Profits of industrial companies in China rise 57.3% in seven months

Official figures from China's National Statistics Authority showed that China's major industrial enterprises saw a steady increase in profits in the first seven months of this year, amid a stable recovery market demand and business performance improvement.

The figures showed that industrial companies with annual sales of at least 20 million yuan, equivalent to about 3.08 million US dollars, achieved combined profits of 760 billion dollars during the mentioned period. , up 57.3% year-on-year.

Compared to the 2019 level, profits of major industrial companies rose 44.6% in the January-July period, according to CNBC Arabia.

The commission's data showed that the expansion made the average growth in the period from January to July for 2020 and 2021 at 20.2%.

In July alone, major industrial companies generated $109 billion in total profits, up 16.4 percent year-on-year.

While the business performance of industrial companies has improved, the recovery has remained uneven, with earnings for private companies growing relatively more slowly.

The data showed that state-run industrial companies saw their profits rise by 102% year-on-year in the first seven months, while private companies saw a profit increase of 102%. 40.2% on an annual basis.

Of all 41 industry sectors, 25 experienced year-on-year profit growth in July, and 31 saw profit increase over the 2019 level, according to Chu Hong, a statistician with the commission, said.

Mining and raw materials industry companies saw their profits rise by 203% and 50.9% year on year, respectively, in July.

Chu noted that the high-tech manufacturing sector saw rapid profit growth, while consumer goods producers saw a steady profit recovery in July.

Thanks to an increase in coronavirus vaccines and epidemic prevention products, profits in the pharmaceutical industry rose 110% year-on-year in July, accelerating from the pace in June.

The continued recovery in the industrial sector was in line with China's overall economic recovery. In the first seven months, China's industrial output rose 14.4% year on year.