Profits of Chinese Industrial Enterprises Decline by 3.3% in 2024, Some Debts Exceed ￥100 Trillion

According to data released by the National Bureau of Statistics on January 27, China’s industrial enterprises above designated size reported a total profit of 74,310.5 billion CNY in 2024, reflecting a 3.3% decline from the previous year. The oil and gas extraction industry witnessed a significant profit drop of 22.2%, totaling 6,046.4 billion CNY, while the chemical raw materials and products manufacturing industry saw an 8.6% decrease in profits, totaling 4,250.1 billion CNY. Notably, the oil, coal, and other fuel processing industries shifted from profit to loss, recording a loss of 46.3 billion CNY.

In 2024, state-owned enterprises achieved profits of 21,397.3 billion CNY, down 4.6%, while joint-stock enterprises reported 56,166.4 billion CNY, a decline of 3.6%. Foreign-invested enterprises saw profits of 17,637.9 billion CNY, down 1.7%, whereas private enterprises experienced a slight growth of 0.5%, reaching 23,245.8 billion CNY.

The mining sector reported profits of 11,271.9 billion CNY, a 10% decline, while manufacturing profits totaled 55,141.1 billion CNY, down 3.9%. However, the electricity, heat, gas, and water production and supply industries enjoyed a profit increase of 14.5%, totaling 7,897.6 billion CNY.

Major sectors demonstrated varied profitability: the electricity and heat production sector grew by 17.8%, and the non-ferrous metal smelting and rolling industry increased by 15.2%. However, the non-metallic mineral products industry faced a staggering 45.1% decline, and the black metal smelting and rolling industry saw a dramatic 54.6% drop.

In terms of revenue, total operating income for these enterprises reached 137.77 trillion CNY, marking a 2.1% increase, while operating costs rose to 117.31 trillion CNY, up 2.5%. The operating profit margin was recorded at 5.39%, reflecting a 0.30 percentage point drop from the previous year.

By the end of 2024, total assets of these enterprises amounted to 178.54 trillion CNY, marking a 4.5% increase, while total liabilities reached 102.71 trillion CNY, up 4.8%. The equity totaled 75.83 trillion CNY, growing by 4.2%, with a debt-to-asset ratio of 57.5%.

Additionally, accounts receivable stood at 26.06 trillion CNY, an 8.6% increase, and finished goods inventory rose by 3.3%, reaching 6.44 trillion CNY. Notably, the cost for every 100 CNY of operating income was 85.16 CNY, an increase of 0.36 CNY, while expenses per 100 CNY of revenue slightly decreased by 0.01 CNY.