Central SOEs in eight sectors reported decline in profit

15:43, October 12, 2009      

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Data relating to the various kinds of operations of central state-owned enterprises (SOEs) in 2008 has been released. Due to factors including natural disasters and the impact of the international financial crisis, eight out of nine large sectors, excluding commercial and trade enterprises, saw declined profits. However, the value of state-owned assets of central enterprises remained stable or increased, with an average value preservation and appreciation rate of 105.9 percent.

By the end of 2008, 141 central enterprises held total state-owned assets worth about 5.56 trillion yuan, up 8.6 percent year-on-year, including state-owned capital and equity of about 5.43 trillion yuan, an increase of 302.21 billion yuan over the beginning of 2008. Allowing for various objective increasing and decreasing factors, the average value preservation and appreciation rate of the state-owned assets of central enterprises in 2008 stood at 105.9 percent.

With a continuously expanding business scale, central SOEs achieved a total of about 11.87 trillion yuan in revenue in 2008, an increase of 18.4 percent year-on-year. The profits of central SOEs declined markedly however. In 2008, central SOEs achieved a total profit of 696.18 billion yuan, down 30.8 percent year-on-year.

Eight out of nine large sectors saw a decline in profits. Three petroleum and petrochemical enterprises including China National Petroleum Corporation (CNPC) suffered losses due to import prices of refined crude oil products exceeding selling prices, and their overall economic profits dropped sharply. They realized annual revenue of about 2.93 trillion yuan, an increase of 22.6 percent year-on-year, and achieved a total profit of 229 billion yuan, down 29.4 percent year-on-year. They realized an average value preservation and appreciation rate of state-owned assets of 105.8 percent.

Three central aviation SOEs realized a total of 157.48 billion yuan in revenue, an increase of 2.6 percent year-on-year. They suffered losses totaling 28.22 billion yuan however, with total profits down 37.93 billion yuan year-on-year, failing to maintain the value of state-owned assets.

25 central commercial and trade SOEs generally maintained a steady increase in revenue and profit. In 2008, they realized a total of about 1.35 trillion yuan in revenue, an increase of 27.3 percent year-on-year, and achieved a total profit of 37.5 billion yuan, an increase of 1.6 percent year-on-year. They realized an average value preservation and appreciation rate of state-owned assets of 107 percent.

Four steel central SOEs including Baosteel Group realized a total of 517.12 billion yuan in revenue, an increase of 19.9 percent year-on-year, and achieved total profit of 36.69 billion yuan, down 37.3 percent year-on-year. They realized an average value preservation and appreciation rate of state-owned assets of 107.3 percent.

Nine electricity central SOEs including China Huaneng Group realized a total of about 1.97 trillion yuan in revenue, an increase of 15.6 percent year-on-year, and recorded a total profit of 1.93 billion yuan, down 110.41 billion yuan year-on-year. They realized an average value preservation and appreciation rate of state-owned assets of 99 percent.

The average value preservation and appreciation rates of the state-owned assets of 12 machinery and equipment manufacturing central SOEs, four communications central SOEs, four water transport central SOEs and eight construction central SOEs stood at 109.7 percent, 112.3 percent, 105.6 percent and 111.2 percent respectively.

By People's Daily Online
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