Yu Weining, a statistician from the National Bureau of Statistics Industrial Department, explained that from January to April, the profits of industrial enterprises above the designated size showed stable recovery, demonstrating the strong resilience and shock-absorbing capacity of China’s industrial sector. However, it is important to note that uncertainties in the international environment persist, and constraints such as insufficient demand and declining prices remain. The foundation for steady recovery in industrial enterprise performance still requires further consolidation.
On Tuesday, May 27, data released by the National Bureau of Statistics showed that from January to April, profits of industrial enterprises above the designated size grew by 1.4%, accelerating by 0.6 percentage points compared to the January-March period, continuing the upward recovery trend. Across industries, 23 out of 41 major industrial sectors saw year-on-year profit growth, with nearly 60% of sectors experiencing expansion. In April alone, profits of industrial enterprises above the designated size increased by 3.0% year-on-year, up 0.4 percentage points from March. Yu Weining emphasized that overall, the stable recovery of industrial profits from January to April reflects the sector’s resilience. However, challenges such as international uncertainties and domestic demand constraints must be addressed to solidify the recovery. Moving forward, it is crucial to implement the decisions of the Party Central Committee and the State Council, promote the integration of technological and industrial innovation, optimize industrial structure, accelerate the transformation of traditional industries, and foster emerging industries to sustain the recovery of industrial enterprise performance. The data also revealed sector-specific trends: the computer, communication, and other electronic equipment manufacturing sector grew by 11.6%, while the automotive manufacturing sector declined by 5.1%. From January to April, state-owned enterprises reported total profits of 702.28 billion yuan, a decrease of 4.4%; joint-stock enterprises achieved profits of 1.56 trillion yuan, up 1.1%; foreign and-funded enterprises recorded profits of 542.92 billion yuan, rising 2.5%; and private enterprises saw profits of 570.68 billion yuan, an increase of 4.3%. By sector, mining profits fell by 26.8% to 287.5 billion yuan, manufacturing profits rose by 8.6% to 1.55 trillion yuan, and utilities (power, heat, gas, and water) grew by 4.4% to 274.58 billion yuan. Key industry performances included: agricultural and food processing (up 45.6%), non-ferrous metal smelting and processing (up 24.5%), electrical machinery and equipment manufacturing (up 15.4%), and specialized equipment manufacturing (up 13%).General equipment manufacturing grew by 11.7%, while computer, communication, and other electronic equipment manufacturing increased by 11.6%. The production and supply of electricity and heat rose by 5.6%, and the textile industry grew by 3.7%. However, non-metallic mineral products declined by 1.6%, chemical raw materials and chemical products manufacturing fell by 4.4%, and automobile manufacturing dropped by 5.1%. The extraction of petroleum and natural gas decreased by 6.9%, while coal mining and washing plummeted by 48.9%. The processing of petroleum, coal, and other fuels saw a year-on-year increase in losses, whereas the smelting and pressing of ferrous metals shifted from loss to profit.
Yu Weining, a statistician from the National Bureau of Statistics, interpreted the data: Industrial enterprise profits are growing faster. From January to April, profits of industrial enterprises above the designated size grew by 1.4%, accelerating by 0.6 percentage points compared to the January-March period, continuing the recovery trend. Among 41 major industrial sectors, 23 saw year-on-year profit growth, accounting for nearly 60%. In April, profits of industrial enterprises above the designated size increased by 3.0% year-on-year, up 0.4 percentage points from March. The equipment manufacturing sector played a leading role. With the deepening of industrial optimization and upgrading, the profitability of equipment manufacturing continued to improve. From January to April, profits in this sector grew by 11.2%, accelerating by 4.8 percentage points compared to the January-March period. It contributed 3.6 percentage points to the overall profit growth of industrial enterprises above the designated size, with its contribution increasing by 1. 6 percentage points, highlighting its leading role. Among the eight sub-sectors of equipment manufacturing, seven achieved double-digit profit growth, and six accelerated compared to the January-March period. Specifically, instruments and meters, electrical machinery, general equipment, and electronics saw profit growth of 22.0%, 15.4%, 11.7%, and 11.6%, respectively, accelerating by 6.7, 7.9, 2.2, and 8. 4 percentage points. High-tech manufacturing profits grew faster. From January to April, profits in this sector increased by 9.0%, accelerating by 5.5 percentage points compared to the January-March period, and outperforming the average growth rate of industrial enterprises above the designated size by 7.6 percentage points. As manufacturing moves toward higher-end production, sectors like biological pharmaceuticals and aircraft manufacturing saw profit growth of 24. 3% and 27.0%, respectively. The “AI+” initiative drove profit growth in semiconductor device manufacturing, electronic circuit manufacturing, and integrated circuit manufacturing by 105.1%, 43.1%, and 42.2%, respectively. Smart products facilitated digital and intelligent transformation, with profits in smart vehicle equipment, unmanned aerial vehicles, and wearable smart devices growing by 177%.4%, 167.9%, 80.9%. The effects of the “Two New” policies continue to manifest. From January to April, regional authorities and departments fully utilized ultra-long-term special treasury bond funds to expand the impact of these policies. Under the influence of large-scale equipment renewal initiatives, profits in the specialized equipment and general equipment industries grew by 13.2% and 11.7% year-on-year, respectively, collectively contributing 0.9 percentage points to the profit growth of industrial enterprises above designated size. Notably, sectors such as electronic and electrical machinery specialized equipment manufacturing (69.8% growth), general parts manufacturing (24.7%), and mining/metallurgy/construction equipment manufacturing (18.3%) saw rapid profit increases.
The expanded consumer goods trade-in policy significantly boosted profits in household appliance components (17.2%), kitchen appliance manufacturing (17.1%), and non-electric household goods manufacturing (15.1%). In April alone, industrial profits rose 3.0% year-on-year. From January to April, large-scale industrial enterprises achieved total revenues of 43.44 trillion yuan (+3.2%), with operating costs at 37.16 trillion yuan (+3.4%). The profit margin stood at 4.87%, down 0.09 percentage points year-on-year. By end-April, total assets reached 181.35 trillion yuan (+5.3%), liabilities 104.62 trillion yuan (+5.7%), and owner’s equity 76.72 trillion yuan (+4.7%), resulting in a 57.7% asset-liability ratio (+0.2pp). Accounts receivable grew 9.7% to 25.86 trillion yuan, while finished goods inventory increased 3.9% to 6.61 trillion yuan. Cost per 100 yuan of revenue rose 0.19 yuan to 85.54 yuan, whereas expenses decreased 0.20 yuan to 8.28 yuan. Key operational metrics: revenue per 100 yuan of assets declined to 72.5 yuan (-1.3 yuan YoY), per capita revenue rose to 1.782 million yuan (+59,000 yuan), inventory turnover days increased to 21.0 (+0.2 days), and average accounts receivable collection period extended to 70.3 days (+4.0 days). Risk Disclosure: Market risks exist; invest prudently. This analysis does not constitute personal investment advice nor account for individual financial circumstances.Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investment decisions based on this content are made at their own risk.
