This year’s statistics show that, for the first three quarters of this year, 67 out of the 306 or just over 21 percent of listed state-owned enterprises (SOEs) were in the red. The top 10 of these SOEs showed losses totaling 13.524 billion yuan ($US2.11 billion). Some expect that, in order to reduce their losses in the fourth quarter, these SOEs may sell their assets or obtain government subsidies.
The top loser for the first three quarters was Sinopec Oilfield Service Corporation, with a loss of 2 billion yuan (US$.31 billion), followed by SGIS Songshan Co. Ltd. which was 1.783 billion yuan (US$.28 billion) in the red.
As for the sectors of industry affected, nonferrous metal companies constituted one-third of the losers while coal mining companies accounted for about 20 percent of those in the red.
Most listed SOEs receive government subsidies. If such subsidies were excluded from the net profit, 74 SOEs (or about 24 percent) would be in the red for the first three quarters this year instead of 67.
Source: Beijing Youth Daily reprinted by People’s Daily, December 2, 2015 http://finance.people.com.cn/n/2015/1202/c1004-27879158.html