1.Function of Contemplation

Intelligence comes from contemplation. A good manager must have the power of pertinacity. Where does the power of pertinacity come from? My answer is “a sober mind.”

2.Innovation in the corporate reform and restructuring

We took innovative measures and solved many thorny problems facing us when the group was established such as the relationship between corporation and the old state-owned enterprises: Before the trusteeship, we proposed to form a council including both the limited liability company and the five old SOEs. This formed an association which clearly defined the relationship between the limited liability company and the five old SOEs.

3.Innovation in institutional mechanism

We established three new decision-making bodies in accordance with the requirements for modern enterprises including shareholders meeting, board of directors and board of supervisors (new bodies). There were a lot of controversies concerning the unification of old and new bodies at that time. However, we successfully solved the problem even though there were no existing examples to follow and ensured the participation of the “old bodies” in making decisions on business operations.

4.Consolidation of the Party presence in an innovative way.

After the restructuring, the Party Committee’s position in business management was further consolidated: three members of the board of directors are from the Party Committee thus ensuring the Party Committee’s role in business management. The Party Committee examines the qualifications of managers and nominates candidates for managing posts in accordance with market demands.

5.Innovation in set-up of the headquarters

The organizational setup of the headquarters is based on the principle of scientific establishment, small size and efficient operation. Management and service functions are rationally and clearly separated from the business management functions of subsidiary companies. The subsidiary companies are not required to pay management fees to headquarters. Thus, there is no additional burden on the subsidiary companies.

6.Innovation in the process of resources integration.

In the course of integrating business resources, we referred to the successful experiences of the provincial foreign trade department and introduced the concurrent post system for the general manager in an effort to achieve gradual and “soft” integration and achieve a 1+1>2 result.