Beijing SOEs report rise of revenue and profit in H1

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According to the State-owned Assets Supervision and Administration Commission of Beijing, the total assets of enterprises supervised by the Beijing municipal government reached 5.32 trillion yuan (US$711.1 billion) by the end of June, with a year-on-year increase of 10.9%. The total owner's equity reached 1.75 trillion yuan during that time, with an increase of 12.5%.

In the first half of 2019, the total revenue and profit of state-owned enterprises (SOEs) supervised by the Beijing municipal government reached 792.95 billion yuan and 52.61 billion yuan, increasing 11.6% and 14.2% year-on-year, respectively.

According to a recent interim report from Beijing Automotive Group (BAIC), the company maintained a very healthy model that secured a higher profit increase than sales increase. BAIC sold 1.109 million vehicles in the first half of the year, exceeding the industry's average by 4.6 percentage points, and therefore generated a revenue of 246.45 billion yuan, up 6% year-on-year.

In the first half of the year, BBMG Corporation - one of China's largest building materials manufacturers - hit a record high with its total assets surpassing 280 billion yuan, revenue increasing by 23.3%, and profit increasing by 33.5% year-on-year.

Nearly every major construction project in the city is supported by SOEs under supervision of the Beijing municipal government, including the Beijing Daxing International Airport, the transformation project of the Ice Cube, and the Yanqing-Chongli Expressway.

This summer, the 2019 Horticultural Exhibition site is expected to become the most popular tourist attraction of Beijing. Visitors will be greeted by flowers and plants from all over the world - free from unsightly cable wires, thanks to the underground utility tunnels built by Beijing Municipal Road & Bridge Group. The tunnels help to supply the expo park with heat, gas, recycled water, electricity, and telecommunication infrastructure.

In the first half of 2019, Beijing Municipal Road & Bridge Group achieved a revenue of 18.3 billion yuan, a total profit of 350 million yuan, and newly-signed contracts of 29.18 billion yuan, with a year-on-year increase of 23.3%, 14%, and 31%, respectively. The target completion rate was 5 percentage points higher than the same period last year.

These figures demonstrate positive returns of Beijing's SOE reforms. The development of mixed-ownership economy is an important measure to deepen the reform of SOEs. In the first six months, 37 municipal-government-supervised enterprises underwent the process of becoming mixed-ownership companies, raising 2.3 billion yuan in private capital.

As planned by the Beijing municipal government, the Beijing International Technology Cooperation Center and the Beijing Bureau of Complete Equipment and Machinery completed restructuring of ownership and merger, marking the completion of transformation of all six public institutions into enterprises under the direct supervision of Beijing's State-owned Assets Supervision and Administration Commission. A total of 314 state-owned enterprises have completed similar restructuring by the end of June.

A commission official said this reform will contribute to a balanced corporate governance structure and a flexible market-oriented operating mechanism, and further enhance the vitality and competitiveness of SOEs.

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