●State owned enterprises have achieved profits of 753.5 billion yuan in first half of this year, up 31.5% over the same period last year. Taxes paid 776.94 billion yuan, with an increase of 23.9%.

●Central enterprises (including enterprises under the central department, the same as below) have achieved profit 541.83 billion yuan, up 29.6% over the same period last year; Taxes paid 558.76 billion yuan, with an increase of 26%.

●Local State owned enterprises have achieved profits of  211.7 billion yuan, up 36.5% over the same period last year; Taxes paid 218.18 billion yuan, with an increase of 18.9%.

The first half of 2007, the central authorities have introduced various macro-control policies have achieved remarkable result, the national economy has maintained steady and rapid development, the external environment of enterprise operations further improved, stability and coordination of enterprise economic continue to enhance, the reform of state-owned enterprise make new progress. Finance Express Financial data show that the state-owned enterprises realized profits and paid taxes maintain rapid growth in the first half of 2007, the quality of enterprise operations further improved, the main economic indicators of state-owned enterprises continue to maintain double-digit growth.

According to the preliminary statistics of Ministry of Finance Enterprise Financial Express, In the first half of this year, state-owned enterprises achieved a total sales income of 8.37234 trillion yuan, 20.9%; state-owned enterprises achieved profits of 753.5 billion yuan, up 31.5 percent compared with the same period last year; Taxes paid 776.94 billion yuan, with an increase of 23.9%. In which, central state-owned enterprises achieved a total sales income of 5.12443 trillion yuan, up 20.2 percent, achieved profits of 541.83 billion yuan, up 29.6 percent compared with the same period last year; Taxes paid 558.76 billion yuan, with an increase of 26%. Local state-owned enterprises achieved a total sales income of 3.24792 trillion yuan, up 22.1 percent, achieved profits of 211.67 billion yuan, up 36.5 percent compared with the same period last year; Taxes paid 218.18 billion yuan, with an increase of 18.9%.

The profitable level and capital operating quality of state-owned enterprises further improved. From January to June, state-owned enterprise sales margin was 9%, up 0.7 percentage points; Cost margin was 9.9%, up 0.7 percentage points; Net assets margin was 7%, up 0.9%. Asset operating quality has further enhanced. State-owned enterprises inventory turnover rate was 2.8 times, compared with the corresponding period last year increased 0.1 times; Accounts receivable turnover ratio was 6.1 times, compared with the corresponding period last year increased 0.3 times. Balance rate was 55.6%, down 0.2 percentage points.

The major industrial industry achieved profits and taxes paid higher increases. From profits, profits of steel, petrochemical, machinery, chemical industry, electric power industry achieved more than 50%, it was 116%, 95%, 73.6%, 63.7% and 59.4% respectively. State-owned coal industry's profit rose 28%, state-owned auto industry's profit rose 45.6%, state-owned oil industry’s profits down 10.7%. From the taxes paid, steel, petrochemicals, automobiles, building materials, nonferrous metals industries taxes paid had faster growth, compared with the same period last year, up by 43.4%, 43%, 35.4%, 35.3% and 34.2% respectively. 

The economic benefit of state-owned enterprises in central and western region increased significantly, the central region had the highest increase in profits, the western region had the highest increase in taxes paid. From January to June, the central region achieved 44.9 billion yuan in profits, with an increase of 58.1%; Taxes paid achieved 53.94 billion yuan, with an increase of 22.8%. West region achieved profit 30.47 billion yuan, up 38.9%; Taxes paid achieved 30.19 billion yuan, with an increase of 24.9%. East region achieved 136.3 billion yuan in profits, with an increase of 30.1%; Taxes paid achieved 134.05 billion yuan, with an increase of 16.2%. 

The improvement of efficiency and quality keep pace at the same time, there are still some contradictions and problems in economic operations of state-owned enterprises, the most prominent was the rapid growth in enterprise’s costs in some industries, some industries overcapacity etc. From January to June, cost of sales, marketing costs, management fees, financial costs of nationwide state-owned enterprises were up 23%, 16.1%, 15.5% and 16.9%; Inventory growth was 18.7%, of which, the inventory of state-owned metallurgical, coal, automobiles, light industry increased by 34.9%, 22.4%, 15.9% and 15.1% than the same period last year respectively.