(Yicai) Jan. 25 -- The 97 companies owned by China’s central government had combined operating revenue of CNY39.8 trillion (USD5.6 trillion) last year.

Net profit at the central SOEs reached CNY1.1 trillion (USD155.3 billion) on a total profit of CNY2.6 trillion in 2023, data from the State-owned Assets Supervision and Administration Commission showed yesterday.

The state assets manager and the central SOEs have made positive progress in developing strategic emerging and future industries since last year, said SASAC Secretary-General Zhuang Shuxin.

Their fixed asset investments rose 11.4 percent year on year to CNY5.09 trillion, while those in strategic emerging industries spending 32 percent more at CNY2.18 trillion.

Central SOEs have launched key projects in photovoltaic hydrogen production, carbon fiber manufacturing, and automotive chips and set up new ventures in the laser manufacturing, quantum communications, and satellite internet fields. They have also promoted restructuring and integration in the areas of electronic technologies, new energy, environmental protection, and smart vehicles.

Strategic emerging and future industries must be the main direction for investment and development among the central SOEs this year, Liu Xingguo, a special senior researcher at the China Enterprise Confederation, told Yicai.

Strategic emerging industries focus on developing new materials, energy, equipment, and biotechnology, Li noted, while future industries focus on developing information technology, brain-inspired smart technology, new-generation transport, and other sectors.

The SASAC will continue to promote the steady improvement of central SOEs' business performance this year, Deputy Director Yuan Ye said at a press conference yesterday. 

It will improve the year-on-year return on equity, overall labor productivity, and operating cash flow ratio and continuously enhance investment in research and development investment and the efficiency of technological output, Yuan noted.

The Central Economic Work Conference, the top-level meeting that sets China’s annual economic agenda, pointed out in December that the reform of central SOEs should be carried out in-depth to enhance their core functions and competitiveness.

Editor: Martin Kadiev