China's state-owned enterprises (SOEs) reported 753.5 billion yuan (100.4 US dollars) in profits in the first half, up 31.5 percent from the same period last year, according to the Ministry of Finance.

 

A preliminary calculation by the ministry showed central SOEs reported total profits of 541.8 billion yuan in the first six months, up 20.2 percent and profits of local SOEs rose 36.5 percent to 211.7 billion yuan.

 

Sales revenue of the country's SOEs totaled 8.4 trillion yuan.

 

A ministry official said improved efficiency and stability boosted SOE growth in the first half, supported by macro-economic control policies.

 

Profits of major industrial sectors including steel, petrochemicals, machinery, chemicals, and electricity rose by more than 50 percent, with that of steel up by 116 percent.

 

Profits of state-owned coal mines went up 28 percent and state-owned auto manufacturers surged 46 percent.

 

However, the petroleum sector witnessed an income loss of 10.7 percent compared with the same period last year.

 

Profits of SOEs in central China rose by 58 percent and in western regions by 39 percent, outpacing eastern regions, which stood at 30 percent.

 

Meanwhile, the official said production costs rose too fast and some industries faced severe overcapacity, which would pose obstacles for profit growth.

 

(Xinhua News Agency July 27, 2007)