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The State Grid Corp. of China (SGCC), the nation's leading power distributor, recorded 26.92 billion yuan (US$3.5 billion) in net profits last year, up 87 percent from 2005, a senior company official said on Monday.

 

Analysts believe the huge surge in profits was the result of the increasing demand of China's booming economy and the firm's monopoly status as a state-owned enterprise.

 

SGCC general manager Liu Zhenya said the company's sales revenue climbed 19.67 percent year-on-year to 852.9 billion yuan (US$109.3 billion).

 

Liu said the company sold 1,709.7 kilowatt-hours (kwh) of electricity in 2006, a year-on-year rise of 14.2 percent.

 

He said its electricity sales rose 53 percent from 2004 to 2006, while its net profits more than tripled during the period.

 

He added the company would invest 202.5 billion yuan (US$26 billion) on grid building this year.

 

(Xinhua News Agency January 16, 2007)