Industrial profit growth turns positive in April

-- Dr. He Ping, Department of Industry, National Bureau of Statistics, interprets the profit data of industrial enterprises from January to April.

The financial data of industrial enterprises released by the National Bureau of Statistics on May 27 showed that from January to April, the total profits of industrial enterprises above designated size fell by 1.3 year-on-year. Among them, the total profit in April increased by 2.6 year-on-year, changing the situation of negative profit growth in the first quarter. Industrial profit growth in April showed the following characteristics:

　　First, industrial production and sales rose steadily and slightly, which had a positive effect on the recovery of corporate profit growth.In April, the added value of industries above designated size increased by 5.9 in real terms year-on-year, and the growth rate was 0.3 percentage points faster than in March; the main business income increased by 0.6, and the growth rate was 0.1 percentage points faster than in March.

　　Second, investment income in some industries has a greater impact on profit growth.In April, industrial profits above designated size increased by 12.03 billion yuan year-on-year, of which investment income increased by 11.61 billion yuan year-on-year. Industries with a large increase in investment income are: wine and beverage and refined tea manufacturing, with investment income increasing by 2.37 billion yuan compared with the same period last year; special equipment manufacturing, with an increase of 1.79 billion yuan; and computer communications and other electronic equipment manufacturing, with an increase of 1.24 billion yuan. Investment income includes income from equity and debt investments such as the purchase of stocks, funds, bonds, and investment subsidiaries.

　　Third, the policy of lowering interest rates and fees is gradually playing a role.In April, corporate interest expenses increased by 1.5, 1.5 percentage points lower than the first quarter. The slowdown in interest expense growth is conducive to reducing corporate financial expenses and increasing earnings. In April, corporate sales expenses increased by 3% year-on-year, and management expenses increased by 4.7 year-on-year, both of which were lower than the previous month.

　　Fourth, the profit growth of a few industries such as electric power, alcohol and beverage, and chemical industry has accelerated significantly.In April, the profit of electric power and heat production and supply industry increased by 20.3 year on year, while in March, due to the high base of the same period, the profit decreased by 7.3 year on year; the profit of wine beverage and refined tea manufacturing industry increased by 46.4, which was significantly faster than the 6% growth rate in March; the profit of chemical raw materials and chemical products manufacturing industry increased by 22.6 due to the accelerated growth of product sales and the decline of unit cost, the growth rate was 10.5 percentage points faster than in March. The three industries combined made profit growth in April 3.5 percentage points faster than in March.

Although industrial profit growth turned from negative to positive in April, the adverse factors affecting profit growth still exist. First, due to insufficient market demand and continued decline in prices, the growth rate of the company's main business income is slow. Second, due to the high inventory of finished products and accounts receivable, the capital chain of enterprises is still tight, which restricts the normal production and operation of enterprises.