Posted on 29 Oct 2024
China's sizable industrial firms saw their gross profits shrink by 3.5% on year to Yuan 5.2 trillion ($733 billion) over January-September, as against the 0.5% on-year uptick for the first eight months, according to the release from the country's National Bureau of Statistics (NBS) on October 27. The plunge during the nine month period occurred because September alone produced a dire result, with these industrial firms' gross profits last month declining by a large 27.1% on year, Mysteel Global notes.
"Insufficient effective demand, falling prices of industrial products and the high base in September last year were blamed for the on-year fall in profits during the first nine months," Yu Weining, NBS's statistician, was quoted as saying.
In terms of business type, private enterprises saw their profits nudge down 0.6% on year during the past nine months to Yuan 1.4 trillion, while enterprises whose shareholders included foreign investors and investors from Hong Kong, Macao and Taiwan posted a 1.5% rise in profits during the same period to Yuan 1.3 trillion, according to NBS.
The latest NBS data showed that among the 41 industrial sectors, the electric power and heat production and supply sector ranked top in terms of gross profits in the past nine months at Yuan 497.3 billion, rising by 13.8% on year.
The coal mining and washing sector and ranked second though total profits were 21.9% lower on year at Yuan 459.5 billion, according to NBS. The computer, telecommunication and other electronic devices sector was third in profits at Yuan 450.3 billion, up 7.1% on year.
Meanwhile, China's steelmaking industry actually suffered a huge loss over January-September of Yuan 34.1 billion, plummeting by 256% on year. However, the upstream ferrous mining and processing sector registered a 27.7% on-year gain in profits to Yuan 45.6 billion.
As for the nonferrous sectors, the country's nonferrous smelters and fabricators saw their profits jump 52.5% on year to Yuan 225.5 billion over January-September, and the nonferrous mining and processing sector saw its profits grow by 18.8% to Yuan 69.5 billion over the same period.
Source:Mysteel Global
