China's SOEs profits slow
Updated: 2011-09-01 15:00
By Song Jingli (chinadaily.com.cn)
Profits gained by China's centrally-administrated State-owned enterprises (SOEs) came at a slower rate in the first seven months of this year, according to a State Council meeting presided by Premier Wen Jiabao on Wednesday.
China's central SOEs reported a total revenue of 16.8 trillion yuan（$2.63 trillion）in 2010, up by 33 percent compared with 2009. They handed in 1.5 trillion yuan in tax, up by 31.9 percent year-on-year. Their net profit for the year 2010 turned out to be 852.27 billion yuan, up by 42.1 percent.
In the first seven months of this year, central SOEs achieved a revenue of 11.4 trillion yuan, up by 24.5 percent year-on-year. They paid 998.9 billion yuan in taxes, up by 28.1 percent year-on-year. The central SOEs only made a total net profit of 543.27 billion yuan, up by 15.7 percent compared with the same time period in the previous year.
During the 11th Five Year Plan (2006-2010), 38 central SOEs made their way to the Fortune 500 list, up from 10 before the start of the 11th Five Year Plan.
However, some central SOEs still face difficulty in structure adjustment and some lack good management. Others face risks in investment in areas other than their core business.
SOEs should try to control these risks and change their development models and make a bigger contribution to China's economy development, according to the meeting.