China Trade Information

China National Petroleum Corp. (CNPC), the nation’s top oil and gas producer, and two other state-run companies have understated profits by over one billion dollars, state media reported.

CNPC, power generator China Huadian Corp. and Harbin Power Equipment Company underreported their profits by 7.03 billion yuan (US$1.03 billion), the Xinhua news agency said late Wednesday, citing chief auditor Liu Jiayi.

National Audit Office head Liu did not specify the period in which the misstatement took place or provide a breakdown for how much each firm had understated profits.

The report said the audit office also found other problems in the operations of the three companies, which are directly controlled by the central government, including sloppy management of overseas investment projects. Embezzlement and illicit use of bank loans for stock investments were also listed as major problems.

Tags: CNPC, Petroleum, power

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