Great achievements in economic and social development and major progress in central SOEs' reform and development have been made during the 11th Five-Year Plan period. Under the strong leadership of the Central Committee of the CPC and the State Council, central SOEs have thoroughly applied the Scientific Outlook on Development, earnestly carried out the decisions and deployment of the Central Committee, deeply pushed forward reform, accelerated structural adjustment, strengthened energy-saving and emission-reduction, focused on independent innovation and improved internal management over the past five years. Central SOEs have maintained the healthy momentum of stable and rapid growth in production and operation. Their economic returns and overall strength have been improved greatly. They have played an important role in our country's economic and social development.

The development quality and economic returns of central SOEs have been improved greatly during the 11th Five-Year Plan period. From 2005 to 2010, the total assets of central SOEs have increased from 10.5 trillion yuan to 24.3 trillion yuan, with an average annual growth rate of 18.2%; their revenues have increased from 6.79 trillion yuan to 16.7 trillion yuan, with an average annual growth rate of 19.7%; their net profits have grown from 464.27 billion yuan to 848.98 billion yuan, with an average annual growth rate of 12.8%; the taxes-paid have grown from 577.99 billion yuan to 1.3 trillion yuan, with an average annual growth rate of 17.6%. 30 central SOEs supervised by SASAC were ranked among the Fortune Global 500 in 2010, 20 more than that of 2005. Sinopec, State Grid and China National Petroleum have been ranked among the top 10.

Central SOEs shareholding system reform has been deepened and the restructuring of their overall layout has been pushed forward during the 11th Five-Year Plan period. The proportion of central SOEs and their subsidiaries that have been transformed into joint-stock companies has increased from 40% in 2005 to 70% in 2010. 43 central SOEs have realized overall listing of their core business. 336 companies controlled by central SOEs have been listed home and abroad. At present, 52.88% of the total assets, 68.05% of the net assets and 59.65% of the revenues of central SOEs have been in their listed companies. There have been 30 central SOEs that have built standard Board of Directors. The systems concerning external directors and standard operation of the Board of Directors are improved gradually. Steady progress has been made in the reform of the three systems of labor, personnel and remuneration in central SOEs. The systems of all-member labor contract, market-oriented recruitment and employment as well as remuneration and incentive have been established preliminarily. The reorganization of central SOEs has been deeply pushed forward. We have successfully conducted major restructuring in telecommunications, aviation, pharmaceutical and metallurgical industries. The state-owned capital is further concentrated in important industries and key areas that have a vital bearing on national security and economic lifelines. A group of large enterprises and groups with international competitiveness have emerged.

Central SOEs' capability of scientific and technological research and development and independent innovation has been improved greatly during the 11th Five-Year Plan period. From 2006 to 2009, the annual growth rate of central SOEs' investment on scientific and technological research and development has reached 28.5%, which accounted for 2.1% of the revenues of central SOEs. In the military industry, the percentage has reached 5.36%. By the end of 2009, the number of total valid patents held by central SOEs had reached 76138, 21266 of which were patents for inventions. 33 central SOEs are named Innovative Enterprises of the State and 46.2% of the State Key Laboratories are established in central SOEs. Since 2005, all the National Top Awards for Science and Technology Progress and all the National First Class Awards for Technological Invention have been won by central SOEs. Central SOEs have also designed the world fastest multiple unit trains and conducted the first trial project of ultra-high voltage and the first trial project of direct coal liquefaction in our country. The projects of Qinghai-Tibet Railway, Three Gorges Dam, Manned Space Flight and "Chang E" Lunar Exploration have become models of independent innovation of China.

The corporate governance and management of central SOEs have been improved significantly during the 11th Five-Year Plan period. The management and control of groups of central SOEs have been strengthened remarkably. Most of them have applied comprehensive budget management. They have strengthened centralized management of funds, implemented centralized purchase of goods and materials, and established risk management system. They have also continuously optimized organizational structure and managerial process by reducing managerial layers and chains. Central SOEs' informatization level has been improved in all-around way. 97.8% of them have realized informatizaion in financial management, 88% in human resources management and 79.1% in equipment management. Central SOEs in building trade have all achieved informatization in project management. In 2009, 17 central SOEs won the National First Prize for Modernization Innovation Results of Corporate Management, accounting for 55% of the total awards.

Central SOEs have made great contribution to our country's economic and social development during the 11th Five-Year Plan period. From 2006 to 2010, total taxes paid by central SOEs have reached 5 trillion yuan. Since 2006, central SOEs have accumulatively turned over 168.6 billion yuan of state-owned capital returns to the State. By the end of 2009, 156.126 billion yuan of state-owned shares have been transferred to the Social Security Fund, accounting for 41% of the fiscal revenues of the Social Security Fund. Central SOEs in petroleum and petrochemical, electric power, food and transportation industries have actively followed our country's scheduling of economic operation and have done plenty of work to ensure steady and rapid economic development. They have accomplished major projects such as Qinghai-Tibet Railway, Three Gorges Dam, and electricity transmission from West to East China, natural gas transmission from West to East China and water transmission from South to North China and have made outstanding contribution to the balanced economic and social development. They are the backbone in coping with the international financial crisis, implementing the State's macro-regulation policies, supporting important events such as Beijing Olympic Games, celebration of the 60th anniversary of the founding of the People's Republic of China, Shanghai World Expo and Guangzhou Asian Games, and in rescuing and relieving activities during big disasters such as frozen rain and snow storm, Wenchuan and Yushu earthquakes, and drought and flood calamities. Many of them have made active efforts to change the backwardness of some poverty-stricken areas. They provide support to Xinjiang Uyghur Autonomous Region and Tibet Autonomous Region, and conduct aiding programs to underdeveloped areas such as old revolutionary bases, regions inhabited by ethnic groups, frontier towns and poverty-stricken areas.

