From Decrease to Increase! Large-Scale Industrial Enterprises Achieve Profits of 46,929.7 Billion Yuan in the First Eight Months

On September 27, the National Bureau of Statistics released data showing that from January to August, China's industrial enterprises above a designated size achieved a total profit of 4,692.97 billion yuan, an increase of 0.9% year-on-year.

Under the influence of the effectiveness of macro policies, the in-depth advancement of the national unified market, and the low base effect from the same period last year, the profits of industrial enterprises above designated size increased by 0.9% year-on-year. The equipment manufacturing industry provided strong support, and the profits of enterprises of different scales all improved.

In August, the profits of industrial enterprises above a designated size transitioned from a 1.5% decline in the previous month to a 20.4% increase year-on-year.

The profits of industrial enterprises have significantly improved. From January to August, the profits of industrial enterprises above designated size turned from a year-on-year decrease of 1.7% from January to July to an increase of 0.9%, reversing the continuous decline in cumulative profits of enterprises since May this year. Looking at the three major categories, from January to August, the manufacturing industry grew by 7.4%, accelerating by 2.6 percentage points compared to January to July; the power, heat, gas, and water production and supply industries grew by 9.4%, accelerating by 5.5 percentage points; the mining industry decreased by 30.6%, with the rate of decline narrowing by 1.0 percentage point. From a monthly perspective, in August, the profits of industrial enterprises above designated size saw double-digit growth, turning from a 1.5% decrease in July to a 20.4% increase, showing significant improvement in the profits of industrial enterprises for the month.

Industrial enterprises have maintained stable revenue growth. From January to August, the revenue of large-scale industrial enterprises increased by 2.3% year-on-year, consistent with the growth rate from January to July. In August, the revenue of industrial enterprises grew by 1.9%, accelerating by 1.0 percentage points compared to July, creating favorable conditions for the continued recovery of corporate profits.

The role of the equipment manufacturing industry as a "ballast" is evident. From January to August, the profits of large-scale equipment manufacturing increased by 7.2%, contributing 2.5 percentage points to the profit growth of all large-scale industrial enterprises, making it one of the strongest driving sectors. From an industry perspective, out of the eight sectors within the equipment manufacturing industry, seven sectors saw profit growth. Notably, the railway, shipping, and aerospace sectors experienced rapid profit growth, with increases of 37.3% and 11.5%, respectively; the specialized equipment and electronics sectors saw profits grow by 6.9% and 7.2%, accelerating by 3.7 and 0.5 percentage points compared to the period from January to July.

The profit growth in the raw materials manufacturing industry has been rapid, while the profits in the consumer goods manufacturing industry have turned from decline to increase. Driven by factors such as increased market demand, price recovery, and somewhat reduced costs, from January to August, the profits of the raw materials manufacturing industry grew by 22.1% year-on-year, accelerating by 10.0 percentage points compared to January to July, contributing to a 2.5 percentage point increase in the profits of all industrial enterprises above designated size. Specifically, the steel industry turned losses into profits, achieving a total profit of 83.7 billion yuan; the non-ferrous metal industry saw a profit growth of 12.7%, accelerating by 5.8 percentage points compared to January to July. From January to August, the profits of the consumer goods manufacturing industry shifted from a decline of 2.2% from January to July to a growth of 1.4%. Among them, the profit growth rates of industries such as alcoholic beverages and tea, and agricultural and sideline food were relatively fast, at 19.9% and 11.8%, respectively, collectively contributing to a 1.0 percentage point increase in the profits of all industrial enterprises above designated size.

Profits have improved across enterprises of different sizes, with private enterprises experiencing a noticeable acceleration. From January to August, by size, the profits of medium-sized and small industrial enterprises above a designated size grew by 2.7% and 1.5% year-on-year, respectively, accelerating by 1.1 and 0.4 percentage points compared to January to July. The decline in profits for large enterprises narrowed by 4.6 percentage points compared to January to July. By type of enterprise, the decline in profits for state-controlled enterprises narrowed by 5.8 percentage points compared to January to July; private enterprises' profits grew by 3.3%, which is 2.4 percentage points higher than the average level of all industrial enterprises above a designated size, and accelerated by 1.5 percentage points compared to January to July.

In August, the cost of enterprises decreased, and the revenue profit margin rebounded. In August, the cost situation of industrial enterprises above a designated size improved, with costs per hundred yuan of operating income decreasing by 0.20 yuan year-on-year, marking the first year-on-year decrease for the month since July 2024. In August, the profit margin of operating income for industrial enterprises above a designated size was 5.83%, an increase of 0.90 percentage points year-on-year.

In the next phase, against the backdrop of a severe and complex external environment and insufficient domestic market demand, we must fully implement the decisions and plans of the Party Central Committee, further expand domestic demand, deepen the construction of a unified national market, regulate the competitive order of enterprises, and create more favorable conditions for the continuous recovery of industrial enterprise profits.