Bureau of Statistics: profits of large-scale industrial enterprises in 2020 increased by 4.1% compared with the same period last year.

According to the Bureau of Statistics, the total profits of large-scale industrial enterprises nationwide totaled 6.45161 trillion yuan in 2020, an increase of 4.1 percent over the previous year. In December 2020, the total profits of industrial enterprises above scale reached 707.11 billion yuan, an increase of 20.1 percent over the same period last year, and the growth rate was 4.6 percentage points faster than that of November.

In 2020, the total profits of large-scale industrial enterprises nationwide totaled 6.45161 trillion yuan, an increase of 4.1 percent over the previous year.

In 2020, among industrial enterprises above scale, the total profits of state-controlled enterprises were 1.48608 trillion yuan, down 2.9 percent from the previous year; joint-stock enterprises realized 4.54453 trillion yuan, up 3.4 percent; and foreign investors and Hong Kong, Macao and Taiwan investment enterprises realized 1.82341 trillion yuan, an increase of 7.0 percent. The total profits of private enterprises reached 2.02618 trillion yuan, an increase of 3.1 percent.

In 2020, the total profits of the mining industry totaled 355.32 billion yuan, down 31.5 percent from the previous year; the total profits of the manufacturing industry totaled 5.57951 trillion yuan, up 7.6 percent; and the total profits of the electricity, heat, gas and water production and supply industries totaled 516.78 billion yuan, up 4.9 percent.

In 2020, among the 41 major industrial industries, the total profits of 26 industries increased compared with the same period last year, while 15 industries decreased. The profits of major industries are as follows: total profits of special equipment manufacturing industry increased by 24.4 percent over the previous year, chemical raw materials and chemical products manufacturing increased by 20.9 percent, non-ferrous metal smelting and Calendering processing increased by 20.3 percent, computer, communications and other electronic equipment manufacturing increased by 17.2 percent, general equipment manufacturing increased by 13.0 percent, and textile industry grew by 7.9 percent. The electrical machinery and equipment manufacturing industry grew by 6.0%, the agricultural and non-staple food processing industry by 5.9%, the automobile industry by 4.0%, the electric power, thermal production and supply industry by 3.4%, and the non-metallic mineral products industry by 2.7%. The oil and natural gas mining industry fell by 83.2 per cent, the oil, coal and other fuel processing industries by 26.5 per cent, the coal mining and washing industry by 21.1 per cent, and the ferrous metal smelting and Calendering processing industry by 7.5 per cent.

In 2020, the operating income of industrial enterprises above scale reached 106.14 trillion yuan, an increase of 0.8% over the previous year; the operating cost was 89.04 trillion yuan, an increase of 0.6%; and the profit margin of operating income was 6.08%, an increase of 0.20% over the previous year.

At the end of 2020, the assets of industrial enterprises above scale totaled 126.76 trillion yuan, up 6.7 percent over the end of last year; liabilities totaled 71.06 trillion yuan, up 6.1 percent; owners' equity totaled 55.7 trillion yuan, up 7.4 percent; and the asset-liability ratio was 56.1 percent, down 0.3 percent from the end of last year.

At the end of 2020, the accounts receivable of industrial enterprises above scale was 16.41 trillion yuan, an increase of 15.1% over the end of last year, and the inventory of finished goods was 4.6 trillion yuan, an increase of 7.5%.

In 2020, the cost of industrial enterprises above 100 yuan of operating income was 83.89 yuan, 0.11 yuan less than the previous year, and the cost of every 100 yuan of operating income was 9.17 yuan, an increase of 0.14 yuan over the previous year.

At the end of 2020, the operating income of industrial enterprises above scale reached 87.8 yuan per 100 yuan of assets, 5.0yuan less than at the end of the previous year; the per capita operating income was 1.45 million yuan, an increase of 55000 yuan over the end of the previous year; the turnover of inventory of finished goods was 17.9days, an increase of 1.2days over the end of the previous year; the average payback period of accounts receivable was 51.2days, an increase of 5.8days over the end of the previous year.

In December 2020, the total profits of industrial enterprises above scale reached 707.11 billion yuan, an increase of 20.1 percent over the same period last year, and the growth rate was 4.6 percentage points faster than that of November.

