China's industrial companies made profits of 647.3 billion yuan
(US$78 billion) during the first 10 months of the year, an increase
of 46 percent compared with 2002, the National Bureau of
Statistics said Tuesday.
The profit growth, which was 3 percentage points lower than the
first nine months, is still much faster than last year's 20.6
percent rise.
Profits made by state-owned industrial firms and firms in which
the state holds a majority hit 317.5 billion yuan (US$38.2 billion)
during the period, a year-on-year increase of 54 percent, the
bureau said in a statement.
Industrial enterprises handed in 581.7 billion yuan (US$70.1
billion) of taxes to the state, a year-on-year increase of 18.7
percent.
During the first 10 months, sales income earned by industrial
firms reached 11.12 trillion yuan (US$1.34 trillion), a
year-on-year increase of 27.9 percent.
The net loss suffered by money-losing companies was 93.5 billion
yuan (US$11.2 billion) during the period, a drop of 2.8 percent
compared with a year ago.
Bureau spokesman Yao Jingyuan said the good performance of the
industrial sector was partly due to the country's fast fixed asset
investment.
China's fixed asset investment grew a year-on-year 30.2 percent
to 3 trillion yuan (US$367 billion) during the first 10 months.
The performance has also been attributed to the upgrade of
domestic consumption structure, the adjustment of industry
structure and the price changes on the international market, said
Yao, who is also the bureau's chief economist.
He said profits made by a majority of the industrial sector
continued to grow during the January-October period.
Earnings of crude oil and natural gas producers rose 33.7
billion yuan (US$4.1 billion).
Profits from the transport sector, including cars, rose 26.4
billion yuan (US$3.2 billion), while earnings of ferrous metal
smelters increased 26.7 billion yuan (US$3.2 billion), Yao
said.
Profits of chemical raw material companies rose 15.1 billion
yuan (US$1.8 billion), while earnings from electrical power
producers increased 10.7 billion yuan (US$1.3 billion).
The five sectors accounted for 55.3 percent of increased profits
for the whole industrial sector, Yao said.
Wang Zhao, a researcher with the State Council's Development
Research Centre, said the fast growth in profits suggest the
Chinese economy is developing well.
It was a result of the country's implementation of pro-active
fiscal and sound monetary policies, he said.
China's gross domestic product grew 8.5 percent during the first
nine months of the year compared with 2002.
(China Daily November 26, 2003)