(October 21, 2003 8th Minister of State-owned assets supervision and Administration Commission of the State Council Office review on December 30, 2006, 46th Minister of State-owned assets supervision and Administration Commission of the State Council Office revised December 30, 2006 State-owned assets supervision and Administration Commission of the State Council published 17th come into force on January 1, 2007) Chapter I General provisions article to fulfill responsibilities of investor of State-owned assets of enterprises and protect the owner's interest,
    Implementation of national assets keeping value added responsibility, and establish effective incentive and restraint mechanisms, in accordance with the interim regulations on State-owned assets supervision and administration of enterprises and other relevant laws and regulations, these measures are formulated. Second article this approach assessment of central enterprise head is refers to State determine of by State State-owned assets supervision Management Committee (following referred to country funding Board) perform funded people duties of State-owned and the State-owned holding Enterprise (following referred to enterprise) of following personnel: (a) State-owned owned enterprise and not set Board of State-owned owned company of General Manager (President), and Deputy General Manager (Deputy President), and Chief Accountant; (ii) set Board of State-owned owned company (SASAC determine of Board pilot Enterprise except) of Chairman, and Deputy Chairman, and
    Director, General Manager (CEO), Vice President (VP), Chief Accountant, and (iii) representatives of State-owned holding company of State-owned shares as the Chairman, Deputy Chairman, Director, General Manager (CEO), inclusion of SASAC, Deputy General Manager of the management of the Party Committee (Vice President), Treasurer.
    Third head of enterprise operating performance and combined with the term evaluation, the results of the annual appraisal evaluation and process evaluation, examination results and rewards linked to the unity of the examination system.
    Fourth annual performance evaluation and term of performance evaluation by SASAC Director or his or her authorized representatives and business leaders signed responsibility approach to operating performance.
    Article fifth heads of enterprise performance evaluation should be guided by the following principles: (a) in accordance with the value of State-owned assets and maximize the return on capital and the requirements of sustainable development, business performance of Heads of enterprises according to law.
    (B) according to the different sectors, asset management of different levels and different characteristics such as main business and seeking truth from facts, open and fair, classification of scientific evaluation. (C) in accordance with the responsibilities and interests of an enterprise integration requirements, establish enterprises performance appraisal system with the combination of incentive and constraint mechanism, namely, performance, compensation, performance, pay down under, and serves as an important basis for their appointment and removal.
    Establish scientific and reasonable, traceability of the responsibility system of assets operation.
    (D) in accordance with the requirements of the scientific Outlook on development, promote the enterprise strategic management level, innovation, resource conservation and environmental protection, continue to strengthen the core competitiveness and sustainable development.
    Chapter annual business performance review article sixth annual performance evaluation in the Gregorian calendar-year assessment period.
    Article seventh annual business performance responsibility include the following: (a) the company name, job title, and name of both parties; (b) the evaluation content and index (iii) evaluation and reward and punishment; (iv) responsibility for the modification, rescission and termination; (v) other matters require.
    Eighth annual performance indicators including basic indexes and indexes.
    (A) basic indicators include total annual profits and return on equity targets. 1. total annual profits is approved the merger after reporting profits.
    Annual profit may, with the approval of the current absorb potential losses for previous years, and the deduction made by selling businesses the main industry of the assets of non-recurrent revenue.
    2. net asset yield refers to assessment when the net profit for the period with the average ratio of net assets, calculated as: = return on equity = net profit----------average net assets =tbl/> x100% of which: net assets excluding minority interests, net profit excluding minority interest income.
    (B) classification according to industry characteristics by SASAC, considering the business management, technical innovation and risk control ability and other factors, specific targets identified in the responsibility. (C) encourage enterprises to use economic value added index for annual performance evaluation. Enterprise use of economic value added index and economic value added compared to the previous year has improved and enhanced the reward will be given.
    Specific measures shall be formulated by the State-owned assets supervision.
