Jan. 24, 2008 (China Knowledge) - China's central and locally controlled state-owned enterprises (SOEs) saw a 31.6% increase in after-tax profits to hit RMB 1.62 trillion in 2007 from RMB 1.23 trillion a year earlier, the Ministry of Finance (MOF) said yesterday.

Figures from the Ministry's official website showed profits of the SOEs under the central government surged 29.2% year-on-year to stand at RMB 1.1 trillion in 2007, accounting for 67.9% of the total profits, while local SOEs earned RMB 500 billion, up 37.4%.

The state-owned firms paid RMB 1.57 trillion in tax last year, up 21.8% over 2006. Their sales revenues rose 20.1% to RMB 18 trillion. Total assets of China's SOEs grew 23.1% last year, according to MOF.

 

SOEs in the machinery industry, the automotive industry and the chemical industry were the top three in terms of profit growth last year, up 73.4 %, 70.8% and 64.5% respectively.

However, MOF warned that there will be some lingering problems despite SOEs' profitability and the increase in total assets. "The costs are increasing sharply and stocks of finished goods in some sectors such as coal, autos and light industry are growing rapidly," said MOF on its website.

By the end of 2006, China has a total of 160 SOEs, dropped from 190 in 2002 through economic restructuring, but the total sales revenues surged 146% and profits jumped 219%.