Profits at China's major industrial firms maintained a modest recovery through November, underpinned by the rapid growth of equipment manufacturing and high-tech sectors, official data showed on Saturday.
During the first 11 months, China's industrial enterprises with an annual revenue of at least 20 million yuan ($2.85 million) saw their total profits rise 0.1 percent to 6.63 trillion yuan, following a 1.9 percent increase in the first 10 months, according to data from the National Bureau of Statistics.
NBS statistician Yu Weining noted the November figures mark the fourth consecutive month of cumulative growth in industrial profits, with sectors representing new growth drivers — particularly equipment manufacturing and high-tech manufacturing — continuing to post relatively fast gains. "This reflects orderly progress in the transformation and upgrading of the industrial economy," Yu said.
Notably, profits in equipment manufacturing industries surged 7.7 percent year-on-year during the first 11 months, contributing 2.8 percentage points to overall industrial profit growth. Profits in high-tech manufacturing jumped 10 percent during the same period, 9.9 percentage points higher than the overall industrial profit growth rate, NBS data showed.
During the first 11 months, profits recorded by manufacturing companies rose by 5 percent year-on-year, and profits registered by industrial firms that offer supplies of electricity, heat, gas, and water grew by 8.4 percent. Meanwhile, profits recorded by mining firms shrank by 27.2 percent.
According to the NBS data, State-owned firms saw earnings dip 1.6 percent year-on-year in the first 11 months. Foreign firms enjoyed a 2.4 percent rise, while private-sector companies recorded a 0.1 percent dip.
Meanwhile, Yu warned of challenges ahead, including a complex external environment, external uncertainties, and ongoing structural pressures associated with the transition from old to new growth drivers. "More efforts are needed to strengthen the foundation for a sustained improvement in industrial profits," Yu said.
In November, China's industrial profits dipped 13.1 percent year-on-year, following a 5.5 percent decline in October, according to the NBS.
Looking ahead, Yu said policymakers will ramp up efforts to accelerate the upgrading and renovation of traditional industries, foster new quality productive forces, and speed up the development of a modern industrial system to promote the sustained and healthy development of the industrial economy.
