China’s industrial companies’ profits fell at slower pace in Jun, improving for 4th straight month
DATA MACRO
China’s industrial companies’ profits fell at slower pace in Jun, improving for 4th straight month
DATA MACRO

China’s industrial companies’ profits fell at slower pace in Jun, improving for 4th straight month

 

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Chinese industrial companies’s profit fell 16.8% year over year to 3.388 trillion yuan in the first half of 2023, compared to a drop of 18.8% during the first five months of the year, according to data released by the National Bureau of Statistics.

In June alone, the companies’ profit fell by 8.3% from a year earlier, narrowing by 4.3 percentage points from the drop in May and improving for the 4th consecutive months, it said.

The company’s revenue in the first half reached 62.62 trillion yuan, falling by 0.4% from a year earlier, compared to 0.1% rise in the first five months, showed the data.

In breakdown, state-owned industrial companies’ profit fell 21% on year in Jan – Jun, joint-stock companies’ profit fell 18.1%, foreign-invested companies’ profit fell 12.8% and private companies’ profit fell 13.5%, showed the data.

China’s equipment manufacturing industry’s profit in the first six months of the year returned to growth, rising by 3.1% from a year earlier, improving by 20.8 percentage points from the first quarter, said Sun Xiao, statistics at the NBS.

The equipment manufacturing industry’s profit accounted for 34.3% of China’s total industrial profit in Jan – June, increasing by 6.8 percentage points from the first quarter and rising by 6.7 percentage points from a year earlier, he said. 

By industry, production of photovoltaic equipments, lithium batteries, new energy vehicles and high-speed trains grew rapidly, driving the profit in the industries of electrical machinery, automobiles and transportation equipment to grow by 29.1%, 10.1% and 35.3%, respectively, he said.

Notably, China’s electricity, heating, gas and water supply industry’s profit surged by 34.1% year over year in the first half of 2023, it said.

In particular, electricity generation has been growing rapidly driven by economic recovery, rising power demand in summer peak season and the rapid development of power generation by renewable energy sources and he electricity’s profit surged by 46.5% on year in the first half, it said.