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Development Situation of Enterprise Group

2002-11-17

In 2001, enterprises had an overall excellent development, and there was further improvement in main economic and technical indexes compared with those of last year. According to State Statistics Bureau, by the end of 2001, there have been 2,710 enterprise groups in China (including those managed by the central government, state trial enterprises group, those on national key enterprises list, those approved by provincial and ministry units, and others that enjoy both net assets and main business gains of over RMB500 million yuan at the end of the year), 55 more than last year. There were 27,293 enterprises among those enterprise groups, increasing by 10.9%. And there was an average of 10 enterprises each, 1 more than that of last year. Net assets at the end of the year added up to RMB5363.1 billion yuan, increasing by 21.8% than those of last year. Sales were RMB6562.3 billion yuan, increasing by 23.2%. Amounts of export were RMB540.4 billion yuan, increasing by 18%. Most enterprise groups were in industrial departments, and there were altogether 1,807 enterprise groups, accounting for 66.7% of all groups, 63.9% of total assets, and 64.6% of sales.
State-owned enterprise groups lie in an important position in all groups. In 2001, there were 1,786 enterprise groups whose parent company are state-owned and state-owned holdings, with total assets of RMB11919.4 billion yuan, accounting for 93.1% of those of all enterprise groups. And sales were RMB5805.5 billion yuan, accounting for 88.5%.
There was an increase in economic results of enterprise groups. The average debt ratio was 58.1%, decreasing by 0.7% than that of last year. The average rate of return was 4.0%, increasing by 0.4% than that of last year. 1811 enterprise group succeeded in maintaining and increasing the value of assets, accounting for 66.8% of all groups. Debt ratio of state-owned and state-owned holdings enterprise groups was 58.3%, decreasing by 0.8% than that of last year. In 2001, labor productivity each people was RMB260 thousand yuan, RMB27 thousand yuan more and increasing by 11.6% than last year. There were altogether RMB321 billion yuan of all enterprise groups, increasing by 10.6%. There were 36 whose total profits exceeded RMB1 billion yuan, 12 more than last year. Although debt ratio decreased and labor productivity rose, there was an increase in debt coverage and debt amounts. In 2001, there were 570 enterprise groups in debt, with debt coverage of 21.0%, increasing by 2.1% than last year. And the debts were RMB33.1 billion yuan, increasing by 40.9% than last year. There were 436 state-owned and state-owned holdings enterprise groups, accounting for 24.4% among all, whose debt coverage increased by 3.4% than that of all groups.
There was an expansion in the scale of enterprise groups and an increase in the number of outsize-bearing enterprise groups. In 2001, there were 179 outsize-bearing enterprise groups that enjoyed both net assets at the end of the year and sale income of over RMB5 billion yuan, 39 more than those of last year. According to America's magazine Fortune, in 2002 there were 11 in Fortune 500. 

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