Industrial Profits Increased in the First Five Months of 2018

In the first five months of 2018, the profits made by industrial  enterprises above the designated size achieved 2,729.83 billion yuan, a  year-on-year increase of 16.5 percent, and the growth rate increased by 1.5  percentage points from the first four months.

In the first five months, the profits of state-holding industrial  enterprises above the designated size gained 810.35 billion yuan, an increase of  28.7 percent year-on-year; that of collective-owned enterprises reached 9.31  billion yuan, an increase of 4.4 percent; that of joint-stock enterprises stood  at 1,911.98 billion yuan, up by 20.6 percent; that of foreign funded  enterprises, and enterprises funded from Hong Kong, Macao and Taiwan achieved  673.91 billion yuan, increased by 6.9 percent; and that of private enterprises  gained 746.62 billion yuan, an increase of 10.6 percent.

In the first five months, the profits of mining and quarrying reached  233.36 billion yuan, an increase of 41.6 percent year-on-year; that of  manufacturing was 2,315.01 billion yuan, an increase of 13.8 percent; that of  production and distribution of electricity, heat, gas and water reached 181.46  billion yuan, up by 26.1 percent.

In the first five months, within 41 branches of industrial divisions,  the industrial profits of 31 industrial divisions increased year-on-year, and  that of 10 decreased. In view of the profit growth of major industries, the  profits of mining and washing of coal increased by 14.8 percent year-on-year,  that of extraction of petroleum and natural gas increased by 2.6 times, that of  processing of food from agricultural products increased by 1.3 percent  year-on-year, that of processing of petroleum, coal and other fuels increased by  27.9 percent, that of manufacture of chemical raw material and chemical products  increased by 27.7 percent, that of manufacture of non-metallic mineral products  increased by 44.6 percent, that of manufacture and processing of ferrous metals  increased by 1.1 times, that of manufacture of general-purpose machinery up by  9.6 percent, that of manufacture of special-purpose machinery up by 22.2  percent, that of manufacture of motor vehicles increased by 0.5 percent, that of  manufacture of electrical machinery and equipment increased by 1.9 percent, that  of manufacture of computer, communication equipment and other electronic  equipment increased by 4.3 percent, that of production and supply of electric  power and heat power up by 27.8 percent, that of manufacture of textile down by  0.1 percent, that of manufacture and processing of non-ferrous metals decreased  by 11.5 percent.

 industrial enterprises above the designated size reached 42.9 trillion yuan, increased by 10.2 percent year-on-year. The costs of principal activities were  36.3 trillion yuan, up by 9.8 percent. The profit rate of revenue from principal  activities was 6.36 percent, an increase of 0.35 percentage points year-on-year.  

By the end of May, the total assets of industrial enterprises above the designated size was 108.8 trillion yuan, increased by 7.4 percent  year-on-year; the total liabilities reached 61.6 trillion yuan, increased by 6.3  percent; the total owners' equity was 47.2 trillion yuan, increased by 8.8  percent. The asset-liability ratio was 56.6 percent, a decrease of 0.6 percentage points year-on-year.

By the end of May, the total volume of receivable accounts for industrial enterprises above designated hit 13.5 trillion yuan, went up by 10.6  percent year-on-year. The total value of finished products for industrial  enterprises accounted for 4,124.63 billion yuan, increased by 7.3  percent.

In the first five months, the costs for per-hundred-yuan turnover of principal activities stood at 84.49 yuan, a decrease of 0.31 yuan year-on-year; the expenses for per-hundred-yuan turnover of principal activities stood at 8.1  yuan, a decrease of 0.04 yuan; the revenue from principal activities brought by per hundred yuan assets was 96.0 yuan, an increase of 2.4 yuan; the revenue from  principal activities per capita was 1261 thousand yuan, an increase of 140 thousand yuan; the turnover days of finished goods were 16.6 days, a decrease of 0.2 days; the days sales outstanding hit an average of 45.5 days, remained at the same level.

In May, the profits made by industrial enterprises above the designated size achieved 607.06 billion yuan, a year-on-year increase of 21.1  percent, and the growth rate decreased by 0.8 percentage points from April.  

