Two Chinese state giants outstrip profits of top 500 firms

The net profits of just two of China's state owned enterprises, China Mobile and PetroChina, have outstripped the combined net profits of the country's top 500 private companies, a local media reported yesterday.

The China Business News said that according to a survey, the combined net profits at China Mobile and PetroChina were more than 218 billion yuan ($32 billion) in 2009, with China Mobile posting net profits of over $16.9 billion and PetroChina $15.2 billion.

While compared to China's top 500 private companies that made combined net profits of $31.9 billion in 2009, soft drinks maker Hangzhou Wahaha Group Co, was China's most profitable privately-owned company with a net profit of $1.28 billion.

In terms of revenue, steel maker Shagang Group was the largest private sector company posting $21.4 billion in 2009, followed by Suning Appliance Co's with $17.1 billion and Legend Holdings, the parent company of PC maker Lenovo with $15.6 billion.

The report said that the growth of private sector companies was faster than all state-run companies' average.

Among the top 500 top private sector companies, 67 were from construction, 63 in smelting and metallurgy and 51 in retail.
A record 81 per cent of the top 500 are based in the coastal provinces of China.