BEIJING, July 24 (Reuters) - China's industrial firms made profits of 363.8 billion yuan ($43.95 billion) in the first half of 2003, up 56.7 percent from a year earlier, the State Statistical Bureau said on Thursday.
The growth slowed from a 62.8 percent jump in the first five months of this year.
Of 39 industrial sectors surveyed in the first half of this year, 37 of them reported rising earnings from a year earlier, the bureau said in a statement.
Among the five most profitable sectors, earnings of crude oil and natural gas producers rose by 32.2 billion yuan in the first half from a year earlier, while those of the transport sector, including vehicles, rose by 20.2 billion yuan, it said.
China's industrial profits grew 20.6 percent in 2002.
Analysts say the profit growth is largely underpinned by China's economic growth, which was a healthy 8.2 percent in the first half of the year, despite the impact of SARS.
State-owned industrial enterprises made profits of 186 billion yuan in the first six months of this year, up 77.4 percent year on year, the bureau said.
Many analysts are sceptical of the figures, saying state sector profits are driven by big monopolies which still benefit from government protection, while several smaller state firms are teetering on the verge of bankruptcy.
The government claimed victory in pulling the state sector out of the red in 2000, but conceded later only a third of the improved profitability was from greater efficiency, with the rest coming from state support and overall economic growth.
($1=8.277 Yuan)