    Article Nineth military enterprises and major national policy-related operations and other special enterprise basic indexes and indexes, plus policy operation effected, specific targets and determining the weight of responsibility.
    Article tenth research company basic indicators and disaggregated indicators highlight technical innovation inputs and outputs, specific targets and determining the weight of responsibility. 11th annual results signed responsibility according to the following procedures: (a) the forecast annual performance evaluation objectives recommendation. Last quarter of each year, heads of enterprises in accordance with the annual performance evaluation of State-owned assets supervision requirement and the rolling three-year plans and operational situations, control the domestic and international advanced level, the next year completing performance evaluation of objective proposals and assessment recommendations and a description of the necessary materials to serve the Commission.
    Assessment objectives in principle, the proposed value is not less than three years before index average of the actual values. (B) approved the annual performance evaluation target values. Commission in accordance with "the same industry, the same standard" principle, combined with the macro-economic situation, enterprises of the industry operating, enterprise development status, annual performance evaluation of the business leaders target recommended by the audit and assessment objectives and relevant content with the corporate communication to determine the value.
    Where the total annual profit goal target value is lower than the previous year value and the actual value of the average, final examination results are in principle not allowed to enter a level (the cyclical decline in the industry compared with other companies in the same industry leading level of the enterprise).
    (C) by the SASAC Director or his or her authorized representative signed with the heads of enterprise annual business performance responsibility.
    12th SASAC annual results responsibility implement dynamic monitor of the implementation. (A) the annual results of responsibility after the signing, head of corporate responsibility for implementation must be submitted every six months the Commission, with a copy to the presence of this key large State-owned enterprises the Supervisory Board.
    SASAC dynamic tracking of the implementation of responsibility. (B) the establishment of major work safety accidents, environmental pollution and quality accidents, major economic losses, major legal disputes, major investment and financing and asset restructuring, and other important reports system.
    Enterprise at which this happens, business leaders should immediately report to the Commission.
    13th annual results responsibility assessment completed in accordance with the following procedures: (a) before the end of April of each year, heads of enterprises based on the audited accounts for the financial data, annual performance evaluation on implementation of goals were analyzed, and annual summary report submitted to the Commission, with a copy to the presence of this key large State-owned enterprises the Supervisory Board.
    (B) basis of SASAC audited audited financial report on the accounts of and reviewed statistical data, combined with annual summary reports of Heads of enterprises and listen to views on the enterprise's annual evaluation, head of the Supervisory Board, head of enterprise annual assessment of implementation of performance evaluation objectives (specific measures see annex 1), heads of enterprises annual performance evaluation and rewards and punishments. (C) the SASAC will eventually confirm enterprises annual performance evaluation feedback from business leaders with rewards and punishments and the enterprise.
    Disagrees with the views on the assessment and reward of Heads of enterprises, can be reflected to the SASAC. Chapter performance evaluation article 14th term term of performance evaluation to a three-year assessment period.
    Due to special reasons need to be adjusted, decided by the SASAC.
    15th term business performance responsibility include the following: (a) the company name, job title, and name of both parties; (b) the evaluation content and index (iii) evaluation and reward and punishment; (iv) responsibility for the modification, rescission and termination; (v) other matters require.
    16th term of performance indicators including basic indicators and indexes.
    (A) basic indicators include the State-owned asset increment rate and average income growth rate for three years. 1. State-owned asset increment rate refers to checking the final deduction objective factors (approved by the Commission) after the owner's equity (for the implementation of the new accounting standards for enterprises, owners ' equity excluding minority interests, the same below) with the assessment ratio of owners ' equity at beginning of period. Calculated as: the term of the product of the annual appreciation rate of State-owned assets.
    Results of the annual increment of State-owned assets of enterprises with SASAC confirmed results shall prevail. 2. the three-year average growth rate refers to the main business income for three consecutive years the average growth.
    Calculated as: (Editor's Note: this formula see manuscript), (b) classification according to industry characteristics by SASAC, Enterprise "short Board" considers reflects the enterprise's technology innovation capability, resource conservation and the level of environmental protection, sustainable development and the core competitive ability and other factors determine specific targets identified in the responsibility.
