Central government-controlled enterprises' combined profits registered a hefty growth of 22.1 percent year-on-year in the first five months, as supply-side structural reform continues to advance and industrial upgrading fuels innovation in the economy.

The State-owned Assets Supervision and Administration Commission said in an online statement that the solid expansion reflects the stabilization of China's economy. It attributed the growth to these companies' strong supply capabilities, and substantial reductions in their cost and management expenses.

Central government-controlled enterprises give full play to their own advantages, ramp up efforts to expand their market share and increase the added value of products, with a goal to further enhance profitability and improve shareholder returns, SASAC said in the statement.

Between January and May, the total profits of central government-controlled enterprises climbed by 22.1 percent year-on-year to 685.94 billion yuan ($105.96 billion), according to data from SASAC. In May alone, the profits exceeded 155.19 billion yuan, a record over the same period last year.

Data show the newly emerging industries maintained fast development. In the first five months, revenue of emerging industries like information and communication technology accounted for more than 50 percent of the total of central State-owned enterprises. The figure was an increase of 2.8 percentage points from the same period last year.

China's central authorities have been stepping up efforts to deepen SOE reform. In one example, the mixed ownership system was introduced to enable the companies to shore up their earnings. The reform covers key industries such as electricity, oil and gas, railway, civil aviation and the military-industrial sectors.

"SOE reforms could help boost the operational efficiency of companies and improve their competitiveness, thus bolstering China's long-term march toward high quality growth", said Liang Jun, a researcher at the Guangdong Academy of Social Sciences. "The continuing efforts will clear obstacles and help eligible enterprises eliminate institutional barriers."

Li Jin, chief researcher at the China Enterprise Research Institute, agreed. Thanks to the deepening reforms, SOEs will take on a fresh look with new achievements, he said.