Industrial profits up, despite state efforts

PUBLISHED : Saturday, 27 May, 2006, 12:00am
UPDATED : Saturday, 27 May, 2006, 12:00am

Sector's takings rise 22.1pc in first four months, thwarting bid to cool growth

Profits for the mainland's industrial sectors jumped 22.1 per cent in the first four months, up from 21.3 per cent in the first quarter, the latest indication of a robust economy despite government efforts to slow economic growth.

Profits made by industrial companies were 477.4 billion yuan in the January-April period, helped by soaring profits from oil and metal companies amid strong commodity prices, National Bureau of Statistics figures show.

Profits across state-owned and state-controlled companies rose 11.5 per cent year on year to 219.4 billion yuan, while profits in other joint-stock companies rose 23 per cent to 257 billion yuan.

Profits made by private companies rose 47.2 per cent to 64.4 billion yuan, while profits registered by foreign-invested firms - including those invested in by companies from Hong Kong, Macau and Taiwan - grew 25.1 per cent to 137.4 billion yuan.

As of the end of April, accounts receivable in industrial firms reached 2.76 trillion yuan, up 19.8 per cent from a year earlier.

The data cover all state-owned industrial enterprises and non-state-owned industrial companies with annual sales of more than 5 million yuan.

Industrial companies' profits climbed 22.6 per cent last year from 2004.

The surge of profits in the industrial sector suggested the continued strength of the red-hot economy despite government efforts to cool down the economic overheating in some sectors. On Tuesday, the bureau said the first-quarter gross domestic product growth had been revised to 10.3 per cent from 10.2 per cent.

The central government is moving to curb lending as credit growth and a surge in capital spending propelled the economy to expand faster than expected.

Taxes from industrial enterprises rose 20 per cent in the first four months of the year to reach 403.9 billion yuan, of which the state sector accounted for 230.1 billion yuan, up 15.3 per cent year on year, the bureau said.

China's industrial enterprises' operating revenue totalled 8.601 trillion yuan in the first four months, up 25.5 per cent year on year. In the same period, state-sector operating revenue reached 2.95 trillion yuan, up 18.8 per cent in the same period.

Oil and gas profits rose 52.6 per cent and profits at non-ferrous smelters and processors rose 98.5 per cent. Profits in transport equipment, electricity, and the electronic and communications sectors rose 88.9 per cent, 59.3 per cent, and 30.7 per cent respectively.

Profits in the steel sector fell 50.8 per cent and profits in the chemicals industry slipped 2.5 per cent. The coal industry saw combined profits rise 9.8 per cent.

Oil refiners and coking companies posted a net loss of 15.6 billion yuan, the bureau said.