    Article 17th military enterprises and major national policy-related operations and other special enterprise basic indexes and indexes, plus policy operation effected, specific targets and determining the weight of responsibility. Signed 18th term of performance guarantee in accordance with the following procedures: (a) the forecast performance evaluation objectives the mandate proposed value. Beginning of the assessment period, heads of enterprises in accordance with performance evaluation of State-owned assets supervision term requirements and the rolling three-year plans and operational situations, control the domestic and international advanced level, performance evaluation objectives the mandate proposed recommendations and assessment recommendations and a description of the necessary materials to serve the Commission. Assessment objectives in principle, the proposed value is not lower than the previous term index target values and actual values of the averages.

    (B) the authorized performance evaluation target values.
    Commission in accordance with "the same industry, the same standard" principle, combined with the macro-economic situation, enterprises running the industry and enterprise development, enterprise performance evaluation objectives the mandate recommended by the heads of audit and examination objectives and relevant content with the corporate communication to determine the value.
    (C) by the SASAC Director or his authorized representative with the corporate head of signing responsibility term business performance.
    19th State-owned performance responsibility for the implementation of the mandate on implementation of annual tracking and dynamic monitoring.
    20th term business performance responsibility assessment completed in accordance with the following procedures: (a) checking final, head of enterprise for term of completion of performance evaluation objectives were analyzed, and a summary analysis report submitted to the Commission, with a copy to the presence of this key large State-owned enterprises the Supervisory Board.
    (Ii) SASAC according to term within by audit and by audit of enterprise financial accounts report and by review of statistics data, combined enterprise head term business performance summary analysis report and heard Board of supervisors on Enterprise head of term evaluation views, on Enterprise head term business performance assessment target of completed situation for integrated assessment (specific approach see annex 2), formed Enterprise head term business performance assessment and rewards and punishments views. (C) the SASAC will eventually confirm terms of Heads of enterprises performance evaluation feedback from business leaders with rewards and punishments and the enterprise.
    Disagrees with the views on the assessment and reward of Heads of enterprises, can be reflected to the SASAC.
    The fourth chapter 21st of rewards and punishments in accordance with performance evaluation scores of Heads of enterprises, annual performance evaluation and performance evaluation term end results are divided into a, b, c, d, e, five levels, to complete a full assessment values for the c-class upgrade.
    22nd annual performance evaluation of the Committee based on the results and for the performance evaluation results of punishments and appointment of Heads of enterprises.
    Article 23rd business leaders awards include annual performance pay awards and long-term incentive term. 24th annual salaries of Heads of enterprises divided into base salary and performance pay in two parts. Performance pay linked to results of the annual appraisal. Performance salary = base x salary multiples. Specific calculation formula for: Dang assessment results for e level Shi, performance salary for 0; Dang assessment results for d level Shi, performance salary by "base paid x (assessment scores-D level beginning scores)/(c level beginning scores-D level beginning scores)" determine, performance salary in 0 to 1 time times base paid Zhijian; Dang assessment results for c level Shi, performance salary by "base paid x (1+0.5x (assessment scores-c level beginning scores)/(b level beginning scores-c level beginning scores))" determine, Performance salary in 1 time times base paid to 1.5 times times base paid Zhijian; Dang assessment results for b level Shi, performance salary by "base paid x (1.5+0.5x (assessment scores-b level beginning scores)/(a, level beginning scores-b level beginning scores))" determine, performance salary in 1.5 times times base paid to twice times base paid Zhijian; Dang assessment results for a, level Shi, performance salary by "base paid x (2+ (assessment scores-a, level beginning scores)/(a, level capped scores-a, level beginning scores))" determine,
    Performance pay between 3 times base salary and twice times base salary.
    But for the total profit below the previous year's business, regardless of their test results at any level, its multiple performance pay should be lower than the previous year.
