The National Audit Office released the 2011 financial audit report for 10 State-owned enterprises supervised by the State-owned Assets Supervision and Administration Commission on Friday.

The SOEs audited include China Huaneng Group, one of the country's largest electric utility companies, China Guodian Corporation, a leading power producer, and China National Aviation Holding Company, the country's largest air transportation and services provider.

"The Companies have generally realized promotion of the scale and quality of their assets and operating efficiency. However, some have been found to have irregular financial practices and to have made improper investments and operating decisions," said Wei Qiang, head of the enterprises audit department at the National Audit Office.

"Individual projects suffered huge losses because they were improperly executed. Not enough attention has been given to the internal management of subsidiaries and disciplinary violations appear to be a prominent problem," Wei added.