Zhu Hong, senior statistician of the Industry Department of the National Bureau of Statistics, interprets the profit data of industrial enterprises: industrial profits achieve growth in 2020, quality and efficiency improve steadily

In 2020, in the face of the grim and complex international situation, the arduous and arduous tasks of domestic reform, development and stability, especially the serious impact of the COVID-19 epidemic, under the strong leadership of the CPC Central Committee with Xi Jinping at the core, all localities and departments have done a solid job in the work of "six stability", comprehensively implemented the task of "six guarantees", and made major achievements in overall epidemic prevention and control and economic and social development. The industrial cycle is gradually unblocked, the market demand continues to improve, and the profits of industrial enterprises are steadily increasing.

I. continuous improvement in the efficiency of industrial enterprises

Corporate profits rebounded quarter by quarter, growing rapidly for seven consecutive months. In 2020, the added value of industries above the national scale increased by 2.8 percent over the previous year, and the operating income of industrial enterprises above the scale increased by 0.8 percent. The steady recovery of production and sales has provided a strong support for profit growth. In 2020, the profits of industrial enterprises above scale reached 6.45161 trillion yuan, an increase of 4.1 percent over the previous year. From a quarterly point of view, this year's profits show a trend of "from negative to positive, quarter by quarter". Affected by the severe impact of the epidemic, profits in the first quarter dropped sharply by 36.7% compared with the same period last year. With the continuous implementation of the task of "six stability" and "six guarantees", the level of enterprises returning to work and production has steadily improved. Profits in the second quarter increased by 4.8%, and the growth rate changed from negative to positive. The growth rate rebounded to 15.9% in the third quarter, and further accelerated to 20.8% in the fourth quarter. In December, the profits of industrial enterprises above scale increased by 20.1% compared with the same period last year, 4.6 percentage points faster than in November, and maintained double-digit growth for seven consecutive months after the monthly growth rate changed from negative to positive in May.

The profit growth area is more than 60%, and the pulling effect of the manufacturing industry is obvious. In terms of industries, in 2020, among the 41 major industrial industries, 26 industries had an increase in profits over the previous year, an increase of 5 over the previous three quarters, of which 15 industries had a double-digit profit growth rate, with a profit growth rate of 63.4 percent. By category, in 2020, manufacturing profits increased by 7.6 percent over the previous year, 6.5 percentage points faster than the previous three quarters, 3.5 percentage points higher than the industrial growth rate above scale, driving the profit growth of industrial enterprises above scale for the whole year by 6.4 percentage points. Mining profits fell 31.5 percent, 5.7 percentage points lower than the previous three quarters; Profits in the electricity, heat, gas and water production and supply industries increased by 4.9%, or 2.3 percentage points faster.

Unit costs have declined continuously, and profitability has been enhanced. A series of policies to help enterprises to alleviate hardship have been carried out continuously, the business environment has been continuously improved, and new tax and fee reductions are expected to exceed 2.5 trillion yuan for the whole year, effectively relieving the pressure on enterprises to operate. In 2020, the cost of industrial enterprises above 100 yuan in operating income was 83.89 yuan, down 0.11 yuan from the previous year and 0.35 yuan from the previous three quarters. Among them, the cost per 100 yuan of operating income in the fourth quarter fell 0.52 yuan from the same period last year, 0.65 yuan lower than the third quarter, and declined for two consecutive quarters compared with the same period last year and month-on-month. The profitability of enterprises has improved significantly. In 2020, the operating income profit margin of industrial enterprises above scale was 6.08%, an increase of 0.2 percentage points over the previous year, and the profit margin of monthly operating income increased for eight consecutive months compared with the same period last year since May.

The loss area of the enterprise shrinks quarter by quarter, and the degree of loss continues to reduce. At the end of 2020, the loss area of industrial enterprises above scale was 17.3%, down 17.5 percentage points from 34.8% at the end of March, 8.7 percentage points and 4.7 percentage points lower than at the end of June and September, respectively. Although the loss of loss-making enterprises increased by 2.8% over the previous year, the rate of increase and loss decreased by 15.3 percentage points over the previous three quarters. From a quarterly point of view, the loss shows a trend of "from rising to falling, and the rate of decline expands". The loss of enterprises in the first and second quarters increased by 42.9% and 13.1% respectively, fell by 21.4% in the third quarter, and further decreased by 33.0% in the fourth quarter.

