China's Industrial Profits Drop 1.1 Percent to 2.72 Trillion Yuan in First Five Months of 2025

On June 27, 2025, the National Bureau of Statistics reported that profits of industrial enterprises above designated size totaled 27.2 trillion yuan from January to May, marking a 1.1% year-on-year decline. Key industries like petroleum and natural gas extraction and chemical manufacturing saw profits fall by 10.4% and 4.7%, respectively.

State-controlled enterprises reported profits of 8.71 trillion yuan, down 7.4%, while private enterprises saw a 3.4% increase to 7.59 trillion yuan. Foreign-invested enterprises, including those from Hong Kong, Macao, and Taiwan, achieved a slight 0.3% growth in profits.

By sector, manufacturing profits rose 5.4% to 20.2 trillion yuan, while mining profits plunged 29%. Electricity, gas, and water supply industries posted a 3.7% rise to 3.42 trillion yuan. High-performing industries included agricultural food processing (+38.2%), electronics manufacturing (+11.9%), and general equipment (+10.6%). In contrast, coal mining profits dropped 50.6%, and automobile manufacturing declined 11.9%.

Operating revenue for industrial enterprises reached 54.76 trillion yuan, growing 2.7%, while operating costs rose 3.0%. The profit margin stood at 4.97%, down 0.19 percentage points. By the end of May, total assets had grown 5.1% to 182.36 trillion yuan, with an asset-liability ratio of 57.7%.

In May alone, industrial profits fell 9.1% year-on-year, reflecting ongoing challenges in key sectors.