China's industrial profits up 16.2% in Jan-Aug

A State Grid employee works on an ultra-high-voltage transmission construction in Huainan, East China's Anhui province. [Photo by Song Weixing/For China Daily]

BEIJING - Profits of China's major industrial firms grew 16.2 percent in the first eight months of 2018, down from a rise of 17.1 percent for the January-July period, data showed Thursday.

Some 34 of the 41 industries monitored by the government recorded rising profits compared with one year earlier, up from 32 for January-July, according to the National Bureau of Statistics (NBS).

Although industrial profits rose at a slower pace, NBS official He Ping said supply-side structural reform has led to falling operating costs and leverage ratios, while industrial companies' profitability continued to improve.

In the first eight months, cost per 100 yuan ($14.6) of revenue dropped 0.35 yuan from the same period last year to 84.39 yuan, according to He.

The debt-asset ratios of major industrial firms dropped 0.5 percentage points year-on-year to 56.6 percent by the end of August.

Overseas-funded industrial firms recorded faster profit growth compared with the January-July period, while profit growth at state-owned enterprises declined.

For August alone, profits of major industrial companies nationwide rose 9.2 percent from one year earlier, decelerating from a rise of 16.2 percent registered in July.

He Ping attributed the slower growth in August to a higher comparative base from last year and a pullback in the growth of revenues and product prices.