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China's central SOEs post record net profits in first half year
Updated 07:39, 18-Jul-2021
CGTN
Net profits of China's central SOEs reached 1.02 trillion yuan in the first half of 2021. /CFP

Net profits of China's central SOEs reached 1.02 trillion yuan in the first half of 2021. /CFP

Net profits of China's centrally-administered state-owned enterprises (SOEs) surged by 133.3 percent year on year to 1.02 trillion yuan (about $157 billion) in the first half of 2021, data from the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council showed on Friday.

The half-year net profits of the central SOEs exceeded 1 trillion yuan for the first time. The growth was up by 45.4 percent compared with the same period in 2019.

The cumulative net profits of the first half of the year as well as that of the month of June both reached record highs. In June, net profits of the central SOEs totaled 245 billion yuan, increasing by 54.3 percent compared with the same period in 2019, according to the SASAC.

Revenues for the central SOEs in the first six months of 2021 registered 17.1 trillion yuan, a year-on-year growth of 28.2 percent.

Read more: Explainer: Why does China have so many state-owned enterprises?

Steady investment growth

Fixed-asset investment by the central SOEs rose 10.5 percent year on year to 1.1 trillion yuan in the first half of 2021.

The data put average year-on-year investment growth for the same period of 2021 and 2020 at 8.7 percent from the 2019 level.

In June alone, central SOEs invested 291.27 billion yuan, an increase of 49.6 percent from the previous month.

During the January-June period, the country's central SOEs spent more on research and development (R&D) amid efforts to boost innovation-driven development, according to the SASAC.

Their R&D input stood at 321.04 billion yuan, up by 37.4 percent year on year, while R&D intensity, the percentage of revenue that is reinvested in R&D, went up by 0.12 percentage points from a year earlier.

By the end of June, the average debt-to-asset ratio of China's central SOEs came in at 64.9 percent, down by 1 percentage point from the same period last year, the data showed.

(With input from Xinhua)

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