Chinese Industrial Enterprise Profits Decrease by 16.8% in 1st Half of 2023, with Chemical Industry Down by 52.2%

On July 27th, the Chinese National Bureau of Statistics released data showing that the profits of industrial enterprises above designated size in China from January to June decreased by 16.8%, with a narrowing decline. Among them, profits of the chemical raw materials and chemical products manufacturing industry decreased by 52.2% year-on-year.

From January to June, the total profits of China's state-owned enterprises reached 1,200.2 billion yuan, a year-on-year decrease of 21.0%; the total profits of Chinese joint-stock enterprises reached 2,487.2 billion yuan, a decrease of 18.1%; the total profits of foreign-invested enterprises in China and enterprises invested by Hong Kong, Macao, and Taiwan reached 796.68 billion yuan, a decrease of 12.8%; and the total profits of private enterprises in China reached 868.92 billion yuan, a decrease of 13.5%.

China's mining industry achieved a total profit of 681.68 billion yuan in the first half of the year, a year-on-year decrease of 19.9%. The manufacturing industry achieved a total profit of 23,874.7 billion yuan, a decrease of 20.0%. The electricity, heat, gas, and water production and supply industry achieved a total profit of 319.31 billion yuan, an increase of 34.1%.

The data shows that in the first half of the year, among 41 major industrial categories, the total profits of 12 industries increased year-on-year, while 29 industries decreased. The main industry profit situations are as follows: the total profits of the electricity, heat production and supply industry increased by 46.5% year-on-year, the electrical machinery and equipment manufacturing industry increased by 29.1%, the general equipment manufacturing industry increased by 17.9%, the automobile manufacturing industry increased by 10.1%, the special equipment manufacturing industry increased by 3.9%, the petroleum and natural gas extraction industry decreased by 12.2%, the coal mining and washing industry decreased by 23.3%, the textile industry decreased by 23.8%, the computer, communication, and other electronic equipment manufacturing industry decreased by 25.2%, the non-metallic mineral products industry decreased by 26.6%, the agricultural and sideline food processing industry decreased by 33.2%, the non-ferrous metal smelting and rolling processing industry decreased by 44.0%, the chemical raw materials and chemical products manufacturing industry decreased by 52.2%, and the petroleum, coal, and other fuel processing industry decreased by 92.3%, and the ferrous metal smelting and rolling processing industry decreased by 97.6%.

From January to June, the operating income of industrial enterprises above designated size in China was 62.62 trillion yuan, a year-on-year decrease of 0.4%. The operating costs were 53.37 trillion yuan, an increase of 0.5%. The operating income profit margin was 5.41%, a year-on-year decrease of 1.07 percentage points.

At the end of June, the total assets of industrial enterprises above designated size in China reached 160.31 trillion yuan, a year-on-year increase of 6.6%. The total liabilities were 92.28 trillion yuan, an increase of 6.7%. The total owners' equity was 68.04 trillion yuan, an increase of 6.3%. The asset-liability ratio was 57.6%, a year-on-year increase of 0.1 percentage points.

At the end of June, the accounts receivable of industrial enterprises above designated size in China were 22.72 trillion yuan, a year-on-year increase of 10.6%. The finished goods inventory was 6.05 trillion yuan, an increase of 2.2%.

From January to June, the cost per 100 yuan of operating income for industrial enterprises above designated size in China was 85.23 yuan, an increase of 0.81 yuan year-on-year. The cost per 100 yuan of operating income was 8.34 yuan, an increase of 0.25 yuan year-on-year.

At the end of June, the operating income per 100 yuan of assets realized by industrial enterprises above designated size in China was 79.1 yuan, a decrease of 6.2 yuan year-on-year. The per capita operating income was 1.736 million yuan, an increase of 51,000 yuan year-on-year. The turnover days of finished goods inventory were 20.3 days, an increase of 1.1 days year-on-year. The average collection period of accounts receivable was 63.2 days, an increase of 6.4 days year-on-year.

In June, the total profits of industrial enterprises above designated size in China reached 719.76 billion yuan, a year-on-year decrease of 8.3%.