Industrial Profits decreased 2.1 percent in the First Eleven Months of 2019

In the first eleven months of 2019, the profits made by industrial enterprises above the designated size achieved 5,610.07 billion yuan, a year-on-year decrease of 2.1 percent (calculated on comparable basis, taking into account factors such as the standard adjustment according to the statistical system, the enhancement of statistical law enforcement, the elimination of data, and the enterprise reform and divestiture, entities inventory checking of the fourth economic census, see Annotations IV for details), and the pace of decline narrowed 0.8 percentage point compared with that in the first ten months.

In the first eleven months, among the industrial enterprises above the designated size, the profits of state-holding industrial enterprises gained 1,603.66 billion yuan, a decrease of 11.2 percent year-on-year, that of joint-stock enterprises stood at 4,048.23 billion yuan, fell by 1.6 percentage points, that of foreign funded enterprises, and enterprises funded from Hong Kong, Macao and Taiwan achieved 1,411.12 billion yuan, decreased by 3.3 percent; and that of private enterprises gained 1,589.33 billion yuan, an increase of 6.5 percent.

In the first eleven months, the profits of mining and quarrying reached 517.4 billion yuan, an increase of 1.0 percent year-on-year, that of manufacturing was 4,628.34 billion yuan, a decrease of 4.1 percent, that of production and distribution of electricity, heat, gas and water reached 464.33 billion yuan, up by 17.7 percent.

In the first eleven months, within 41 branches of industrial divisions, the industrial profits of 28 industrial divisions increased year-on-year, and that of 13 decreased. In view of the profit growth of major industries, that of production and supply of electric power and heat power, manufacture of special-purpose machinery, manufacture of electrical machinery and equipment, manufacture of non-metallic mineral products, smelting and pressing of non-ferrous metals, processing of food from agricultural products, manufacture of general-purpose machinery, manufacture of computer, communication equipment and other electronic equipment, increased by 20.6, 13.6, 13.3, 10.7, 8.7, 8.3, 4.4 and 4.1 percent respectively, while that of processing of petroleum, coal and other fuels, smelting and pressing of ferrous metals, manufacture of chemical raw material and chemical products, manufacture of motor vehicles, manufacture of textile, mining and washing of coal, extraction of petroleum and natural gas, decreased by 47.2, 42.3, 23.3, 13.9, 7.0, 1.7 and 0.4 percent respectively. 

In the first eleven months, the revenue from activities of industrial enterprises above the designated size reached 95.00 trillion yuan, increased by 4.4 percent year-on-year. The costs of activities were 79.99 trillion yuan, up by 4.6 percent. The profit rate revenue from activities was 5.91 percent, a decrease of 0.39 percentage point year-on-year.

By the end of November, the total assets of industrial enterprises above the designated size was 118.89 trillion yuan, increased by 6.0 percent year-on-year; the total liabilities reached 67.61 trillion yuan, increased by 5.3 percent; the total owners' equity was 51.28 trillion yuan, increased by 6.9 percent. The asset-liability ratio was 56.9 percent, a decrease of 0.3 percentage point year-on-year.

By the end of November, the total volume of notes receivable and accounts receivable for industrial enterprises above designated hit 17.92 trillion yuan, went up by 4.6 percent year-on-year. The total inventory value of finished products for industrial enterprises accounted for 4,358.19 billion yuan, increased by 0.3 percent.

In the first eleven months, the costs for per-hundred-yuan of business income above the designated size stood at 84.20 yuan, an increase of 0.15 yuan year-on-year, that of the expenses for per-hundred-yuan stood at 8.73 yuan, an increase of 0.23 yuan year-on-year.

By the end of November, the revenue activities brought by per-hundred-yuan assets above the designated size was 90.7 yuan, a decrease of 1.5 yuan year-on-year; the revenue from activities per capita was 1,388 thousand yuan, an increase of 106 thousand yuan year-on-year; the turnover days of finished goods were 17.3 days, decreased 0.2 day from that in the previous year; the days of notes receivable and accounts receivable hit an average of 55.7 days, an increase of 1.8 days year-on-year.

In November, the profits made by industrial enterprises above the designated size achieved 593.91 billion yuan, an increase of 5.4 percent year-on year, while a decrease of 9.9 percent year-on year in October.

Note : 1.Due to the overlap of economic type grouping, the total is not equal to the total of sub-items.

2.Due to the rounding-off reasons, the subentries may not add up to the aggregate totals, no adjustment.

Note : Due to the rounding-off reasons, the subentries may not add up to the aggregate totals, no adjustment.

Annotations:

I. Explanatory Notes:

1. Total Profits: refer to the surplus of various revenue deducting various costs in the production process of  enterprises, reflecting the total profit and loss in the report period.

2. Operating income: refers to the total amount of revenue of enterprises recognized by the principal business and other business operations.

4. Operating costs: refers to the total costs of enterprises incurred by the principal business and other business operations.

