So far this year, ten years have passed since the establishment of Yichang SASAC(State-owned Assets Supervision and Administration Commission) .

　　In 10 years, the way of SOEs and state assets supervision and administration has changed, state assets supervision and administration has become a strong driving force to boost the local state-owned economic development.

　　In 10 years, Yichang\'s total amount of state-owned assets, operating income, owner’s equity have reached respectively more than 170 billion RMB, 73 billion RMB and 53 billion RMB, an increase of 4.89 times, 7.89 times and 6.06 times.

　　Three Highlights of 10-year SOEs Reform

　　The first highlight is the four new strategies. 10 years ago, state-owned enterprises’ gross liability reached over 10 billion RMB, and the government had to  pay an annual tens of millions of liquidity and a total default wage of 455 million RMB. Then Yichang SASAC implemented the four new strategies, and vigorously promoted the reform of SOEs. Specifically, in the term of ownership structure, the people own the majority of wealth; in the term of corporate capital structure, let stocks in; in the term of operating mechanism, let the new mechanism in the lead; in the scale of development, let the big scale dominate. These strategies make over 200 state-owned enterprises realize privatized transformation, changing the identity of tens of thousands of employees, and 75 projects with an investment over ten million RMB settled in Yichang.

　　The second highlight is reorganization. SASAC spent nearly two years on the reorganization of 70 public institutions making a number of troubled businesses come back to life. Xiazhou Hotel Group reorganized the original Yiling Hotel and Nanhu Hotel which suffered big losses, and quickly started renovation project, so that the staff regained their overenthusiasm on working. Now Xiazhou Hotel Group has become a group with 10 subsidiaries and assets of nearly 200 million RMB. The group is regarded as a back-up enterprise to be listed in Hubei Province.

　　The third highlight is the going-out of Yichang SOEs. The strategy of going- out is the key for the development of enterprises. Yihua Group and Angel Yeast Group purchased and reorganized more than 40 enterprises in over 20 provinces, with the annual sales income of 2.67 billion RMB. Angel Yeast Group was the first to go out by investing and setting up factories in Egypt and it has become a driving force of economic growth.

　　Currently, Yichang still further promote the reform of state-owned enterprises. Enterprises including Yihua Chemical Industry, Angel Yeast, Yichang Transportation, Yichang Materials Group developed in promoting diversified ownership, and private capital is pouring into the reorganization, which is a bold exploration.

　　After 10-year reform, the average asset-liability ratio of 17 companies sponsored by Yichang SASAC fell 5% to 8% while main index grew 3 to 8 times. The controlling power of state capital reached 1:7.84.

　　10-year Development of SOEs

　　10-year reform of state-owned enterprises is also the golden period for the rapid development of local enterprises in Yichang.

　　Yihua Group has become the leader of chemical industry in China. In 2012, (CEC) China Enterprise Confederation and China Entrepreneurs Association released top 500 Chinese enterprises, and Yihua Group ranked 161 with an sales revenue of 70.5 billion RMB. Up to December 31st, 2013, Yihua Group’s sales revenue reached 80.25 billion RMB, 22.3 times more than 3.6 billion RMB in 2004, which creates a national chemical industry "miracle".

　　Angel Yeast Group ranks first in yeast industry in China. 10 years ago, Angel Yeast’s annual production capacity was only 2,000 tons, while now the annual production capacity has increased to 40,000 tons, ranking first in China and third in the world. Angel Yeast Group has become a national key high-tech enterprise, and the products are exported to more than 140 countries and regions, with sales revenue, and profits 5-6 times higher than that in 2004.

　　Yichang Transportation has become the first listed company in road transport industry in Hubei, achieving the transformation from production operation to capital operations, from a single service of passengers transport to a modern tourism service.

　　In 10 years, 12 sponsored enterprises just created profits of more than 40 billion RMB. SOEs provided over 25,000 job opportunities and annually offered 3 million RMB to help the poor mountainous areas and disaster relief.

　　Development Experience in 10 Years

　　Reviewing the 10-year development experience, why did "Yichang phenomenon" happen in the development of local enterprises?

　　First, Yichang has built the link between incomes and duties. Through the establishment of sound business performance assessment methods, and the establishment of corporate annual and term business objectives, SASAC makes assessment results be linked to the leader’s income and the appointment and dismissal, and state-owned capital gains. Meanwhile, flexible promotion discipline for officials  and employment rules are also established for strict supervision.

　　The second is the realization of corporate finance and risk monitoring. By strengthening auditing and supervision, supervised by the Board of Supervisors, Yichang has established a financial budget and final accounts system, implemented dynamic monitoring and early warning analysis, and strengthened the enterprise risk prevention system. Supervision of sponsors and production operations integrated deeply.

　　In 10 years, the state capital gains developed rapidly. A total capital of 670 million RMB was paid with only 12 sponsored enterprises.

　　In the conversazione of state-owned capitals supervision and guidance, Huang Shuhe, Deputy Director of the SASAC of the State Council, and other leaders commented: "In the process of State Asset structural reform, Yichang’s innovation and progress creates a new way and its experience is worth promoting."  (Reporter Zhang Liang, Correspondent Li Zuokai)