The remarkable achievements of central SOEs' reform and development during the 11th Five-Year Plan period fully demonstrate that the principles and policies made by the CPC Central Committee and the State Council concerning the reform and development of state-owned enterprises and the reform of state-owned assets management system are absolutely correct. The new state-owned assets management system established at the 16th National Congress of CPC has put the representatives of the investor of state-owned assets in place at all levels, and responsibilities for preserving and increasing the value of state-owned assets have been assumed by specific people at all levels. The vitality of state-owned enterprises has been aroused, the quality of development and overall strength have been largely enhanced. The state sector's vitality, controlling power and influence have been further strengthened.

The 12th Five-Year Plan period is a crucial stage for building a moderately prosperous society in an all-round way and a time to tackle difficulties for deepening the reform and opening-up process while accelerating the transformation of the nation's economic development pattern. It is also an important period for central SOEs to thoroughly apply the Scientific Outlook on Development and accelerate the transformation of their development pattern. Being an important force in building a moderately prosperous society in an all-round way, central SOEs must further speed up the transformation of their development pattern, fully play a leading and driving role to be good model, make great efforts to resolve the problems which restrain the scientific development, and realize better and faster growth.

The overall approach for central SOEs' reform and development during the 12th Five-Year Plan period can be summarized as: One Great Target, Five Main Strategies and Three Strong Supports.

One Great Target is to make central SOEs stronger and better, fostering world first-class enterprises with international competitiveness. The target was brought forward on the basis of central SOEs' position and role and the State's overall development strategy. The majority of central SOEs are in important industries and key areas which have a vital bearing on national security and economic lifelines. Therefore, to make central SOEs stronger and better is the necessary demand of accelerating the transformation of economic development pattern and realizing scientific development. It is also of great importance to the overall situation of economic and social development and the realization of the great goal to build a moderately prosperous society in an all-round way. During the first decade in this century, China had successfully seized the important period of strategic opportunities. We acquired universally recognized prominent achievements in economic and social development. Since the breakout of the international financial crisis, the world political and economic pattern has gone through profound changes and China's increasingly significant influence on international politics and economy demands a batch of large enterprises and groups correspondently. Through decades of reform and development, the vitality and competitiveness of central SOEs have been greatly boosted. In some aspects, many central SOEs have got close to or reached world advanced level, while in certain areas some have already reached world leading level. Thus the foundations and conditions have been laid for them to grow to be world first-class enterprises with international competitiveness. We will make central SOEs stronger and better, and let them become backbone in economic and social development and bring their leading role into full play. At the same time, we will concentrate forces and resources to foster a batch of large enterprises and groups which can compete with multinationals in the international market in the 12th Five-Year Plan period or even longer term.

Focusing on this core target, we will carry out Five Main Strategies, namely the strategy of transformation and upgrading, the strategy of scientific and technological innovation, the strategy of internationalized operation, the strategy of strengthening enterprises through talented personnel, and the strategy of harmonious development.

Implementing the strategy of transformation and upgrading means that the development pattern of central SOEs will be shifted to scientific and technological progress, quality improvement of the labor force and management innovation. State capital should be further concentrated and put into important industries and key areas, industrial layout further upgraded to the high end of the industrial chain and emerging strategic industries, and ownership structure further transformed by means of joint-stock system reform, shareholder diversification and securitization.

Implementing the strategy of scientific and technological innovation means that central SOEs will further increase research and development input and establish and improve the mechanisms of the investment, research and development, transformation and application of scientific and technological innovations. We will build research and development platforms to develop advanced, vital and common technologies, make breakthroughs in a batch of key technologies, develop a batch of leading-edge products with high value-added, and create a batch of world famous good brands.

Implementing the strategy of internationalized operation means that we will strive to make central SOEs think strategically and have a broad global vision, quicken their "going global" paces, expand their overseas business to improve their international market shares, optimize the industrial chain and value chain. At the same time, they must also master international competition rules, integrating themselves into the mainstream of the world economy.

Implementing the strategy of strengthening enterprises through talented personnel means that both domestic and overseas talent resources should be fully developed and utilized, talent development mechanisms innovated and its environment optimized. We should coordinately promote the balanced development of the representatives of investor, executives, party and mass work staff, scientific and technological talent and skilled technicians in order to constantly optimize the talent structure and greatly enhance their competence.

Implementing the strategy of harmonious development means that central SOEs need to realize harmonious development with society and environment in pursuing economic benefits. Central SOEs should establish and improve the mechanism of strategy making, governance optimization, integration, performance evaluation and communication for the fulfillment of corporate social responsibilities and serve as the role model in executing their social responsibilities.

Meanwhile, we will further deepen the reform of state-owned enterprises, perfect the state-owned assets management system and reinforce and improve party building to provide sustained driving force as well as institutional and organizational guarantee for the great target.

Looking ahead, the burden is heavy and the road is long. Shouldering the sacred mission entrusted by the CPC and the State, central SOEs should thoroughly apply the Scientific Outlook on Development and earnestly carry out the decisions and deployment of the Central Committee of the CPC and the State Council. They should accelerate the transformation of development pattern, constantly enhance their overall quality, grow stronger and better and become world first-class enterprises with international competitiveness through hard work, making new and greater contribution to economic and social development of the country.