China’s industrial profit grows 2.4 percent in first 11 months
Beijing, Dec 27 (efe-epa).-The industrial profit of China increased 2.4 percent year-on-year in the first 11 months of 2020, according to data published on Sunday, indicating continued recoveries from the Covid-19 slowdown amid fast improving production and sales.
The National Bureau of Statistics said earnings in November alone at Chinese industrial firms rose 15.5 percent from a year earlier to 729.3 billion yuan ($112 billion).
The overall profit from January till November reached 57.4 trillion yuan ($8.7 trillion) even as the November growth has narrowed down from 28.2 percent in October.
The statistical office only considers major industrial companies with an annual business turnover of at least 20 million yuan.
The profits of state-owned companies fell 4.9 percent, those of private companies increased by 1.8 percent, and foreign companies grew 4.3 percent.
The industrial sector in China has logged a strong rebound after the shocking halt due to the pandemic.
The Chinese factories ramped up their production to meet global demands as economic activities across the world remained shut for months after China resumed its industrial processes.
Zhu Hong, a statistician at the NBS, stressed that supply and demand have “constantly improved,” and the production and operating conditions of the companies had shown “a sustained and stable recovery.”
Zhu said production and sales had maintained rapid growth as improving market conditions led to rising corporate profits.
“Profits at some traditional industries have showed improvement. With the approach of the heating season, demand for coal has risen and prices have increased, leading to an accelerated recovery in the coal sector,” he said in a statement.
Earnings growth in the equipment and high-tech industries had accelerated and the profitability of some traditional industries improved, Zhu noted.
He also highlighted that unit costs have reduced for the first time, the operating income margin of industrial companies had increased, and the scope of corporate losses reduced.
Although the annual growth rate of earnings had slowed since October, it continues to maintain double-digit growth at 15.5 percent, the statistician noted. EFE-EPA