IC693MDL742 China new net, September 27 Zhu Hong, senior statistician of the industrial department of the National Bureau of Statistics, explained that in August, the profits of industrial enterprises above designated size across the country increased by 19.1% year-on-year, continuing a stable growth trend. From January to August, the cumulative profit fell by 4.4% year-on-year, which was 3.7 percentage points narrower than that in January to July. In August, the stable recovery of industrial enterprise profits was further consolidated, but it should be seen that the growth rate of operating income and profit of industrial enterprises from January to August has not yet turned positive, the growth rate of accounts receivable continues to rise, and the complex and volatile environment at home and abroad, the sustained and stable growth of corporate profits is still facing certain pressure.

Data picture: factory floor. Photo by Zhang Lang, China News Service

IC693MDL742 Zhu Hong said that the profit growth in August showed the following characteristics: First, the stable recovery of production and demand. From the production point of view, in August, the industrial added value above designated size increased by 5.6% year-on-year, the growth rate was 0.8 percentage points higher than that in July. In terms of demand, the cumulative decline in fixed asset investment narrowed further and basically recovered to the level of the same period last year. The growth rate of retail sales of consumer goods turned positive for the first time this year. The continuous improvement in production and demand has promoted the sales growth of industrial enterprises. In August, the industrial producer price index continued to rise, and the operating income of industrial enterprises increased by 4.9% year-on-year, 1.6 percentage points higher than that in July. The expansion of enterprise production scale strongly supported the steady growth of profits.

Second, unit costs continued to decline, and corporate profits improved. A package of tax cuts and fee reductions and other relief policies continued to work, in August, the cost of each 100 yuan of operating income of industrial enterprises above designated size decreased by 0.47 yuan year-on-year, and the cost of each 100 yuan of operating income decreased by 0.02 yuan year-on-year. While the operating pressure of enterprises has been continuously alleviated, the profit situation of enterprises has improved significantly. In August, the operating income profit margin of industrial enterprises above designated size increased by 0.8 percentage points year-on-year, which has been increased year-on-year for four consecutive months.

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IC693MDL742 Third, the profits of the mining industry have been significantly repaired, and the profit growth of the raw material manufacturing industry has accelerated. In August, the supply and demand cycle within the industry was improved, and the continuous recovery of the downstream industry strengthened the driving role of the upstream industry. Among them, benefiting from the recovery of demand and the continued recovery of international commodity prices such as crude oil and iron ore, mining industry profits have been significantly repaired, and raw material manufacturing profits have accelerated. Mining profits fell 11.9 per cent year on year in August, a sharp 28.7 percentage points narrower than in July. The profit of the raw material manufacturing industry increased by 32.5%, the growth rate was 17.8 percentage points higher than that in July, and the profit of industrial enterprises above designated size increased by 6.7 percentage points. From the perspective of specific industries, the profit growth of oil processing, steel and other industries has accelerated under the influence of improving downstream demand, rising product prices, and low base factors in the same period. In August, the profit of the petroleum processing industry increased by 148.2% year-on-year, the growth rate was 101.6 percentage points faster than that of July, and the cumulative profit achieved profit for the first time in this year; The profit of the steel industry increased by 68.3 percent, an acceleration of 46.2 percentage points.

IC693MDL742 Fourth, the equipment manufacturing industry maintained rapid profit growth. In August, the profit of the equipment manufacturing industry increased by 23.1% year-on-year, driving the profit of all industrial enterprises above designated size up by 8.1 percentage points. Among them, the profit of the general equipment manufacturing industry increased by 37.0% year-on-year, and the electrical machinery and equipment manufacturing industry increased by 13.3%, the growth rate was 11.0 and 5.2 percentage points higher than that of July, respectively. Special equipment, electronics, instrumentation and other three industries continued double-digit profit growth; Affected by the decline in production growth and the decrease in investment income, the growth rate of the automobile manufacturing industry has declined from July, but it still maintains a rapid growth of 55.8%, which is significantly higher than the industrial average.

Fifth, the amount of enterprise losses decreased, and the loss surface narrowed month by month. With the further improvement of the operating conditions of enterprises, the number of loss-making enterprises continued to decrease, and the amount of losses dropped significantly. In August, the loss of loss-making enterprises fell by 37.0% year-on-year. At the end of August, the loss of industrial enterprises above designated size narrowed by 1.2 percentage points compared with the end of July, continuing to shrink month by month.

Zhu Hong pointed out that the stable recovery of industrial enterprise profits in August was further consolidated, but it should be seen that the growth rate of operating income and profit of industrial enterprises from January to August has not yet turned positive, the growth rate of accounts receivable continues to rise, and the complex and volatile environment at home and abroad, the sustained and stable growth of corporate profits is still facing certain pressure. In the next stage, we must adhere to the supply-side structural reform as the main line, further tap the potential of domestic demand, stimulate the vitality of market players, strive to smooth the cycle of supply and demand, continue to consolidate and expand the results of economic recovery, and promote the steady improvement of the quality of industrial economic development.