(Yicai Global) July 12 -- China's central enterprises improved the quality of their operations, optimized industrial systems and developed rapidly in the first half, Shen Ying, the State-owned Assets Supervision and Administration Commission of the State Council's (SASAC) chief accountant, said yesterday at a press conference.

Of the 102 central enterprises, 99 were profitable, 48 increased their efficiency by more than 10 percent and 29 improved efficiency by 20 percent.

Central enterprises' combined operating income, profit, and net profit were USD1.84 trillion (CNY12.5 trillion), CNY721.8 billion and CNY535.32 billion in the first half, marking 16.8-percent, 15.8 percent and 18.6-percent year-on-year increases, respectively. Their monthly earnings have maintained double-digit growth this year. Profits in June set a single-month record of CNY159.67 billion.

To cultivate new growth drivers, the SASAC explored assessment and remuneration distribution arrangements, Shen said. These measures included increasing equity, dividend rights and other medium- and long-term incentives in state-owned technology firms and establishing a revenue sharing system for scientific research that is implemented.

Steel overcapacity reduction was ahead of schedule in the first half as China cut 5.95 million tons of excessive steel production capacity, Shen said. The country rid itself of 6.59 million tons of excessive coal production capacity and restructured 13 million tons of coal capacity.

"China's state-owned enterprises, especially the central enterprises, are entering a 'new cycle,'" Li Jin, China Enterprise Research Institute's chief researcher, told Yicai Global. "Their operating income has maintained double-digit growth for five consecutive months, profit growth has rebounded significantly, new profit growth points are being formed and the industrial structure is becoming increasingly optimized. The increase in quality and efficiency has injected strong impetus into China's economy."