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Enterprises’ Earnings Improved Continuously

Profit of Industrial Enterprises above the Designated Size Increased by 20% in the First Ten Months over the Same Period Last Year

Submit Time:03-01-2018 | Zoom In | Zoom Out

Author: | Source:People’s Daily (November 28, 2017)

Abstract:

The financial data of industrial enterprises released by the National Bureau of Statistics show that in the first ten months this year, profit of industrial enterprises above the designated size increased by 23.3% over the same period last year, 0.5 percentage points higher than the growth rate for the period from January to September, while the total loss of loss-making enterprises decreased by 18.1% over the same period last year. 

According to an analysis by Dr. He Ping from the Department of Industry under the National Bureau of Statistics, while industrial enterprises’ profit grew rapidly, their earnings were also improving continuously. 

The cost decreased continuously, and the profit margin kept rising. From January to October, the cost per 100 yuan in main business revenue of industrial enterprises above the designated size decreased by 0.51 yuan over the same period last year to 92.84 yuan. From January to October, industrial enterprises’ profit margin of main business revenue was 6.24%, 0.55 percentage points higher than the same period last year. 

The number of loss-making enterprises was less, and the amount of loss was lower. In the first ten years, loss-making enterprises among industrial enterprises above the designated size decreased by 1.6% over the same period last year; loss-making enterprises’ total amount of loss dropped by 18.1% over the same period last year. 

Fund turnover was faster, and operating efficiency kept improving. By the end of October, the average period of account receivable recovery of industrial enterprises above the designated size was 38 days, 1 day less than last year; the period of finished product inventory turnover was 13.9 days, 0.6 days less than the end of October last year. From January to October, the main business revenue per 100 yuan of assets realized by industrial enterprises was 112.1 yuan, 4.6 yuan more than the same period last year. 

Enterprises’ leverage ratio decreased, and operating risk was lowered continuously. By the end of October, the asset-liability ratio of industrial enterprises above the designated size was 55.7%, 0.5 percentage points lower than last year. Among them, the asset-liability ratio of state-holding enterprises was 60.9%, 0.5 percentage points lower than last year. 

The profit of the coal, steel, chemical and petroleum sectors increased a lot. From January to October, the total profit of the coal exploitation and washing sector, the ferrous metal metallurgy extrusion sector, the chemical raw material and chemical product manufacturing sector and the petroleum and natural gas exploitation sector increased by 603.4 billion yuan, contributing to 51.2% of the profit growth of all industrial enterprises above the designated size. 

The high-tech manufacturing sector and industrial strategic emerging sectors maintained fast growth. From January to October, the high-tech manufacturing sector’s main business revenue increased by 13.6% over the same period last year, 1.2 percentage points higher than the growth rate of all industrial enterprises above the designated size. According to preliminary estimation, from January to October, industrial strategic emerging sectors’ main business revenue increased by 13.1% over the same period last year, 0.7 percentage points higher than the growth rate of all industrial enterprises above the designated size. 


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