    25th examined person of the legal representative of the enterprise, its coefficient is 1, the rest are coefficients on the basis of a rigorous assessment of the assessors, based on responsibility and commitment of Heads of enterprises, established by the enterprise.
    26th 60% of performance pay in cash in the current period at the end of the annual appraisal; other 40% according to assessment results and other factors delayed the mandate to re-election or outgoing cash next year.
    27th according to the term of performance evaluation results, incentives and disincentives for business leaders and removal. (A) the term business performance results for a-, b-and c-level business leaders, scheduled to deliver all the deferred pay for performance. According to the examination results of long-term incentive and long-term incentive grant the same.
    Specific measures shall be formulated by the State-owned assets supervision.
    (B) for a term of performance evaluation results for grade d and e enterprises, in addition to outside examination score deduction of deferred pay for performance, depending on the situation, to talk to the responsible commands, post adjustment, demotion or removal from Office (firing).
    Specific formula that deducts pay for performance: performance = term accumulation of deferred salary deduction of deferred pay for performance x (c-level starting score-Gross)/c-level starting score. 28th article on innovation (including intellectual property), resource conservation, profitability and increasing efficiency, management have made outstanding achievements in innovation, business leaders to make significant contributions, SASAC to establish individual special awards.
    Specific measures shall be formulated by the State-owned assets supervision of individual special awards. Article 29th talking to heads of enterprise performance evaluation system.
    Results of the annual appraisal for the d-class and e-class, major work safety accident relegated, serious irregularities, and there are significant risks such as enterprises, approved by the SASAC Director Office meetings, by the SASAC performance assessment leadership team talks with heads of enterprises, help companies analyze and improve your work.
    Article 30th enterprises in violation of the People's Republic of China Law of accounting, the accounting standards for enterprises and other relevant laws and regulations, and financial situation of making false statements on or concealing, determined by the Commission according to the specific circumstances keep a legal representative of the enterprise and responsible performance salary, deferred salary, long-term incentive in serious cases, disciplinary action; a suspected crime, law transferred to judicial organs for handling.
    31st article Enterprise statutory representative people and the related head violation national legal regulations and provides, led to major decision errors, and major security and quality accident, and serious pollution accident, and major disciplinary and legal disputes loss event, to enterprise caused major bad effect or caused State-owned assets loss of, by SASAC according to specific plot decided withholding its performance salary, and extension performance salary, and medium-and long-term incentive; plot serious of, give disciplinary; suspected crime of, law transferred judicial organ processing.
    Fifth chapter supplementary articles article 32nd in the review period enterprise asset and capital verification, head of restructuring, the main change, SAC can change relevant elements of the performance guarantee under the circumstances.
    Article 33rd State-owned enterprises, State-owned companies and State-owned holding company party Committee (party) Secretary, Deputy Secretary, Standing Committee member (party member), Secretary of the discipline Inspection Commission (discipline inspection team leader) appraisal and reward and punishment in accordance with these rules. 34th State-owned shareholding enterprises and implemented by Annex bankrupt enterprises, infrastructure project Corporation and other companies, managed by the Party Committee of State-owned enterprise heads performance evaluation, in accordance with the measures implemented.
    Specific performance evaluation issues identified in the performance guarantee. 35th enterprises shall in accordance with the modern enterprise system requirements and the People's Republic of China company law provisions, hold established norms of corporate governance structure.
    After establishing and improving the corporate governance structure of the specification, these measures enterprise performance evaluation of object will be adjusted according to relevant laws and regulations. Article 36th in the SAC State-owned company's Board the pilot more than all directors and outside directors in place of one-second enterprises, SAC authorized the Board of Directors of Enterprise Manager's performance appraisal. State-owned enterprises on the Board managers work for guidance and supervision.
    Specific guidance and supervision by the State-owned assets supervision in place.
