China's Chemical Sector Profits Hit 280.26 Billion Yuan in First Nine Months

Data released by China's National Bureau of Statistics on 27 October shows the country's industrial sector experienced a mixed performance from January to September, with overall profits rising but significant variations across different ownership models and industrial sectors.

According to the official data, industrial enterprises above the designated size nationwide achieved a total profit of 5,373.2 billion yuan during the January-September period, representing a year-on-year increase of 3.2%. A sharp rebound was noted in September alone, with profits surging by 21.6% compared to the same month last year.

The report detailed a divergent performance among different types of enterprises. Private enterprises recorded total profits of 1,513.17 billion yuan, a rise of 5.1%, while foreign-funded and Hong Kong, Macao and Taiwan-funded enterprises saw profits of 1,350.97 billion yuan, up 4.9%. Share-holding enterprises achieved profits of 3,992.35 billion yuan, an increase of 2.8%. In contrast, state-controlled enterprises reported a slight contraction, with profits of 1,702.18 billion yuan, down 0.3% year-on-year.

A sectoral breakdown reveals significant disparities. The manufacturing sector, a key pillar of the economy, posted a total profit of 4,067.18 billion yuan, a robust increase of 9.9%. The electricity, heat, gas, and water production and supply sector also performed strongly, with profits rising 10.3% to 669.10 billion yuan. Conversely, the mining industry experienced a substantial decline, with profits plunging 29.3% to 636.92 billion yuan.

Among major industries, several recorded double-digit profit growth: the electricity and heat production and supply sector saw a 14.4% year-on-year increase, non-ferrous metal smelting and rolling processing grew by 14.0%, agricultural and sideline food processing rose by 12.5%, computer, communications and other electronic equipment manufacturing grew by 12.0%, and electrical machinery and equipment manufacturing increased by 11.3%.

However, other sectors faced considerable challenges. The coal mining and washing industry saw profits plummet by 51.1%, while the petroleum and natural gas extraction sector recorded a profit of 256.88 billion yuan, down 13.3% year-on-year. The chemical raw materials and chemical products manufacturing sector achieved a total profit of 280.26 billion yuan, a decrease of 4.4%.

On the financial health of enterprises, operating revenues for the first nine months stood at 102.08 trillion yuan, up 2.4% year-on-year. Operating costs, however, rose slightly faster at 2.6%, reaching 87.34 trillion yuan. The operating profit margin was 5.26%, a marginal increase of 0.04 percentage points.

By the end of September, the total assets of industrial enterprises above designated size reached 186.27 trillion yuan, up 5.0% year-on-year. Total liabilities amounted to 107.96 trillion yuan, rising 5.2%, resulting in an asset-liability ratio of 58.0%, a slight increase of 0.1 percentage points.

Efficiency metrics showed a nuanced picture. While revenue per employee rose significantly to 1.856 million yuan, an increase of 62,000 yuan year-on-year, the revenue generated per 100 yuan of assets declined by 1.9 yuan to 74.7 yuan. The cost per 100 yuan of operating revenue was 85.56 yuan, an increase of 0.18 yuan. The inventory turnover period for finished goods was 20.2 days, an increase of 0.2 days, and the average collection period for accounts receivable stood at 69.2 days, an increase of 3.3 days.