I've been working for over a decade on the capital of the countryState-owned assetsOperating, i don't think about the grand narratives, but a few very specific images: the burning of assets that have been moved since the steel chain was converted, the pulling saws that have been played by parties in the consolidation of rare earth blocks, and the way that banks have managed to pull back and forth when the city's debt is paid. It's an old industrial city, where the country's capital is set up, with steel, rare soil, and energy plaques taking over. How do we really get this place to work。
Current state of operation of state-owned assets in chartered cities
There is no shortage of money. The total assets of the enterprises regulated at the municipal level are in the hundreds of billions of tons, with bare earth blocks holding the world's leading reserves and processing capacity, and steel plates being supported by several major firms. But it's not as good as it works. Many national corporate statements look at significant volumes, with a real repayment cycle of one or two years, an alarmingly slow flow of inventory, and profits from deep-earth processing chains being eaten half by upstream resources. Not to mention the impact of excess capacity in previous years, the successive losses of several dominant firms, and the impairment of assets crushes the profit statement。
The operational level is concentrated in two locations. One is that the pipe and camp are not completely split, that the executive orders are often reaching out to the company's day-to-day operations, that the market reaction is naturally slow, and that the window is over. Second, assets were idle and inefficiently used, and some old plant areas, old workshop land and plant buildings, which were of commercial value and had even doubled the price of the surrounding land, had been kept on the books for long periods of time, without being held accountable。
How's it going with the state assets? Change
Reforms are not slogans, and the first two years of actual push is quite concrete. The integration of the national finance platform is the main line, concentrating similar assets, which were scattered across the districts, at the municipal level and reducing internal fighting and duplication of investments. Mixing is also moving forward, and deep-earth processing has introduced private capital participation, albeit in small sharesThe effectiveness of decision-making is trueThe choice of technical routes is no longer based solely on administrative boards。
The other thing is..Establish full-cost accounting and market-based appraisalsI don't know. In the past, there had been little difference between good and bad performance by the state, and hard indicators such as roe, positive cash flow rates, and asset turnover rates were now included in the appraisal programme and the restructuring team was not successful. At the same time, digital asset management is being promoted, with full line-up of idle plant and equipment accounts, what can be leased, what should be transferred and what reaches the end-of-life limit, which reduces the scope for head-to-head decision-making。
It's the old industrial city that is going to pay for it: clear up the stock of assets and open up the incremental business. It's more real than anything, not to lay a puddle, to break through the two cards: rare earth and new energy。