    Included in the State-owned assets supervision Board of Directors of State-owned pilot and external does not exceed the number of Directors directors of one-second business of enterprise executives performance evaluation carried out by the Commission in accordance with this approach. 37th SASAC to Board of Directors of State-owned pilot enterprise's Board of Directors, directors were evaluated.
    Specific evaluation approaches developed separately by the SASAC.
    Article 38th of various provinces, autonomous regions, municipalities, districts municipalities, prefecture-level performance evaluation of enterprises funded by the head of the people's Government may refer to these measures.
    39th explain these measures by the SASAC.

    40th these measures come into force on January 1, 2007.
    Annex 1: annual business performance assessment scoring pilot approach 1. annual business performance assessment of integrated scoring annual business performance assessment of integrated scored = annual profit total index scored x business difficulty coefficient + net worth returns rate index scored x business difficulty coefficient + classification index scored x business difficulty coefficient above annual business performance assessment index in the, if a items index not reached basic points, is the items index not multiplied by business difficulty coefficient. 2. the annual performance evaluation index scores 30 points of the annual total profit index. When the target value completed business leaders, with 30 points. When the target value is exceeded, for every 3%, plus 1 minute, add 6 points.
    Below the target value, per below 3% and deducted 1 points, up 6 points deduction. Return on equity target of 40 points. Business leaders target value, the basic score of 40 points. Higher than the target value, per above 0.4% (if an enterprise determines the target value higher than the record level or target value is the highest in the industry, each higher than 0.3%), add 1, add 8 points.
    Below the target value, per below 0.4% (if an enterprise determines the target value higher than the record level or target value is the highest in the industry, each less than 0.5%), deducted 1 points, up 8 points deduction. Index only one indicator, the index's 30 points; if two indexes, each index is divided into 15 minutes.
    Classification index points and points of upper and lower bound for the index 20%.
    3. total operating assets according to degree of difficulty degree of difficulty operating, business (sales) revenue, total profit, return on equity and the average number, proportion of retirees to workers and other factors weighted basis, classification determines. 4. evaluation results classification

    According to the annual performance evaluation of scores of Heads of enterprises, examination results are divided into a, b, c, d, e, five levels.
    Annex 2: term business performance assessment scoring pilot approach 1. term business performance assessment of integrated scoring term business performance assessment of integrated scored = State-owned assets hedge value-added rate index scored x business difficulty coefficient + three years main business income average growth index scored business difficulty coefficient + term within three years of annual business performance assessment results index scored + classification index scored x business difficulty coefficient above term business performance assessment index in the, if a items index not reached basic points, is the items index not multiplied by business difficulty coefficient. 2. the term of performance evaluation score of each index value index of State-owned assets of 40 points. Business leaders target value, the basic score of 40 points. Per 0.4% above the target value (if an enterprise determines the target value higher than the record level or target value is the highest in the industry, each higher than 0.3%), add 1, add 8 points.
    But below the target value is greater than 100%, each below the target value of 0.4% (if an enterprise determines the target value higher than the record level or target value is the highest in the industry, each less than 0.5%), deducted 0.5 points, up 4 points deduction; less than 100%, each below the target of 0.4%, deducted 1 points, up 8 points deduction. Income for three years with an average growth rate of 20 points. When the target value completed business leaders, 20 points. Higher than the target value, for every 1%, 1 points, up 4.
    Below the target value, per below 1% and deducted 1 points, up 4 points deduction. Term of three years the results of the annual performance evaluation index of basic is 20 points.
    Heads of enterprises within three years of the annual performance assessment results each time you have a level 8 points each a grade b 7.335 points; each have a c-class 6.667; each have a grade d or below 6 points. Indexes for 20 minutes.
    Classification index points and points of upper and lower bound for the index 20%.
    3. total operating assets according to degree of difficulty degree of difficulty operating, business (sales) revenue, total profit, return on equity and the average number, proportion of retirees to workers and other factors weighted basis, classification determines.
                                                                              4. evaluation results classification according to the term performance evaluation of composite scores of Heads of enterprises, examination results are divided into a, b, c, d, e, five levels.