Summary of Key Points
Central state-owned enterprises (SOEs) performed exceptionally well in the first half of this year: their total profits reached 1.4 trillion yuan, and fixed asset investment increased by 4.5% year-on-year. Many SOEs, such as China Nonferrous Metals Group and State Energy Group, saw both profit growth and improvements in production indicators. In the second half of the year, the State-owned Assets Supervision and Administration Commission (SASAC) deployed six key tasks, and SOEs held numerous meetings to implement these initiatives, focusing on stabilizing growth, technological innovation, industrial transformation, deepening reforms, and risk prevention. Experts emphasize that SOEs should act as the “ballast stones” of the economy—ensuring stable growth in the short term while pursuing industrial transformation in the long term. 2026 is designated as a year for a new round of reforms, during which critical tasks such as completing top-level planning and disposing of inefficient assets must be accomplished.
I. SOE Performance in the First Half of the Year: A Solid Foundation for Stable Growth
In the first half, SOEs not only generated substantial profits but also demonstrated high quality performance. For example, China Nonferrous Metals Group’s total profit increased by 32.1% year-on-year, and core indicators such as the annualized return on net assets exceeded annual targets. State Energy Group saw positive growth in all ten primary production indicators, with loss-making companies turning profitable. These achievements were made through efficiency improvements (such as higher labor productivity) and structural optimization (such as shifting towards emerging industries). As the backbone of the national economy, SOEs’ performance in the first half laid a solid foundation for stable economic growth in the second half.
II. Investment Plans for the Second Half of the Year: Focusing on “Six Key Areas” and Emerging Industries
SOEs are not making reckless investments but are targeting them more precisely. For instance, State Grid invested over 310 billion yuan (a 12.6% increase year-on-year), and Southern Power Grid invested nearly 90 billion yuan, both setting record highs for the same period. The focus is on building six key infrastructure networks: new energy grids, power grids, and logistics networks that are urgently needed by the country. Why these investments? Because they lay the foundation for long-term benefits—new energy grids support the development of renewable energy, while logistics networks reduce national transportation costs, thereby enhancing overall economic efficiency. Additionally, investments are being directed towards emerging pillar industries (such as AI and green energy) and equipment upgrades, which both stabilize current growth and prepare for future development.
III. AI as an Accelerator for Transformation: SOEs Open Up Their Platforms to Apply Technology
This year, SOEs have made practical moves in AI development. State Energy Group has established more than a hundred industrial intelligent entities and the country’s first AI-driven unmanned laboratory; Guotou Group has released a smart operation model for integrated water, wind, and solar energy, capable of automatically scheduling clean energy generation. More importantly, SOEs are beginning to share their extensive industry data and real-world scenarios with technology companies. For example, the SASAC has launched the “Scenarios in Action” initiative, opening up 100 AI applications (such as using AI in power dispatching and logistics). Why this approach? Because SOEs possess valuable industry data and real-world contexts that can transform AI from a laboratory concept into practical solutions, driving innovation across entire industrial chains. Experts point out that AI is not an independent sector but should be integrated with manufacturing, energy, and transportation; by sharing their scenarios, SOEs enable AI to empower various industries.
IV. A New Round of Reforms: 2026 as a Year for Tackling Challenges
This year marks the beginning of a new round of reforms for state-owned assets and enterprises, with more substantial actions planned for the second half of the year. Key areas include:
1. Clarifying the main responsibilities of SOEs to avoid unnecessary diversification;
2. Reorganizing and integrating companies to ensure they operate efficiently;
3. Improving corporate governance, such as giving board members real authority and implementing performance-based management systems for managers;
4. Disposing of inefficient assets to allocate resources more effectively.
Experts stress that by 2026, reforms should achieve tangible results, including the establishment of mechanisms that allow for experimentation in scientific research (even if failures occur) and the implementation of mixed-ownership models to boost the vitality of state-owned enterprises.
V. SOEs as the “Ballast Stones”: Stabilizing Growth in the Short Term, Transforming for the Long Term
The economy faces significant pressures in the second half of the year, and SOEs must take on critical roles. In the short term, they need to support growth through effective investment (e.g., building infrastructure networks) and stable production (e.g., ensuring energy supply). In the long term, they should seize opportunities for industrial transformation by investing in emerging industries like AI and green energy to replace traditional growth drivers. At the same time, they must manage risks (e.g., debt management) while continuing reforms to maintain economic stability. In short, SOEs must act as both stabilizers and drivers of economic development.
Overall, the strong performance of SOEs in the first half gives us confidence, and their plans for the second half aim to balance immediate stability with long-term transformation. They will use investment and production to support the economy while leveraging AI and reforms to drive industrial transformation, ultimately positioning state-owned enterprises as the “ballast stones” and “power sources” for high-quality economic growth.