In the month of April, China’s industrial enterprises above designated size achieved a total profit of 572.78 billion yuan, a year-on-year increase of 14%, and the growth rate slowed by 9.8 percentage points from March.

From January to April, China's rubber and plastic products industry's profit was 59.45 billion yuan, up 5.4% year-on-year

Industry situation

In the first four months of the year, in the 41 major industrial sectors, the total profit of 38 industries increased year-on-year and three decreased.

From January to April, the operating income of the rubber and plastic products industry was 1,044.71 billion yuan, a year-on-year increase of 10.2%; the realized profit was 59.45 billion yuan, a year-on-year increase of 5.4%.

From January to April, the operating income of chemical raw materials and chemical products manufacturing industry was 3,047.35 billion yuan, a year-on-year increase of 17.2%; the profit was 198.02 billion yuan, a year-on-year increase of 39.7%.

From January to April, the operating income of the automobile manufacturing industry was 2,773.56 billion yuan, a year-on-year increase of 12.9%; the profit was 220.49 billion yuan, a year-on-year increase of 11.8%.

From January to April, the operating income of computer, communications and other electronic equipment manufacturing industry was 3,181.02 billion yuan, an increase of 14.1% year-on-year; the profit was 131.84 billion yuan, a year-on-year increase of 12.9%.

Expert interpretation

Overall, China's industrial profits are still maintaining good growth.

First, the profit growth rate of the month is higher than that of recent years. In 2012-2016, the profits of industrial enterprises above designated size increased by 5.3%, 12.2%, 3.3%, -2.3% and 8.5%, respectively, and the growth rate in each year was lower than the growth level in April this year.

Second, cumulative profits have maintained a relatively high growth rate. From January to April, China's industrial enterprises above designated size achieved a total profit of 2,278.03 billion yuan, a growth rate of 24.4%, and a new profit of 447.3 billion yuan, the highest value since the same period in 2012.

The company's various efficiency indicators continue to improve

First, the supporting role of consumer goods manufacturing and high-tech manufacturing has increased. In April, among the new profits of all industrial enterprises above designated size, the consumer goods manufacturing industry accounted for 21.6%, up 9.8 percentage points from March; the high-tech manufacturing industry accounted for 23.2%, an increase of 19 percentage points. The raw material manufacturing industry accounted for 22.9%, down 15.2 percentage points from March.

Second, the profit rate increased year-on-year. In April, the profit margin of industrial enterprises' main business income was 5.79%, an increase of 0.1 percentage points year-on-year.

Third, the payment situation continues to improve. At the end of April, the average payback period for accounts receivable of industrial enterprises above designated size was 38.4 days, a decrease of 1 day compared with the same period of last year, continuing the trend of year-on-year decline since the beginning of the year.

Fourth, the leverage ratio continues to decline. At the end of April, the asset-liability ratio of industrial enterprises above designated size was 56.2%, down 0.6 percentage points year-on-year.

Fifth, product turnover continues to accelerate. At the end of April, the turnover days of finished products of industrial enterprises above designated size were 14.4 days, a decrease of 0.7 days compared with the same period of last year.

Price factor contributes to profit growth

First, the ex-factory price of the products and the purchase price of raw materials returned to normal. In April, the ex-factory price of industrial producers rose by 6.4% year-on-year, which was 1.2 percentage points lower than that in March. The purchase price of industrial producers rose by 9% year-on-year, and the growth rate dropped by 1 percentage point from March, and the price level turned normal. According to preliminary estimates, the price changes have increased the profits of industrial enterprises above designated size by approximately 52.1 billion yuan, an increase of approximately 59.5 billion yuan from March.

Second, in terms of industries, the profit growth of steel, automobile and chemical industries has slowed down noticeably. In April, mainly due to various factors such as the decline in price growth, slowing production and sales growth, and rising costs, the profit of ferrous metal smelting and rolling processing industry decreased by 7.8% year-on-year, while it increased by 1.3 times in March; the profit of automobile manufacturing industry decreased by 6.7. %, while in March it increased by 18.7%; chemical raw materials and chemical products manufacturing profits increased by 13%, an increase of 20.8 percentage points from March; oil and natural gas mining industry added profits of 5.45 billion yuan, an increase of 9.86 billion from March Yuan; the profit of electric power production and supply industry decreased by 42% year-on-year, and the decrease was 14.4 percentage points higher than that in March.

The above five industries collectively affected the growth rate of profits of all industrial enterprises above designated size by 10.8 percentage points.

At present, in order to maintain steady growth of industrial profits, it is necessary to pay close attention to the following issues: First, the purchase price of raw materials rises faster than the ex-factory price of products, resulting in an increase in the cost of the entire industry, especially in the middle and lower reaches. Second, the growth of financial expenses has accelerated, and there is an upward pressure on corporate financing costs. In April, corporate financial expenses increased by 4.2% year-on-year, an increase of 1.2 percentage points over March.