Under The Background Of High Oil Prices, The Profit Growth Of Industrial Enterprises Is Obviously Differentiated.

In 1~5, industrial enterprises above Designated Size realized profits of 10944 billion yuan, up 20.9% over the same period last year.

Among them, state owned and state holding enterprises realized a profit of 424 billion 600 million yuan, an increase of 1.5% over the previous year, a profit of 28 billion 300 million yuan for the collective enterprises, an increase of 35.3%, a share cooperative enterprise's profit of 6 billion 300 million yuan, an increase of 16.6%, a share holding enterprise's profit of 601 billion yuan, an increase of 24.1%, and the profits of foreign and Hong Kong, Macao and Taiwan investment enterprises to achieve 311 billion 900 million yuan, an increase of 22.4%; the private enterprises achieved a profit of 210 billion 500 million yuan, an increase of 210 billion 500 million.

From the National Bureau of Statistics announced the profits of Industrial Enterprises above Designated Size, the profit growth of industrial enterprises in 1~5 months showed obvious differentiation.

The profit growth of private enterprises is obviously better than that of other types of enterprises. From 1 to May, the total profits of Industrial Enterprises above designated size increased by 20.9% year-on-year, representing a sharp drop of 21 points compared with 42.1% in the same period last year.

Among them, the profit of state-owned and state holding enterprises increased by 1.5% over the same period last year, an increase of 22.8 percentage points over the same period of last year, and the profit of collective enterprises increased by 35.3% over the same period last year, down 15.3 percentage points from the previous year. The profit of share holding enterprises increased by 24.1% over the previous year, an increase of 15.4 percentage points over that of the previous year, and the profits of foreign invested enterprises and Hong Kong, Macao and Taiwan invested enterprises increased by 22.4% over the same period last year, an increase of 16.2 percentage points.

However, the profit growth of private enterprises was higher than last year's 2.4 percentage points, reaching 51%, which is obviously better than other forms of ownership, indicating that the market economy with high degree of marketization is the most dynamic.

Under the background of high oil prices, the profit growth of related industries is increasing. The sharp rise in international crude oil prices has brought rise in domestic oil prices and caused the follow up of other energy prices.

From the first 5 months of 2008, the profit growth rate of industrial enterprises and profits accounted for the same period. The profit growth of black metal mining and mining, coal mining and oil and natural gas extraction industries directly exceeded the previous year. However, in the strict price control system, the profits of the power industry declined sharply due to the rise in coal prices. The continuous rise of international crude oil prices led to a loss of oil processing industry and a decline in profits in the chemical fiber industry.

The huge gap between industry and industry is due to the unreasonable price system in China.

In June 19th, the state introduced measures to raise prices of refined oil and electricity prices, which is expected to alleviate the huge gap between the upstream and downstream profits of energy and resources industries to a certain extent.

Demand driven, food, medicine and some machinery manufacturing industry maintained a stable profit growth in 1-5 months, some industries maintained a sustained high profit growth, including agricultural and sideline products processing, food manufacturing, paper making, medicine, general equipment, electrical machinery, communication equipment, waste resources and waste materials recycling processing industry, its profit growth even exceeded the same period last year.

Under the inflation background, the smaller the demand elasticity, the stronger the price pfer ability.

Agricultural and sideline food processing, food manufacturing industry in the case of rising prices of agricultural products, still showed a sustained good profit growth, showing a better anti inflation ability.

In addition, the establishment of the state social security system and the support to the "three rural" in recent years have also promoted the release of basic consumption capacity.

This is also an important reason for the huge increase in profits of agricultural and sideline products processing industry, food manufacturing industry, beverage manufacturing industry (except liquid milk and dairy products manufacturing industry) related to farmers and agricultural products.

Thanks to the reform of medical system and huge market demand, the profit growth of pharmaceutical manufacturing industry still keeps a high level.

From the three bit code industry, the growth of biological and biochemical products and the profit of chemical raw drug manufacturing are much faster than that of the same period last year, but the profit growth rate of Chinese pharmaceutical industry is less than that of the same period last year.

Generally speaking, the profit of machinery and equipment manufacturing industry is still at a good level, but there is a big difference in the subdivision industry.

The biggest profit maker in the industry, but since 2006, the profit growth rate (the first 5 months of profit year-on-year) has been declining, the profit growth rate in 2006, 2007 and 2008 has been 80.9%, 60.6%, and 38.9% respectively. The shipbuilding and floating device manufacturing has maintained a rapid growth in profits for several years, and the battery manufacturing has increased significantly. The other manufacturing industries with better growth rate are mostly consistent with the current leading industries such as aerospace, railway construction, 3G, environmental protection and so on. The demand for food, beverage and other production equipment caused by the downstream demand is beneficial to the relevant enterprises. The profit of pmission and distribution equipment and control equipment manufacturing has increased significantly, which may come from the increase in demand for pmission and distribution equipment after the beginning of the year. Bicycle manufacturing, textile, clothing and leather industry special equipment manufacturing profits declined, profits grew by -19.6% and -29.5% respectively; automobile manufacturing is equipment manufacturing.

The profit growth of some investment goods and light industrial products manufacturing industry has obviously slowed down.

Gas, electricity, chemical fiber, iron and steel, non-ferrous metals and most light industrial products manufacturing industry has seen varying degrees of profit growth decline.

We believe that the drop in capital goods profit growth is mainly affected by the sharp rise in energy prices, such as chemical fiber, steel, rubber products, chemical raw materials and so on. The control of utilities related prices will also bring down the profit growth of calls, gas and water production and supply industries; the fall of light industrial products profits is mainly related to the apparent slowdown in export growth; and the restrictions on steel exports are also one of the reasons for the slowdown in the profit growth of their industries.