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Industrial Enterprises Made a Good Start in 2018

Submit Time:18-04-2018 | Zoom In | Zoom Out

Author: | Source:National Bureau of Statistics of China

Abstract:

According to the financial data released by the National Bureau of Statistics on March 27, the profits of industrial enterprises above the designated size grew by 16.1% on a year-on-year basis from January to February 2018, an increase of 5.3 percentage points on that from December 2017. These enterprises maintained their momentum for fast growth.  

I. Industrial income started to pick up and enterprise profits grew at a faster pace.  

In January and February, the added value of industrial enterprises above the designated size realized a year-on-year actual growth rate of 7.2%, up 1 percentage point over that in last December; and the principal business income of industrial enterprises grew at the actual rate of 10%, up 1.2 percentage points over that in last December. The faster growing industrial output and sales offset the negative effect caused by the falling prices of industrial products and enabled the industrial profits to grow at a pace faster than last December.  

The industries that made relatively large contributions to the profit increases are listed as below: the non-metal mine product industry, oil, coal and other fuel processing industry, oil and gas extraction industry, electricity & heating production and supply industry, and pharmaceutical manufacturing industry saw their year-on-year profit grow rate stood at 56.8%, 17.6%, 138%, 38.3% and 37.3%, respectively. The above five sectors combined drove up the profit growth rate by 8.4 percentage points.  

II. Enterprises increased their profitability and utilized their assets more efficiently.  

While maintaining a fairly fast profit growth rate, industrial enterprises took a further step toward high-quality operation.  

Their profitability improved constantly. In January and February, the principal business revenue of industrial enterprises above the designated size grew at the rate of 6.1%, up 0.33 percentage point year on year.  

Funds were spent more efficiently. As at the end of February, the inventories of finished goods of industrial enterprises above the designated size needed 17.4 days to turn into cash. The duration was shortened by 0.2 day year one year. At the same time, the average days for account receivables to be recovered stood at 47.4 days, down 0.2 day year on year.  

III. The supply-side structural reform went on, and the efforts to de-leverage and lower costs continued to take effect.  

The leverage ratio went down further. By the end of this February, the liability-to-asset ratio of industrial enterprises above the designated size dropped by 0.8 percentage point to 56.3% over the same period of last year. Of these, the liability-to-asset ratio of state-controlled enterprises reported 59.6%, down by 1.4 percentage points year on year.  

Costs continued to drop. In January and February, the cost expense per RMB 100 of principal business income of industrial enterprises above the designated size was RMB 92.4, down RMB 0.27 over the same period last year. The cost per RMB 100 of principal business income registered RMB 83.98, a decrease of RMB 0.33 year on year.  

Overall, as the supply-side structural reform went deeper, the industrial operation started to take on positive changes, the industrial income maintained a momentum of sound growth, and enterprises profits made a good start in the year.  


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