CHINA'S STATE-OWNED COMPANIES' PROFITS FALL IN 2004

The profits of China's 23 key state-owned pharmaceutical enterprises fell in the first 11 months of the year due to a large increase in production costs coupled with a market-driven decline in the prices of some medicines.

From January through November 2004, the enterprises realized profits of 3.8bn yuan (US$459 mn), down 18.1% year-on-year and 1.1% larger than that of the first three quarters of 2004. Three enterprises were running in the red, and the loss reached 570 million yuan, which was 410 million yuan more than the year-earlier period.

The enterprises generated 49.47 billion yuan of gross industrial output value in the period, rising 1.1% year-on-year; operation business revenue of 100.46 billion yuan, up 14.5%, 0.2% lower than in the first three quarters. Their operation business costs amounted to 80.57 billion yuan, growing 21% year-on-year, 1.3% higher than in the first three quarters and 6.5% higher than the growth of operation business revenue.