Chinese state-owned enterprises (SOEs) posted 1056.7 billion yuan (about 149.26 billion U.S. dollars) in net profit, increased by 7.4 percent year on year, in the first three quarters of 2019, said the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) on Thursday.
Peng Huagang, spokesperson of the SASAC, discussed the economic performance of Chinese SOEs in the first three quarters of 2019, highlighting four aspects: revenue, investment, R&D and asset-liability ratio.
"The good results achieved by the economic operation of the SOEs have further enhanced our confidence and determination to cope with risks and challenges and promote the reform of the SOEs," said Peng.
Steady profit growth maintained
The SOEs realized a total operating income of 22.1 trillion yuan (about 3.12 trillion U.S. dollars), up 5.3 percent from a year earlier, and maintained the increasing rate of at least of five percent for seven consecutive months.
The accumulated net profit was 1,056.7 billion yuan (about 149.26 billion U.S. dollars), a year-on-year increase of 7.4 percent.
Effective investment has grown steadily
In the first three quarters, the SOEs made a fixed asset investment of 1.6 trillion yuan (about 230 billion U.S. dollars), increased 6.8 percent year on year. It has maintained a monthly growth rate of more than 6 percent this year.
The investment efficiency has been continuously enhanced, mainly focusing on expanding natural gas supply, exploration of oil and gas, commercial development and utilization of 5G, and clean and efficient use of coal resources.
Rapid growth of R&D investment
The SOEs' investment in R&D went up 25 percent, which is a rare trend in recent years, said Peng.
The rapid growth of R&D has been seen especially in the industries of power grid and telecommunications.
Asset-liability ratio remained stable with slight decline
At the end of September, the average asset-liability ratio of the SOEs was 65.7 percent, down 0.1 percentage point from the end of August and down 0.2 percentage point year on year.
Total interest-bearing liabilities increased by 4.6 percent from a year earlier, but the increasing rate saw 1.5 percentage points lower than the same period last year. Interest-bearing debt ratio was 39.2 percent, down 1.1 percentage points year on year. The overall solvency has remained stable.