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How does industrial profit realize restorative growth?

Submit Time:16-05-2017 | Zoom In | Zoom Out

Author:Zhang Yi Xu Shiyin | Source:Guangming Daily

Abstract:

Statistics released on March 27 by the National Bureau of Statistics indicate in January and February this year, total profits from the industrial enterprises above designated size grew 31.5 percent year-on-year, an increase of 29.2 percentage points compared with that of last December and 23 percentage points compared with the average of last year.   

How will the distinctive growth in profits of industrial enterprises be understood? Dr. He Ping from the Industrial Department of the National Bureau of Statistics gave the following explanations.   

Reporter: In January and February 2017, the growth of industrial enterprise profits was 29.2 percentage points higher than that of last December. What are the reasons?   

He Ping: In the first two months of the year, industrial production continued to sustain a steady economic growth. Industrial incremental value of enterprises above designated size realized an actual growth of 6.3 percent year-on-year; the growth was 0.3 percentage point higher than that of last December; the output growth of more than half of the major industrial products increased or narrowed the reduction range compared with that of last December. At the same time, the product prices soared considerably. The ex-works price of the industrial products increased by 7.3 percent year-on-year, representing 1.8 percentage points higher than that of last December. Among them, the increase in February stood at 7.8 percent, creating a new high since 2008.   

In addition, in January and February, unit cost and unit expense reduced rapidly. The cost of major business income per 100 yuan of industrial enterprises above designated size stood at 84.91 yuan, a decrease of 0.28 yuan year-on-year. Yet the figure of last December showed a year-on-year increase.   

Reporter: What are the other indicators of enterprise efficiency from the perspective of the latest statistics?   

He Ping: In January and February, the profit rate of major business income of enterprise was 5.92 percent, up 0.8 percentage point year-on-year. The margin of increase has been the largest since 2012 and the profit rate saw a distinctive year-on-year increase; the situation of difficult return of investment has been eased for the first time. By the end of February, the average recovery period of receivables of industrial enterprises above designated size was 41.3 days, one day less year-on-year. It marked the first year-on-year decrease in recent years; the growth of inventory increased while the days of turnover of products and finished goods continued to reduce.   

Reporter: What is your general evaluation of the profit increase of industrial enterprise in the first two months?   

He Ping: In January and February, although the industrial profits showed relatively rapid growth, a large proportion of the profits relied on the rapid growth of prices of coal, steel and crude oil. Generally, the current industrial enterprise profit still belongs to restorative growth.    

From the perspective of concrete data, in January and February, industrial profits of coal mining, wash-up and beneficiation, metallurgical smelting andcalendering processing, oil and natural gas exploitation increased by big margins, driving the profit of all enterprises above designated size to increase distinctively compared with last December. Affected by the industries of oil and iron and steel, the efficiency of State-owned enterprises recovered distinctively. In January and February, the profit of State-owned holding enterprises increased by 100.2 percent year-on-year. The figure last December showed a year-on-year decrease of 11.6 percent. 


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