In order to focus on high-quality development, strengthen benefit and efficiency assessment, and guide the transformation of provincial SOEs from scale-based and speed-based growth to quality-oriented and benefit-oriented growth, the People's Government of Sichuan Province recently issued the newly revised Measures for Business Performance Assessment of Sichuan Provincial SOE Principals, which was fully put into effect on January 1, 2020.

　　According to the relevant head of the State-owned Assets Supervision and Administration Commission of Sichuan Province, one important objective of the new Measures is to encourage provincial SOEs to accelerate industrial restructuring and strive for a "5+1" modern industrial system. "The annual assessment focus is the input, and the tenure assessment focus is the output." the head said.

　　For the annual assessment, key performance indicators will be set, and the combination of qualitative and quantitative assessment will be adopted to focus on the implementation of the board of directors' work in promoting industrial transformation and development as well as the input in the "5+1" industries: electronic information, equipment manufacturing, food and beverage, advanced materials, energy and chemical industry plus digital economy; for the tenure assessment, innovative transformation indicators will be set, result-orientation will be emphasized, and quantitative assessment will be mainly adopted to focus on the phased results of industrial transformation and development as well as the outputs of the "5+1" industries, so as to guide enterprises to accelerate industrial restructuring, foster strategic emerging industries and promote the transformation of new and traditional driving forces.

　　More efforts will be made to assess technical innovation, and enterprises will be encouraged to increase R&D input; the R&D input will be regarded as the profit and added back while calculating the total profit and the economic value added, so as to encourage enterprises to establish a sound growth mechanism for R&D input. In the meantime, the incentives for technical innovation assessment will be increased. For enterprises making significant achievements in technical innovation, the bonus points will be added for the annual assessment, and the threshold of bonus points for technical innovation will be appropriately raised to improve the quality of innovation in provincial SOEs.

　　Focusing on the requirements of high-quality development, the Measures further deepened the classified assessment. First, assessment indicators and weights are set according to the functional orientation of SOEs. For competitive enterprises, the preservation and appreciation of state-owned assets will be the orientation, the maximization of economic benefits will be the main objective, and the assessment will mainly focus on benefit and efficiency indicators. For functional enterprises, the assessment weight of benefit and efficiency indicators will be appropriately reduced, and the assessment will mainly focus on the performance in management efficiency, service quality, security level and major special tasks assigned by the CPC Sichuan Provincial Committee and the People's Government of Sichuan Province. Second, Assessment indicators are set according to the industry categories and characteristics of SOEs. For investment enterprises, the assessment will mainly focus on the performance in the construction of modern industrial system, the phased results of industrial restructuring, cost control, risk management and capital return; for production and operation enterprises, the assessment will mainly focus on cost control, risk management and operating cash flow; for research enterprises, the assessment will mainly focus on technical innovation input, technical achievement output and transformation; for public service enterprises, the assessment will mainly focus on cost control, service quality and social satisfactions.

　　In addition, the Measures has set up a linkage mechanism between the assessment of party construction and the assessment of business performance of enterprise principals, linking the assessment results of party construction with the remuneration of enterprise principals. the Measures will further strengthen positive incentives, improve measures such as bonus points for annual assessment and tenure assessment and the pre-cashing of annual salary for performance, establish the inventory management and fault-tolerant mechanism and encourage exploration and innovation, so as to stimulate and protect entrepreneurship.

　　To ensure the implementation of the Measures, the State-owned Assets Supervision and Administration Commission of Sichuan Province will issue a series of supporting regulations, take the lead in its implementation, and give full play to the guiding role of performance assessment, so as to promote the high-quality development of provincial SOEs.