The profits of China's State-owned Enterprises (SOE) declined 12 percent from August, the Ministry of Finance (MOF) reported on Monday. Though the annualised rate of decline in profits at SOEs is starting to slow.

MOF statistics revealed that SOEs, excluding those doing business in the financial sector, earned 936.6 billion yuan in the first nine months of 2009, a drop of 17.6 percent from the amount registered in the same period in 2008.

The Ministry emphasized that last month's figures are an improvement on the 19.6 percent decline registered between January and August and the 22.8 percent drop in the first seven months of the year. 

Central Government controlled enterprises also known as Central-owned Enterprises (COE) posted total profits of 679.7 billion yuan in the first three fiscal quarters, down 13 percent year-on-year. Local government backed enterprises dropped significantly, posting profits of 256.9 billion yuan, a decline of 27.8 percent. 

Automotive, petrochemical, and property firms saw accerating profit growth, while steel, nonferrous metals, and electronics have seen a slowdown in the decline of profits. The coal sector faced the toughest challenge with sharp declines in revenue.

The ministry also included details about the amount of tax contributed to state coffere by SOEs in the report. In the first nine months, SOEs contributed nearly 1.44 trillion yuan (210.8 billion US dollars) in tax, up 3.7% from a year earlier.

Links and Sources
Ministry of Finance: Report (Chinese)
Forbes: China Jan-Sept state firm profits down 17.6 pct y/y