China's Industrial Profits Edge Up 0.1% in January–November as Manufacturing Gains Offset Mining Slump

From January to November, China's industrial enterprises above designated size reported total profits of RMB 6,626.86 billion, marking a marginal year-on-year increase of 0.1%.

Over the same period, profit performance varied by ownership structure. State-controlled enterprises recorded total profits of RMB 2,008.36 billion, down 1.6% year-on-year. Shareholding enterprises generated RMB 4,956.56 billion in profits, a decline of 0.4%. Enterprises with foreign and Hong Kong, Macao and Taiwan investment achieved total profits of RMB 1,635.53 billion, up 2.4%, while private enterprises posted profits of RMB 1,931.99 billion, down 0.1%.

By sector, the mining industry recorded total profits of RMB 789.63 billion from January to November, representing a year-on-year decrease of 27.2%. The manufacturing sector reported profits of RMB 5,031.79 billion, up 5.0%, while the electricity, heat, gas, and water production and supply sector achieved profits of RMB 805.44 billion, an increase of 8.4%.

Profit growth across major industries showed notable divergence. Computer, communications and other electronic equipment manufacturing saw profits rise by 15.0% year-on-year, while electricity and heat production and supply increased by 11.8%, and non-ferrous metal smelting and rolling processing grew by 11.1%. Automotive manufacturing recorded a 7.5% increase, followed by food processing at 4.8%, general equipment manufacturing at 4.8%, specialised equipment manufacturing at 4.6%, and electrical machinery and equipment manufacturing at 4.2%. The petroleum, coal and other fuel processing industry reduced losses year-on-year. In contrast, profits declined in non-metallic mineral products manufacturing by 4.6%, chemical raw materials and chemical products manufacturing by 6.9%, textiles by 8.2%, petroleum and natural gas extraction by 13.6%, and coal mining and washing by 47.3%.

From January to November, industrial enterprises above designated size generated operating revenues of ¥125.34 trillion, up 1.6% year-on-year, while operating costs reached ¥107.17 trillion, an increase of 1.8%. The operating profit margin stood at 5.29%, down 0.08 percentage points from a year earlier.

By the end of November, total assets of industrial enterprises above designated size amounted to ¥189.28 trillion, up 4.8% year-on-year. Total liabilities reached ¥109.96 trillion, an increase of 5.0%, while owners' equity stood at ¥79.32 trillion, up 4.5%. The asset-liability ratio was 58.1%, rising by 0.1 percentage points year-on-year.

Accounts receivable at industrial enterprises above designated size totaled ¥28.40 trillion by the end of November, up 5.5% year-on-year, while finished goods inventory reached ¥6.92 trillion, an increase of 4.6%.

During the January–November period, the cost per ¥100 of operating revenue was ¥85.50, up ¥0.18 year-on-year, while expenses per ¥100 of operating revenue stood at ¥8.39, down ¥0.06 year-on-year.

At the end of November, industrial enterprises above designated size generated revenue of ¥74.4 per ¥100 of assets, a decrease of ¥2.4 year-on-year. Revenue per employee reached ¥1.865 million, up ¥57,000 year-on-year. Finished goods inventory turnover averaged 20.5 days, up 0.6 days year-on-year, while the average collection period for accounts receivable extended to 70.4 days, an increase of 3.7 days.

In November alone, profits of industrial enterprises above designated size declined by 13.1% year-on-year.