Industrial Profits Increased by 2.4 Percent in the First Eleven Months of 2020

From January to November, China's industrial enterprises above designated size achieved a total profit of 5,744.5 billion yuan, a year-on-year increase of 2.4 percent (according to the comparable caliber, see Note 2 for details), and the growth rate was 1.7 percentage points higher than that from January to October.

From January to November, among the industrial enterprises above designated size, the total profits of state-owned holding enterprises were 1445.69 billion yuan, down 4.9 percent year on year; the total profits of joint-stock enterprises were 4,058.01 billion yuan, up 2.3 percent; the total profits of foreign-invested enterprises, Hong Kong, Macao and Taiwan enterprises were 1,610.52 billion yuan, up 4.3 percent; the total profits of private enterprises were 1,733.22 billion yuan, up 1.8 percent.

From January to November, the mining industry realized a total profit of 344.05 billion yuan, a year-on-year decrease of 32.8 percent; the manufacturing industry realized a total profit of 4,899.52 billion yuan, an increase of 6.1 percent; the power, heat, gas and water production and supply industry realized a total profit of 500.93 billion yuan, an increase of 4.8 percent.

From January to November, in 41 major industries, the total profits of 25 industries increased year-on-year, 15 industries decreased, and 1 industry was flat. The profits of the main industries were as follows: the total profits of the special equipment manufacturing industry increased by 23.0 percent year-on-year, that of the computer, communication and other electronic equipment manufacturing industry increased by 15.7 percent, that of the general equipment manufacturing industry increased by 12.5 percent, that of the chemical raw materials and chemical products manufacturing industry increased by 10.5 percent, that of the smelting and processing of non-ferrous metal increased by 10.1 percent, that of the agricultural and sideline food processing industry increased by 8.9 percent, that of the textile industry increased by 7.5 percent, and that of the automobile manufacturing industry increased by 7.2 percent, that of the manufacturing industry increased by 7.2 percent, that of the electrical machinery and equipment manufacturing industry increased by 6.6 percent, that of the power and heat production and supply industry increased by 3.8 percent, and that of the non-metallic mineral products industry increased by 1.4 percent; while that of the oil and natural gas exploitation industry decreased by 70.8 percent, that of the oil, coal and other fuel processing industry decreased by 44.0 percent, that of the coal exploitation and washing industry decreased by 24.5 percent, and that of the smelting and processing of ferrous metal decreased by 9.9 percent.

From January to November, industrial enterprises above designated size achieved operating revenue of 94.22 trillion yuan, an increase of 0.1 percent over the same period of last year; the operating costs was 79.22 trillion yuan, an increase of 0.1 percent; operating revenue profit margin was 6.10 percent, an increase of 0.14 percentage point over the same period of last year.

At the end of November, assets of industrial enterprises above designated size totaled 126.70 trillion yuan, up 6.9 percent year on year; liabilities totaled 71.76 trillion yuan, up 6.8 percent; owner's equity totaled 54.94 trillion yuan, up 7.0 percent; asset liability ratio was 56.6 percent, down 0.1 percentage point year on year.

At the end of November, the accounts receivable of industrial enterprises above designated size were 17.28 trillion yuan, up 16.5 percent year on year, and the inventory of finished products was 4.64 trillion yuan, up 7.3 percent.

From January to November, the cost per 100 yuan of operating income of industrial enterprises above designated size was 84.08 yuan, a year-on-year decrease of 0.01 yuan; the cost per 100 yuan of operating income was 8.92 yuan, a year-on-year increase of 0.12 yuan.

At the end of November, the operating income of industrial enterprises above designated size per 100 yuan assets was 85.1 yuan, a year-on-year decrease of 5.5 yuan; the per capita operating income was 1.412 million yuan, a year-on-year increase of 45,000 yuan; the turnover days of finished goods inventory was 18.5 days, a year-on-year increase of 1.3 days; the average recovery period of accounts receivable was 54.4 days, a year-on-year increase of 6.9 days.

In November, the total profits of industrial enterprises above designated size reached 729.32 billion yuan, up 15.5 percent year on year, and the growth rate was 12.7 percentage points lower than that 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 : 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.