Annotations:

I.Explanatory Notes:

1.Total  Profits: refer to the surplus of various revenue deducting various costs in the production process of  enterprises, reflecting the total profit and  loss in the report period.

2. Operating income: refers to the total amount of revenue of enterprises  recognized bythe principal business and other business  operations.

3. Revenue from Principal Activities: refers to the total amount of revenue of enterprises gained from the principal business operation.

4. Operating costs: refers to the total costs of enterprises incurred by the  principal business and other business operations.

5. Costs  of Principal Activities: refers to the total costs of enterprises incurred by the principal business operation.

6.Total  Assets: refers to the resources which are gotten from past transactions or events, owned or controlled by enterprises, and expected to bring economic  benefits to the enterprises.

7. Total  Liabilities: refers to the current obligation generated from past transactions or events, and expected an outflow of economic benefits from the enterprises.  

8. Total  Owners' Equity: refers to the residual interests after deducting liabilities, which belongs to the enterprises owners.

9. Accounts Receivable: refers to the creditor's rights due to the sale of goods, services, and other business activities, including the payment for goods,  value-added tax, prepay freight and miscellaneous charges, to be collected from  the customers.

10. Finished Goods: refers to manufactured products which are ready for sale by the  end of report period.

11.  Profit Rate of Revenue from Principal Activities = total profits/revenue from  principal activities × 100%, unit: %.

12. Costs  for per-hundred-yuan Turnover of Principal Activities = the costs of revenue from principal activities/the revenue from principal activities ×100, unit:  yuan.

13. Expenses for per-hundred-yuan Turnover of Principal Activities = (selling  expenses + administrative expenses + financial expenses)/the revenue from  principal activities ×100, unit: yuan.

14.  Revenue from Principal Activities  Brought by per Hundred yuan  Assets =  the revenue from principal activities/average assetsthe cumulative number of months× 12×100, unit: yuan.

15. Revenue from Principal Activities per Capita = revenue from principal activities/average number of employment/the cumulative number of months × 12, unit: 10  thousand yuan/ person.

16.  Asset-Liability Ratio = total liabilitie /total assets×100%, unit: %.  

17. Turnover Days of Finished Goods = 360 × average finished goods/costs of principal activities × the cumulative number of months/12, unit: days.  

18. Days  Sales Outstanding (the number of days on average a company takes to collect its accounts receivable) = 360 ×average accounts receivable/revenue from principal activities ×the cumulative number of months / 12, unit: days.

19. In  the columns of increase rate year-on-year of the three tables above, the “note” refers to negative total profits in the same period last year, which means loss;  the positive value refers to a year-on-year increase of profits; the negative  value which is greater than or equal to -100% refers to a year-on-year decrease  of profits; the value less than -100% indicates turning gain in the same period  last year into loss in current period; and the value of 0 indicates that the  profits remain at the same level year-on-year.

II. The  year-on-year growth rates and growth amount of indicators are calculated on comparable basis. The results are different from those calculated using the data released in the previous year. The main reasons are: (1) Changes in the scope of statistical units. Each year, some companies will be included in the survey  after having reached requisite size, and some will exit the survey due to their  smaller size, and there are also influence of new built and starting  enterprises, bankruptcies, and companies that have been suspended or sold. (2)  According to the investigation of the organizational structure carried out by  the National Bureau of Statistics, the cross-regional and cross-industry  repeated calculation of enterprise groups (companies) has been eliminated. (3)  After the "reform of replacing business tax with value-added tax," some industrial enterprises have divested their internal non-industrial production  and operation activities to the service industry due to the reduction in the tax  burden on the service industry.

III. Statistical Coverage

Industrial enterprises above the designated size, which refer to  industrial enterprises with revenue from principal activities over 20 million  yuan.

IV.Data Collection

The Financial Report of Enterprises Above the Designated Size conducts complete  survey by month (the data on January are not required to report).

V. Industrial Classification Standard

The  Industrial Classification for National Economic Activities (GB/T4754-2017) was implemented, please refer to  https://www.stats.gov.cn/tjsj/tjbz/hyflbz.