State-owned enterprises record sound growth

China's centrally administered State-owned enterprises have witnessed robust growth in both total assets and profits during the 14th Five-Year Plan (2021-25) period, the State assets regulator announced on Wednesday.

Zhang Yuzhuo, chairman of the State-owned Assets Supervision and Administration Commission of the State Council, said at a news conference that the centrally administered SOEs' total assets have expanded from under 70 trillion yuan ($9.86 trillion) to over 90 trillion yuan, while total profits have increased from 1.9 trillion yuan to 2.6 trillion yuan. This represents average annual growth rates of 7.3 percent and 8.3 percent, respectively.

"After years of dedicated efforts, the centrally administered SOEs have made substantial progress in innovation capacity," Zhang noted, highlighting that their research and development expenditures have exceeded 1 trillion yuan for three consecutive years.

Additionally, the centrally administered SOEs have contributed over 10 trillion yuan in taxes and fees during the period, Zhang added.

Yuan Ye, deputy head of the SASAC, added that during the 14th Five-Year Plan period, SOEs achieved further high-quality development. The added value and total profits created by central enterprises during this period are expected to increase by 40 percent and 50 percent, respectively, compared with the 13th Five-Year Plan (2016-20) period.

Indicators such as labor productivity, return on net assets, and asset-liability ratio have continuously improved, with many enterprises strengthening and refining management expertise, deepening reform and innovation, and significantly enhancing value creation capabilities, Yuan said.

SOEs, through their high-quality development, provide better support for the stable and healthy operation of the economy and society. For example, Yuan said, in terms of basic product supply, central enterprises are responsible for about 80 percent of crude oil, 70 percent of natural gas and 60 percent of electricity supply, playing an irreplaceable role in energy supply, food security and logistics.

Shu Anjie, director of the Energy Research Institute of China Huaneng Group Co, said the high-quality development of SOEs is a primary task in the comprehensive construction of a socialist modernized country.

The commitment of SOEs to high-quality development reflects the government's accurate assessment and scientific understanding of economic work, and these companies should support and ensure national security, effectively playing a strategic supporting role, Shu said.

Zhang, the SASAC chairman, said that this year marks the conclusion of deepening and enhancement action in State-owned enterprises reform, while the strategic professional restructuring of SOEs has always been a focal point of public attention.

During the 14th Five-Year Plan period, SOEs have vigorously promoted layout optimization and structural adjustment, focusing on strategic security, industry leadership, national economy and people's livelihood, and public services. They have restructured six groups and 10 enterprises through market-oriented methods and established nine new central enterprises.

Zhang hailed some "national business cards" such as Hualong One, a fully independent third-generation nuclear technology, and Fuxing, the Chinese bullet train, as well as a number of well-known "golden brands", like car manufacturer Hongqi and COSCO Shipping, created by SOEs.

According to the evaluation model of the China Quality Association, the total brand value of SOEs is estimated to have reached 8.6 trillion yuan in 2024, with an annual compound growth rate of over 15 percent in the past three years.

"Moving forward, we will guide enterprises to deeply implement brand strategies, continuously enhance the added value, quality and reputation of their brands, accelerate the creation of world-class brands that match the scale, status and development vision of the enterprises, and enhance core competitiveness," Zhang said.