The Profit Of Large Industrial Enterprises In China From January To May Fell By 19.3%
The profit of large industrial enterprises in China from January to may inclusive fell by 19.3% year-on-year, to 1.84 trillion yuan (about $261 billion at the current exchange rate), according to the State Statistical Office of the People's Republic of China.
Large industrial companies in China include commercial organizations with a positive difference in income and expenses that exceed 20 million yuan ($2.83 million) for the year.
At the same time, as specified in the distributed report, the fall for the corresponding period was 8.1 percentage points less than from January to April. Moreover, in May, China recorded an increase in the indicator (by 6%).
"As production is restored, the activities of China's major industrial companies are gradually normalizing, and their efficiency is improving," the report published on the Ministry's website says. - Nevertheless, despite the positive dynamics in may, which was the first time since the beginning of the year, the new coronavirus pandemic continues to negatively affect market demand, leading to its weakening. In this regard, it is premature to conclude the emerging stable trend of profit growth."
The situation in particular industries
As follows from the document, the profit of companies in the mining industry of China for five months fell by 43.6% to 129.16 billion yuan ($18.3 billion). For manufacturing companies, the decline was less significant (-16.6%, to 1.54 trillion yuan or $219 billion). The indicator of producers engaged in the production and supply of electricity, heat, gas, and water fell by 16.7% to 168.14 billion yuan ($28.8 billion).
The report notes that the most noticeable decline from January to may was shown by national companies of the oil refining industry (a drop of 167.4%), enterprises engaged in oil and gas production (-75.8%), the production of chemical fiber (-59.1%), steel (-57.2%), non-ferrous metals (-43.7%), raw materials and finished products of the chemical industry (-38.6%), furniture (-36.3%), and automobiles (-33.5%). At the same time, the Department recorded an increase in profits for computer and office equipment manufacturers (by 34.7%), tobacco products (28.1%), iron ore suppliers (20.9%), and processed agricultural products (19%).
According to official data, in 2017, the profit of large state-owned enterprises in China increased by 8.5% - to 6.8 trillion yuan (about $1 trillion at the exchange rate in effect at the time). In 2018, the dynamics were 10.3%. In 2019, it was negative, falling to -3.3% (6.19 trillion yuan, or $893.87 billion).