SASAC briefs on the economic performance of central SOEs in the first three quarters of 2018

The State-owned Assets Supervision and Administration Commission of the State Council (SASAC) held a press conference at the State Council Information Office on Oct 15. Peng Huagang, Deputy Secretary General and spokesperson of SASAC, attended the press conference. He briefed reporters on the economic performance of central state-owned enterprises (SOEs) in the first three quarters of 2018 and answered questions on relevant issues. 

SASAC holds a press conference to brief on the economic performance of central SOEs in the first three quarters of 2018 at the State Council Information Office on Oct 15. [Photo/sasac.gov.cn]

Peng pointed out that this year, under the firm leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at the core, SASAC and the central SOEs adhere to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and act with firm resolve to implement the policy decisions and plans of the CPC Central Committee and the State Council.

He added that with the new principles of development and the general work guideline of making progress while ensuring stability, SASAC and the central SOEs regard supply-side structural reform as the main task and focus on quality development and main business to replace old growth drivers with new ones at a faster pace. The current economic performance is progressing steadily and promisingly with more sustained and steady growth on production, operation and the whole economy.

According to Peng, the economic performance of central SOEs in the first three quarters showed the characteristics of "three increases and one drop, three excellences and one reduction". "Three increases" refers to: aggregate revenues increased by 11 percent year-on-year to 21.1 trillion yuan ($3.05 trillion); profit increased by 21.5 percent year-on-year to 1.35 trillion yuan; and the contribution of taxes and fees increased by 7.3 percent year-on-year with current 1.7 trillion yuan paid. "One drop" indicates the average asset-liability ratio of central SOEs was 66 percent at the end of September, 0.5 percentage points lower than a year earlier and 0.3 percentage points lower than at the beginning of the year.

"Three excellences" represents that: excellent investment structure, which fixed assets investment of 1.5 trillion yuan was completed, a year-on-year growth of 2.7 percent;  quality of operation is excellent since the proportion of the "two funds" (accounts receivable and finished goods inventory) in the current assets dropped by 1.4 percentage points at the end of September compared with the same period last year, the recovery rate of assets cash saw 0.5 percentage point year-on-year growth, and the net cash inflow from operating activities saw 32 percent year-on-year growth; the production efficiency is excellent as the per capita income increased by 12.5 percent, the per capita profit by 23.1 percent, and the total labor productivity by 8.4 percent year-on-year. "One reduction" occurred in cost, and the cost paid by the operating income of 100 yuan reduced 0.5 yuan year-on-year.

Moving forward, SASAC and the central SOEs will rally more closely around the CPC Central Committee with Comrade Xi at the core, firmly put the policy decisions and plans of the CPC Central Committee and the State Council in place. In line with the requirement of quality development, both will remain committed to deepening supply-side structural reform, structural adjustment and upgrade, implementing reform measures, and reinforcing risk prevention and control in major areas. Returns on state capital will be strengthened and increased and the development of world-class enterprises with global competitiveness sped up, to make sure that the national economy will progress sustainably and healthily.

Peng answered questions from 10 media, namely People's Daily, China Central Television, Economic Daily, China Daily, China News Service, China Business Network, China Business, 21st Century Business Herald, Shanghai Securities News, and Global Times. 32 media attended the event. 

(Executive editor: Hao Wen)