Employees from a subsidiary of China Shipbuilding Industry Corp install clean-energy equipment in Nantong, Jiangsu province. [Photo:Xinhua]

 

Key state-owned enterprises (SOEs) recorded revenue losses in the first quarter of 2020 despite a rebound in March revenues, according to the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) on Monday. 

Revenues of the key SOEs totaled 6 trillion yuan ($847 billion) in the first quarter, down 11.8 percent year-on-year. Over 80 percent of enterprises recorded revenue losses, the SASAC said. 

Total profits were recorded at 130.4 billion yuan, a 58.8 percent plunge from the same period last year, and 57 enterprises reported decreases in net profits. Despite the significant increase in net profits in March from February, the figures still fall far behind last year’s. 

The profit losses are attributable to the sharp drop in international and domestic demand, particularly in the global commodities market, resulting in a sharp plunge in the petrochemical, aviation and automobile industries, among others, Peng Huagang, an official from the SASAC said on Monday. 

However, although most key SOEs are encountering “unprecedented” difficulties and are facing enormous pressure to resume growth, companies have taken multiple steps to minimalize the loss and managed to maintain overall stability, Peng noted. 


Global Times