China's industrial profits top 5 trln yuan in first 3 quarters

A worker is on duty at the production line of Tianrun Industrial Technology Co., Ltd. in Wendeng District of Weihai City, east China's Shandong Province, July 21, 2023. (Xinhua/Guo Xulei)

The combined profit of major industrial enterprises in China reached 5.23 trillion yuan (735.41 billion U.S. dollars) in the January-September period, down 3.5 percent year on year, the National Bureau of Statistics (NBS) said on Sunday.

Meanwhile, the new momentum industries represented by high-tech manufacturing experienced rapid growth. NBS statistician Yu Weining said this showcases the resilience of industrial economic development.

Multiple factors have contributed to the decline in industrial enterprises' profit growth rates, including a significant increase in the year-on-year comparison base since August, insufficient effective demand, and declining industrial product prices, said Yu.

In September alone, profits dropped by 27.1 percent year on year.

According to the NBS, the total profits of major industrial enterprises increased by 575.43 billion yuan from January to September compared to the period from January to August.

During the first nine months, driven by rapid production growth, the profits of high-tech manufacturing industries increased by 6.3 percent year on year.

Yu said this growth rate is 9.8 percentage points higher than the average level of major industrial enterprises, contributing 1.1 percentage points to the overall profit growth. This performance has significantly supported industrial profits.

With solid efforts to expand domestic demand, promote consumption, and stabilize international market demand, the consumer goods manufacturing industry's profits increased by 2.4 percent year on year in the January-September period, contributing 0.5 percentage points to the overall industrial profit growth.

The resilience of new industrial growth drivers is evident, although the industrial profit growth rate has declined, said Yu, adding that with the stabilization in the expectation of industrial enterprises and an increase in confidence, industrial profit growth is expected to recover.