The total revenue of the East Asian country’s industrial firms jumped 7.6 per cent YoY to 111.78 trillion yuan. Out of 41 major industries, 19 reflected an increase in profits during January–October 2022 as per the NBS.
Even as China’s industrial profits see a drop, the country’s business profit structure has shown improvement. Industrial firms with annual business revenues of at least 20 million yuan (around $2.8 million) faced a 3 per cent year-on-year (YoY) decline in combined profits from January to October 2022, earning around 6.98 trillion yuan, according to the NBS.
The profit slip of China’s industrial firms and revenue growth moderation were attributed to various factors such as isolated yet rising COVID-19 cases and positive growth reversal in the producer price index that determines the cost of goods at the factory gate, Chinese media reports quoted an NBS expert as saying.
NBS data also revealed that the profit margins of small and medium-sized industrial companies and foreign-invested firms improved in the January–October 2022 period due to policy incentives.
Fibre2Fashion News Desk (NB)