In The First Nine Months, The Profits Of Industrial Enterprises Above Designated Size In China Decreased By 2.4% Year On Year

The profit of China's industrial enterprises shows signs of rising quarter by quarter: on October 27, the data released by the National Bureau of statistics showed that from January to September, the profit of Industrial Enterprises above Designated Size reached 4366.5 billion yuan, a year-on-year decrease of 2.4%, 2.0 percentage points narrower than that of January August. Among them, the profit in the third quarter increased by 15.9%, 11.1 percentage points faster than that in the second quarter.

In response, Zhu Hong, Senior Statistician of the industrial department of the National Bureau of statistics, said that since this year, in the face of the huge impact of the new crown pneumonia epidemic and the complex and severe domestic and foreign environment, all regions and departments have done a solid job in the "six stability" work, comprehensively implemented the "six guarantees" task, and comprehensively promoted the work of epidemic prevention and control and economic and social development, and achieved remarkable results, production demand gradually recovered, and production increased The business cycle continued to improve, and the profits of industrial enterprises rose steadily.

According to Zhu Hong, first of all, the company's profitability has improved quarter by quarter. Thanks to the prevention and control of the epidemic situation and the overall promotion of economic and social development, the production and sales of industrial enterprises have rapidly recovered and steadily increased, and the relationship between supply and demand has continued to improve. In the third quarter, the added value of industries above designated size increased by 5.8% year-on-year, and the operating income increased by 4.8%, showing a trend of quarterly recovery. Driven by the steady recovery of income, the growth rate of industrial enterprises' profits decreased by 36.7% in the first quarter, increased by 4.8% in the second quarter, and then accelerated to 15.9% in the third quarter, showing a trend of "from decline to increase and growth accelerated".

Among them, the number of industries with profit growth is increasing, and the key industries are pulling forward obviously. According to the official data, in the third quarter of the 41 major industrial sectors, the profits of 31 industries increased year-on-year, increasing by 6 compared with the second quarter; among them, the profit growth rate of 24 industries exceeded double-digit. The industries with the largest new profits were as follows: automobile manufacturing industry increased by 53.8%, nonferrous metal smelting and rolling processing industry increased by 52.0%, ferrous metal smelting and rolling processing industry increased by 39.1%, general equipment manufacturing industry increased by 32.4%, electric power, heat production and supply industry increased by 22.4%, and electric gas machinery and equipment manufacturing industry increased by 16.8%. These six industries together promoted industries above Designated Size in the third quarter The profit of enterprises increased by 10.0 percentage points year on year.

Secondly, the balance of profit growth has been significantly improved. Zhu Hong said that profits of major industrial sectors all maintained double-digit growth. In the third quarter, the profit of equipment manufacturing industry increased by 22.5% year-on-year, driving the profit growth of Industrial Enterprises above Designated Size by 7.8%. Among them, the profits of automobile, general equipment, special equipment and other industries recovered first in the second quarter, with growth of 26.0%, 28.2% and 63.5% respectively in the second quarter, and continued to maintain a rapid growth of more than 20% in the third quarter. The profit growth of raw material manufacturing industry turned from negative to positive, with a year-on-year increase of 23.0% in the third quarter and a decrease of 17.9% in the second quarter. Among them, due to the recovery of market demand and the rise of product prices, the profits of petroleum processing, steel, nonferrous metals and other industries decreased from double-digit in the second quarter to more than 30% in the third quarter. The profit of consumer goods manufacturing industry recovered steadily, with an increase of 14.3% in the third quarter, 4.2 percentage points faster than that in the second quarter. Among them, the profit growth rate of food manufacturing, tobacco, textile, papermaking and other industries was more than 20%. However, the reporter of China business daily noted that the profits of industrial enterprises increased by 10.1% year-on-year in September, still maintaining double-digit growth, but the growth rate was 9.0 percentage points lower than that in August.

In this regard, Zhu Hong interpretation said that this is mainly affected by three factors: first, the price changes of industrial products squeeze the profit space. The driving effect of the changes of factory price and purchase price on profit growth in September was significantly weaker than that in August. Second, the increase of expenses and the large amount of asset impairment losses of some industries and enterprises have a certain impact on the growth of profits. Third, the profit growth of major industries, such as electronics and automobile, fell down in September due to the rise of raw material costs, the increase of sales and R & D expenses and the higher base in the same period.

Zhu Hong also said that although the profits of industrial enterprises continued to recover steadily in the first three quarters, the current cumulative operating income and profit growth rate of industrial enterprises have not yet turned positive, the growth rate of accounts receivable and finished goods inventory is still high, and the foundation for the sustained improvement of enterprise profits still needs to be consolidated. In the next stage, according to the requirements of promoting high-quality development and building a new development pattern, we should further stimulate the vitality of market entities, strive to solve the production and operation difficulties of enterprises, and promote the sustained and stable development of the industrial economy.