DSPC172 57310001-ML On December 27, the National Bureau of Statistics released the profit data of industrial enterprises above designated size in 2023 from January to November. Yu Weining, statistigrapher of the Industrial Department of the National Bureau of Statistics, said that the profits of industrial enterprises in January to November accelerated the recovery. In November, as the effects of macro policies continued to emerge, domestic demand gradually recovered, industrial production picked up faster, and the efficiency of industrial enterprises continued to improve, mainly showing the following characteristics:

The profit growth of industrial enterprises accelerated significantly. From January to November, the profits of industrial enterprises above designated size in the country fell 4.4% year on year, the decline narrowed by 3.4 percentage points from January to October, continuing the trend of narrowing month by month since March, and the profit decline narrowed to less than 5% for the first time in the year. From the perspective of the month, the profits DSPC172 57310001-ML of industrial enterprises accelerated the recovery, coupled with the relatively concentrated investment income into the account, the profits of industrial enterprises in November increased by 29.5% year-on-year, the growth rate accelerated significantly compared with October, and profits have achieved positive growth for four consecutive months.

The revenue of industrial enterprises has rebounded for five consecutive months, which has accelerated the recovery of profits. Industrial production picked up at a faster pace, and the level of coordination between production and sales increased year-on-year, promoting continued improvement in corporate revenue. From January to November, the operating income of industrial enterprises increased by 1.0% year-on-year, a growth rate of 0.7 percentage points higher than that of January to October. Among them, the operating income of industrial enterprises in November increased by 6.1% year on year, the growth rate accelerated by 3.6 percentage points compared with October, and it has rebounded for five consecutive months, which has strongly driven the growth of corporate profits.

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Nearly 60% of the industry profits increased, 80% of the industry profit growth picked up. From January to November, among the 41 industrial categories, 24 industries saw year-on-year profit growth, with a growth rate of 58.5%, 14.6 percentage points higher than that of January to October. The profit growth rate of 33 industries accelerated or narrowed from January to October, from a decline to an increase, and the profit recovery surface was 80.5%, an increase of 7.3 percentage points from January to October.

The profit growth of the equipment manufacturing industry accelerated and its driving role strengthened. With the deepening of the upgrading of the industrial chain, the development momentum of the equipment manufacturing industry has accumulated and grown, and profits have continued to grow. From January to November, the profit of the equipment manufacturing industry increased by 2.8% year-on-year, the growth rate was DSPC172 57310001-ML 1.7 percentage points faster than that in January to October, and the industrial profit on the gauge increased by 0.9 percentage points, an increase of 0.6 percentage points from January to October. Among them, the profit of the equipment manufacturing industry in November changed from a decline to an increase, with a growth rate of 16.2%. From January to November, the automobile industry was driven by factors such as accelerated production and sales and rapid export growth, and its profit increased by 2.9%, the growth rate was 2.4 percentage points higher than that of January to October. The electronics industry was driven by factors such as the sale of new products and the increase in orders, and the cumulative profit decline narrowed by 7.0 percentage points, and the profit in the month changed from a decline to an increase, which was significantly improved; The cumulative profits of railway, shipping, aerospace and transportation equipment and electrical machinery industries increased by 22.3% and 17.2% respectively, continuing the rapid growth trend since the beginning of the year.

The profit decline of the raw material industry has narrowed significantly, contributing more to the improvement of industrial profits. From January to November, the year-on-year decline in profits of the raw material manufacturing industry narrowed by 8.5 percentage points compared with January to October, driving the decline in industrial profits on the regulation narrowed by 1.8 percentage points, which is the largest contribution to the industry sector. From January to November, the steel industry was affected by the combination of downstream demand recovery and low base factors, and profits increased by 2.76 times year-on-year; The profits of the non-ferrous industries increased by 21.8%, with profits turning from a decline to an increase. The profit decline of the chemical industry narrowed by 4.3 percentage points from January to October, with profit growth of 26.7% in November.

Electrical water industry profit growth continued to accelerate. From January to November, the profits of the electricity, heat, gas and water production and supply industry increased by 47.3% year-on-year, 7.3 percentage points faster than that of January to October. Among them, driven by the macroeconomic continued to improve, meet the peak winter power supply and other factors, the growth of electricity generation and sales accelerated significantly, superimposed fuel prices fell, cost reduction and other factors, power and heat production and supply industry profits increased by 58.2%.

The profits of different types of enterprises improved, and the profits of private enterprises increased from a decline. The policy of helping enterprises to warm up enterprises continued to work effectively, and the overall efficiency of business entities improved. From January to November, among the scheduled industrial enterprises, the year-on-year profit decline of state-owned holding, foreign investors and enterprises invested by Hong Kong, Macao and Taiwan narrowed by 3.7 and 1.5 percentage points respectively compared with January to October; The profits of private enterprises increased by 1.6%, the first time this year that the profits of private enterprises changed from a decline to an increase. The profit decline of large, medium and small enterprises narrowed by 3.0, 2.8 and 4.7 percentage points respectively.

The unit cost of enterprises has continued to fall, and the profit margin has improved significantly. Production and sales of enterprises have accelerated, and the effect of scale has been enhanced, helping enterprises to reduce unit costs and improve profit margins. In November, the cost per 100 yuan of operating income of industrial enterprises was 83.92 yuan, a year-on-year decrease of 0.62 yuan, and a year-on-year decrease for five consecutive months. The operating income margin was 7.15%, an increase of 1.29 percentage points year-on-year, and the year-on-year improvement for four consecutive months.

The capital turnover of enterprises has improved. The improvement of enterprises’ production and marketing connection and the continuous improvement of revenue capacity will help speed up inventory turnover and fund repatriation. At the end of November, the turnover days of finished goods inventories of industrial enterprises were reduced by 0.1 days compared with the end of October, and the average collection period of accounts receivable was reduced by 0.2 days compared with the end of October.

Overall, from January to November, the profits of industrial enterprises showed a accelerated recovery trend. In the next stage, we must thoroughly implement the spirit of the Central Economic Work Conference, focus on expanding domestic demand, stimulate the vitality of various business entities, vigorously promote new industrialization, constantly strengthen the internal impetus, continue to consolidate the foundation of industrial economic recovery, and further promote the recovery of industrial economy.