Profits of central state-owned enterprises plunged by more than half in the first quarter as demand evaporated and supply chains were disrupted by the Covid-19 pandemic, China’s State Council announced in a press conference Monday, reported Caixin.
State-owned enterprises (SOEs) administered by China’s national government generated 58.8% less profit than they did in the first quarter of last year, making RMB 130.4 billion ($18.43 billion) in total with 26 of them suffering net losses, said Peng Huagang, spokesperson for the State-owned Assets Supervision and Administration Commission (SASAC). Companies under SASAC in the oil drilling, refining, and airline sectors ran at an overall loss.
Centrally administered SOEs’ investment in fixed assets fell 4.5% year-on-year to RMB 364.76 billion, said Peng. Energy companies, however, invested more than others, with central SOEs in the oil and electricity sectors posting 12.4% and 2% year-on-year fixed-asset investment growth respectively.