Central SOEs running at the best level in H1 of 2017

The income efficiency of central State-owned enterprises (SOEs) and enterprises under State-owned assets supervision system have achieved rapid growth in the first half of 2017, sources from the training class for the heads of central SOEs and local SASACs held by the State-owned Assets Supervision and Administration Commission of the State Council on July 11.

The operating income of central SOEs achieved a year-on-year increase of 16.8 percent, with the total profits increasing by 15.8 percent year-on-year, with major economic indicators hitting the best level in the same period of recent years, as is reported.

In the first half of 2017, enterprises under the State-owned assets supervision system and central SOEs achieved a rapid increase in income efficiency after overcoming difficulties and challenges brought about by various uncertainties in face of complex and ever-changing economic conditions.

The SOEs improved in an overall manner in the quality of operations and maintained a steady and improving development. As major economic indicators reached the best ever level, they made positive contributions to the sustainable and healthy economic and social development.

From January to May, enterprises under State-owned assets supervision system achieved an operating income of 18.5 trillion yuan ($2.78 trillion), an increase of 17.3 percent year-on-year, and an added value of 4.4 trillion yuan, an increase of 10.3 percent year-on-year. They gained total profits of 993.82 billion yuan, an increase of 21.2 percent year-on-year, while turned over total amount of taxes around 1.6 trillion yuan, a year-on-year increase of 12.3 percent.

From January to June, central SOEs achieved an operating income of 12.5 trillion yuan, a year-on-year increase of 16.8 percent and an added value of 3.2 trillion yuan, a year-on-year increase of 10.5 percent. They gained total profits of 721.8 billion yuan, an increase of 15.8 percent year-on-year. In June, they obtained a profit of 159.67 billion yuan, touching their record high in a single month, while they handed in total taxes of 1.1 trillion yuan, an increase of 5.3 percent year-on-year.

The central SOEs continued carrying out the campaign "cost control and effectiveness veto". From January to June, the growth rate of total costs was lowered by 0.1 percentage point compared to the profit. The cost of one hundred yuan profit was reduced by 0.1 yuan year-on-year. As of the end of June 2017, the average asset-liability ratio of central SOEs fell by 0.1 percentage point from the beginning of the year.

In the first half of 2017, central SOEs and enterprises under the State-owned asset supervision system implemented the decision-making and deployment of the CPC Central Committee and the State Council, adhered to the principle of steady improvement and progress, firmly established new development concepts, and actively responded to various difficulties and challenges.

The SASAC regarded stable growth as the most important task of all, strengthened the analysis of economic operation and situational study, carried out assessment combined with incentive as they listed some major tasks and supervised over key enterprises.

The central SOEs and local SASACs strengthened leadership and team building, strictly implemented responsibility, took multiple measures to improve the quality and efficiency so as to achieve rapid growth in income efficiency.