National Bureau of Statistics (NBS): Profits of Industrial Enterprises Above Designated Size Nationwide Increased by 0.8% in Q1

According to data released by the National Bureau of Statistics (NBS), from January to March, industrial enterprises above the designated size nationwide achieved a total profit of 1,509.36 billion yuan, up 0.8% YoY.

From January to March, among industrial enterprises above the designated size, state-controlled enterprises achieved a total profit of 559.95 billion yuan, down 1.4% YoY; joint-stock enterprises achieved a total profit of 1,110.15 billion yuan, up 0.1% YoY; foreign-invested enterprises and enterprises from Hong Kong, Macao, and Taiwan achieved a total profit of 388.35 billion yuan, up 2.8% YoY; private enterprises achieved a total profit of 370.97 billion yuan, down 0.3% YoY.

From January to March, the mining industry achieved a total profit of 220.44 billion yuan, down 25.5% YoY; the manufacturing industry achieved a total profit of 1,082.64 billion yuan, up 7.6% YoY; the electricity, heat, gas, and water production and supply industries achieved a total profit of 206.28 billion yuan, up 5.4% YoY.

From January to March, the profitability of major industries was as follows: the agricultural and sideline food processing industry grew 40.3% YoY, the non-ferrous metal smelting and rolling processing industry grew 33.6% YoY, the special equipment manufacturing industry grew 14.2% YoY, the general equipment manufacturing industry grew 9.5% YoY, the electrical machinery and equipment manufacturing industry grew 7.5% YoY, the textile industry grew 7.1% YoY, the electricity and heat production and supply industry grew 6.1% YoY, the computer, communication, and other electronic equipment manufacturing industry grew 3.2% YoY, the chemical raw materials and chemical products manufacturing industry fell 0.4% YoY, the oil and natural gas extraction industry fell 3.1% YoY, the automobile manufacturing industry fell 6.2% YoY, the non-metallic mineral products industry fell 14.2% YoY, the coal mining and washing industry fell 47.7% YoY, the petroleum, coal, and other fuel processing industry reduced losses YoY, and the ferrous metal smelting and rolling processing industry turned losses into profits YoY.

From January to March, industrial enterprises above the designated size achieved operating revenue of 32.14 trillion yuan, up 3.4% YoY; incurred operating costs of 27.44 trillion yuan, up 3.6% YoY; and the operating revenue profit margin was 4.70%, down 0.12 percentage points YoY.

At the end of March, the total assets of industrial enterprises above the designated size amounted to 180.37 trillion yuan, up 5.3% YoY; total liabilities amounted to 104.02 trillion yuan, up 5.8% YoY; total owners' equity amounted to 76.35 trillion yuan, up 4.6% YoY; and the asset-liability ratio was 57.7%, up 0.3 percentage points YoY.

At the end of March, accounts receivable of industrial enterprises above the designated size amounted to 25.59 trillion yuan, up 9.9% YoY; finished goods inventory amounted to 6.55 trillion yuan, up 4.2% YoY.

From January to March, the cost per 100 yuan of operating revenue for industrial enterprises above the designated size was 85.37 yuan, up 0.17 yuan YoY; the expense per 100 yuan of operating revenue was 8.43 yuan, down 0.16 yuan YoY.

At the end of March, the operating revenue per 100 yuan of assets for industrial enterprises above the designated size was 71.7 yuan, down 1.2 yuan YoY; the operating revenue per capita was 1.764 million yuan, up 56,000 yuan YoY; the turnover days of finished goods inventory were 21.2 days, up 0.1 days YoY; and the average collection period for accounts receivable was 70.9 days, up 4.0 days YoY.

In March, the profit of industrial enterprises above the designated size grew 2.6% YoY.

Table 1: Key Financial Indicators of Industrial Enterprises Above the Designated Size, January-March 2025

Table 2: Economic Efficiency Indicators of Industrial Enterprises Above the Designated Size, January-March 2025

Table 3: Key Financial Indicators of Industrial Enterprises Above the Designated Size by Industry, January-March 2025

Profits of Industrial Enterprises Above the Designated Size Shifted from Decline to Growth in Q1

——Interpretation of Industrial Enterprise Profit Data for January-March 2025 by Yu Weining, Statistician of the NBS Industrial Division

In Q1, all regions and departments earnestly implemented the decisions and deployments of the CPC Central Committee and the State Council, focusing on leveraging the macro stimulus policy package. The policy effects continued to be released, boosting industrial enterprise profits from decline to growth. The profits of equipment manufacturing and high-tech manufacturing played a significant supporting role, and the quality and efficiency of industrial economic development continued to improve.

