State-owned and holding companies' economic performance from January to August

From January to August 2011, the main economic efficiency indicators of the state-owned and state-controlled enterprises1 (hereinafter referred to as state-owned enterprises) included in the statistical scope of this monthly report maintained an increase of more than 20% year-on-year, but realized profits and tax payable in two months. The rate of fees fell continuously.

Chart: China's State-Owned Enterprises Profit Increased 21.9% YoY in August

I. Main economic indicators (1) Total operating income. From January to August, state-owned enterprises realized a total operating income of 2372.4 billion yuan, a year-on-year increase of 24.4%, which was an increase of 0.2% from August in July. (1) Central enterprises (including central management companies and sector-affiliated enterprises, the same below) realized a total operating income of 1,514.67 billion yuan, a year-on-year increase of 24.1%, which was an increase of 1.5% in August from July. Among them, the total amount of operating revenues of the central management companies was 130.784.5 billion yuan, a year-on-year increase of 24.3%, which was an increase of 2% in August from July. (2) The total operating income of local state-owned enterprises totaled 8577.22 billion yuan, a year-on-year increase of 24.8%, which was a month-on-month decline of 2% in August from July.

(B) to achieve profits. From January to August, total accumulated profits of state-owned enterprises totaled 1,527.89 billion yuan, a year-on-year increase of 21.9%, which was a decrease of 10.5% from the previous month in July. State-owned enterprises realized a total net profit of 1,153.88 billion yuan. (1) Total profit realized by central SOEs was 1042.24 billion yuan, up 18.6% year-on-year, down 8.4% from August in July. Among them, the total amount of profits realized by the central management companies totaled 841.3 billion yuan, a year-on-year increase of 16.3%, which was a 3.7% drop from the previous month in July. (2) The total realized profits of local state-owned enterprises totaled 485.65 billion yuan, an increase of 29.5 percent year-on-year, which was a decrease of 14.9 percent in August from July.

(c) Taxes and taxes payable. From January to August, state-owned enterprises should pay taxes of 2009.04 billion yuan, a year-on-year increase of 25.3%, which was a month-on-month decrease of 1.1% in August. (1) The accrued taxes and fees of central enterprises amounted to 1,548.12 billion yuan, a year-on-year increase of 25.7%, which was an increase of 0.7% in August from July. Among them, the total amount of taxes and fees payable by the central management enterprises was 1,102.91 billion yuan, a year-on-year increase of 26.6%, which was a decrease of 3.3% in August from July. (2) Accumulative taxes and fees payable by local state-owned enterprises amounted to 461.32 billion yuan, a year-on-year increase of 23.8%, which was a month-on-month decrease of 6.9% in August from July.

From January to August, state-owned enterprises have paid taxes of 2,079.39 billion yuan, a year-on-year increase of 28.8%. In August, they were down 6.8% from July. (1) The accumulative tax paid by central enterprises totaled 1,582.06 billion yuan, up 29.9% year-on-year, down by 2.2% from August in July. Among them, the total amount of taxes and fees paid by the central management enterprises amounted to 1144.84 billion yuan, an increase of 32.3% year-on-year, which was an increase of 0.4% in August from July. (2) Accumulative taxes and fees paid by local state-owned enterprises totaled 497.33 billion yuan, a year-on-year increase of 25.5%, which was 20.6% lower in August than in July.

(d) profitability. From January to August, the total cost of state-owned enterprises was 222.427 billion yuan, a year-on-year increase of 24.7%. Among them, operating costs increased by 25.1% year-on-year, and sales expenses, management expenses and financial expenses increased by 14.9%, 18.6% and 27.5% respectively year-on-year.

Net sales margin was 4.9%, down 0.2% from the same period of last year. The return on net assets was 5.2%, up 0.1% from the same period of last year. The cost-cost margin was 6.8%, which was a decrease of 0.2 percentage points from the same period of last year.

The profit margins of central enterprises' sales, net assets yield, and cost expenses were 5.1%, 5.9%, and 7.4%, respectively. Local state-owned enterprises were 4.4%, 4.2%, and 5.9%, respectively.

(e) Operational capabilities. From January to August, inventory of state-owned enterprises increased by 24.2% year-on-year. The inventory turnover rate was 2.9 times, which was the same as that of the same period of last year. The turnover rate of accounts receivable was 8.7 times, which was 0.2 times faster than the same period of last year. The average total asset turnover was 0.4 times, which was the same as the same period of last year.

II. Profitability of major industries From January to August, the industries that realized a year-on-year increase in profits were: nonferrous metals, coal, commerce, petroleum, and post and telecommunications. The five major power generation enterprises managed by the Central Government and the two major power grids all made profits from January to August. From a month-on-month perspective, the three industries of petroleum, post and telecommunications, tobacco, etc. achieved a month-on-month increase in profits. Transportation, electricity, automobiles, steel, and coal industries recorded a larger decrease in profits.

Note: 1 This month's report states that state-owned and state-controlled enterprises, including central enterprises and 36 provinces (autonomous regions, municipalities directly under the Central Government, separately listed cities), are state-owned and state-controlled enterprises. The central enterprises include: state-owned and state-controlled enterprises owned by the central government and 120 central management companies, all of which exclude state-owned financial companies.