National Industrial Enterprises' Total Profit Decreases by 3.5%! The Chemical Raw Materials Industry Plummets by 4%, with State-Owned Enterprises' Profits Shrinking by 6.5%

On October 27th, the National Bureau of Statistics released the latest economic data. According to these figures, we can learn that in the first nine months of this year, namely from January to September, the total profits made by the larger industrial enterprises nationwide reached 5.228.16 billion yuan. However, the figure represented a 3.5 per cent decline compared to the same period last year. Specific to the manufacturing of chemical raw materials and chemical products, the total profit of this industry was 301.71 billion yuan, but also saw a year-on-year decline of 4 percent.

Breaking it down further, the total profit of state-controlled enterprises during the nine-month period was 1,723.59 billion yuan, down 6.5 percent from the same period last year. Joint-stock enterprises achieved a total profit of 3.88723 billion yuan, but they also failed to avoid the downward trend, with a decline of 4.9%. In contrast, foreign and Hong Kong, Macao and Taiwan-invested enterprises performed relatively well, with a total profit of 1,303.64 billion yuan, up 1.5 percent. Private enterprises also maintained a relatively stable trend, with their total profits of 1422.72 billion yuan, down only 0.6 percent.

In terms of different industries, the mining industry recorded a total profit of 896.38 billion yuan in the first nine months, down 10.7 percent year-on-year. Manufacturing profits totaled 3,732.50 billion yuan, down 3.8 percent. The electricity, heat, gas and water production and supply industry performed well, with total profits of 599.29 billion yuan, up 12.1 percent year on year.

In terms of major industries, the data showed that the profits of non-ferrous metal smelting and rolling processing industry increased by 52.5% year on year; electricity and heat production and supply industry increased by 13.8%; textile industry increased by 11.5%; computer, communication and other electronic equipment manufacturing industry increased by 7.1%; agricultural and sideline food processing industry increased by 6.6%. Oil and gas extraction increased 0.9 percent and general equipment manufacturing increased 0.2 percent. However, not all sectors achieved growth, with automobile manufacturing down 1.2%, chemical raw materials and chemical products manufacturing down 4.0%, special equipment manufacturing down 5.5%, electrical machinery and equipment manufacturing down 7.2%, coal mining and washing down 21.9%, non-metallic mineral products down 51.0%. Petroleum coal and other fuel processing industry, ferrous metal smelting and rolling processing industry from profit to loss.

In terms of operating income, industrial enterprises above designated size achieved operating income of 99.20 trillion yuan in the first nine months of this year, up 2.1 percent year on year. At the same time, operating costs also rose, reaching 84.70 trillion yuan, up 2.4 percent. Despite the increase in operating income, the operating income margin decreased, which was 5.27%, down 0.31 percentage point from the same period last year.

By the end of September, the total assets of industrial enterprises above designated size reached 175.02 trillion yuan, up 4.7 percent year on year. Total liabilities were 101.02 trillion yuan, growing at the same rate as total assets, also 4.7 percent. Total owners' equity was 74.00 trillion yuan, also up 4.7 percent. The asset-liability ratio was 57.7%, unchanged from the same period last year.

In terms of accounts receivable and inventory, by the end of September, accounts receivable of industrial enterprises above designated size was 25.72 trillion yuan, up 7.6% year on year. Inventories of finished goods were 6.47 trillion yuan, up 4.6 percent.

Further refined to costs and expenses per 100 yuan of operating revenue, the data showed that costs per 100 yuan of operating revenue were 85.38 yuan, an increase of 0.27 yuan year-on-year. Expenses per 100 yuan of operating revenue were 8.46 yuan, an increase of 0.08 yuan year-on-year.

In terms of asset efficiency, by the end of September, the operating income realized per 100 yuan of assets was 77.2 yuan, down 2.6 yuan year-on-year. Per capita operating income was RMB1.817 million, representing a year-on-year increase of RMB67,000. Finished goods inventory turnover days were 20.0 days, an increase of 0.2 days year-on-year. The average payback period of accounts receivable was 66.3 days, an increase of 3.7 days year-on-year.

Finally, profits of industrial enterprises above designated size fell 27.1 percent in September from a year earlier, due to factors such as a high base in the same period last year.