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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (5212)	7/26/2005 7:33:18 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

China saw sharp rise of enterprise loss in first half of this year www.chinaview.cn 2005-07-26 23:32:53 BEIJING, July 26 (Xinhuanet) -- China's losing enterprises reported a loss volume of 107.5 billion yuan (13.3 billion US dollars) in the first six months of 2005, said an official with the State Development and Reform Commission (SDRC) Tuesday. The volume is 59.3 percent higher over the same period of 2004,and the growth is 57.8 percentage points higher year on year, the highest since 1999, said Zhu Hongren, deputy director general of the Bureau of Economic Operations, SDRC. Zhu said at the press conference on economic operation of the first six months of 2005 that China's industrial sector maintains a good development trend, but some new problems have emerged. The all-industry profits growth situation which continued for two years was broken with profits differentiated in various industries, acknowledged Zhu. According to him, the coal, non-ferrous, metallurgy and petroleum refining and chemical industries reported the best profits growth, whose year-on-year growth is 85.6, 54.5, 39.8 and 37.2 percent respectively. The total profits of the four industries are 300.5 billion yuan(37 billion US dollars), covering 48 percent of the profit volume of the industrial sector. And the newly increased profits account for 89.2 percent of the total added industrial profits. Textile, pharmaceutical, tobacco and light industries reported a profits growth of 28.7 percent, 22.3 percent, 20.8 percent and 15.6 percent, respectively. With a total profit of 149.8 billion yuan (18.5 billion US dollars), the four industries saw their profits account for 23.9 percent of the industrial profits volume of the country. The profits of building materials, machinery, electronics and electricity industries dropped by 22.1 percent, 7.6 percent, 5.5 percent and 4.4 percent respectively year on year, with a total profits reduction of 14.7 billion yuan (1.8 billion US dollars). The auto industry saw a profit reduction volume of 20.6 billionyuan (2.54 billion US dollars) with a decrease of 48.8 percent, a major factor attributing to the profits reduction in the machineryindustry. Losing enterprises in the petroleum refining and chemical, electronics, building materials and electricity industries saw sharp loss rise, reporting a year-on-year increase of 3.3 times, 76.6 percent, 66.1 percent and 62.2 percent respectively. The total increased loss of the four industries is 28.9 billionyuan (3.56 billion US dollars), accounting for 72.4 percent of thetotal increased industrial loss. According to Zhu, price rising of raw materials, fuel and powerbeing higher than that of refined product output, production capacity growing more rapidly than market demands of some industries and fluctuation of international demands could be blamed for the slowing industrial profits growth. In the latter half of the year, when the macro-economic controlmoves begin to take effect, the national economy will continue itsstable rapid growth trend. And the pressure on cost will be relieved as the rising trend of raw materials and fuel is expectedto slow. On the other hand, factors affecting industrial enterprise profits will continue to take effect, said Zhu. Considering various factors, China's industrial economic profits are changing from the high-speed growth phase to a phase characterized by stable growth. Although some industries may see dropping profits, the yearly industrial profits are expected to grow, he said. Enditem news.xinhuanet.com