Abstract

The state-owned and state-holding industrial enterprises made a total profit of 5846.2 billion yuan from 2001 to 2009, with the total book profit of 2009 increased by 3.89 times over that of 2001. The total net profit amounted to 4051.7 billion yuan, with the total book net profit of 2009 increased by 4.37 times over that of 2001.

The total profit of central enterprises reached 1341.5 billion yuan in 2010, accounting for 67.5% of the total profit of state-owned enterprises. The profits of ten enterprises occupied 70% of all net profits made by central enterprises in 2009, namely, China National Petroleum Corporation, China Mobile Limited, China Telecommunications Corporation, China United Network Communications Group Co., Ltd., China Petroleum & Chemical Corporation. Hereinto, China National Petroleum Corporation and China Mobile Limited made a profit of 128.56 billion yuan and 148.47 billion yuan respectively, the total of which exceeds one third of the total profit made by central enterprises. It can be seen that profits of central enterprises were mainly realized by monopoly enterprises.

From 2001 to 2009, the average return on equity of state-owned and state-holding industrial enterprises was 8.16%, while that of industrial enterprises above designated size was 12.9%. 2009，that of the former is 8.18%, while that of the latter is 15.59%. Therefore, the nominal performance of state-owned and state-holding enterprises was not high enough.

Even the performance of state-owned enterprises is not their real performance, but one after enjoying various preferential policies and under such a management environment which is unfair to non-stated-owned enterprises. The unfairness is mainly embodied in fiscal subsidy by the government, financing cost, and land and resource rent, and so on.

If we compute the industrial land rent at 3% of the price of the industrial land, state-owned and state-holding industrial enterprises should pay a total rent of 3931.2 billion yuan from 2001 to 2009, accounting for 67.2% of the total nominal profits made by state-owned and state-holding enterprises. Only in 2008, the state-owned enterprises should pay 1210.4 billion yuan rent for the land if we add the land for commercial and service use into the whole amount.

The real interest rate for state-owned and state-holding enterprises is 1.6%, while that market interest rate is 4.68%. If we recount the interests which should paid by state-owned and state-holding industrial enterprises with the market interest rate, the total interest difference will be 2296.7 billion yuan from 2001 to 2008, accounting for 47% of the total nominal profits made by state-owned and state-holding enterprises.

The resource tax of oil is average only 26 yuan per ton. The resource compensation fee is merely 1% of sales revenue. Therefore, the real royalty of oil in China is less than 2% of its price, far below the ratio of 12.5% which is imposed on the capital venture in China. Even collection proportion for special oil gain levy below 40 dollars is too low to fully realize interests of resource owners. From 2001 to 2009, the state-owned and state-holding industrial enterprises lack to pay 243.7 billion yuan of the oil royalty. Together with those of coal and natural gas, the state-owned and state-holding industrial enterprises lack to pay 497.7 billion yuan of royalty of resources.