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 nationwide increased by 18.8% year-on-year, accelerating by 0.6 percentage points compared to the January-April period.
Double Growth in Revenue and Profit Releases Important Positive Signals
Zhou Lisha, director of the Research Center for Chinese Modern State-Owned Enterprises at Tsinghua University, 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 directly reflects the continuous expansion of market orders and production and sales scale.
From a specific industry perspective, profit growth shows a clear structural characteristic. Equipment manufacturing, high-tech manufacturing, and basic raw material industries performed well, 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
According to data from the National Bureau of Statistics, from January to May, profits of high-tech manufacturing above the designated size increased by 44.7% year-on-year, among which profits of the electronic special materials manufacturing industry increased by 665.4%.
Zhou Lisha analyzed that this industry is a typical microcosm of China's efforts in recent years to promote the independent controllability of the industrial chain and to tackle and fill industrial shortcomings.
China adheres to taking enterprises as the main body of innovation and the market as the development orientation, promoting deep integration of industry, academia, and research, and precisely carrying out projects to strengthen and supplement chains for weak links in the industrial chain, opening up broad new incremental markets 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 continuously maturing core technologies such as ultra-high purity purification and precision synthesis processing, relevant enterprises have fully tapped the market space for import substitution, ushering in explosive growth in order scale.
Stabilizing Demand in the Short Term, Increasing Momentum in the Long Term to Promote Sustainable and Healthy Development of the Industrial Economy
Zhou Lisha said that in the next stage, it is necessary to continue doing a good job in counter-cyclical adjustment. Through relevant consumption subsidy policies, continue to fully unleash residents' potential for large-scale consumption; continuously increase efforts to assist and support large, medium, small, and micro enterprises, effectively reducing burdens for business entities. In the medium to long term, steadily promote the digital and intelligent transformation and upgrading of traditional industries, strengthen the independent controllability of the industrial chain and supply chain, and promote the sustained, balanced, and high-quality development of the industrial economy.
