(Yicai Global) July 12 -- Central Enterprises produced and operate stably and maintained growth in the first half, and have racked up a new record high for both income and profits, said a senior officer of the State-owned Assets Supervision and Administration Commission (SASAC) which directly governs state-owned enterprises (SOEs) under supervision of the central government.

Reform, regulation, transformation and upgrading releases power and potential and supports the growth of benefits.

Central enterprises cumulatively realized business income of USD1.875 trillion (CNY12.5 trillion) in the first half, up an annual 16.8 percentage points -- rising for five straight months – and logged net profits of CNY535.3 billion, for a yearly increase of 18.6 percent yearly.

Central enterprises have maintained double-digit growth per various performance indexes each month this year and made profits of CN159.67 billion in June to set the highest record for a single-month, Shen said.

Among 102 central enterprises, 99 have gained profits in the first half year, and the performance growth of 40% has been over 20%, while the growth of 29 enterprises was over 20 percent, Shen noted. The deficits of three unprofitable enterprises were negligible.

Among main traditional industries from January to June, refined oil production and sales of central petroleum and petrochemical enterprises increased 0.8 percent and 2.1 percentage points annually, respectively. Enterprises' power generation volume rose 4.4 percent, electricity sales of power grid enterprises were up 6.7 percent, their raw coal output climbed 9.7 percent, whilecommercial coal sales added 16.6 percent. Turnover of aviation and water transport enterprises scaled up 9.9 percent and 5.3 percent, respectively, on a yearly basis.

Central enterprises resolved 5.95 million tons of excess iron and steel capacity to fulfill their quota for the whole year well in advance in the first half. They cleared 6.59 million tons of redundant coal capacity, and restructured 12 million tons, Shen said.

Profit sources of central enterprises varied, but their major business profit  best represenedt their core competitiveness and stability. The ratio of main business profits of central enterprises to total profits lifted 4.8 percentage points  in the first half over the previous year.

SASAC has worked hard in recent years to deleverage central enterprises, e.g. they have financed over CNY100 billion via initial public offerings or share allocations in the first half, Shen added. SASAC also supports enterprises in carrying out asset securitization services, and encourages debt-to-equity swaps. At present, 12 central enterprises have signed debt-to-equity agreements with banks.