In the past 2016, Chongqing Machinery & Electronics Group, in accordance with the supply-side structural reform proposed by the central government, emphasized starting from production and supply to resolve supply-demand mismatch, overcapacity, and restore corporate profitability. Facing weak overall industry demand, intensifying competition, and sluggish exports, the group expanded marketing channels and vigorously promoted reform and innovation, achieving operating revenue of 46.27 billion yuan, up 8.9% year-on-year, and total profit of 1.78 billion yuan, up 29% year-on-year, becoming an enterprise with outstanding performance and prominent competitiveness.

　　The main measures of Chongqing Machinery & Electronics Group's reform and innovation are:

   　 Advancing supply-side reform with the structure of "Group + N listed companies + asset companies" 

   　 Chongqing Machinery & Electronics Group improved its ability and level to implement the five development concepts, actively promoted supply-side reform, and promoted enterprise innovation, transformation, quality improvement, and efficiency enhancement. The group's approach is to follow overall planning, scientific classification, one enterprise one policy, and steady progress, first determining the approach. Then a working method will be determined: first, by promoting enterprise listing, investment cooperation, merger and acquisition expansion, shareholding system reform, equity diversification, and adopting exit and liquidation methods for some zombie enterprises or enterprises that are difficult to profit, to promote supply-side reform.

    　The group has also set a work goal: by 2018, it hopes to form a group of enterprises with clear property rights, streamlined main businesses, relatively strong competitiveness, and good efficiency, building a cluster of 1-1.5 billion yuan enterprises, ultimately forming a "Group + N listed companies + asset companies" structure, and promoting the overall listing of the group. This will be the goal of supply-side reform, as well as the path and method adopted.

   　 It is reported that Chongqing Machinery & Electronics Group has a process of understanding the combination of "capital + industry". In the past, it mainly produced products, sold products, and collected payments, cycling in this way. In fact, industrial development cannot be separated from financial support, so in the development goals it mentioned hoping to have a structure of "Group Company + N listed companies + asset companies". Listed companies, in addition to changing our management and improving our other levels, more importantly, provide a financial channel or capital channel. First establish an investment company, prepare in terms of mechanism and talent, and then be able to enter the financial market.

    　It is understood that from a development perspective, in addition to having an H-share listing in Hong Kong, Chongqing Machinery & Electronics Group also wants to promote unlisted companies and companies capable of independent listing to enter the capital market, achieve the integration of capital and industry, and build the group. Ultimately, if the overall listing of Chongqing Machinery & Electronics Group can be achieved, it will receive financial support, and the combination of finance and industry will become more prominent and obvious, achieving better results.

    　Carefully drawing up the new 321 development strategy  Equipping China and going global

    　Facing the global economic situation and the country's transformation and upgrading situation, how enterprises upgrade and how they become stronger and larger, Chongqing Machinery & Electronics Group revised its own development strategy and proposed the "321" development strategy, namely: consolidate the "three grasps" (refine the existing, strengthen the incremental, and continuous innovation); complete the "two goals" (strive to achieve operating revenue of over 60 billion yuan by 2017, and strive to achieve operating revenue of 80-100 billion yuan by 2020); and realize "one vision" (realize "Equipping China, Going Global").

   　 In recent years, Chongqing Machinery & Electronics Group has implemented effective measures in innovation and development, thus laying a good foundation for innovation and development during the 13th Five-Year Plan period. To this end, Chongqing Machinery & Electronics Group has established corresponding innovation mechanisms, completed from several aspects. The establishment of innovation mechanisms: first, made corresponding innovation plans, such as adjusting every two years and reviewing every year, continuously arranging rolling development of the plan. Second, established a two-level innovation system. One innovation system is at the group level, establishing a corresponding research institute responsible for integrating and planning the entire group's innovation system construction; the second is because the group's industries are relatively dispersed, secondary innovation remains in the enterprises, and their own teams may be more refined and specialized, and may research more deeply in certain fields, thus forming a combination of two-level innovation systems and complementary advantages. Third, cultivate corresponding talent teams: one is the professional technical talent team, the second is the management team, and the third is the skilled worker team. These three teams are trained in different ways, which is also an effective means and method to promote innovation.

    　At the same time, adjust the assessment system. In the past, it may have focused more on scale, how much sales revenue was generated, what state the scale was in, and how many people there were. Now the orientation has changed, mainly emphasizing economic efficiency, how much unit output can be completed, how much value each person creates, all included in the assessment system, including innovation investment, which is also regarded as your profit. Such means and methods have promoted the construction of the innovation system and played a role in guiding and leading innovation.

    　The second major aspect is to establish and promote the work content of four innovation systems around China 2025 and Chongqing's ten strategic emerging industries. In terms of innovation encouragement, it has entered intelligent manufacturing, rail transit, general aviation, and also professional equipment for wind power, nuclear energy, etc. In fact, it has already reflected or demonstrated the response of such an innovation system to innovation results. Facts have proved that these results reflect that Chongqing Machinery & Electronics Group's innovation system effectively adapts to the development requirements of the market.

     　From the five aspects of "three cuts, one reduction, one supplement"  Fully promote the reform of the group 

     　As a state-owned enterprise bearing more social responsibility, Chongqing Machinery & Electronics Group's reform starts with: in the five aspects of "three cuts, one reduction, one supplement", fully promoting the group's reform in accordance with the five development concepts. Including using innovative means to classify and handle various enterprises, developing through the combination of industry and finance, and adjusting its own product structure accordingly, it can already achieve the supply-side reform goals within the group.

    　In 2017, Chongqing Machinery & Electronics Group has established a new overall goal: operating revenue of 50.4 billion yuan, up 9% year-on-year; total profit of 2.05 billion yuan, up 15% year-on-year. In the process of continuous innovation-driven and transformation and upgrading, and in the process of continuously building an industry flagship, it is believed that this goal will be successfully achieved.

                                                      
                                                                                                                                                             By Wu Yue