(Yicai Global) Jan. 18 -- China's centrally owned state enterprises pocketed a record CNY1.7 trillion (USD251 billion) in gross profit last year.

The figure was up 16.7 percent from 2017, while net profit gained 15.7 percent to CNY1.2 trillion, according to data published yesterday by the State-owned Assets Supervision and Administration, the agency under China's cabinet that owns the companies. Net profit attributable to the owner was CNY610 billion (USD90.1 billion), up 17.6 percent.

The firms earned combined operational revenue of CNY29.1 trillion, 10.1 percent more than a year earlier, SASAC Secretary General Peng Huagang said at a press conference held the same day. Their costs also grew 0.4 percentage point slower than revenue, which enhanced profitability. The proportion of funds held in accounts receivable and inventory compared with current assets also fell 0.4 point from a year earlier, while accounts receivable and inventory grew 3.4 points slower than revenue, Peng said.

They also managed to cut their debts considerably, he added, saying the average asset-liability ratio was 65.7 at the end of 2018, down 0.6 point from earlier in the year. Some 50 companies reduced their debt ratio by more than 1 point. The average interest-bearing debt ratio was 39.4 percent, while interest-bearing debt expanded 1.5 points slower than in 2017.

Fixed asset investment also grew solidly, with the companies pumping CNY2.5 trillion into fixed assets last year, 4.9 percent more than 2017, Peng continued.

The revenue gains also led to the enterprises paying much more in taxes, he said, adding that they coughed up CNY2.2 trillion between them -- 5.7 percent more than the year prior.

China's big three telecoms operators, China Telecom, China Unicom and China Mobile, were able to offer faster network speeds for lower rates, cutting fees by CNY120 billion. State Grid and China Southern Power Grid brought in price cuts and power generation firms, like China Huaneng Group and China Huadian, increased market transactions and cut total power consumption costs by more than CNY160 billion.

Some 42 counties eliminated poverty with the help of central enterprises last year, with industrial investment funds in poverty-stricken areas flooding cash into 63 projects worth CNY12.9 billion.

Editor: James Boynton