II. Profits of major industrial sectors have all achieved positive growth.

The profits of the equipment manufacturing industry are the first to recover and grow steadily. Benefiting from the switching of environmental protection standards, the promotion of infrastructure projects and the housing economy, the equipment manufacturing industry took the lead in recovering profits, turning profit growth from negative to positive in the second quarter, and maintaining double-digit growth in the third and fourth quarters. In 2020, the profits of the equipment manufacturing industry increased by 10.8% over the previous year, driving the profits of industrial enterprises above scale by 3.7 percentage points, which played a significant role in promoting the manufacturing industry as a whole. Among them, general equipment, special equipment, electronics and other industries grew rapidly, with full-year profits up 13.0%, 24.4% and 17.2% respectively. Profits in the automobile and electrical machinery industries continued to grow steadily, further strengthening compared with the previous three quarters.

The profits of high-tech manufacturing industries have maintained relatively rapid growth. In 2020, the profit of the high-tech manufacturing industry increased by 16.4% over the previous year, 3.5 percentage points faster than that of the previous three quarters. It is the industrial sector with the fastest profit growth, and has maintained double-digit growth since the growth rate became positive in the second quarter. For the whole year, the profits of high-tech manufacturing industries accounted for 17.8% of industrial enterprises above scale, an increase of 1.9 percentage points over 2019, which strongly promoted the continuous optimization of industrial profit structure.

The cumulative profit growth of the raw material manufacturing industry has changed from negative to positive. With the gradual smooth flow of the upstream and downstream industrial chain, under the combined effect of the pick-up in domestic market demand and the rebound in international commodity prices such as petrochemicals and non-ferrous metals, the profits of the raw material manufacturing industry have been rapidly repaired and improved quarter by quarter after a sharp decline at the beginning of the year. Especially since the second half of the year, the profits of the raw materials manufacturing industry have grown rapidly for two consecutive quarters, which has played an important role in the positive profit growth rate for the whole year. In 2020, the profits of the raw materials manufacturing industry increased by 4.5% over the previous year, down 1.7% from January to November, and the annual profit growth changed from negative to positive. Among them, the cumulative profits of the oil processing and iron and steel industries decreased significantly, falling by 26.5% and 7.5% respectively for the whole year, 39.7% and 11.2% lower than the previous three quarters; the cumulative profits of the chemical industry increased by 20.9%, while those in the first three quarters decreased by 17.7%; and the profits of the non-ferrous industry increased by 20.3%, further accelerating the growth rate.

Profits of the consumer goods manufacturing industry have been restored and consolidated. In 2020, profits in the consumer goods manufacturing industry increased by 5.1% over the previous year, 0.7 percentage points faster than in the previous three quarters. Among them, profits in industries related to the epidemic, such as papermaking and pharmaceuticals, increased by 21.2% and 12.8% respectively, 7.9 and 4.6 percentage points faster than in the previous three quarters; profits in essential consumer goods industries such as agricultural and non-staple food processing, food manufacturing, alcoholic beverage and tea, and textiles continued to grow steadily, with a growth rate of 5% and 10%. The decline in profits in clothing, leather, chemical fiber, recreational supplies, furniture manufacturing and other non-essential consumer goods industries was further narrowed compared with the previous three quarters.

III. Improvement of profits of all kinds of market players

With a series of policies and measures to help enterprises to alleviate hardship, such as large-scale tax and fee reduction, rent and interest reduction, the vitality of all kinds of market players has been enhanced, and the profits of industrial enterprises of all forms of ownership have increased in an all-round way. The decline in profits of state-controlled enterprises has narrowed significantly. In 2020, the profits of state-controlled industrial enterprises above scale fell 2.9% from the previous year, but the rate of decline was 11.4% lower than that of the previous three quarters, with double-digit growth in both the third and fourth quarters. The profit growth of private enterprises has changed from a decline to an increase. The profits of private enterprises for the whole year increased by 3.1% over the previous year, with a decline of 0.5% in the first three quarters. The profit growth of foreign-funded enterprises accelerated. The profits of foreign investors and Hong Kong, Macao and Taiwan investment enterprises increased by 7.0%, 4.4 percentage points faster than the previous three quarters, and maintained double-digit growth for three consecutive quarters since the growth rate became regular in the second quarter.

In 2020, the production and operation of industrial enterprises continued to recover steadily, and corporate profits achieved rapid stabilization and sustained improvement. At the same time, it should also be noted that industrial enterprises are still facing problems such as the rapid growth of accounts receivable, the increase of inventory and the pressure of cash flow. In 2021, it is necessary to speed up the construction of a new development pattern, strive to smooth the economic cycle, maintain the continuity, stability, and sustainability of macro policies, grasp the timing and effectiveness of policies, and constantly consolidate the stable recovery situation of the industrial economy, so as to achieve a good start to the development of the 14th five-year Plan.