Hebei's Baoding Tianwei Group, the first of 100 state enterprises picked for the country's pilot modern enterprise reforms, has made little headway in more than 12 months since the scheme began.
Vice-chairman Yang Shihe said: 'I do not see any progress. We have the documents [for reforming the company] but it has not been translated into reality.' Tianwei is China's second-biggest transformer producer after Hong Kong-listed H-share Northeast Electrical Transmission & Transformation Machinery Manufacturing Co.
Mr Yang said the reform was held back by three major obstacles - high gearing, a heavy social-welfare burden and redundant labour.
'The state should alleviate our high interest burden by turning the state loan into state equity in our company,' he said.
He said the firm's tight financial position hampered technological upgrading and re-investment plans. The company has a gearing of 70 per cent.
Mr Yang said the company's function as the provider of social welfare to its staff had not yet been transferred to society because society could not afford it.
