The total profits of China’s state-owned enterprise sector have seen a year-on-year increase of 23.1% for the first seven months of 2017.
According to the latest official data the total revenues of Chinese SOE’s were 28.9421.2 trillion yuan for the January – July, for a YoY increase of 16.5%.
Central SOE’s posted revenues of 17.26905 trillion yuan for a YoY increase of 15.1%, while local SOE’s posted revenues of 11.67307 trillion yuan, for a YoY increase of 18.7%.
Realized profits of Chinese SOE’s for the January-July period were 1.6610.2 trillion yuan in total, for a YoY increase of 23.1%. Central SOE’s saw profits of 1.08596 trillion yuan, for a increase of 17.3%, while for local SOE’s the figures were 575.06 billion yuan and 35.8% respectively.
The rise in both revenues and profits of Chinese SOE’s comes as welcome news to the central government, with both Xi Jinping and the State Council pointing to deleveraging of the heavily indebted public sector as a “priority of priorities” for regulators in future.
The steel and non-ferrous metal sectors managed to return to profitability after incurring losses during the same period last year, while the coal, oil and transit sectors all saw sizeable YoY profit gains.
The power sector, however, posted a significant YoY drop in realised profits.
Total operating costs of SOE’s during the period were 27.97982 trillion yuan, for a YoY rise of 15.8%, with sales costs, administrative costs and financing costs rising by 10.5%, 6.2% and 9.3% respectively.
The operating costs of central SOE’s was 16.52109 trillion yuan, for a YoY increase of 14.7%, with sales, administrative and financing costs rising by 6.2%, 5.3% and 7.5% respectively.
For local SOE’s the figure was 11.45873 trillion yuan, for a YoY increase of 17.3%, with sales, administrative and financing costs rising by 17.6%, 7.3% and 11.2% respectively.
As of the end of July total SOE assets were 144.89523 trillion yuan, for a YoY increase of 11.2%, while total liabilities were 95.6484 trillion yuan, for a YoY increase of 11.3%.
Total equity was 49.53037 trillion yuan, for a YoY increase of 10.8%.