The financial data of industrial enterprises released by the National Bureau of Statistics on August 27 showed that in July 2019, the total profit of industrial enterprises above designated size increased by 2.6% year-on-year, and in June it decreased by 3.1%. From January to July, the accumulated profit decreased by 1.7% year-on-year, and the decline was 0.7 percentage points lower than that in January-June.
Zhu Hong, the senior statistician of the Industry Department of the National Bureau of Statistics, said that petrochemicals, electrical machinery, and automobiles are the main industries that drive the growth of profit growth from negative to positive. In July, due to the impact of asset disposal income and the fall in crude oil prices, the profit of the petroleum processing industry decreased by 28.1% year-on-year, but the decline was sharply narrowed by 49.3 percentage points from June; the profit growth of the electrical machinery industry was affected by the rebound in sales and the low base in the same period. 30.8%, the growth rate accelerated by 26.6 percentage points; due to the substantial increase in investment income, the chemical industry’s profit increased by 3.2%, down from 14.7% in June; due to the low base period, the automobile manufacturing industry’s profit fell by 9.2%, and the decline narrowed 7.0. Percentage points. The above four industries collectively affected the growth rate of profits of all industrial enterprises above designated size by 5.3 percentage points from June.
The growth rate of profit in the consumer goods manufacturing industry has obviously accelerated. In July, the profit of consumer goods manufacturing increased by 10.0% year-on-year, and the growth rate was 7.4 percentage points higher than that of all industries above designated size, 6.1 percentage points faster than that in June.
The profit growth rate of equipment manufacturing industry turned from negative to positive. In July, equipment manufacturing profit increased by 4.8% year-on-year, the growth rate was 2.2 percentage points higher than that of all industries above designated size, and it was down by 1.1% in June. Among them, in addition to the rebound in the profit growth rate of the electrical machinery and automobile industry or the decline in the decline, the profit of the metal products industry increased by 21.8% year-on-year and decreased by 0.7% in June.
The profit growth rate of private enterprises has rebounded sharply. In July, private enterprise profits increased by 11.4% year-on-year, and the growth rate was 9.7 percentage points faster than that in June.
The company’s operating conditions have improved. The inventory turnover of finished products has accelerated. At the end of July, the inventory turnover days of finished products of industrial enterprises above designated size were 17.2 days, a decrease of 0.2 days compared with the same period of last year.
Leverage continues to decrease. At the end of July, the asset-liability ratio of industrial enterprises above designated size was 56.8%, down 0.5 percentage points year-on-year. Among them, the asset-liability ratio of state-owned holding companies was 58.3%, down 1.1 percentage points year-on-year.
Zhu Hong said that although the profit growth rate of industrial enterprises in July turned from negative to positive, the downward pressure on the economy was relatively high, market demand slowed down, industrial prices fell, and the volatility and uncertainty of industrial enterprise profits still existed, which promoted the stability of corporate profits. Growth still needs to be done. (China Securities Network, reporter: Ni Mingya)