Profit Structure of Industrial Enterprises Continued to Improve in the First 10 Months

On November 27, the National Bureau of Statistics in China released data showing that from January to October, the operating income of industrial enterprises above designated size increased by 7.6% year-on-year, and the profits fell by 3% annually. However, the profits of the equipment manufacturing industry rebounded significantly, and the profits of the electrical machinery industry increased significantly. Profit structure of industrial enterprises continued to improve.

"Overall, the profits of industrial enterprises have declined, the structure continues to improve, and the profits of some mid- and downstream industries have rebounded significantly. However, it must also be noted that the recent domestic epidemics have spread frequently. The risk of a global economic recession has intensified, and industrial enterprises are facing greater pressure to recover their profits." Zhu Hong, senior statistician of the Industry Department from Chinese Bureau of Statistics, said that the next step is to promote the full implementation of a package of economic stabilization policies and subsequent measures to ensure the stability and smoothness of the industrial chain and supply chain. It will accelerate the release of consumer demand, implement the small-scale benefit enterprise bailout policy, and promote The industrial economy continued to recover steadily.

In terms of three major categories, from January to October, the mining industry realized a total profit of 1,394.3 billion RMB, an annual increase of 60.4%; the manufacturing industry realized a total profit of 5,173.93 billion RMB, a year-on-year decrease of 13.4%. Electricity, heat, gas and water production and supply industry achieved a total profit of 408.59 billion RMB, with a year-on-year increase of 15.5%.

It is worth mentioning that the profits of the equipment manufacturing industry have rebounded significantly. The data shows that from January to October, the profit of the equipment manufacturing industry increased by 3.2% on yearly basis, and the growth rate was 2.6 percentage points faster than that from January to September.

Looking ahead, the prices of energy commodities will fluctuate to a certain extent in the short term, but the overall domestic demand is weak which drags down the prices of industrial products. In addition, the input costs of some manufacturing industries remain high, and the profits of industrial enterprises continue to be under pressure.