BEIJING: China's central state-owned enterprises (SOEs) saw their net profits surge 19.4 percent in the first quarter of the year, China's top SOE regulator said Monday.
The total operating revenue of central SOEs increased by 8.7 percent year on year to 6.4 trillion yuan (about 1.02 trillion U.S. dollars) in the first quarter, according to Peng Huagang, spokesperson for the State-owned Assets Supervision and Administration Commission, reports Xinhua.
In March, central SOEs in sectors of electricity, coal, and machinery led SOE revenue growth to 2.4 trillion yuan, and monthly profit reached a new high by increasing 17.8 percent year-on-year to 169.8 billion yuan, he said.
The robust growth in profit is attributed to the steady development of China's economy, deepening supply-side reform, and corporate shake-ups that galvanize competitiveness, Peng said, calling these factors long-term stimulants for the central SOEs.
"Key economic gauges point to a steady and improving Chinese economy," he said, citing a 12.2-percent year-on-year increase in electricity sales, a leading economic indicator, in the first quarter..