China’s State-Owned Enterprises Post Nearly 21% Profit in Q1 in Sign of Improved Performance

China’s State-Owned Enterprises Post Nearly 21% Profit in Q1 in Sign of Improved Performance

Liu Qing

Date: Mon, 04/16/2018 - 22:23 / source:Yicai
China’s State-Owned Enterprises Post Nearly 21% Profit in Q1 in Sign of Improved Performance
China’s State-Owned Enterprises Post Nearly 21% Profit in Q1 in Sign of Improved Performance

(Yicai Global) April 16 -- China’s state-owned enterprises maintained a steady and sound development trend in the first quarter as their profits recorded surge, indicating good economic operation this year, said a senior official of the relevant regulator today.

The central enterprises made a good start to the year, said Peng Huagang, deputy secretary-general and spokesman of the state-owned assets supervision and administration commission of the State Council, or SASAC, in a press conference in Beijing, adding profits of state-owned enterprises increased more than 20 percent in the first quarter compared with last year.

The central enterprises registered a total operating income of CNY6.4 trillion (USD1.01 trillion) in Q1, an increase of 8.7 percent compared with last year, Peng said. Last month, they achieved operating income of CNY2.4 trillion, up 2.8 percent from last year. Revenues of electric power, coal, machinery and trade companies increased rapidly, and incomes of petroleum, petrochemical, construction, and transportation enterprises soared steadily, Peng added.

Their performance also improved. The total profits in the first quarter was CNY377 billion, up CNY65 billion, increasing nearly 21 percent. The SOEs made CNY169.8 billion in profit last month, a new high, up 17.8 percent from last year.

In the first quarter, central enterprises’ net profit increased 19.4 percent annually, and the net profit attributable to owners of the parent company surged 24.2 percent year-on-year. The return on state-owned capital was significantly higher, Peng added.

As the operation efficiency continues to rise, the level of return on state-owned capital increases constantly. In the first quarter, the growth rate of the total cost of central enterprises was 0.6 percentage points lower than that of income, and the proportion of cost expenses to revenue decreased by 0.5 percentage points year-on-year, Peng said.

Editor: Mevlut Katik

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Keywords: Central Enterprises, PROFIT, Revenue, SASAC, Economy