Posted on 29 Nov 2022
Sizable Chinese industrial enterprises saw their on-year profits decline by 3% during January-October, slightly steeper than the 2.3% on-year fall for the prior nine months, according to data released by China's National Bureau of Statistics (NBS) on November 27.
The deepening on-year fall in these industrial enterprises' profits occurred mainly because "sporadic COVID-19 cases re-emerged across China, and the country's Producer Price Index reversed from the previous month's rise and dropped (1.3%) on year last month," Zhu Hong, the Bureau's senior statistician, was quoted as saying.
Over January-October, China's sizable industrial firms posted a total gross profit at Yuan 6.98 trillion ($967.9 billion), though for October alone, their gross profit slipped by 10.5% on year to Yuan 732.6 billion, Mysteel Global calculated based on the NBS data.
During the first ten months of this year, 19 of the 41 industrial sectors saw their profits gain on year, according to NBS. Among all China's profitmaking industrial sectors, the coal mining and washing sector posted the largest gross profits at Yuan 885.8 billion, or up 62% on year, according to the official data.
China's auto manufacturing sector posted its first on-year gain in gross profits this year, inching up 0.8% on year to Yuan 425 billion over January-October, as sales of automobiles showed fast growth thanks to policies to boost auto consumption continuing to take effect, Zhu commented.
On the other hand, China's ferrous mining and processing sector saw its gross profits drop 28.4% on year to Yuan 54.4 billion over January-October, while those of the steelmaking and processing sector slumped even more by 92.7% on year to Yuan 29.7 billion, the NBS found.
As for the country's nonferrous sector, though the smelting and processing industry posted a 20% on-year fall in gross profits at Yuan 208.7 billion, the total was much larger than the sector's upstream operation in terms of value. During the ten months, the nonferrous mining and processing sector achieved Yuan 60.6 billion in total gross profits, though this was higher by 40.5% on year, according to the NBS data.
Source:Mysteel Global
