According to a recent announcement from the National Bureau of Statistics, the total profits of major industrial enterprises in China during the first three quarters of 2023 amounted to 52,281.6 billion yuan, reflecting a year-on-year decline of 3.5%.
In this period, different ownership structures reported varying profit outcomes. State-controlled enterprises generated a profit of 17,235.9 billion yuan, marking a 6.5% decrease compared to the previous year. Meanwhile, joint-stock companies’ profits totaled 38,872.3 billion yuan, down 4.9%. Foreign and Hong Kong, Macao, and Taiwan-invested firms saw a slight increase, with profits reaching 13,036.4 billion yuan, a rise of 1.5%. Private enterprises reported a profit of 14,227.2 billion yuan, down by 0.6%.
An analysis of specific industries reveals that the mining sector generated a profit of 8,963.8 billion yuan, down 10.7% year-on-year. The manufacturing industry recorded a total profit of 37,325.0 billion yuan, a decline of 3.8%. In contrast, the electricity, heat, gas, and water production and supply sectors reported a profit of 5,992.9 billion yuan, up 12.1%.
Notably, several sectors showed strong profitability. The non-ferrous metal smelting and rolling industry saw a significant profit increase of 52.5%. Other sectors such as electricity and thermal production, textile manufacturing, and computer and electronic equipment manufacturing also reported gains of 13.8%, 11.5%, and 7.1%, respectively. Conversely, the coal mining and washing industry faced a staggering profit drop of 21.9%, and the non-metallic mineral products industry experienced a steep decline of 51.0%.
For the first nine months, the total operating income of major industrial enterprises reached 99.20 trillion yuan, a 2.1% increase year-on-year, while operating costs rose by 2.4%, totaling 84.70 trillion yuan. The profit margin stood at 5.27%, down 0.31 percentage points from the previous year.
As of the end of September, the total assets of these large-scale enterprises amounted to 175.02 trillion yuan, reflecting a 4.7% growth. Liabilities also rose by 4.7% to 101.02 trillion yuan, with total equity at 74.00 trillion yuan, also up by 4.7%. The debt ratio remained stable at 57.7%.
Additionally, accounts receivable reached 25.72 trillion yuan, up 7.6%, while finished goods inventory increased by 4.6% to 6.47 trillion yuan. In terms of financial efficiency, for every 100 yuan of operating income, costs were 85.38 yuan, showing a minor increase from last year. Average receivables collection period extended to 66.3 days, which is up by 3.7 days year-on-year.
Lastly, due to high comparison bases from the previous year, profits in September alone witnessed a significant year-on-year decline of 27.1% for major industrial enterprises.