4. Total Assets: refers to the resources which are gotten from past transactions or events, owned or controlled by enterprises, and expected to bring economic benefits to the enterprises.

5. Total Liabilities: refers to the current obligation generated from past transactions or events, and expected an outflow of economic benefits from the enterprises.

6. Total Owners' Equity: refers to the residual interests after deducting liabilities, which belongs to the enterprises owners.

7. Notes receivable and Accounts Receivable: refers to the enterprise's rights due to the sale of goods, services, and other business activities, as well as commercial drafts received, including bank acceptance bills and commercial acceptance bills.

In June 2018, the Ministry of Finance issued the Notice on Amending the 2018 Annual Financial Statements of General Enterprises (Accounting [2018] No. 15), and revised the financial statement format of general enterprises. The enterprise balance sheet is no longer listed the item of “Accounts Receivable”, and the items of “receivable notes and accounts receivable” are listed instead. In line with the corporate financial statements, from 2019, stop to release the monthly “accounts receivable” data, and the “receivable notes and accounts receivable” data will be released. Relevant indicators are adjusted accordingly.

8. Finished Goods: refers to manufactured products which are ready for sale by the end of report period.

9. Profit Rate of Revenue from Principal Activities = total profits / revenue from principal activities × 100%, unit: %.

10. Costs for per-hundred-yuan Turnover of Principal Activities = the costs of revenue from principal activities / the revenue from principal activities ×100, unit: yuan.

11. Expenses for per-hundred-yuan Turnover of Principal Activities = (selling expenses + administrative expenses + financial expenses) / the revenue from principal activities ×100, unit: yuan.

12. Revenue from Activities  Brought by per Hundred yuan Assets =  the revenue from activities / average assets / the cumulative number of months × 12 × 100, unit: yuan.

13. Revenue from Activities per Capita = revenue from activities / average number of employment / the cumulative number of months × 12, unit: 10 thousand yuan/ person.

14. Asset-Liability Ratio = total liabilities / total assets × 100%, unit: %.

15. Turnover Days of Finished Goods = 360 × average finished goods / revenue from activities × the cumulative number of months / 12, unit: days.

16. Days Sales Outstanding (the number of days on average a company takes to collect its accounts receivable) = 360 ×average accounts receivable / revenue from activities ×the cumulative number of months / 12, unit: days.

17. In the columns of increase rate year-on-year of the three tables above, the “note” refers to negative total profits in the same period last year, which means loss; the positive value refers to a year-on-year increase of profits; the negative value which is greater than or equal to -100% refers to a year-on-year decrease of profits; the value less than -100% indicates turning gain in the same period last year into loss in current period; and the value of 0 indicates that the profits remain at the same level year-on-year.

II. In order to fully reflect the income scale of industrial enterprises, from 2019, replace “principle revenue from activities” with “revenue from activities”. Relevant indicators are adjusted accordingly.

III. The collective enterprise data released in the past refers to the enterprise whose registration type is “collective”. With the establishment of the modern enterprise system, the proportion of enterprises registered as “collective” is declining (in 2018, the revenue from activities of collective enterprises accounts for the full industrial enterprises above designated size is only 0.18%), so from 2019, the date of the collective enterprise release will be cancel.

IV. The growth rates of the total profits and revenue from activities of industrial enterprises above designated size are calculated on a comparable basis. There are incomparable factors between the data in the reporting period and the same indicator data published in the previous year, which cannot be directly compared to calculate the growth rate. The main reasons are: (1) According to the statistical system, the survay coverage of industrial enterprises above designated size is adjusted regularly every year. Each year, some companies will be included in the survey after having reached designated size, and some will exit the survey due to their smaller size, and there are also influence of new built and starting enterprises, bankruptcies, and companies that have been suspended or sold. (2) By strengthening the statistical law enforcement, the enterprises found in the statistical law enforcement inspection that do not meet the industrial statistics requirements above designated size have been cleared, and relevant bases have been revised in accordance with regulations. (3) Strengthen data quality management and eliminate the cross-regional and cross-industry repeated calculation. According to the latest investigation of the organizational structure carried out by the National Bureau of Statistics, since the fourth quarter of last year, the cross-regional and cross-industry repeated calculation of enterprise groups (companies) has been eliminated. (4) After the implementation of the “reform of replacing business tax with value-added tax” policy, the service industry enterprises turned to pay value-added tax of which the tax rate was lower. The industrial enterprises have gradually divested their internal non-industrial production and operation activities, and turned to the service industry, which had diminished the financial data of industrial enterprises.

V. Statistical Coverage

Industrial enterprises above the designated size, which refer to industrial enterprises with revenue from principal activities over 20 million yuan.

VI. Data Collection

The Financial Report of Enterprises Above the Designated Size conducts complete survey by month (the data on January are not required to report).

VII. Industrial Classification Standard

The Industrial Classification for National Economic Activities (GB/T4754-2017) was implemented, please refer to http://www.stats.gov.cn/tjsj/tjbz/hyflbz.