Hualu, a Pioneer of CNCEC's Mixed-Ownership Reform

Hualu Engineering & Technology Co., Ltd. (Hualu), a subsidiary of China National Chemical Engineering Group Corporation Ltd (CNCEC), has been in full swing in promoting mixed-ownership reform.

Hualu made 100 measures to ensure implementation of the three-year action plan for SOE reform (2020-22).

The company made mixed-ownership reform a highlight of its overall reform. It will establish a flexible and highly-efficient market-oriented management system and release its potential to promote its high-quality development.

One of the first subordinate enterprises to launch mixed-ownership reform, Hualu concentrated on attracting strategic partners with similar resources and cultural backgrounds and promoted the employee stock ownership system.

The company held an equity signing ceremony on Jan 21, 2021, with three parties: CNCEC, Wanhua Chemical Group Co., Ltd. and some of its backbone employees holding the shares.

According to CNCEC representatives at the ceremony, Hualu will speed up putting modern enterprise mechanism in place, establish a market-oriented management mechanism, and make breakthroughs in key technologies to evolve into a new model of SOE reform.

Six professional managers were recruited by Hualu in early March, and they will fulfill their duties in operation and management of the enterprises over the next three years.

Introducing a system of professional managers is regarded as a major mission of deepening SOE reform.

Next, the company will continue reforms of decision-making mechanisms, performance assessment, recruitment, incentive distribution mechanisms and technical innovation systems based on the principles of performance orientation and survival of the fittest.

(Executive editor: Wang Ruoting)