The Profits of Industrial Enterprises in Shenzhen Fell 8% YoY in Jan-Aug amid surging Raw Materials Prices and Ocean Freight

SHANGHAI, Oct 18 (SMM) - From January to August this year, the cumulative profits of industrial enterprises in Shenzhen accounted for about 26% of Guangdong, down 8.0% compared to the same period last year, which is the only city in the province with negative growth.

According to Wei Fulei, deputy director of the Yinhu New Energy Strategy Research Centre of the China (Shenzhen) Institute of Comprehensive Development, Shenzhen was among the first ones to resume work in 2020, which has led to higher economic benchmarks in 2020; as such, and the year-on-year growth rate in 2021 is relatively low. On the other hand, the profit margin of Shenzhen enterprises has been compressed due to the surging prices of commodities and raw materials in the upstream of the industry chain as well as the soaring ocean freight.