National Bureau of Statistics: Auto Industry Profits Grow by 96.8%! These Industries Also Achieve Growth

On July 27th, the National Bureau of Statistics released the profit data for industrial enterprises for June. The data shows that from January to June, industrial enterprises above a designated size nationwide achieved a total profit of 3,436.5 billion yuan, a year-on-year decrease of 1.8%; they achieved operating revenue of 66.78 trillion yuan, a year-on-year increase of 2.5%.

In June, the operating income of industrial enterprises above a designated size continued to grow, creating favorable conditions for the recovery of corporate profits. Data shows that in June, the operating income of these enterprises increased by 1.0% year-on-year, with the growth rate remaining the same as in May; the total profit realized was 715.58 billion yuan, a year-on-year decrease of 4.3%, with the decline narrowing by 4.8 percentage points compared to May.

Above-scale industrial enterprises refer to industrial legal entities with annual main business income of 20 million yuan or above.

Profit is a key indicator for measuring a company's operating performance. By observing profit indicators, we can gain insight into the health and vitality of a company, monitor and analyze the quality and efficiency of industrial economic development, and further analyze industrial production trends and assess the macroeconomic situation.

Ma Hong, Senior Researcher at GK Chief Industry Research Institute, stated that in the first half of the year, the overall decline in industrial enterprise profits narrowed compared to the end of 2024, indicating that a package of policies to stabilize growth has begun to take effect. In particular, the manufacturing sector showed significant improvement, with profits shifting from a 4.1% decrease in May to a 1.4% increase, providing strong support for the profits of industrial enterprises above designated size.

Which subsectors in the manufacturing industry are experiencing rapid profit growth?

In particular, the revenue and profit of the equipment manufacturing industry grew rapidly, driving the profit growth of all industrial enterprises above a designated size by 3.8 percentage points. According to Yu Weining, a statistician from the Industrial Division of the National Bureau of Statistics, in June, the operating income of the equipment manufacturing industry increased by 7.0% year-on-year, accelerating by 0.3 percentage points compared to May; the profit turned from a decline of 2.9% in May to an increase of 9.6%. Among the eight sectors within the equipment manufacturing industry, four sectors achieved profit growth. Specifically, the automotive industry saw a profit increase of 96.8% due to the rapid growth of sales driven by car manufacturers' promotions and increased investment returns from key enterprises.

In the manufacturing industry, sectors related to high-end, intelligent, and green development have seen rapid profit growth, highlighting China’s manufacturing "hard power" and "technological content." For example, in the high-end equipment manufacturing sector, profits in electronic special materials manufacturing, aircraft manufacturing, and marine engineering equipment manufacturing increased year-on-year by 68.1%, 19.0%, and 17.8%, respectively; profits in intelligent consumer device manufacturing and drawing, computing, and measuring instrument manufacturing increased by 40.9% and 12.5%, respectively; profits in lithium-ion battery manufacturing, biomass power generation, and environmental monitoring specialized instruments and apparatus manufacturing increased by 72.8%, 24.5%, and 22.2%, respectively.

The implementation effects of the “Two New” and “Two Important” policies are reflected in the profits of industrial enterprises, with rapid profit growth observed in industries such as electronics, home appliances, and kitchen and bathroom products. Specifically, in June, industries such as medical instrument and equipment manufacturing, specialized equipment manufacturing for printing, pharmaceuticals, daily chemicals and daily necessities, and general component manufacturing experienced rapid profit growth. The profits in sectors such as intelligent unmanned aerial vehicle manufacturing, computer system manufacturing, household air conditioner manufacturing, and household ventilation appliance manufacturing increased by 160.0%, 97.2%, 21.0%, and 9.7% respectively.

Looking ahead to the third quarter, Ma Hong stated that given the progress in China-US trade negotiations and the successive introduction of domestic "anti-involution" policies, the rapid rebound in prices of commodities such as coking coal and steel in the short term will help accelerate the industry's inventory reduction pace. The price levels of domestic demand and the industrial sector are expected to improve marginally, and industrial enterprise profitability is anticipated to recover in the third quarter.