Problem state-owned enterprises working hard to overhaul image
For years Guangzhou's inefficient, debt-plagued state-owned companies with their almost unmarketable products have been among the country's worst performing.
In strong contrast to the city's vibrant private and foreign-invested sectors, state firms continue to wallow in deepening pools of red ink.
A recently published provincial survey revealed that realised profits at Guangzhou's 66 large and medium-sized experimental enterprises dropped 40 per cent during the first six months of the year - 30 of the firms reported losses.
Perhaps most importantly, losses increased three-fold from 412 million yuan (about HK$383.16 million) during the first half of last year to 1.24 billion yuan.
There are about 4,000 state-owned firms in Guangzhou, not including subsidiaries.
That represents only about 8 per cent of the registered businesses in the city.