Official: large SOEs to profit 500-odd bln yuan in 2005

Li Rongrong, Chairman of the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council, said on September 25 that large state-owned enterprises (SOE) will realize profits of over 500 billion yuan, higher than original objective. Good situation in recent months means the objective will be achieved by October.

Li made the above remarks while talking to 20 enterprise chiefs recently recruited by the SASAC. He said large SOEs have "promising prospects and are progressing rapidly". Before 2004 large SOEs had already more than finished objectives. They realized profits of 488.8 billion yuan and net tax increase of 110 billion yuan.

By June China has a total of 250,000 industrial businesses of scale (with annual sales revenue of over 5 million yuan), among which about 30,000 state-owned enterprises contribute to 60 percent tax revenue and 50 percent profits. Of the tax revenue paid by state-owned enterprises the 169 large SOEs, in turn, make up 56 percent.

By People's Daily Online