Government Discusses Operations of Profitable State-Owned Companies www.montsame.mn
Operations of state-owned enterprises including Erdenes Tavan Tolgoi JSC, Erdenet Plant SOE, Mongolrostsvetmet SOE, MIAT SOJSC, and State Bank JSC which were profitable with the performance of 2024 and the financial statements for the year-end audit of 2023 were presented to Cabinet session on January 2, 2025.
According to the audited financial statements for the year-end of 2023, these five companies and enterprises in the mining, civil aviation, banking, and finance sectors earned a total of MNT 15.3 trillion in revenue, incurred expenses of MNT 9.2 trillion, generating a net profit of MNT 4.5 trillion.
A total of 122 state-owned and state-involved companies and enterprises operate in the energy, road, transportation, mining, banking, information, communications, food, agriculture, light industry, construction and urban development, environment, tourism, sports, culture and arts, and foreign relations sectors, employing about 60,000 people. According to the audited financial reports for 2023, these companies and enterprises had total assets of MNT 64.2 trillion and generated a net profit of MNT 4.9 trillion, earning a combined income of MNT 23.6 trillion and incurring expenses of MNT 16.9 trillion.
Despite the combined net profit of almost MNT 5 trillion, MNT 4.75 trillion of the total net profit was generated by five companies and enterprises, including “Erdenes Tavan Tolgoi,” “Erdenet Plant,” “Erdenes Mongol,” “Agricultural Corporation,” and “State Bank” while 51 companies and enterprises generated the remaining MNT 380 billion. On the other hand, 43 companies and enterprises operated at a loss of MNT 150 billion.
The Government has initiated legal reforms to improve the operations of state-owned companies and enterprises. For example, in connection with the adoption of the 2025 Budget Law of Mongolia, the Law on State and Local Property includes specific regulations to ensure that state-owned companies and enterprises operate transparently, openly, productively, and effectively. Moreover, the initial draft law on state-owned and locally owned companies has been developed.
Published Date:2025-01-03