The Data Prove That: In 2020, The Industrial Profits Will Increase And The Quality And Efficiency Will Be Improved Steadily

In 2020, the industrial profit will increase and the quality and benefit will be improved steadily

Zhu Hong, Senior Statistician of the industry department of the National Bureau of statistics, interprets the profit data of industrial enterprises

In 2020, in the face of severe and complex international situation, arduous and arduous tasks of domestic reform, development and stability, especially the severe impact of the new crown pneumonia epidemic, under the strong leadership of the CPC Central Committee with Xi Jinping as the core, all regions and departments will do a solid job in the "six stability" work, comprehensively implement the "six guarantees" task, and make significant achievements in the overall prevention and control of epidemic situation and economic and social development. The industrial circulation is gradually unblocked, the market demand continues to improve, and the profits of industrial enterprises are steadily increasing.

I. the efficiency of industrial enterprises has been continuously improved

The profits of enterprises have been rising quarter by quarter and have been growing rapidly for seven consecutive months in a single month. In 2020, the added value of industries above Designated Size will increase by 2.8% over the previous year, and the operating income of Industrial Enterprises above Designated Size will increase by 0.8%. The stable recovery of production and sales has provided strong support for profit growth. In 2020, the profits of Industrial Enterprises above Designated Size will reach 6451.61 billion yuan, an increase of 4.1% over the previous year. In terms of quarter, this year's profit showed a trend of "from negative to positive, accelerating quarter by quarter". Affected by the severe impact of the epidemic, the profit in the first quarter dropped by 36.7% year on year. With the implementation of the tasks of "six stabilities" and "six guarantees", the level of returning to work and production of enterprises has been steadily improved. In the second quarter, the profit increased by 4.8%, and the growth rate in the third quarter rose to 15.9%, and that in the fourth quarter further accelerated to 20.8%. In December, the profits of Industrial Enterprises above designated size increased by 20.1% year-on-year, 4.6 percentage points faster than that in November. After the monthly growth rate changed from negative to positive in May, it maintained double-digit growth for seven consecutive months.

The profit growth is more than 60%, and the manufacturing industry plays an important role. In terms of industries, in 2020, of the 41 major industrial sectors, 26 industries' profits increased over the previous year, 5 more than those in the first three quarters. Among them, the profit growth rate of 15 industries reached double-digit, and the profit growth rate of industries was 63.4%. In terms of categories, in 2020, the profit of manufacturing industry will increase by 7.6% over the previous three quarters, 6.5 percentage points faster than that of the first three quarters, 3.5 percentage points higher than the growth rate of industries above Designated Size, and 6.4 percentage points higher than that of the industrial enterprises above Designated Size in the whole year; the profits of mining industry will decrease by 31.5%, and the decrease rate will be narrowed by 5.7% compared with the previous three quarters; the profits of power, heat, gas and water production and supply industries will be increased The growth rate increased by 4.9% and 2.3% respectively.

The unit cost continued to decline, and the profitability was enhanced. A series of policies to help enterprises and relieve the financial crisis have been launched continuously. The business environment has been continuously optimized. It is estimated that the new tax reduction and fee reduction in the whole year will exceed 2.5 trillion yuan, effectively relieving the pressure on enterprises. In 2020, the cost of Industrial Enterprises above Designated Size in each hundred yuan of operating income is 83.89 yuan, which is 0.11 yuan lower than the previous year and 0.35 yuan lower than the previous three quarters. Among them, the cost of operating revenue per 100 yuan in the fourth quarter decreased by 0.52 yuan year-on-year, 0.65 yuan lower than that in the third quarter, and decreased year-on-year and month on month for two consecutive quarters. The profitability of enterprises has been significantly improved. In 2020, the profit margin of operating income of Industrial Enterprises above Designated Size will be 6.08%, 0.2 percentage points higher than that of the previous year; the profit margin of monthly operating income has increased year on year for eight consecutive months since May.

The loss area of enterprises has shrunk quarter by quarter, and the degree of loss has been continuously reduced. By the end of 2020, the loss area of Industrial Enterprises above designated size was 17.3%, which was 17.5 percentage points lower than 34.8% at the end of March, and 8.7 percentage points lower than that at the end of June and September respectively. Although the loss amount of loss making enterprises increased by 2.8% over the previous year, the increase in loss was 15.3 percentage points lower than that in the first three quarters. In terms of quarter, the amount of loss showed a trend of "from up to down, and the decline rate expanded". 1、 In the second quarter, the losses of loss making enterprises increased by 42.9% and 13.1% respectively, then decreased by 21.4% in the third quarter, and further decreased by 33.0% in the fourth quarter.

