China 718 companies' 2000 results show 82.85-pct rise in investment income

SHANGHAI (AFX-ASIA) - The 718 China-listed companies which had reported their 2000 annual results by April 2 saw their combined income from investments in 2000 increase by 82.85 pct from a year earlier, the Guangzhou Daily reported.	    The report said this growth in income from investment was the main factor driving growth in corporate earnings last year, adding that much of the income growth came from investments via the stockmarket and from extraordinary gains via the sale of company stakes.	    Income from investment accounted for 13.39 pct of the 718 companies' combined net profit last year, up from 8.85 pct in 1999.	    The report said some listed companies derived the bulk of their earnings last year from income from investments, citing 20 companies as an example.	    These companies achieved a combined income of 4.26 bln yuan from investments last year, which accounted for 63.43 pct of their combined net profit, it said, adding that the 20 companies' income from investments in 1999 accounted for only 40.5 pct of their combined net profit.	    The companies' combined income from investments in 2000 grew by 123.8 pct from a year earlier, while their earnings from their main business operations grew by only 6.28 pct.	    Eight of the 20 companies had income from investment which was larger than their main business profits last year, while one of them, Shenzhen Shenxin Taifeng Group Co Ltd, had income from investment which was 5.24 times greater than its main business profit.	    Hainan Pearl River Enterprises Holdings Co Ltd, which has A- and B-share listings, earned income of 99.36 mln yuan from investment last year, while making a loss of 2.9 mln yuan on its main business operations.	    For the 20 companies, income from equity investments accounted for 47.63 pct of their total income from investments, it said, noting that Liaoning Chengda Co Ltd derived income of 127.8 mln yuan from its shareholder rights, and this accounted for 69.27 pct of the company's profit last year.	    The report said income from investments via the stockmarket was a key area for growth in income from investments last year, noting that 11 of the 20 companies invested via the stockmarket last year, earning a combined 335.2 mln yuan, which accounted for 7.87 pct of their total income from investments.	    Shanghai Jinling Co Ltd earned 92.9 mln yuan via investment on the stockmarket last year, and this accounted for 41.89 pct of the company's total profit.	    Stake sales were also a key cause of the increase in income from investments, it said, noting that five of the 20 companies sold stakes last year.	    For example, Hawson (Fujian) Co Ltd made a loss of 10.3 mln yuan on its main business last year, but earned 55.6 mln yuan via the sale of stakes in other companies.	    The report added that 10 of the 20 companies engaged in investment in treasury bonds, earning 569.9 mln yuan via these investments, which accounted for 13.39 pct of their total income from investments last year.    

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