Reform of State-owned Enterprises in Qingdao: Open up New Space

State-owned enterprises have always been an important background that cannot be ignored in Qingdao's economy. 


Data shows that Qingdao's state-owned economy achieved double-digit growth in 2019, far better than the national level. The mixed reform rate of state-owned enterprises reached 45%, a year-on-year increase of 3 percentage points. In the economic pattern of the city, the fixed assets investment of various state-owned enterprises exceeds half of the whole city; the industrial added value exceeds 40% of the whole city, and the local tax amount of municipal enterprises accounts for more than 1/3 of the city's top 100 enterprises.
In 2019, the total assets of municipal and district (municipal) state-owned enterprises in Qingdao exceeded 2.9 trillion Yuan, with a year-on-year growth of 23.2%, achieving operating revenue of 597.208 billion Yuan, total profit of 47.252 billion Yuan, with a year-on-year growth 10% and 16.2% respectively, which were far better than the national indicators. 
The rapid growth of profits is a reflection of the transformation and upgrading of Qingdao's state-owned enterprises. Manufacturing enterprises are the absolute leading role of the state-owned economy in Qingdao, contributing nearly 80% of the revenue of the city's state-owned enterprises.


The transformation and upgrading of industries in which Qingdao's state-owned enterprises operate is starting to pay off. Hisense, which has the largest volume, may feel it the most. In 2019, Hisense Group's profit rose 24.17% year on year, delivering a remarkable performance in the fierce competition.
In 2019, there were 19 Qingdao municipal enterprises seeing their profits grow by more than 10 percent, 12 of them by more than 20 percent. Operating margin was 8.22%, 0.43 percentage point higher than the same period last year, and enterprise profitability continued to improve. Through the transformation and upgrading of enterprises, our city has released 109 mixed reform and investment projects for municipal enterprises around the world, and 32 new mixed reform projects were added throughout the year, attracting social capital of 8.06 billion Yuan. Up to now, the city has completed mixed reform of 479 enterprises, with the mixed reform rate reaching 45%, a year-on-year increase of 3 percentage points.
In the course of the reform of state-owned enterprises, the mixed reform at the enterprise group level is an important symbol of breaking the ice in the deep water area. 


Listing is also an important means to promote the mixed reform of enterprises in our city. In 2019, the city is fully connected with the capital markets at home and abroad to build mixed-ownership public companies. The total market value of 13 listed companies controlled by municipal enterprises reached 229.415 billion Yuan, and the asset securitization rate of municipal enterprises reached 45.9%, an increase of 15.5% over 2018.
Making good use of market forces, reform of state-owned enterprises in Qingdao also seeks to allocate resources in a wider range.
In the past year, the state-owned economy of Qingdao made full use of the platform thinking, effectively introduced high-quality resources at home and abroad to promote each other, gathered development efforts together, and achieved doubled investment. In 2019, more than 230 billion Yuan was signed on the five platforms, and the actual utilization of domestic and foreign capital by municipal enterprises doubled compared with 2018.
Go out and seek cooperation. In 2019, Qingdao enterprises went to the UK and Ireland to attend the Tenth China-EU Summit and achieved fruitful results. Six cooperation agreements were signed and 22 projects were negotiated, covering smart cities, new energy, digitalization of marine industries, smart ocean Internet of Things and other fields.
Active connection has also been successfully translated into imported results eventually.


Municipal enterprises have introduced social capital to set up a market-oriented state-owned capital fund group with Qingdao characteristics, and have set up seven funds with a scale of 51.436 billion Yuan. Breakthroughs have also been made in establishing a market-based mechanism for the operation of state-owned capital gains.
A series of effective combination of reform is constantly opening up new space, making Qingdao state - owned economy to release an increasingly surging vitality.
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