Chinese Major firms earn more than 50 pc profit

Beijing, Dec 28: Major Chinese companies have clocked astounding year on year profits of nearly 50% in the first 11 months of 2010, the National Bureau of Statistics said on Monday while reporting the performance of 39 companies with annual revenue exceeding five billion yuan ($754 million). Foreign and private companies did almost as well as state-owned firms, it said.

The bureau’s figures throw up reveal some interesting facets of the changing industrial scene in China. It shows that the role played by state-owned companies is increasingly less dominant as compared to privately owned and foreign companies. Another curious aspect is the high level of profit compared to revenue growth.

The official figures show that state-owned companies cornered 46% of the total profits of 3.9 trillion yuan while foreign companies and privately-held firms made up for the rest. The bureau said foreign companies made a profit of 1.1 trillion yuan while privately owned enterprises garnered one trillion yuan.

There are signs Chinese companies are making good profit in non-core areas like real estate and stock markets. This is evident from bureau’s figures, which show major Chinese firms making profit of 49.4 per cent in the past 11 months against a revenue growth of 32%. The total revenue of major companies came to 62.4 trillion yuan. On its part, the bureau did not explain the reason for the high profit growth.

The bureau said 38 of the 39 companies surveyed showed profit growth. It said profits of state-owned and state-controlled enterprises rose 59.1% year-on-year to 1.2 trillion yuan. But “collective-owned” companies, which are joint ventures, fared somewhat badly rising 34.6 % to 68.9 billion yuan.

Impressive growth was seen in ferrous metals mining and smelting industry, which reported a 110% profit. Profits of chemical fiber producers jumped 120%. Petroleum and natural-gas exploration industry’s profits rose 65.7%. Profits of the non-ferrous smelting and pressing industry climbed 82.1%. Producers and suppliers of electricity and heat rose 74.5%.

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