The profits of Industrial Enterprises above Designated Size exceeded 6tn

Profits of industrial enterprises are related to China's economic base. According to the data released by the National Bureau of Statistics recently, in 2019, the total profits of Industrial Enterprises above Designated Size nationwide reached 6199.55 billion yuan, down 3.3% over the previous year. Zhu Hong, Senior Statistician of the industry department of the National Bureau of statistics, believes that although the profits of industrial enterprises have declined due to insufficient market demand, falling prices of industrial products, rising costs and other factors, under the complex environment of significant increase in risk challenges at home and abroad, in 2019, China's industrial industry pushed forward the supply side structural reform through Jizha, achieving growth in industrial sales and presenting structural benefits Improve. From the perspective of corporate profits, in 2019, among the industrial enterprises above Designated Size, the total profits of state-owned holding enterprises reached 1635.55 billion yuan, down 12.0% over the previous year; the total profits of joint-stock enterprises reached 4528.39 billion yuan, down 2.9%; the total profits of foreign-funded, Hong Kong, Macao and Taiwan invested enterprises reached 1558.0 billion yuan, down 3.6%; the total profits of private enterprises reached 1818.19 billion yuan, up 2.2%.

From the perspective of business operation, in 2019, the operating revenue of Industrial Enterprises above Designated Size reached 105.78 trillion yuan, an increase of 3.8% over the previous year; the operating cost was 88.94 trillion yuan, an increase of 4.1%; the profit margin of operating revenue was 5.86%, a decrease of 0.43 percentage points over the previous year. In terms of enterprise assets, by the end of 2019, the total assets of Industrial Enterprises above designated size were 119.14 trillion yuan, an increase of 5.8% over the end of the previous year; the total liabilities were 67.39 trillion yuan, an increase of 5.4%; the asset liability ratio was 56.6%, a decrease of 0.2 percentage points over the end of the previous year. Zhu Hong believes that the decline of industrial enterprises' profits is affected by multiple factors: the growth rate of industrial product sales falls, mainly due to the rise of raw materials and labor costs; the decline of profits in key industries such as steel, petrochemical and automobile has a significant pulling effect. In 2019, the profits of steel, chemical industry, automobile and petroleum processing industries dropped by 37.6%, 25.6%, 15.9% and 42.5% respectively compared with the previous year, with a total impact on the above scale The profit growth rate of industrial enterprises decreased by 7.4 percentage points over the previous year; the asset impairment losses of individual industries and enterprises were accrued substantially in 2019, affecting the profit growth rate of Industrial Enterprises above designated size decreased by 1.2 percentage points over the previous year. "Although the profit of industrial enterprises decreased in 2019, the efficiency of industrial enterprises showed structural improvement."

Zhu Hong said that the improvement of benefit structure mainly reflected in the growth of profits in high-tech manufacturing industry and strategic emerging industries. In 2019, the profits of high-tech manufacturing and strategic emerging industries increased by 4.8% and 3.0% respectively compared with the previous year, which was significantly better than the average level of industries above scale; the profits of high-tech manufacturing and strategic emerging industries accounted for 1.2 and 1.6 percentage points higher than the previous year respectively. The improvement of the efficiency structure of industrial enterprises also shows that there are many industries in which the profits of private enterprises and small enterprises keep increasing and the profits keep increasing. "In recent years, the state has introduced a series of policies and measures to promote the development of small and micro enterprises of private enterprises, such as tax reduction and fee reduction, streamlining administration and decentralization, innovation support and financial support, which has created a good environment for the development of small and micro enterprises of private enterprises." "In 2019, the profits of private enterprises and small enterprises increased by 2.2% and 5.0% respectively compared with the previous year, showing a steady growth trend," Zhu said Zhu Hong also said that in 2019, profits of 28 industries in 41 major industries increased over the previous year, accounting for more than 60%. Among them, the profit growth rate of nine industries exceeded double digits, and the profit growth of Industrial Enterprises above designated size was 2.3 percentage points higher than that of the previous year driven by the four industries of power and heat production and supply, electrical machinery and equipment manufacturing, special equipment manufacturing, wine and beverage and refined tea manufacturing.