Industrial Profits Decreased by 12.8 percent in the First Six Months of 2020

In the first six months of 2020, the profits made by industrial enterprises above the designated size achieved 2,511.49 billion yuan, a year-on-year decrease of 12.8 percent (calculated on comparable basis, see annotations II for details), and the pace of decline narrowed 6.5 percentage points over the first five months.

In the first six months, among the industrial enterprises above the designated size, the total profits of state-owned holding enterprises were 661.41 billion yuan, a year-on-year decrease of 28.5 percent; that of joint-stock enterprises were 1,824.71 billion yuan, down 13.7 percent; that of foreign-funded enterprises, Hong Kong, Macao and Taiwan enterprises were 648.64 billion yuan, down 8.8 percent; and that of private enterprises were 711.98 billion yuan, down 8.4 percent.

In the first six months, the total profit of mining industry was 164.7 billion yuan, down 41.7 percent year-on-year; that of manufacturing industry was 2,122.3 billion yuan, down 9.8 percent; that of power, heat, gas and water production and supply industry was 224.5 billion yuan, down 8.7 percent.

In the first six months, within 41 branches of industrial divisions, the total profits of 9 industries increased year on year, 1 industry remained unchanged and 31 industries decreased. The profits of major industries were as follows: the total profits of computer, communication and other electronic equipment manufacturing industry increased by 27.2 percent, that of special purpose equipment manufacturing industry increased by 20.7 percent, that of agricultural and sideline food processing industry increased by 14.8 percent, that of oil and natural gas exploitation industry decreased by 72.6 percent, that of smelting and processing of ferrous metal industry decreased by 40.3 percent, that of chemical raw materials and chemical products manufacturing industry decreased by 32.2 percent, that of coal mining and washing industry decreased by 31.2 percent, that of nonferrous metal smelting and processing industry decreased by 29.4 percent, that of automobile manufacturing industry decreased by 20.7 percent, that of power and heat production and supply industry decreased by 9.5 percent, that of non-metallic mineral products industry decreased by 8.7 percent, that of electrical machinery and equipment manufacturing industry decreased by 6.4 percent, that of textile industry decreased by 5.6 percent, that of general purpose equipment manufacturing industry by decreased by 1.1 percent, and that of oil, coal and other fuel processing industries changed from profit to loss in the same period.

In the first six months, the revenue from activities of industrial enterprises above the designated size reached 46.31 trillion yuan, decreased by 5.2 percent year-on-year. The costs of operating were 39.16 trillion yuan, down by 4.7 percent. The profit rate revenue from operating was 5.42 percent, a decrease of 0.48 percentage point year-on-year.

By the end of June, the total assets of industrial enterprises above the designated size was 120.14 trillion yuan, increased by 6.5 percent year-on-year; the total liabilities reached 68.41 trillion yuan, increased by 6.4 percent; the total owners' equity was 51.73 trillion yuan, increased by 6.5 percent. The asset-liability ratio was 56.9 percent, fell 0.1 percentage point year-on-year.

At the end of June, the accounts receivable of industrial enterprises above designated size reached 15.34 trillion yuan, a year-on-year increase of 12.7 percent; and the inventory of finished products was 4.44 trillion yuan, an increase of 8.3 percent.

In the first six months, the costs for per-hundred-yuan of business income above the designated size stood at 84.56 yuan, an increase of 0.42 yuan year-on-year, that of the expenses for per-hundred-yuan stood at 9.05 yuan, an increase of 0.23 yuan year-on-year.

By the end of June, the revenue activities brought by per-hundred-yuan assets above the designated size was 78.8 yuan, a decrease of 9.6 yuan year-on-year; the revenue from activities per capita was 1,296 thousand yuan, a decrease of 15 thousand yuan year-on-year; the turnover days of finished goods were 20.0 days, an increase of 2.5 days from that in the previous year; the days of accounts receivable hit an average of 56.6 days, an increase of 8.8 days year-on-year.

In June, industrial enterprises above the designated size posted a total profit of 666.55 billion yuan, rose by 11.5 percent year on year, increased 5.5 percentage points than that in May.

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 : 1. 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.

3. 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 enterprise’s owners.

7. Accounts Receivable: refers to the amount that should be collected by an enterprise due to its business activities, such as selling goods and providing services, measured at amortized cost on the balance sheet date.

In the Notice on Revising and Printing the Format of Financial Statements of General Enterprises in 2019 (FA [2019] No. 6), the Ministry of Finance revised the format of financial statements of general enterprises. The items of "notes receivable and accounts receivable" are no longer listed in the balance sheet of enterprises, but "notes receivable" and "accounts receivable" are listed respectively. In order to be consistent with the financial statements of the enterprise, from 2020, the monthly "notes receivable and accounts receivable" data will be stopped and the "accounts receivable" data will be released instead. Relevant indicators shall be 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. 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 survey 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.

III. Statistical Coverage

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

IV. 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).

V. 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.