Industrial Profits Increased by 0.7 Percent in the First Ten Months of 2020

From January to October, the total profits of industrial enterprises above designated size nationwide reached 5,012.42 billion yuan, a year-on-year increase of 0.7 percent (calculated according to the comparable caliber, see Note II for details), and which decreased by 2.4 percent in the first nine months.

From January to October, among the industrial enterprises above designated size, the state-owned holding enterprises achieved a total profit of 1,294.26 billion yuan, a year-on-year decrease of 7.5 percent; joint-stock enterprises achieved a total profit of 3,541.74 billion yuan, an increase of 0.4 percent; foreign-funded enterprises and enterprises invested in Hong Kong, Macao and Taiwan achieved a total profit of 1,409.55 billion yuan, an increase of 3.5 percent; and that of private enterprises reached 1,483.08 billion yuan, an increase of 1.1 percent.

From January to October, the total profit of mining industry was 307.23 billion yuan, a year-on-year decrease of 34.5 percent; the total profit of manufacturing industry was 4,256.01 billion yuan, an increase of 4.2 percent; the total profit of power, heat, gas and water production and supply industry was 449.18 billion yuan, an increase of 5.9 percent.

From January to October, the total profits of 25 industries increased year on year, while 16 industries decreased. The profits of major industries are as follows: the total profit of special equipment manufacturing industry increased by 22.9 percent, agricultural and sideline food processing industry increased by 14.6 percent, computer, communication and other electronic equipment manufacturing industry increased by 12.6 percent, general equipment manufacturing industry increased by 12.0 percent, textile industry increased by 7.6 percent, automobile manufacturing industry increased by 6.6 percent, electric power, heat production and supply industry increased by 5.7 percent, nonferrous metal smelting and processing industry grew by 5.0 percent, electrical machinery and equipment manufacturing industry rose by 3.5 percent, chemical raw materials and chemical products manufacturing increased by 2.8 percent, non-metallic mineral products industry increased by 0.9 percent, oil and natural gas exploitation industry increased by 68.5 percent, oil, coal and other fuel processing industry increased by 52.8 percent, coal mining and washing industry increased by 27.7 percent, and ferrous metal smelting and processing industry increased by 12.9 percent.

From January to October, the operating revenue of industrial enterprises above designated size reached 83.78 trillion yuan, a year-on-year decrease of 0.6 percent; the operating cost was 70.52 trillion yuan, a decrease of 0.6 percent; the profit margin of operating income was 5.98 percent, increased by 0.08 percentage point year-on-year.

At the end of October, the assets of industrial enterprises above designated size totaled 124.96 trillion yuan, up 6.9 percent year on year; liabilities totaled 70.72 trillion yuan, up 6.8 percent; owner's equity totaled 54.24 trillion yuan, an increase of 7.0 percent; the asset liability ratio was 56.6 percent, unchanged year-on-year.

At the end of October, the accounts receivable of industrial enterprises above designated size reached 16.77 trillion yuan, an increase of 15.9 percent over the same period of last year, and the inventory of finished products was 4.58 trillion yuan, an increase of 6.9 percent.

From January to October, the cost of per hundred yuan of operating income of industrial enterprises above designated size was 84.18 yuan, an increase of 0.04 yuan on a year-on-year basis; the cost of operating income per hundred yuan was 8.93 yuan, an increase of 0.14 yuan on a year-on-year basis.

At the end of October, the operating income of industrial enterprises above designated size per 100 yuan of assets was 83.8 yuan, a decrease of 6.1 yuan on a year-on-year basis; the per capita operating income was 1.387 million yuan, an increase of 38,000 yuan; the turnover days of finished goods inventory was 18.8 days, an increase of 1.5 days; the average recovery period of accounts receivable was 54.7 days, with a year-on-year increase of 7.1 days.

In October, the total profits of industrial enterprises above designated size reached 642.91 billion yuan, a year-on-year increase of 28.2 percent, 18.1 percentage points faster than that in September.

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.