National Bureau of Statistics: Industrial profits continue to grow steadily, nearly 70% of industry profits increase year-on-year
According to data released by the National Bureau of Statistics today, from January to May, the national industrial enterprises above designated size achieved a total profit of 3,424.74 billion yuan, a year-on-year increase of 83.4%, an increase of 48.0% from January to May 2019, and an average increase of 21.7% over the two years.
The relevant person in charge of the National Bureau of Statistics stated that as the results of the overall planning of epidemic prevention and control and economic and social development continue to consolidate, market demand has recovered steadily, the operating conditions of industrial enterprises have continued to improve, and corporate profits have continued to grow steadily.
Nearly 70% of the industry's profit increased year-on-year, and 80% of the industry's profit exceeded the same period in 2019. In May, among 41 major industrial sectors, 28 industries achieved year-on-year profit growth (or turned losses into profits), accounting for 68.3%. Among them, 8 industries have profit growth rates exceeding 100%, and 6 industries have profit growth rates of 30% to 100%. Compared with the same period in 2019, 33 industries achieved profit growth, accounting for 80.5%.
The profit of the raw material manufacturing industry maintained rapid growth. In May, the profit of the raw material manufacturing industry increased by 1.11 times year-on-year, with an average growth rate of 32.0% in two years. The growth rate was 74.8 and 11.8 percentage points higher than those of the industrial enterprises above designated size, respectively, which drove the rapid growth of the profit of industrial enterprises.
The profit growth of the manufacturing industry of consumer goods such as pharmaceuticals has accelerated significantly. In May, the profit of consumer goods manufacturing industry increased by 30.6% year-on-year, and the two-year average growth rate was 21.3%. The growth rate was 6.4 and 3.7% faster than that in April, respectively. Among them, driven by the strong demand for anti-epidemic and anti-epidemic materials such as the new crown vaccine and testing reagents, the profit of the pharmaceutical manufacturing industry maintained rapid growth. Profits in May increased by 85.7% year-on-year, an average increase of 50.9% in two years.
In addition, unit costs have fallen, and profitability has continued to rise. The scope of corporate losses continued to shrink, and the amount of losses fell sharply. The growth rate of accounts receivable continued to fall. The debt-to-asset ratio continued to decline.
The relevant person in charge of the National Bureau of Statistics said that overall, the profitability of industrial enterprises continued to recover in a stable manner in May, but the imbalance of corporate profitability was more prominent, and the foundation for recovery was not yet solid. First, due to factors such as rising prices of bulk commodities, the newly-increased profits of industrial enterprises are mainly concentrated in the upstream mining and raw material manufacturing industries, and the cost pressure in the downstream industries continues to increase. Second, the profit growth rate of small and micro enterprises is lower than that of large and medium-sized enterprises, and the profit growth rate of private enterprises is lower than the average level of industrial enterprises above designated size. In the next stage, it is necessary to scientifically and accurately implement macroeconomic policies, continue to promote reforms and innovations, stimulate the vitality of market players, help companies relieve difficulties, focus on guiding the return of commodity prices to the fundamentals of supply and demand, and promote the sustained and stable recovery of the industrial economy. (Xu Ningning, CCTV reporter)