China’s central state-owned enterprises (SOE’s) posted record profit levels in 2018 despite easing economic growth, as Beijing continues to drive mixed-ownership reforms.
At a press conference held on 17 January Peng Huagang (彭华岗), spokesman from the State-owned Assets Supervision and Administration Commission (SASAC) said that in 2018 China’s central SOE’s posted operating revenues of 29.1 trillion yuan, for a YoY increase of 10.1%.
Central SOE profits posted a YoY rise of 16.7% in 2018 to hit a record high of 1.7 trillion yuan, while net profits were 1.2 trillion yuan, for a YoY rise of 15.7%.
Net profits attributable to the parent company were 610.01 billion yuan, for a YoY rise of 17.6%.
Peng attributed the record profits of China’s central SOE’s in 2018 to ongoing steady growth in the economy, as well as improved management amongst central SOE’s in tandem with cost reductions and increased efficiency.
In 2018 the cost for every 100 yuan of operating revenue posted by central SOE’s fell by 0.4 yuan compared to 2017, while total taxes paid by central SOE’s hit 2.2 trillion yuan, for YoY growth of 5.7%.