In the first five months, the profits of industrial enterprises above designated size increased by 18.8% year-on-year

According to data recently released by the National Bureau of Statistics, the profits of industrial enterprises above designated size in China increased by 18.8% year-on-year in the first five months of this year. Yu Weining, Chief Statistician of the Industrial Department of the National Bureau of Statistics, stated that from January to May, the profits of industrial enterprises above designated size maintained rapid growth, and the efficiency of industrial enterprises continued to recover.

Improvement of corporate profitability

From the perspective of industrial enterprise operation, in the first five months of this year, the total profit of industrial enterprises above designated size in China reached 3143.96 billion yuan. Yu Weining analyzed that the revenue of industrial enterprises above designated size in China has steadily increased, driving the rapid growth of enterprise profits.

Looking at revenue - Yu Weining introduced that from January to May, the rapid growth of industrial production combined with the expansion of industrial product price increases promoted a year-on-year increase of 5.5% in the operating revenue of national industrial enterprises above designated size, which was 0.3 percentage points faster than that from January to April.

Looking at profits - the profits of industrial enterprises above designated size in China increased by 18.8% year-on-year, 0.6 percentage points faster than from January to April. The profits of industrial enterprises above designated size have maintained a rapid growth trend since the beginning of this year.

From January to May, among the industrial enterprises above designated size, state-owned holding enterprises achieved a total profit of 1.04866 trillion yuan, a year-on-year increase of 19.6%; Joint stock enterprises achieved a total profit of 2434.81 billion yuan, an increase of 24.1%; Foreign and Hong Kong, Macao, and Taiwan invested enterprises achieved a total profit of 695.72 billion yuan, an increase of 4.2%; Private enterprises achieved a total profit of 772.65 billion yuan, an increase of 10.7%.

Divided into three major categories, the mining industry saw a 33.5% increase in profits, an acceleration of 7.5 percentage points from January to April; Manufacturing profits increased by 20%; The profits of the electricity, heat, gas, and water production and supply industries decreased by 2.7%.

From the perspective of profit margin, the decrease in unit costs of industrial enterprises has driven continuous improvement in their profitability. Yu Weining introduced that from January to May, the cost per 100 yuan of operating income for industrial enterprises above designated size was 84.95 yuan, a year-on-year decrease of 0.59 yuan. The cumulative unit cost of industrial enterprises has decreased for five consecutive months this year. From January to May, the operating revenue profit margin of industrial enterprises above designated size was 5.56%, an increase of 0.63 percentage points year-on-year, and the revenue profit margin reached the highest cumulative level since 2024.

Industrial production is steady with progress

From the monthly data, the profits of industrial enterprises above designated size in China increased by 21.1% year-on-year in May; In terms of industrial added value, the national industrial added value above designated size increased by 4.5% year-on-year, with a growth rate 0.4 percentage points faster than the previous month.

Divided into three major categories, the added value of mining, manufacturing, electricity, heat, gas, and water production and supply industries increased by 2.3%, 4.4%, and 7.6% respectively; Looking at different industries, 28 out of 41 major industrial sectors have seen an increase in added value, with a growth rate of 68.3%.

Sun Xiao, Chief Statistician of the Industry Department of the National Bureau of Statistics, stated that in May, China's industrial production remained stable with progress, industrial exports maintained double-digit growth, equipment manufacturing, high-tech manufacturing, and digital product manufacturing industries accelerated their growth, green transformation steadily advanced, and the leading role of new driving forces continued to strengthen.

Among them, the equipment manufacturing industry plays a significant supporting role. From January to May, the profit of the equipment manufacturing industry above designated size increased by 14.1% year-on-year, driving the profit growth of all industrial enterprises above designated size by 5.2 percentage points. In May, the added value of the equipment manufacturing industry above designated size increased by 9.5% year-on-year, with a growth rate 1.2 percentage points faster than the previous month, contributing 78.4% to the overall growth of the industry above designated size.

The performance of the electronics industry is impressive. Sun Xiao introduced that in May, the added value of all eight industries in the equipment manufacturing industry achieved growth, among which the electronics industry grew by 17%, the highest growth rate in nearly five years, and contributed 39.2% to the growth of all large-scale industries, ranking first among all major industrial categories.

The global transformation of artificial intelligence technology has brought about an explosion in demand for high-end computing chips and storage chips, driving rapid profit growth in the electronics industry. From January to May, the electronics industry's profits increased by 103.9%, contributing 43.1% to the profit growth of all industrial enterprises above designated size. This is an important support for the rapid growth of profits in industrial enterprises above designated size, "said Yu Weining.

High tech manufacturing industry is full of vitality

Data shows that the development of high-tech manufacturing industry is full of vitality, and the trend of large-scale industries moving towards new directions is evident.

Looking at profits - Yu Weining introduced that the profits of high-tech manufacturing industry have maintained double-digit growth. From January to May, the profit of high-tech manufacturing enterprises above designated size increased by 44.7% year-on-year, driving the profit growth of all industrial enterprises above designated size by 8 percentage points, and the leading role continued to be highlighted.

Looking at different industries, the semiconductor industry chain is developing well. In terms of electronic device manufacturing, the profits of optoelectronic device manufacturing and semiconductor discrete device manufacturing industries have increased by 53.8% and 40.6% respectively; In the manufacturing of electronic components and electronic specialized materials, the profits of the electronic specialized material manufacturing and electronic circuit manufacturing industries increased by 665.4% and 19.7% respectively. The profit growth in the medical equipment and related industries is relatively fast, with profits in the manufacturing of dental equipment and appliances, as well as the manufacturing of hygiene materials and medical supplies, increasing by 26.4% and 23.2% respectively.

In addition, driven by the increasing demand for emerging industries such as new energy and artificial intelligence, the prices of copper, aluminum and other products have remained at a high level, promoting a profit growth of 117.1% in the non-ferrous industry and a profit growth of 5.3 percentage points for all industrial enterprises above designated size.

Looking at industrial added value - Sun Xiao introduced that in May, the added value of high-tech manufacturing industry above designated size increased by 15.1% year-on-year, with a growth rate 2.3 percentage points faster than the previous month. Its contribution to the growth of all industrial enterprises above designated size reached 57%, an increase of 4.9 percentage points from the previous month.

By industry, the added value of industries such as electronic device manufacturing, aircraft manufacturing, electronic industry specialized equipment manufacturing, and biopharmaceutical manufacturing increased by 35.4%, 24.2%, 18.7%, and 14.7%, respectively. From a product perspective, "artificial intelligence+" has driven the production of sensors, integrated circuits, and other products to increase by 24.1% and 22.9% respectively; The flourishing of embodied intelligence, human-machine collaboration, and other technologies have contributed to the rapid development of the robotics field. The production of products such as robot reducers, industrial robots, and service robots has increased by 44.7%, 27.9%, and 19.8%, respectively.

Yu Weining stated that the contradiction between strong supply and weak demand in China is still prominent, and some industries and enterprises still face difficulties in production and operation. In the next stage, we will make full use of various macro policies, strengthen countercyclical and cross cyclical adjustments, continuously expand domestic demand, optimize supply, accelerate the cultivation and growth of new driving forces, and solidly promote high-quality development of the industrial economy.