From January to September, the total profits of industrial enterprises above designated size in the country reached 5,228.16 billion yuan, a year-on-year decrease of 3.5% (calculated on a comparable basis).

From January to September, the total profits of state-owned enterprises amounted to 1723.59 billion yuan, a 6.5% year-on-year decrease; the total profits of joint-stock enterprises amounted to 3887.23 billion yuan, a 4.9% decrease; the total profits of foreign-invested enterprises from Hong Kong, Macao, and Taiwan amounted to 1303.64 billion yuan, a 1.5% increase; and the total profits of private enterprises amounted to 1422.72 billion yuan, a 0.6% decrease.

From January to September, the mining industry achieved a total profit of 896.38 billion yuan, a 10.7% year-on-year decrease; the manufacturing industry achieved a total profit of 3732.5 billion yuan, a 3.8% decrease; and the total profit of the electricity, heat, gas, and water production and supply industry amounted to 599.29 billion yuan, a 12.1% increase.

From January to September, the profit situation in the main industries is as follows:

Nonferrous metal smelting and processing industry saw a 52.5% year-on-year growth in profit, electricity and heat production and supply industry grew by 13.8%, textile industry grew by 11.5%, computer, communication, and other electronic equipment manufacturing industry grew by 7.1%, agricultural and sideline food processing industry grew by 6.6%, oil and gas extraction industry grew by 0.9%, general equipment manufacturing industry grew by 0.2%, automotive manufacturing industry declined by 1.2%, chemical raw materials and chemical products manufacturing industry declined by 4.0%, special equipment manufacturing industry declined by 5.5%, electrical machinery and equipment manufacturing industry declined by 7.2%, coal mining and washing industry declined by 21.9%, non-metallic mineral products industry declined by 51.0%, petroleum and coal processing industry, ferrous metal smelting and processing industry turned from profit to loss year-on-year.

From January to September, large industrial enterprises achieved operating revenue of 99.2 trillion yuan, a 2.1% year-on-year increase; operating costs amounted to 84.7 trillion yuan, an increase of 2.4%; and the operating income profit margin was 5.27%, a 0.31 percentage point decrease year-on-year.

By the end of September, the total assets of large industrial enterprises amounted to 175.02 trillion yuan, a 4.7% year-on-year increase; total liabilities amounted to 101.02 trillion yuan, an increase of 4.7%; total owner's equity amounted to 74 trillion yuan, an increase of 4.7%; and the asset-liability ratio was 57.7%, unchanged year-on-year.

By the end of September, accounts receivable of large industrial enterprises amounted to 25.72 trillion yuan, a 7.6% year-on-year increase; finished goods inventory amounted to 6.47 trillion yuan, an increase of 4.6%.

From January to September, the cost of each 100 yuan of operating income of industrial enterprises above a designated size was 85.38 yuan, an increase of 0.27 yuan compared to the same period last year; the expenses of each 100 yuan of operating income were 8.46 yuan, an increase of 0.08 yuan compared to the same period last year.

At the end of September, the operating income realized by each 100 yuan of assets of industrial enterprises above a designated size was 77.2 yuan, a decrease of 2.6 yuan compared to the same period last year; the per capita operating income was 1.817 million yuan, an increase of 0.067 million yuan compared to the same period last year; the finished goods inventory turnover days were 20.0 days, an increase of 0.2 days compared to the same period last year; the average collection period of accounts receivable was 66.3 days, an increase of 3.7 days compared to the same period last year.

Affected by factors such as the high base in the same period last year, in September, the profit of industrial enterprises above a designated size decreased by 27.1% year-on-year.

Official interpretation:

From January to September, the profit of industrial enterprises above a designated size decreased year-on-year.

Highlighting the resilience of the development of high-tech manufacturing

- Yu Weining, statistician from the Industry Department of the National Bureau of Statistics, interprets the profit data of industrial enterprises

Affected by multiple factors, from January to September, the profit of industrial enterprises above a designated size declined slightly year-on-year, but the total profit exceeded 5 trillion. Particularly, profits of new momentum industries represented by high-tech manufacturing grew rapidly, showcasing the resilience of industrial economic development. The main characteristics of enterprise performance are as follows:

Multiple factors have affected the decline in profits of industrial enterprises. From January to September, the total profit of national industrial enterprises above designated size was 5,228.16 billion yuan, an increase of 575.43 billion yuan compared to January to August, but due to multiple factors such as insufficient effective demand, declining industrial product prices, and a significant increase in the same period base since August this year, the year-on-year decline was 3.5%.

The main reasons are: first, in terms of prices, industrial product ex-factory prices have been consistently low, the price index of industrial producers continued to decline in September, putting significant pressure on corporate income and profitability; second, in terms of revenue, the operating income of industrial enterprises above designated size in January-September increased by 2.1%, a decrease of 0.3 percentage points compared to January-August, third, in terms of costs, the growth rate of enterprise costs exceeded the revenue growth rate, leading to a decline in gross profit, insufficient support for profit growth. In addition, the significant increase in the same period base since August this year has also brought pressure on profit recovery.

High-tech manufacturing highlights resilience. From January to September, driven by rapid production growth, the profit of high-tech manufacturing increased by 6.3% year-on-year, which is 9.8 percentage points higher than the average level of industrial enterprises above designated size, driving a 1.1 percentage point increase in the profit of industrial enterprises above designated size and providing important support for their profits. Among them, the profits of high-end equipment manufacturing industries such as aerospace and launch vehicle manufacturing, semiconductor device specialized equipment manufacturing increased by 17.1% and 13.2% respectively; profits in intelligent manufacturing industries such as intelligent vehicle equipment manufacturing, wearable smart device manufacturing, intelligent unmanned aerial vehicle manufacturing increased by 27.5%, 25.6%, 10.2% respectively; green manufacturing industries also saw growth with lithium-ion battery manufacturing increasing by 58.8%. In other emerging industries, navigation, mapping, meteorology, and oceanographic specialized instrument manufacturing, sensitive component and sensor manufacturing, electronic circuit manufacturing increased by 53.3%, 35.0%, 33.5% respectively, maintaining a fast growth momentum.

Consumer goods industry profits are steadily increasing. Against the background of solid promotion of a series of policies to expand domestic demand and promote consumption at various regions and departments, as well as stable international market demand, some consumer goods industries maintained relatively fast growth. From January to September, the profits of the textile, furniture, agricultural and sideline food, cultural education and arts industries increased by 11.5%, 11.0%, 6.6%, and 5.4% respectively year-on-year. Benefiting from the overall stability of domestic and international consumer markets, in January-September, the profit of the consumer goods manufacturing industry increased by 2.4% year-on-year, which was 5.9 percentage points higher than the average level of industrial enterprises above designated size, driving the profit growth of industrial enterprises above designated size by 0.5 percentage points.

Overall, although profits of industrial enterprises above designated size have declined, the resilience of new industrial momentum is evident. With industrial enterprises expected to stabilize and confidence increasing, industrial enterprise efficiency is expected to recover. In the next phase, it is important to thoroughly implement the decisions of the CPC Central Committee and the State Council, accelerate the implementation of existing policies and the recently introduced package of new policies to provide a good production and operation environment for the healthy development of industrial enterprises, and support the recovery of industrial enterprise profits.

Editor/ping