Profits of industrial enterprises fell 2.4% in the first half of the year

Recently, the financial data of industrial enterprises released by the National Bureau of Statistics show that in the first half of 2019, the profits of industrial enterprises above the scale dropped by 2.4% year-on-year. Among them, the profits of Industrial Enterprises above the scale fell by 3.3% in the first quarter and 1.9% in the second quarter, showing a narrowing trend. Zhu Hong, a senior statistician in the Industrial Department of the National Bureau of Statistics, said that the first half of the year had the following characteristics: first, the new profits mainly came from building materials, power and electrical machinery industries. Second, the profits of consumer goods manufacturing industry have increased rapidly, while the profits of strategic emerging industries and high-tech manufacturing industry have maintained growth. Third, the profits of private enterprises have maintained growth. In the first half of the year, the profits of private enterprises increased by 6.0% compared with the same period last year. Fourthly, the ratio of assets to liabilities has declined. From the specific data, in the first half of the year, the profits of 26 industries increased year on year, accounting for 63.4%. Among them, the major industries with more profits are: building materials industry, power industry, electrical machinery and equipment industry, wine, beverage and refined tea industry, which increased 11.9%, 11.5%, 13.0%, 16.9%. All these four industries have contributed 2.6 percentage points to the profit growth of industrial enterprises of all sizes and above.

In the first half of the year, the profit of consumer goods manufacturing increased by 7.4%, strategic emerging industries by 2.3% and high-tech manufacturing by 0.4%. At the end of June, the ratio of assets to liabilities of Industrial Enterprises above scale was 57.0%, which was 0.3 percentage points lower than that of the previous year. In terms of sub-ownership, from January to June, the total profits of state-owned holding enterprises in Industrial Enterprises above the scale reached 936.88 billion yuan, down 8.7% from the same period last year; the total profits of joint-stock enterprises reached 2139.06 billion yuan, up 0.2%; the total profits of foreign and Hong Kong, Macao and Taiwan-invested enterprises reached 718.62 billion yuan, down 8.4%; The total profit achieved by the industry was 743.07 billion yuan, an increase of 6.0%.

Zhang Yu, chief macro-analyst of Huachuang Securities, told Securities Daily that the growth rate of private enterprises fell to 3.4% in June, which was significantly lower than that of May (15.22%); the growth rate of state-owned and state-owned holding enterprises decreased by 4.88% in June compared with the previous value (9.7%) and was significantly lower than that of mining and upstream materials. There is a deviation, but the total profit of tobacco products industry increased by 63% in June compared with the same month last year, and decreased by 9.3% compared with the same month in May, which formed a certain support for the profits of state-owned enterprises. Foreign businessmen and Hong Kong, Macao and Taiwan decreased by 8.8% in June compared with the previous value (8.3%). Overall, industrial profits declined in the first half of the year, mainly affected by a few industries, such as automobiles, petroleum processing and steel, Zhu Hong said. Due to the sluggish market demand, the profits of automobile manufacturing industry fell by 24.9% in the first half of the year, while those of petroleum processing and iron and steel industry fell by 53.6% and 21.8%, respectively, due to the rising prices of crude oil and iron ore. The profits of Industrial Enterprises above the total scale affected by the above three industries decreased by 6.3 percentage points over the same period of last year.