China News Service, Beijing, September 27 (Reporter Wang Enbo) The National Bureau of Statistics of China announced on the 27th that in August, China's industrial enterprises above designated size achieved a total profit of 612.81 billion yuan (RMB, the same below), a year-on-year increase of 19.1%.
From January to August, the total profit of industrial enterprises was 371665 billion yuan, a year-on-year decrease of 4.4%, and the rate of decline narrowed by 3.7 percentage points from January to July.
The steady recovery of production and demand laid the foundation for industrial profit growth.
According to Zhu Hong, a senior statistician from the Department of Industry of the National Bureau of Statistics, in terms of production, the value-added of industries above designated size increased by 5.6% year-on-year in August, which was 0.8 percentage points faster than in July.
In terms of demand, the cumulative decline in fixed asset investment across the country has further narrowed and basically returned to the same period last year; the monthly growth rate of total retail sales of consumer goods turned positive for the first time this year.
The continuous improvement in production and demand has promoted the sales growth of industrial enterprises.
In August, the industrial producer price index continued to rebound, and the operating income of industrial enterprises increased by 4.9% year-on-year, 1.6 percentage points faster than in July. The expansion of enterprise production scale strongly supported the steady growth of profits.
The package of tax cuts and fee reductions and other relief-benefit policies for companies have also continued to exert effective results. In August, the cost per hundred yuan of operating income for industrial enterprises above designated size decreased by 0.47 yuan year-on-year, and the cost per hundred yuan of operating income decreased by 0.02 yuan year-on-year.
While the pressure on corporate operations has been continuously eased, corporate profitability has improved significantly.
In August, the profit margin of operating income of industrial enterprises above designated size increased by 0.8 percentage points year-on-year, which has increased year-on-year for four consecutive months.
Zhu Hong also mentioned that in August, the internal supply-demand cycle of the industry was improved, and the downstream industry continued to resume its driving role in the upstream industry.
Among them, benefiting from the rebound in demand and the continued rebound in the prices of international commodities such as crude oil and iron ore, the profits of the mining industry have been significantly restored, and the profit growth of the raw material manufacturing industry has accelerated.
In addition, with the further improvement of business conditions, the number of loss-making companies continued to decrease, and the amount of losses fell sharply.
In August, the loss of loss-making enterprises dropped by 37.0% year-on-year.
The steady recovery of industrial profits in August was further consolidated, but Zhu Hong also reminded that the growth rate of operating income and profits of industrial enterprises from January to August has not yet turned positive, and the growth rate of accounts receivable has continued to rise. At the same time, the domestic and international environment is complex and changeable. Sustained and stable earnings growth is still under pressure.