National Bureau of Statistics: Profits of China's industrial enterprises above designated size increased by 20.4% year-on-year in August, compared to a 1.5% year-on-year decrease in the previous month.

According to the GMTEight APP, on Saturday, September 27th, the National Bureau of Statistics released that from January to August, the total profits of industrial enterprises above a designated size in China reached 4.69297 trillion yuan, a year-on-year increase of 0.9%. Under the effective implementation of macroeconomic policies and the deepening promotion of a unified national market, combined with multiple factors such as the low base in the same period last year, the profits of industrial enterprises above a designated size increased by 0.9% year-on-year. The equipment manufacturing industry provided strong support, and profits of enterprises of various sizes all improved. In August, the year-on-year profit of industrial enterprises above a designated size increased by 20.4% from a 1.5% decline the previous month. Industrial enterprise profits significantly improved. From January to August, the profits of industrial enterprises above a designated size increased by 0.9% year-on-year compared to a 1.7% decrease from January to July, reversing the downward trend in cumulative profits since May this year. By sector, from January to August, the manufacturing industry grew by 7.4%, an increase of 2.6 percentage points from January to July; the electricity, heat, gas, and water production and supply industry grew by 9.4%, an increase of 5.5 percentage points; and the mining industry decreased by 30.6%, with a reduction of 1.0 percentage point. From a monthly perspective, profits of industrial enterprises above a designated size increased by double digits in August, rising by 20.4% from a 1.5% decline in July. Industrial enterprise revenue maintained steady growth. From January to August, the operating income of industrial enterprises above a designated size increased by 2.3% year-on-year, remaining the same as from January to July. In August, industrial enterprise operating income increased by 1.9%, an increase of 1.0 percentage point from July, providing favorable conditions for continued profit recovery for enterprises. The role of the equipment manufacturing industry in supporting profits was evident. From January to August, profits of equipment manufacturing industries above a designated size increased by 7.2%, driving a 2.5 percentage point increase in profits for all industrial enterprises above a designated size. The sector was one of the strongest drivers, providing significant support for the recovery of profits for industrial enterprises above a designated size. By industry, seven out of eight industries in the equipment manufacturing industry saw profit growth from January to August, with the railway, shipbuilding, aerospace, and electrical machinery industries experiencing significant profit growth at 37.3% and 11.5% respectively; the special equipment and electronic industries saw profit growth rates of 6.9% and 7.2%, respectively, an increase of 3.7 and 0.5 percentage points from January to July. Profit growth in the raw materials manufacturing industry accelerated, and profits in the consumer goods manufacturing industry turned from losses to gains. Driven by increased market demand, price increases, and a slight decrease in costs, profits in the raw materials manufacturing industry increased by 22.1% year-on-year from January to August, an increase of 10.0 percentage points from January to July, contributing 2.5 percentage points to the growth in profits for all industrial enterprises above a designated size. In the same period, the steel industry turned from losses to profits, with total profits amounting to 83.7 billion yuan; the non-ferrous industry saw a profit increase of 12.7%, an increase of 5.8 percentage points from January to July. From January to August, profits in the consumer goods manufacturing industry turned from a 2.2% decrease from January to July to a 1.4% increase, with fast-growing profits in industries such as beverages, tea, agriculture and sideline food at 19.9% and 11.8% respectively, collectively driving a 1.0 percentage point increase in profits for all industrial enterprises above a designated size. Profits for enterprises of various sizes improved, with a noticeable acceleration in profits for private enterprises. From January to August, among enterprises of different sizes, profits for medium and small industrial enterprises above a designated size increased by 2.7% and 1.5% respectively year-on-year, an increase of 1.1 and 0.4 percentage points from January to July; the decline in profits for large enterprises narrowed by 4.6 percentage points from January to July. In terms of enterprise types, the profit decline for state-owned enterprises narrowed by 5.8 percentage points from January to July; profits for private enterprises increased by 3.3%, higher than the average level of all industrial enterprises above a designated size by 2.4 percentage points, an increase of 1.5 percentage points from January to July. Unit costs for enterprises decreased in August, and operating profit margins increased. In August, the cost situation for industrial enterprises above a designated size improved, with a year-on-year decrease of 0.20 yuan in costs for every 100 yuan of operating income, the first such decrease since July 2024. In August, the operating profit margin for industrial enterprises above a designated size was 5.83%, an increase of 0.90 percentage points year-on-year. In the next stage, against the backdrop of a severe and complex external environment and insufficient domestic market demand, it is necessary to comprehensively implement the decisions and arrangements of the Party Central Committee, further expand domestic demand, deepen the construction of a unified national market, standardize competition among enterprises, and create more favorable conditions for the continued recovery of profits for industrial enterprises.