The National Bureau of Statistics on September 27 news, the National Bureau of Statistics of the industrial Division statistigrapher Yu Weining interpretation of industrial enterprise profit data said that in August, with a series of macroeconomic recovery to promote the effect of good policies continue to emerge, industrial production steadily rebounded, corporate profits significantly accelerated, the benefits of industrial enterprises presented the following main characteristics:

Industrial companies’ revenue improved, and revenue growth resumed in the month. With the steady recovery of industrial production, the connection between production and sales has improved, and the revenue of industrial enterprises has gradually improved. From January to August, the operating income of industrial enterprises above designated size fell by 0.3% year-on-year, 0.2 percentage points narrower than that in January to July. Among them, in August, enterprise operating income increased for the first time after three consecutive months of decline, from a decline of 1.4% in July to an increase of 0.8%, creating favorable conditions for profits to increase from a decline.

The profit recovery of industrial enterprises accelerated, and the profit of the month turned from a decline to an increase. Since the beginning of this year, the decline in industrial profits has narrowed month by month. From January to August, the profits of industrial enterprises fell by 11.7% year-on-year, which was 3.8 percentage points narrower than that in January to July, and the recovery accelerated significantly. Among them, the profits of industrial enterprises in August increased by 17.2% year-on-year, and the profits of industrial enterprises in the month achieved positive growth for the first time since the second half of last year. The decline in the prices of industrial products has narrowed significantly for two consecutive months, and corporate revenue has increased for the first time after three consecutive months of decline, driving the profits of industrial enterprises from a decline to an increase, and the performance has recovered to a good trend.

The profits of the three major categories all improved, and the profits of more than 70% of the industries recovered. From January to August, mining profits fell by 20.5% year on year, 0.5 percentage points narrower than that in January to July. Manufacturing profits fell 13.7%, down 4.7 percentage points; Profits in the production and supply of electricity, heat, gas and water increased by 40.4%, with a growth rate of 2.4 percentage points. In terms of industry, among the 41 industrial categories, the profit growth rate of 30 industries accelerated, or the decline narrowed, and the industry improved by more than 70%.

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Profit growth in the equipment manufacturing industry accelerated. New drivers of industrial growth continued to grow. Production of new energy vehicles, lithium-ion batteries, photovoltaic equipment, EMUs and other products grew rapidly, and the equipment manufacturing industry continued to gain momentum. From January to August, the profit of the equipment manufacturing industry increased by 3.6% year-on-year, the growth rate was 1.9 percentage points faster than that of January to July. The profit growth rate of the equipment manufacturing industry was 15.3 percentage points higher than the industrial average level, which continued to lead the steady recovery of profits of industrial enterprises. By industry, the profits of electrical machinery, railway, shipping, aerospace and transportation equipment industries increased by 33.0% and 32.5%, respectively, maintaining a relatively high growth rate; The profit of the automobile industry increased by 2.4%, the growth rate accelerated by 1.4 percentage points; The electronics industry was driven by factors such as a rebound in production and sales, and the profit decline narrowed by 5.8 percentage points.

The profit decline in the raw material manufacturing industry has narrowed significantly. With the gradual recovery of downstream demand, the prices of some commodities continued to rise, and the profits of the raw material industry improved significantly. From January to August, the profit of raw material manufacturing industry fell by 42.9% year-on-year, the decline narrowed by 8.0 percentage points compared with January to July, driving the decline in industrial profits on the regulation narrowed by 2.5 percentage points, and the profit improvement of industrial enterprises has a greater effect. By industry, driven by the price changes of refined oil products and the low profit base in the same period, the profit decline of the petroleum processing industry narrowed by 18.1 percentage points from January to July; Driven by the recovery of steel and non-ferrous metal prices and the improvement of enterprise production and sales, the profit decline of the steel and non-ferrous smelting industries narrowed by 33.4 and 9.7 percentage points respectively. From the situation in August, the oil processing and steel industries turned into profit from the net loss of the whole industry in the same period last year.

Consumer goods manufacturing earnings continued to improve. The effect of policies to expand domestic demand and promote consumption continued to show, and the recovery of the consumer goods market accelerated, leading to continued improvement in the profits of the consumer goods manufacturing industry. From January to August, the profit of the consumer goods manufacturing industry fell by 12.0% year-on-year, which was 1.6 percentage points narrower than that in January to July. Among them, the profits of leather shoes and food manufacturing industries increased by 16.0% and 0.4%, respectively, and profits turned to growth from January to July. The profit decline of agricultural and sideline food processing, paper making and textile industries narrowed by 6.6, 6.3 and 5.3 percentage points respectively.

Profits rebounded across all types of companies. With the in-depth implementation of a series of policies and measures to boost confidence and promote development, the performance of various business entities has continued to improve and their vitality has been enhanced. From January to August, 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 3.8 and 1.3 percentage points respectively compared with January to July; The profit decline of private enterprises narrowed by 6.1 percentage points, and the recovery speed was faster. The profit decline of large, medium and small enterprises narrowed by 4.1, 3.4 and 3.4 percentage points respectively.

The unit cost of enterprises fell, and the profit margin of operating income increased. Recently, the ex-factory prices of some industrial products have continued to rise, driving the improvement of enterprise revenue, and raw materials are purchased in the early stage, and the price is relatively low, promoting the decline of enterprise unit costs and the expansion of profit space. In August, the cost per 100 yuan of operating income of industrial enterprises was 84.86 yuan, a decrease of 0.87 yuan year-on-year and a decrease of 0.29 yuan month-on-month. Operating income profit margin increased for the first time this year, reaching 6.41%, an increase of 0.90 percentage points year-on-year, an increase of 1.15 percentage points quarter-on-quarter, corporate profitability improved significantly.

Overall, the profit recovery of industrial enterprises has accelerated significantly, but the cumulative profit decline is still large. In the next stage, we must resolutely implement the decisions and deployments of the Party Central Committee and The State Council, promote the implementation of various policies and measures, continue to promote new industrialization, constantly improve the quality of supply, strive to expand effective demand, continue to boost market confidence, stimulate the vitality of business entities, and continue to promote the effective improvement of the industrial economy and reasonable growth in quantity.