Chinese SOEs  post steady profit growth

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BEIJING

Profits of Chinese state-owned enterprises grew steadily in the first seven months of the year, official data showed Friday. Their combined profits rose 7.3 percent year on year to 2.14 trillion yuan (about 303 billion US dollars) in the period, the Ministry of Finance said in an online statement.

The pace edged up from the 7.2-percent increase in the first half. During the period, SOEs in the sectors of power generation, construction and building materials registered rapid profit growth, the ministry said. SOEs generated a revenue of 34.5 trillion yuan in the same period, up 7.7 percent year on year. The debt-to-asset ratio of the SOEs stood at 64.4 percent as of the end of July, according to the ministry. It is pertinent to note here that net profits at China’s state-owned enterprises hit record high of 158.5 billion yuan (US$23 billion) in June, a rise of 8.4 per cent from a year earlier, but net profit growth slowed substantially as the country’s economic growth rate slid to its lowest reading on record.

For the first of half of 2019, the operating income of central government-owned firms reached 14.5 trillion yuan (US$2.1 trillion), a year-on-year increase of 5.9 per cent, according to data released by the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council.

Accumulated net profit for the first six months hit 703.77 billion yuan (US$102 billion), an increase of 8.6 per cent year-on-year. Of the total of 96 central government-owned firms supervised by SASAC, 34 saw their net profit rise by more than 20 per cent, while net profits at 53 increased by more than 10 per cent.

In June, state firms owned by the central government recorded a net profit of 158.49 billion yuan (US$23 billion) and a total profit of 211.78 billion yuan, the highest level on record, according to SASAC. However, the profit growth rate slowed significantly in the second quarter.

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