China’s industrial enterprises above designated size experienced a decline in profits from January to May 2023, according to the latest data released by the National Bureau of Statistics. The total profits during this period amounted to 2,668.89 billion yuan, representing an 18.8% year-on-year decrease. However, the decline narrowed by 1.8 percentage points compared to the January to April period.
Among the industrial enterprises above designated size, state-holding enterprises recorded a total profit of 962.51 billion yuan, down 17.7% year-on-year. Share-holding enterprises saw their total profit decrease by 20.4% to 1,957.81 billion yuan. Enterprises funded by foreign investors and investors from Hong Kong, Macao, and Taiwan experienced a 13.6% decline in total profit, amounting to 626.75 billion yuan. Private enterprises also faced challenges, with a 21.3% decrease in total profit, reaching 683.78 billion yuan.
The mining industry’s total profit for the period was 591.93 billion yuan, showing a 16.2% decrease year-on-year. The manufacturing industry’s total profit amounted to 1,829.68 billion yuan, down 23.7%. On the other hand, the production and supply of electricity, heat power, gas, and water witnessed a 34.8% increase in total profit, reaching 247.28 billion yuan.
Analyzing different industrial categories, 14 out of 41 industries saw a year-on-year increase in total profits, while 24 industries experienced a decline. Two industries even shifted from profit to loss. Notable increases were seen in the production and supply of electricity and heat power (45.9%), the manufacture of electrical machinery and apparatus (29.2%), and the manufacture of automobiles (24.3%). However, industries such as the manufacture of raw chemical materials and chemical products (-52.4%), the manufacture of computers, communication equipment, and other electronic equipment (-49.2%), and processing of petroleum, coal, and other fuel (-92.8%) faced significant declines.
In terms of financial indicators, industrial enterprises above designated size achieved a slight increase of 0.1% in business revenue, totaling 51.39 trillion yuan. Operating costs increased by 1.2% to 43.83 trillion yuan. The profit margin of business revenue experienced a 1.21 percentage point year-on-year decrease, standing at 5.19%.
As of the end of May, the assets of industrial enterprises above designated size reached 159.24 trillion yuan, up 6.8% year-on-year. Total liabilities amounted to 91.41 trillion yuan, representing a 7.2% increase. Owner’s equity reached 67.83 trillion yuan, up 6.2%. The asset-liability ratio increased by 0.2 percentage points to 57.4%.
However, challenges remain, as accounts receivable increased by 11.7% to 22.37 trillion yuan, and inventory of finished products rose by 3.2% to 6.14 trillion yuan.
Despite these difficulties, the Chinese government continues to implement measures to support industrial enterprises and stimulate economic growth.
http://www.stats.gov.cn/english/PressRelease/202306/t20230629_1940928.html