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SOEs in Henan Report Impressive Development
State-owned enterprises (SOEs) in central China's Henan Province reaped 5.7 billion yuan (US$687 million) in profit last year, up 1.2 times on the figure for 1999, sources from the provincial statistical bureau indicated.
The total profit generated by the major industrial enterprises in Henan hit 13.5 billion yuan (US$1.6 billion) in 2000, increasing 70 percent on a year-on-year basis. Among the figure, State-owned and State-controlled companies contributed 5.7 billion yuan, which was 2.2 times the volume of the previous year.
A total of 189 out of some 300 debt-ridden SOEs, which were under strict supervision by the government, have got out of the red.
The provincial government of Henan, the most populous province in central China, guided SOEs to shed the economic predicament according to their respective performance, including the efforts of reorganization, debt-to-equity swap and enforcing liquidation.
Thirty-two SOEs have signed debt-to-equity swap agreements with asset management companies since 1999, converting assets of 16 billion yuan (nearly US$2 billion). Such efforts have greatly reduced the enterprises' economic burden and helped them to generate profit.
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