Statistics Bureau: Profits Of Industrial Enterprises Grew Steadily And Rapidly In The First Half Of The Year

In the first half of the year, the profits of industrial enterprises grew steadily and rapidly

Zhu Hong, Senior Statistician of the industry department of the National Bureau of statistics, interprets the profit data of industrial enterprises

In the first half of 2021, with the national economy stable and stable, the demand for industrial production has recovered steadily, the business conditions of enterprises have been continuously improved, and the profits of enterprises have increased steadily and rapidly.

1. The profits of industrial enterprises grew steadily and rapidly

In the first half of the year, the profits of Industrial Enterprises above designated size increased by 66.9% year on year, 45.5% higher than that in the same period in 2019; The average growth rate in the two years is 20.6% (based on the same period in 2019 and calculated by geometric average method), maintaining a rapid growth. Among them, the profits of Industrial Enterprises above designated size increased by 36.0% year-on-year in the second quarter, 42.5% higher than that in the same period of 2019, and the average growth in two years was 19.4%.

The profits of various industries generally grew rapidly, and 70% of them exceeded the level before the epidemic. In the first half of the year, 40 of the 41 major industries showed a year-on-year increase in profits (or turn losses into profits), and one industry remained unchanged year-on-year. Among them, 36 industries achieved double-digit and above growth, accounting for 87.8%; Seven industries grew by more than 100%. Compared with the same period in 2019, 29 industries achieved profit growth, accounting for 70.7%.

The profits of upstream mining industry and raw material manufacturing industry increased significantly. In the first half of the year, the profits of mining industry and raw material manufacturing industry increased by 1.33 times and 1.83 times respectively on a year-on-year basis, accounting for 58.9% of the total profit growth of industries above designated size. The average growth rates of profits in two years were 16.5% and 35.8% respectively. Under the combined effect of economic growth, demand expansion, price rise and low base in the same period of last year, the profits of chemical industry, steel industry and coal industry increased by 1.77 times, 2.34 times and 1.14 times, respectively. The oil processing industry turned from loss in the same period of last year to profit in the current period. The above four industries together promoted the profits of industries above Designated Size to increase by 29.1 percentage points on a year-on-year basis.

The profits of high-tech and equipment manufacturing industries maintained rapid growth. In the first half of the year, the profits of high-tech manufacturing industry increased by 62.0% year on year; The average growth rate in the two years was 36.2%, 15.6 percentage points faster than the average level of industries above Designated Size, and the average profit of industries above designated size increased by 5.6 percentage points in two years. The profit of equipment manufacturing industry increased by 39.5% year on year, with an average growth of 18.3% in two years. The profits of high-tech and equipment manufacturing industries accounted for 18.3% and 30.8% of industries above the designated size, respectively, 1.5% and 0.7% higher than those in the first quarter. Benefited from the improvement of market demand, the increase of enterprise orders, the strong demand of LCD panel integrated circuit and container, the profits of electronic, automobile, electrical machinery, general equipment and metal products industries increased by 34% - 53% year-on-year, and the industrial profits of the above five industries increased by 12.7% year-on-year.

Profits in the consumer goods manufacturing sector recovered faster. In the first half of the year, the profit of consumer goods manufacturing industry increased by 38.6%; The average growth rate in the two years was 17.0%, 1.6 percentage points faster than that in the first quarter, and the recovery trend was further consolidated. Among them, the profit of pharmaceutical manufacturing industry increased by 88.8% year-on-year due to the expansion of production capacity and the improvement of output of anti epidemic materials such as new crown vaccine and detection reagent; The average growth rate in the two years was 38.8%, 12.7 percentage points faster than that in the first quarter. The profits of chemical fiber and food manufacturing industries increased by 68.3% and 7.2% respectively in two years, 6.0% and 2.1% higher than that in the first quarter. The average decline rate of textile industry profit in two years was 5.6 percentage points lower than that in the first quarter.

2. Continuous improvement of business operation

The income growth is faster than the cost, and the profit level of the enterprise is constantly improving. In the first half of the year, the operating income of Industrial Enterprises above designated size increased by 27.9%, 1.5 and 9.2 percentage points faster than the total operating costs and expenses respectively. Unit costs and expenses both decreased year on year, and the cost per 100 yuan of operating income decreased by 0.98 yuan, of which the mining industry and raw material manufacturing industry decreased by 6.79 yuan and 2.64 yuan respectively; The expenses per 100 yuan of operating income decreased by 0.65 yuan year on year. The profit margin of operating income of Industrial Enterprises above designated size was 7.11%, 1.66 percentage points higher than that of the first quarter, 0.47 percentage points higher than that of the first quarter.

The number of loss making enterprises decreased and the amount of losses decreased. At the end of June, the loss of Industrial Enterprises above designated size was 22.5%, 2.4 percentage points lower than the same period of last year, and 4.6 percentage points lower than that of the end of March; In the first half of the year, the loss of loss making enterprises decreased by 23.5% year on year. Compared with the same period last year, the loss situation of enterprises improved significantly.

The growth rate of accounts receivable continued to fall, and the turnover of finished goods inventory was accelerated. At the end of June, accounts receivable of Industrial Enterprises above designated size increased by 13.1% year-on-year, 1.0 percentage points lower than that at the end of May, falling for three consecutive months. The average payback period of accounts receivable was 51.4 days, 5.9 days less than that of the end of March, 2.4 days less than that of the end of March. The turnover days of finished goods inventory were 17.4 days, 2.5 days less than the same period last year, and 0.9 days less than the end of March.

Assets and liabilities improved, and the development of enterprises became more stable. At the end of June, the assets of Industrial Enterprises above designated size increased by 9.3% year-on-year, and the owner's equity increased by 10.3%. The asset liability ratio of Industrial Enterprises above designated size was 56.5%, a year-on-year decrease of 0.4 percentage points. Among them, the asset liability ratio of state-owned holding enterprises was 57.0%, down 0.5 percentage points year-on-year.

On the whole, the profits of industrial enterprises recovered steadily in the first half of the year, and their operating conditions continued to improve. However, it should also be noted that the imbalance of enterprise benefit recovery still exists. Private and small and micro enterprises' profit recovery is relatively slow. The continuous high price of bulk commodities has squeezed the profit space of enterprises, and the supply chain of industrial chain still has weak points. In the next step, we should thoroughly implement the decisions and arrangements of the CPC Central Committee and the State Council, maintain the continuity, stability and sustainability of macro policies, continuously deepen the structural reform of the supply side, vigorously support the development of the real economy, further do a good job in ensuring supply and price stability, help enterprises solve difficulties, and promote the sustained and healthy development of the industrial economy.