China's central state-owned enterprises' (SOEs) annual profit in 2010 is estimated to exceed 1 trillion yuan (150 billion US dollars), Xinhua New Agency reports.
China's SOEs had acquired a net profit of more than 800 billion yuan in the first 11 months of 2010, experiencing an increase of 50.1 percent year-on-year, according to statistics from the State-owned Assets Supervision and Administration Commission (SASAC).
Economic Value Added (EVA) as an important part of the windfall, is expected to multiply to around 300 billion yuan this year, said Huang Shuhe, deputy director of the SASAC.
The increased profits are supported by the introduction of an appraisal system on the EVA of central SOEs, observed Wang Yong, director of the SASAC.
Wang said the appraisal system has helped encourage the SOE executives to improve their work and promote the level of management in central SOEs.
The SASAC announced in January to use the EVA measure to assess the performance of SOEs affiliated to the central government this year.
The EVA represents the net income of enterprises minus cost of capital and is widely used to assess the efficiency of the capital used in creating values.
