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China's electronics and information industry reported a 44.5 percent growth in profits in the first quarter of this year, to reach 27.21 billion yuan (3.4 billion dollars), Thursday's China Securities Journal reports.

 

Quoting the Ministry of Information Industry, the report said that in the first three months, the sector's fixed assets investment totaled 32 billion yuan (US$4 billion), up 40.9 percent on the previous year.

 

During the period, the electronics and information industry saw an overall steady growth, with sales revenue amounting to 799.18 billion yuan (about US$100 billion), a rise of 31.4 percent.

 

The industrial added value came to 167.67 billion yuan (some US$21 billion), a growth of 32.5 percent.

 

Meanwhile, the profits of the software industry reached 68.66 billion yuan (US$8.58 billion), up 33.7 percent.

 

However, sources with the Ministry warned that the sector is now facing the challenges of soaring sales, production costs and declining profits.

 

(Xinhua News Agency May 12, 2006)