National Bureau of Statistics: Profit decline of industrial enterprises above designated size narrows for two consecutive months

The profit decline of industrial enterprises above designated size has narrowed for two consecutive months

——Yu Weining, a statistician from the Industrial Department of the National Bureau of Statistics, interprets the profit data of industrial enterprises in July 2025

In July, industrial production above designated size maintained stable growth, and a series of policies to promote a reasonable rebound in price levels were gradually implemented, driving the sustained recovery of enterprise profitability. The profitability of industrial enterprises above a certain scale presents the following characteristics:

The operating income of industrial enterprises continues to grow, while the decline in profits continues to narrow. In July, the operating income of industrial enterprises above designated size increased by 0.9% year-on-year, and increased by 2.3% from January to July. Since the beginning of this year, the operating income has continued to grow, creating favorable conditions for the recovery of enterprise profits. In July, the profits of industrial enterprises above designated size decreased by 1.5% year-on-year, narrowing by 2.8 percentage points compared to June, and narrowing for two consecutive months. The profit decline from January to July narrowed by 0.1 percentage points compared to the first half of the year, and the profitability level of enterprises continued to improve. From the perspective of calculating gross profit by deducting operating costs from operating revenue, the gross profit of the enterprise in July changed from a decrease of 1.3% in June to an increase of 0.1%.

The profits of the manufacturing industry have grown rapidly, contributing significantly to the recovery of profits in large-scale industries. In July, manufacturing profits increased by 6.8% year-on-year, with a growth rate 5.4 percentage points faster than June, driving the profit growth rate of all industrial enterprises above designated size to accelerate by 3.6 percentage points compared to June. From the perspective of various sectors, the profit of the raw material manufacturing industry increased by 36.9% from a decrease of 5.0% in June. Among them, the steel and petroleum processing industries turned losses into profits year-on-year, achieving a total profit of 18.09 billion yuan and 3.46 billion yuan respectively in the same month; The consumer goods manufacturing industry decreased by 4.7%, narrowing the decline by 3.0 percentage points compared to June.

The profit of high-tech manufacturing industry is growing rapidly, and its leading role is obvious. In July, the profit of high-tech manufacturing industry increased by 18.9% from a 0.9% decline in June, driving the profit growth rate of all industrial enterprises above designated size to accelerate by 2.9 percentage points compared to June, with a significant leading role. Among them, with the development of China's aerospace industry and the continuous advancement of technological level, the profits of the aerospace and equipment manufacturing industry have increased by 40.9%; Against the backdrop of continuously enhancing independent innovation capabilities in the semiconductor field, the profits of related industries such as integrated circuit manufacturing, semiconductor device specialized equipment manufacturing, and semiconductor discrete device manufacturing increased by 176.1%, 104.5%, and 27.1%, respectively; The high-quality development of the biopharmaceutical industry is steadily advancing, driving profit growth of 36.3% and 6.9% respectively in industries such as biopharmaceutical manufacturing and chemical drug formulation manufacturing.

The "two new" policies have achieved significant results and continued to drive industry profit growth. Since the implementation of the "two new" policies, significant results have been achieved, driving rapid profit growth in related industries. In July, driven by policies related to large-scale equipment updates, industries such as electronics and electrical machinery specialized equipment manufacturing, general component manufacturing, and food, beverage, tobacco, and feed production specialized equipment manufacturing saw rapid profit growth, with year-on-year increases of 87.9%, 15.3%, and 11.3%, respectively. Driven by the policy of exchanging old for new consumer goods, the profits of industries such as computer manufacturing, intelligent unmanned aerial vehicle manufacturing, and household cleaning and sanitation appliance manufacturing increased by 124.2%, 100.0%, and 29.7% respectively; The profits of industries such as computer peripheral equipment manufacturing, sensitive component and sensor manufacturing related to the industrial chain increased by 57.0% and 51.9% respectively.

The profits of small and medium-sized enterprises have improved significantly, while private enterprises are higher than the national average. In July, the profits of medium-sized and small industrial enterprises above designated size increased by 1.8% and 0.5% respectively from a decrease of 7.8% and 9.7% in June, indicating a significant improvement in their profitability. The monthly profit of private enterprises increased by 2.6%, which is 4.1 percentage points higher than the average level of all industrial enterprises above designated size.

In the next stage, against the backdrop of many uncertain external factors, insufficient domestic market demand, and prominent supply-demand contradictions in some industries, it is necessary to fully implement the decisions and deployments of the Party Central Committee, maintain policy continuity and stability, enhance flexibility and foresight, further expand domestic demand, strengthen innovation drive, vigorously cultivate new quality productivity, promote the transformation and upgrading of traditional industries, and promote the sustained and healthy development of the industrial economy.

Information source: China Industrial News Network