Industrial Enterprise Profits Accelerate Upward: What Important Signals Are Released? Expert Interpretation
The National Bureau of Statistics recently released data showing that from January to May, the operating revenue of industrial enterprises above the designated size increased by 5.5% year-on-year, accelerating by 0.3 percentage points compared to the January-April period; the profits of industrial enterprises above the designated size increased by 18.8% year-on-year, accelerating by 0.6 percentage points compared to the January-April period.
Dual Growth in Revenue and Profit Releases Important Positive Signals
Zhou Lisha, research director of the Tsinghua University Research Institute for Chinese Modern State-Owned Enterprises, said:
From the data, the fundamentals of China's industrial production are steadily recovering, with the demand side showing a marginal warming trend. The steady increase in revenue growth rate directly reflects the continuous expansion of market orders and production and sales scale.
Looking at specific industries, profit growth shows obvious structural characteristics. Equipment manufacturing, high-tech manufacturing, and basic raw material industries performed prominently, with high value-added industries such as high-end electronics, semiconductors, and new materials becoming the core new engines of profit growth.
This indicates that the growth model of China's industrial enterprises has completed an important transformation from scale and quantity expansion to quality and efficiency improvement.
Strengthening and Supplementing Chains Brings New Growth Space for High-Tech Manufacturing
Data from the National Bureau of Statistics show that from January to May, the profits of high-tech manufacturing industries above the designated size increased by 44.7% year-on-year, among which the profit of electronic special material manufacturing industry increased by 665.4%.
Zhou Lisha analyzed that this industry is a typical epitome of China's efforts in recent years to promote independent and controllable industrial chains and tackle and fill industrial短板.
China insists on taking enterprises as the main body of innovation and the market as the development orientation, promoting deep integration of industry, academia, and research, precisely targeting weak links in the industrial chain to carry out chain-strengthening and chain-supplementing projects, thereby opening up a broad new incremental market for this track.
In recent years, domestic enterprises have continuously tackled core formulas and key processes in fields such as high-end electronic chemicals, semiconductor substrates, and packaging materials, gradually breaking overseas technology monopolies. Relying on increasingly mature core technologies such as ultra-high purity purification and precision synthesis processing, relevant enterprises have fully tapped the import substitution market space, ushering in explosive growth in order scale.
Stabilizing Demand in the Short Term, Increasing Momentum in the Long Term to Promote Sustained and Sound Development of the Industrial Economy
Zhou Lisha said that in the next stage, it is necessary to continue counter-cyclical adjustment. Continue to fully release the potential of residents' bulk consumption through relevant consumption subsidy policies; continuously increase support and assistance to large, medium, small, and micro enterprises to effectively reduce burdens on business entities. In the medium to long term, steadily promote the digital and intelligent transformation and upgrading of traditional industries, strengthen the independent and controllable capability of the industrial chain and supply chain, and promote sustained, balanced, and high-quality development of the industrial economy.
