Reforming Forces | Industrial companies have a good start

According to the financial data of industrial enterprises released by the National Bureau of Statistics on the 27th, the profits of industrial enterprises above the designated size increased by 16.1% year-on-year from January to February. The growth rate was 5.3 percentage points higher than that in December 2017, maintaining a rapid growth momentum, and benefiting industrial enterprises. A good start.

The profit growth of enterprises accelerated. The mining industry took the lead. From January to February, the total profit of the mining industry was 87.79 billion yuan, an increase of 42.1% year-on-year; the total profits of the power, heat, gas and water production and supply industries totaled 71.11 billion yuan, an increase of 35.2%; The total profit of manufacturing industry was 810 billion yuan, an increase of 12.5%. Among the 41 industrial major industries, the total profit of 29 industries increased year-on-year, one industry was flat, and 11 industries were reduced.

Changes in the profits of industrial enterprises also showed polarization: the top three largest increasers were oil and natural gas extraction, which increased by 1.4 times, ferrous metal smelting and rolling processing industry by 97.7%, and non-metallic mineral products industry, which increased by 56.8%; Three were metal products, the machinery and equipment repair industry decreased by 28.9%, railways, ships, aerospace and other transport equipment manufacturing decreased by 22.3%, and the ferrous metal mining industry decreased by 20.8%.

Dr. He Ping of the Department of Industry of the National Bureau of Statistics analyzed that the industries that have accelerated the growth of profits are: non-metallic mineral products industry, petroleum, coal and other fuel processing industries, oil and gas extraction industry, electricity, heat production and supply industries, and Pharmaceutical manufacturing industry. 'These five industries contributed to the acceleration of profit growth by 8.4 percentage points.' He Ping said that from January to February, the value-added of industrial enterprises above designated size increased by 7.2% year-on-year, and the growth rate increased by 1 percentage point from December of last year. The main business income of industrial enterprises increased by 10% year-on-year, and the growth rate was 1.2 percentage points higher than that in December of last year. 'Industrial production and sales growth accelerated, offsetting the profit-reducing factors of falling prices of industrial products, resulting in an increase in industrial profit ratio. Accelerated in December of last year. '

While profits of industrial enterprises maintained rapid growth, they benefited from continued structural reforms on the supply side and continued improvement in operating quality.

Profitability continued to increase. In January-February, industrial enterprises above designated size realized main business income of 15.9 trillion yuan, an increase of 10% year-on-year; profit margin of main business income was 6.1%, an increase of 0.33 percentage points year-on-year; realisation of assets per hundred yuan was realized. The main business income was 90.2 yuan, an increase of 2.1 yuan year-on-year; the per capita main business income was 1.173 million yuan, an increase of 119,000 yuan year-on-year.

The efficiency of funds continued to improve. At the end of February, the turnover days of finished goods inventory of industrial enterprises above designated size were 17.4 days, a year-on-year decrease of 0.2 days; the average payback period of accounts receivable was 47.4 days, a year-on-year decrease of 0.2 days.

The leverage ratio continued to fall. At the end of February, assets of industrial enterprises above designated size totaled 105.7 trillion yuan, a year-on-year growth of 7.4%; liabilities totaled 59.6 trillion yuan, an increase of 6%; owners’ equity totaled 46.1 trillion yuan, an increase of 9.3%; The rate was 56.3%, a year-on-year decrease of 0.8%. Among them, the asset-liability ratio of the state-controlled enterprises was 59.6%, a decrease of 1.4 percentage points from the same period last year.

The cost of enterprises continued to decrease. In January-February, the cost of main business income per 100 yuan for industrial enterprises above designated size was 92.4 yuan, a year-on-year decrease of 0.27 yuan; of which, the cost per 100 yuan of main business income was 83.98 yuan. The year-on-year decrease of 0.33 yuan.

'Overall, with the deepening of the supply-side structural reforms, the industrial economy has shown positive changes, and the industrial revenue has maintained a good momentum of growth. The company's benefits have begun to improve.' He Ping said.

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