Industrial enterprise profits shifted from decline to growth. In Q1, the profits of industrial enterprises above the designated size nationwide shifted from a YoY decline of 3.3% for the whole of last year to a growth of 0.8%, reversing the trend of continuous cumulative profit decline since Q3 of last year. In March, the profits of industrial enterprises above the designated size shifted from a decline of 0.3% in January-February to a growth of 2.6%, showing improvement in monthly profits.

Revenue growth of industrial enterprises continued to accelerate. With the acceleration of industrial production growth, industrial enterprise revenue continued to improve. In Q1, the operating revenue of industrial enterprises above the designated size nationwide grew 3.4% YoY, with the growth rate accelerating by 0.6 percentage points compared to January-February. In March, the revenue growth of industrial enterprises above the designated size was 4.2%, accelerating by 1.4 percentage points compared to January-February. The cumulative revenue growth rate of industrial enterprises has been accelerating since December of last year, creating favorable conditions for profit recovery.

Nearly 60% of industries achieved profit growth, with significant improvement in manufacturing. In Q1, among 41 industrial sectors, 24 sectors achieved YoY profit growth, accounting for nearly 60%. Additionally, 24 sectors saw accelerated profit growth or narrowed declines compared to January-February, with 58.5% showing recovery. Manufacturing showed significant improvement, with profits growing 7.6% in Q1, accelerating by 2.8 percentage points.

Equipment manufacturing became an important driver of profit growth. With the solid advancement of high-quality industrial development, the profit structure of industrial enterprises continued to improve. In Q1, the profits of equipment manufacturing grew 6.4% YoY, accelerating by 1.0 percentage points compared to January-February, accounting for 32.0% of the total profits of industrial enterprises above the designated size, up 1.4 percentage points YoY. It boosted the overall profit growth of industrial enterprises above the designated size by 2.0 percentage points, with the contribution increasing by 0.6 percentage points compared to January-February, becoming a key driver of profit growth. Among the eight equipment manufacturing sectors, seven achieved profit growth, with rapid growth in industries such as railways, ships, aerospace, instruments, and special equipment, growing 59.7%, 15.3%, and 14.2%, respectively.

High-tech manufacturing led high-quality development. In Q1, the advancement of high-end, intelligent, and green manufacturing in the manufacturing sector deepened. The profits of high-tech manufacturing shifted from a YoY decline of 5.8% in January-February to a growth of 3.5%, exceeding the average growth rate of industrial enterprises above the designated size by 2.7 percentage points. In March, high-tech manufacturing achieved double-digit growth, with a growth rate of 14.3%, boosting the monthly profit growth of industrial enterprises above the designated size by 2.8 percentage points, becoming an important driver of high-quality industrial development. By industry, in Q1, under the backdrop of rapid development in the aerospace industry, the profits of aerospace equipment manufacturing grew 23.9%. Continuous innovation in the field of artificial intelligence drove profit growth in industries such as intelligent consumer equipment manufacturing, specialized electronic equipment manufacturing, and electronic component manufacturing, with growth rates of 63.7%, 59.9%, and 55.3%, respectively. The high-quality development of medical devices showed results, with profits in medical instrument and equipment manufacturing growing 12.5%, including 26.7% growth in medical diagnostic, monitoring, and treatment equipment manufacturing and 25.0% growth in rehabilitation aids manufacturing.

The "two new" policies had a significant effect in boosting and enhancing efficiency. In Q1, the "two new" policies continued to show their effect in driving profits in benefiting industries. Under the influence of large-scale equipment upgrade policies, the profits of special equipment and general equipment industries grew 14.2% and 9.5% YoY, respectively, exceeding the average growth rate of industrial enterprises above the designated size by 13.4 and 8.7 percentage points. Among them, industries such as specialized equipment manufacturing for electronics and electrical machinery, general parts manufacturing, and cultural office machinery manufacturing saw rapid profit growth, with growth rates of 56.3%, 24.6%, and 9.5%, respectively. The trade-in policy for consumer goods showed significant effects in expanding its scope, with profits in industries such as wearable smart device manufacturing, electric bicycle manufacturing, and household kitchen appliance manufacturing growing 78.8%, 65.8%, and 21.7%, respectively. Related industries in the supply chain, such as electronic circuit manufacturing and specialized parts manufacturing for household electrical appliances, saw profit growth of 39.4% and 18.2%, respectively.

Overall, in Q1, the profits of industrial enterprises above the designated size continued to recover. At present, the external environment has become more complex and severe, with increasing instability and uncertainty. However, it is also evident that since the beginning of this year, the effects of macro policies have continued to emerge, with incremental and existing policies working in synergy to achieve a good start for the industrial economy. In the next stage, efforts should be made to thoroughly implement the decisions and deployments of the CPC Central Committee and the State Council, further ensuring the implementation, landing, and refinement of policies, fully unleashing policy potential, and promoting the sustained recovery of industrial enterprise profitability.

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