2. The profits of major industrial sectors increased positively

The profits of equipment manufacturing industry recovered first and grew steadily. Benefited from the switching of environmental protection standards, the promotion of infrastructure projects and the driving force of housing economy, the profitability of equipment manufacturing industry recovered first, the profit growth in the second quarter turned from negative to positive, and the third and fourth quarter maintained double-digit growth. In 2020, the profit of equipment manufacturing industry will increase by 10.8% over the previous year, which will stimulate the profit growth of Industrial Enterprises above Designated Size by 3.7 percentage points, which will play an important role in promoting the overall manufacturing industry. Among them, the general equipment, special equipment, electronics and other industries grew rapidly, and the annual profit increased by 13.0%, 24.4% and 17.2% respectively; the profit of automobile and electrical machinery industry continued to grow steadily, and the trend was further enhanced compared with the first three quarters.

The profits of high-tech manufacturing industry maintained a rapid growth. In 2020, the profit of high-tech manufacturing industry will increase by 16.4% over the previous year, 3.5 percentage points faster than that in the first three quarters. It is the fastest growing industrial sector, and has maintained double-digit growth since the growth rate became normal in the second quarter. In the whole year, the profit of high-tech manufacturing industry accounted for 17.8% of Industrial Enterprises above Designated Size, 1.9% higher than that in 2019, which strongly promoted the continuous optimization of industrial profit structure.

The cumulative profit growth of raw material manufacturing industry has changed from negative to positive. With the gradual opening of the upstream and downstream industrial chain, combined with the recovery of domestic market demand and the rise of international bulk commodity prices such as petrochemical and non-ferrous metals, the profit of raw material manufacturing industry rapidly recovered and improved quarter by quarter after a sharp decline at the beginning of the year. Especially since the second half of the year, the profit of raw material manufacturing industry has been growing rapidly for two consecutive quarters, which has played an important role in turning the annual profit growth into positive. In 2020, the profit of raw material manufacturing industry will increase by 4.5% compared with that of the previous year, and it will decrease by 1.7% from January to November. The annual profit growth will turn from negative to positive. Among them, the decline rate of cumulative profit of petroleum processing and iron and steel industry decreased by 26.5% and 7.5%, respectively, 39.7% and 11.2 percentage points lower than those in the previous three quarters; the cumulative profit of chemical industry increased by 20.9%, decreased by 17.7% in the first three quarters; and the profit of non-ferrous industry increased by 20.3%, with the growth rate further accelerated.

The profit recovery of consumer goods manufacturing industry has been consolidated. In 2020, the profit of consumer goods manufacturing industry will increase by 5.1% over the previous year, and the growth rate will be 0.7 percentage points faster than that in the first three quarters. Among them, the profits of the epidemic related industries such as papermaking and medicine increased by 21.2% and 12.8% respectively, 7.9% and 4.6% higher than those in the previous three quarters; the profits of agricultural and sideline food processing, food manufacturing, wine, beverage, tea, textile and other essential consumer goods industries continued to grow steadily, with a growth rate of 5% - 10%; and non essential consumer goods such as clothing, leather, chemical fiber, entertainment products, furniture manufacturing, etc The decline in industrial profits narrowed further compared with the previous three quarters.

3. Profit improvement of various market entities

As a series of policies and measures such as large-scale tax reduction and fee reduction, rent reduction and interest rate reduction have continued to be effective, the vitality of various market entities has been enhanced, and the profits of industrial enterprises of all types of ownership have been improved in an all-round way. The profit decline of state-owned holding enterprises was significantly narrowed. In 2020, the profit of state-owned industrial enterprises above Designated Size will decrease by 2.9% compared with the previous year, but the decline rate will be significantly narrowed by 11.4 percentage points compared with the previous three quarters, of which the third and fourth quarters will maintain double-digit growth. The profit growth of private enterprises turned from decline to increase. The annual profit of private enterprises increased by 3.1% over the previous year, and decreased by 0.5% in the first three quarters. The profit growth of foreign-funded enterprises accelerated. The profits of foreign investors, Hong Kong, Macao and Taiwan invested enterprises increased by 7.0%, 4.4 percentage points faster than that in the first three quarters. Since the growth rate became normal in the second quarter, it has maintained double-digit growth for three consecutive quarters.

In 2020, the production and operation of industrial enterprises will continue to recover steadily, and their profits will achieve rapid stabilization and sustained improvement. At the same time, it should be noted that industrial enterprises are still facing problems such as rapid growth of accounts receivable, increase of inventory and high pressure of cash flow. In 2021, it is necessary to speed up the construction of a new development pattern, strive to smooth the economic cycle, maintain the continuity, stability and sustainability of macro policies, grasp the timing and effectiveness of policies, continuously consolidate the situation of industrial economic stability and recovery, and achieve a good start to the development of the "14th five year plan".