Structural improvement of industrial enterprises' benefits

According to the data released by the National Bureau of statistics on the 27th, in the first three quarters, the total profits of Industrial Enterprises above designated size decreased by 2.1% year-on-year, with a narrower decline and structural improvement in the efficiency of industrial enterprises. The profit of industrial enterprises decreased by 3.3% in the first quarter, 1.9% in the second quarter and 1.8% in the third quarter, showing a trend of narrowing quarter by quarter. Qin Hailin, director of the Institute of industrial economics of CCID Research Institute, said structural improvements in the first three quarters of industrial enterprises' performance. The vitality of small and medium-sized enterprises is constantly increasing, the fundamentals of the whole industrial enterprises are gradually improving, and the profits of enterprises are picking up.

This structural improvement is mainly reflected in the increase of profit growth industries. From January to September, the total profit of 30 industries in 41 industries increased year on year, accounting for more than 70%. Among them, electric power, thermal production and supply industry, non-metallic mineral products industry, electrical machinery and equipment manufacturing industry, wine and beverage and refined tea manufacturing industry led the growth of profits. In total, these four industries have boosted the profit of Industrial Enterprises above Designated Size by 2.7 percentage points year on year. In addition, the profit growth of high-tech manufacturing and strategic emerging industries accelerated, 3.5 and 1.6 percentage points higher than that of January August. Qin said this shows that the effect of the state's policies such as tax reduction and fee reduction for enterprises is gradually emerging.

More and more efforts have been made in the collection and settlement of arrears of small and medium-sized enterprises. From the end of last year to this year, we have been increasing the efforts of clearing up enterprises, and the cash flow of enterprises has gradually recovered. It is worth mentioning that the automobile and electronic industry, which had a rapid decline in profits, has recently recovered, which has driven the profit growth of equipment manufacturing industry from negative to positive, from a decline of 0.7% from January to August to an increase of 0.9% from January to September. Zhang Hangyan, a researcher at the Institute of industrial economics, Chinese Academy of Social Sciences, said that the internal structural adjustment of industry has made the profit differentiation of industrial enterprises obvious. In the future, the high-tech and consumer goods industries will be the main positions for profit growth. The profit growth rate of industrial industries related to consumer goods is relatively high, such as food manufacturing and alcohol products. The growth rate of automobile industry profit is relatively low. In the future, the trend should be that the growth rate of industrial profits continues to diverge.