Industrial profits increased by 106% from January to April
The National Bureau of Statistics says that better demand and lower costs help fuel recycling in the manufacturing industry. Official data on Thursday showed that as China’s economic recovery has further strengthened. The profits of China’s major industrial companies have grown steadily in the first four months of this year.
According to the National Bureau of Statistics, the consolidated profits of Chinese industrial companies with annual operating income of at least RMB 20 million (US$3.12 million) between January and April increased 106% year-on-year to RMB 2.59 trillion.
Compared with 2019, this figure has an annual growth rate of 49.6% and an average growth rate of 22.3% in the past two years. On a monthly basis, industrial profits increased by 57% to 768.63 billion yuan.
The industrial profit of the manufacturing industry increased by 114% annually to reach 2.2 trillion yuan. The National Bureau of Statistics said that overall, industrial profits have risen steadily due to improved demand and reduced costs.
According to Zhu Hong, a senior statistician at the National Bureau of Statistics. profit growth in most industries has remained stable every year, thus maintaining the growth momentum that began in the second half of last year.
The mining industry realized a profit of 217.1 billion yuan, a year-on-year increase of 103%.
He said that rising commodity prices and improved demand have driven the mining industry’s profits soaring.
According to the National Bureau of Statistics, the momentum of equipment manufacturing and high-tech manufacturing has also improved. While consumer goods manufacturing continues to recover steadily.
Zhu said that overall, the operating performance of industrial enterprises remained stable during the four-month period, showing a rapid recovery trend. It is worth noting that considering that the global COVID-19 situation is still complicated. The foundation of industrial economic recovery is not yet solid, and profit growth is uneven. Some consumer industries have yet to return to pre-pandemic profit growth levels.
Zhu Saidji said that rising commodity prices have put pressure on the production and operation of mid- and downstream industries. Ensure a stable supply of bulk commodities, maintain price stability, and consolidate growth and rebound. Zhu Jing, a senior analyst in the Research Department of Bank of China, said that with the support of stable domestic demand. Flexible external demand and the country’s existing employment promotion policies. The profits of industrial enterprises will grow at a faster rate. However, the operating costs of most of these companies may increase, and measures need to be taken to monitor market changes and increase the supply-demand relationship of certain products.