyzes the ability of enterprises to create wealth for national shareholders in the long run.

Expert Reviews

Hao Zhifeng, Dean of the School of Science, South China University of Technology, Deputy Dean of the School of Electronic Commerce, Deputy Dean of the Computer Research Institute, Director and Professor of the Department of Applied Mathematics.

He is currently a member of the Steering Committee of the Mathematics and Statistics Curriculum of the Ministry of Education, a member of the American Mathematical Society, a director of the China Decision Science Research Association, and the secretary-general of the Guangdong Mathematical Model Professional Committee.

As the master of strategic management Michael Porter said, "The essence of strategy is differentiation." Guangsheng Company organically integrated information technology and strategic management, established a corporate performance evaluation system BPM, and solved the following problems:

"Banner problem": The entire company system has clear information system development goals, and the leadership and company employees have unified thinking and understanding; in order to avoid negative resistance in the process of implementing centralized management by member companies, the company leaders have clearly defined the goals Responsibility to minimize resistance and ensure smooth implementation.

"Planning issues": The company has established a comprehensive system planning and step-by-step implementation plan, starting from the centralized construction of the financial information foundation, and further expanding the application of decision analysis and performance evaluation on the premise of ensuring the quality of the basic data; In the process, the implementation strategy of batch training and batch on-line was adopted to make the 118 units of Guangsheng Company go on-line smoothly and without repetition.

"Cooperation problem": Select a good software supplier to solve the feasibility of technology and application. UFIDA's applications and technologies in group accounting management and financial management and enterprise performance management are relatively mature and have a good customerization mechanism. These ensure that the project is delivered as planned and greatly reduce the risk of the implementation process.

"Continuous improvement": A system application hotline support group headed by Information Center Yan Ruixian was established, and regular visits to subordinate units were used to find and solve application problems in a timely manner and work with UFIDA to continuously improve system applications.

The successful launch of this system is not only a strong proof that Guangsheng has leapt from the level of daily business information processing to the level of strategic analysis, strategic management of target management guarantee, and business decision analysis. In addition, it has provided the pioneers with valuable practical experience in improving the state-owned asset management level, ensuring long-term state-owned capital appreciation and a suitable level of return.

At the same time, the successful launch of the system also shows that a centralized group management system can still be successfully used for a state-owned enterprise group that has a cross-regional, multi-industry, more traditional staff structure, and diverse network conditions. Total 5 pages.