Industrial enterprise profits increased by 28.7% in the first half of the year

Petroleum processing, coking and nuclear fuel processing industries are the only industries to decline, with a drop of 66%

(Reporter Li Lei) The National Bureau of Statistics released data yesterday. In the first half of the year, the profits of industrial enterprises above designated size reached 2.4105 billion yuan, up 28.7% year-on-year; the income from main business was 388.552 billion yuan, up 29.7% year-on-year. According to the analysis, corporate income will face greater downward pressure in the fourth quarter.

The income and profits of industrial enterprises above designated size increased by 0.3% and 0.8% respectively compared with the previous five months, and the cumulative growth rate of income and profits rebounded. Guotai Junan released an analysis report saying that the rebound in industrial enterprise revenue growth was mainly due to the high PPI and, more importantly, the industrial value added in June exceeded expectations. As the policy continues to tighten, production and prices will tend to fall in the second half of the year, and corporate income will face greater downward pressure in the fourth quarter.

Since 2011, the Bureau of Statistics has adjusted the starting point standards for industrial enterprises above designated size, from the original annual main business income of 5 million yuan to the annual main business income of 20 million yuan.

Cao Jianhai from the Institute of Industrial Economics of the Chinese Academy of Social Sciences said that the data shows that large enterprises, especially those benefiting from infrastructure, have faster growth in revenue and profits. He pointed out that the data did not show signs of economic downturn, mainly because the Bureau of Statistics adjusted the starting point standards for enterprises above designated size, and the development status and living environment of many SMEs were not reflected in the data. Guotai Junan said that the living environment of small enterprises is even worse.

According to statistics from the Bureau of Statistics, among the 39 major industrial sectors, 38 industries saw a year-on-year increase in profits. Among them, the ferrous metal mining and dressing industry grew by 61.7%, the highest growth rate. The oil processing, coking and nuclear fuel processing industries were the only declines, with a drop of 66%. Guotai Junan analysis said that the upstream mining industry is better than the midstream raw materials industry and processing industry, and this situation will continue in the future.