SOE profits up 3.4% in first 11 months

08:24, December 16, 2009      

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China's 131 centrally-administered State-owned enterprises (SOEs) saw a 3.4 percent year-on-year growth in the profits to total 710.9 billion yuan ($104.08 billion) in the first 11 months in 2009, the first year-on-year rise this year, government data showed Monday.

Revenues in the first 11 months reached 11.1 trillion yuan, up 3.4 percent compared with the same period last year. The taxes imposed from these enterprises increased 7 percent year-on-year to 996.3 billion yuan, according to figures released by the State Assets Supervision and Administration Commission (SASAC) Monday.

In the first 10 months, SOE revenues and profits dropped 0.4 percent and 6 percent respectively year-on-year. Hit by the financial crisis, SOE profits in 2008 were 696.18 billion yuan, down 30.8 percent compared with 2007.

The State assets watchdog also said Monday that SOE profits are expected to total 750 billion yuan and the revenues are expected to reach 12 trillion yuan.

"We overcame great difficulties and maintained stable profit growth this year though the economic crisis dampened external demand," said Li Rongrong, director of the SASAC.

Li pointed out that an effective market exploration contributed to the results that have been achieved. Many enterprises have stepped up the pace to “go out” apart from the expansion of the domestic market.

Also, measures to lower operation costs were effective. Budget management and centralized management of group funds were increasing adopted to lower the costs. Structural adjustment also contributed to the rise in profits, according to Li.

But he also warned that the foundation for recovery is not solid enough and stressed that companies should enhance innovative capacity, strengthen core competitiveness, avoid blind expansion, control the risks, and make cautious investments in 2010.

Source: Global Times
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