China's major industrial firms saw operating revenue continued to grow in June, while the decline in profits narrowed, with high-tech sectors, particularly equipment manufacturing, experienced notable profit increases, according to the latest data released by the National Bureau of Statistics (NBS) on Sunday.
In the first half of the year, the operating revenue of industrial enterprises above the designated size rose by 2.5 percent year on year. In June, revenue for these firms grew by one percent compared to the previous year, maintaining the same pace as in May. The total profit for these firms reached 715.58 billion yuan (98.9 billion U.S. dollars), with the decline narrowing by 4.8 percentage points compared to the previous month.
Industrial enterprises above designated size refers to those with an annual main business revenue of 20 million yuan (about 2.8 million U.S. dollars) or more.
In the month, the manufacturing sector demonstrated strong growth momentum, with profits shifting from a decline in May to a growth of 1.4 percent. The equipment manufacturing sector played a key role, with its operating revenue increasing by 7 percent year on year in June, an increase of 0.3 percentage point over May. Profits in this sector surged by 9.6 percent, contributing 3.8 percentage points to the overall profit growth of major industrial firms.
The NBS noted that high-end, smart, and green manufacturing sectors maintained strong growth momentum in June, with robust profit growth supporting industrial upgrading. Specifically, profits in the manufacturing of electronic materials, smart consumer devices, and lithium-ion batteries increased dramatically by 68.1 percent, 40.9 percent, and 72.8 percent year on year, respectively.
"Local authorities are developing new quality productive forces tailored to their respective regions' specific conditions, with new technologies, industries, and business models continuously emerging. Driven by 'AI plus' and 'digital plus' initiatives, the pace of transformation and upgrading in traditional industries is accelerating. Prices of products related to high-tech technology are rising, leading to continuous optimization of profit structures," said Chen Xi, deputy research fellow at the Academy of Macroeconomic Research under China's National Development and Reform Commission.
China's industrial revenue grows, profit decline narrows in June
