In April, the operating revenue of industrial enterprises above designated size rose 3.7 percent year-on-year

The efficiency of industrial enterprises continues to recover

Industrial production continued to recover, corporate revenue growth accelerated and profit declines continued to narrow in April, according to data released by the National Bureau of Statistics on May 27. Experts pointed out that the next stage should continue to boost the confidence of business entities, promote the industrial economy to continue to pick up.

Profit declines have narrowed for the second month in a row

Sun Xiao, a statistician with the industry department of the National Bureau of Statistics, said that in April, industrial enterprises’ revenue growth accelerated. “As the economy and society have fully resumed normal operation, industrial production has continued to recover, production and marketing have been improved, and corporate revenue growth has accelerated.” “In April, the operating revenue of industrial enterprises above designated size rose 3.7 percent year on year, 3.1 percentage points faster than in March,” Mr. Sun said.

In the month of revenue improvement led by industrial enterprises from a decline to an increase in cumulative revenue. From January to April, the operating revenue of industrial enterprises on the schedule reached 41.07 trillion yuan, up 0.5% year on year, and down 0.5% in the first quarter. The incurred operating cost was 34.98 trillion yuan, up 1.6%; Operating income margin was 4.95%, down 1.32 percentage points year-on-year.

The decline in corporate profits continues to narrow. In April, the profits of industrial enterprises above designated size fell 18.2 per cent year on year, 1 percentage point narrower than that in March, and the decline has narrowed for two consecutive months. “Earnings improved in most sectors.” Sun Xiao introduced that in 41 industrial categories, there are 23 industries profit growth accelerated or decreased than in March, from a decline to an increase, accounting for 56.1%. A few industries drop down industrial profit growth is obvious.

From January to April, the total profit of industrial enterprises above designated size was 2,032.88 billion yuan, down 20.6 percent year on year. From January to April, the total profit of the mining industry was 475.24 billion yuan, down 12.3% year on year. The total profit of the manufacturing industry was 1,372.37 billion yuan, down 27 percent; The total profit of the production and supply of electricity, heat, gas and water reached 185.27 billion yuan, up by 34.1%.

“Overall, the industrial enterprise benefit continues to recover.” “However, we must also see that the international environment is grim and complex, and the lack of demand is obviously restricted. Industrial enterprises face more difficulties in sustained profit recovery,” Sun said.

The equipment manufacturing industry saw a marked recovery in profits

In April, the profit of the equipment manufacturing industry increased by 29.8% year on year, turning from a decline to an increase, driving the profit growth of industrial enterprises above designated size by 6.4 percentage points, which is the largest driving force of the industry sector.

According to Sun, this is due to the combination of factors such as better development of new growth drivers and low base for the same period. In April, the profit of the equipment manufacturing industry accounted for 34.3 percent of the designated industry, 1.5 percentage points higher than that in March, which led to the improvement of the industrial profit structure. Profits of the equipment manufacturing industry generally recovered, among which the automobile industry, due to a low base in the same period, saw a sharp increase of 20.4 times, significantly accelerating the growth rate compared with March.

Cui Dongshu, secretary general of the National Passenger Car Market Information Association, told reporters that according to the data of the association, the auto industry revenue from January to April was 2,860.9 billion yuan, up 12% year on year; Profit reached 112.3 billion yuan, up 3% year on year; Exports reached 1.49 million units, a year-on-year growth of 72%. “As long as there is a stable international market demand, there is still a huge space for the future development of Chinese auto exports.” Cui Dongshu said.

In addition, in April, the electrical machinery industry, driven by photovoltaic equipment and other products, saw a profit growth of 37.5%, a growth rate of 26.2 percentage points. Driven by the recovery of the industrial chain, the general equipment industry saw its profit increase by 63.7 percent, significantly accelerating its growth rate.

Profits of foreign-funded enterprises rose from a decline

In the industry closely related to people’s lives, electricity and water industry profits continue to grow rapidly. Profits in the production and supply of electricity, heat, gas and water rose 36.5 per cent year on year in April, 8.9 percentage points faster than in March. “Among them, as the economy improved, electricity demand increased and power production continued to accelerate, driving the profit growth of the power industry by 45.3%; Gas production and supply businesses saw their profits rise 7.3 percent and water production and supply businesses saw their profits rise 17.4 percent. “Sun Xiao said.

It is worth noting that in April, the profit of foreign-invested enterprises turned from a decline to an increase, while the profit decline of private enterprises narrowed significantly. Sun Xiao introduced that in April, foreign and Hong Kong, Macao and Taiwan investment enterprises driven by the automobile industry, profit growth of 16.3% year on year, from the decline in March to positive growth, the growth rate picked up for two consecutive months. The decline in private companies’ profits narrowed by 7.3 percentage points from March.

In the first four months of this year, the actual utilization of foreign capital in China increased by 2.2 percent year on year, of which the actual utilization of foreign capital in high-tech industries increased by 12.8 percent. Under the guidance of “Greater efforts to attract and utilize foreign investment”, a series of activities to attract investment in the “Year of Investing in China” were launched, and local governments stepped up efforts to attract investment. According to data released by the State Administration for Market Regulation, 11,000 new foreign-invested enterprises were established nationwide in the first quarter, a year-on-year increase of 7.6%, which shows that cross-border business activities are recovering at an accelerated pace and indicators such as newly established foreign-invested enterprises are stabilizing and improving.

Sun Xiao believes that in the next stage, we should focus on recovering and expanding demand, further improve the level of connection between production and sales, continuously boost the confidence of business entities, and combine the effect of policies with the vitality of business entities to promote the sustained recovery of industrial economy.