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MIL OSI Translation. Region: Peoples Republic of China-China Statistical Information Network-Chinese-

The cumulative profit growth of industrial enterprises has changed from negative to positive

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—— Zhu Hong, a senior statistician from the Department of Industry of the National Bureau of Statistics, interprets the profit data of industrial enterprises

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   As my country has achieved major strategic results in the overall promotion of epidemic prevention and control and economic and social development, the relationship between market supply and demand has improved day by day, the industrial cycle has gradually become smooth, the production and operation of industrial enterprises have continued to improve, and the profit recovery situation has been further consolidated. From January to October, industrial enterprises above designated size realized profits of 5012.42 billion yuan, a year-on-year increase of 0.7%, and a decrease of 2.4% from January to September. The cumulative profit growth rate from negative to positive for the first time this year.

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   Specifically, the profit growth from January to October mainly showed the following characteristics:

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   First, over 60% of the industry profits have increased. From January to October, among 41 major industrial sectors, 36 industries’ profit growth rate accelerated or decreased from January to September; 25 industries achieved year-on-year profit growth, an increase of 4 from January to September. The profit growth of the industry reached 61%, of which 12 industries achieved double-digit profit growth.

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   Second, the profit growth of the equipment manufacturing industry has accelerated. From January to October, the profit of the equipment manufacturing industry increased by 9.6% year-on-year, and the growth rate was 0.8 percentage points faster than that from January to September. It drove the profit of industrial enterprises above designated size to increase by 3.2 percentage points year-on-year, and was the sector that contributed the most to the growth of industrial profits. Among them, the electronics industry has maintained double-digit growth since the cumulative profit growth rate in April turned positive, with an increase of 12.6% from January to October, and its contribution to industrial profit growth is particularly prominent. As the policies of stabilizing infrastructure investment and promoting automobile consumption have continued to be effective, the production and sales of trucks and new energy vehicles have improved, which has led to a steady recovery of profits in the automobile manufacturing industry. Profits from January to October increased by 6.6%, which was 3.6 times faster than that from January to September. percentage point. The general-purpose and special-purpose equipment manufacturing industries continued to grow rapidly, with cumulative profits increasing by 12.0% and 22.9% respectively from January to October.

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   Third, the profit growth rate of the consumer goods manufacturing industry rebounded steadily. From January to October, driven by factors such as the recovery of domestic demand and the improvement of the export situation, the profit of the consumer goods manufacturing industry increased by 4.8% year-on-year, and the growth rate was 0.4 percentage points higher than that from January to September. Among them, the profits of agricultural and sideline food processing, food manufacturing, papermaking, tobacco and other industries maintained a double-digit growth of 10%-30%; the profits of the alcoholic beverage, textile, and pharmaceutical industries increased by 5.1%, 7.6%, and 8.7%, respectively. From January to September, there was an acceleration; the decline in profits in the textile and apparel, wood processing, leather and fur, furniture manufacturing, and chemical fiber industries further narrowed.

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   Fourth, the profit of the raw material manufacturing industry has improved significantly. As downstream demand continues to pick up, the internal circulation of the industry is gradually unblocked, and profits in the upstream raw material industry are quickly restored. From January to October, the profit of the raw material manufacturing industry fell by 6.0% year-on-year, but the rate of decline narrowed by 9.1 percentage points from January to September. Among them, the cumulative profit decline of the petroleum processing and iron and steel industries has significantly narrowed, down 52.8% and 12.9% year-on-year, respectively. The decline was 13.4 and 5.8 percentage points lower than that from January to September; the cumulative profit growth of the nonferrous, chemical, and building materials industries was Between 0.9% and 5.0%, the growth rate will increase slightly or turn from negative to positive.

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  Fifth, the profits of private enterprises and foreign-funded enterprises have recovered. With the implementation of a series of policies to help enterprises and financial support for the real economy took effect, the vitality of various market entities has steadily recovered and their profitability has improved. From January to October, the profit of private enterprises increased by 1.1% year-on-year, and fell by 0.5% from January to September; the profits of foreign, Hong Kong, Macao and Taiwan-invested enterprises increased by 3.5%, and the growth rate accelerated by 0.9 percentage points.

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   Sixth, the growth rate of industrial finished goods inventory has slowed down. At the end of October, the inventory of finished products of industrial enterprises above designated size increased by 6.9% year-on-year, and the growth rate dropped by 1.3 percentage points from the end of September.

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  In October, the profit of industrial enterprises increased by 28.2% year-on-year, and the growth rate was 18.1 percentage points higher than that in September. This was mainly due to the combination of factors such as the low base in the same period last year and the increase in investment income this month. After excluding the impact of short-term non-operating factors, profit growth in October was roughly the same as the previous month.

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   Overall, the steady recovery of industrial profits has been further consolidated, and cumulative profits have achieved positive growth. At the same time, it should be noted that the growth rate of industrial enterprises’ accounts receivable has increased, and the pressure on cash flow has increased, which is not conducive to the continuous recovery of enterprise production and operation. In the next step, we still need to do a good job in the “six stability” work, fully implement the “six guarantees” task, and follow the requirements of the new development pattern of building a domestic cycle as the main body and mutual promotion of domestic and international dual cycles. Stimulate the vitality and consumption potential of market players, and promote the healthy development of production and operation of industrial enterprises.

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EDITOR’S NOTE: This article is a translation. Apologies should the grammar and/or sentence structure not be perfect.

MIL Translation OSI