In 1-3Q25, the profit of industrial enterprises above a designated size across China grew by 3.2% YoY to RMB5.37 trillion, the highest cumulative growth rate since last August and an acceleration of 2.3 ppts compared to 8M25, indicating a trend of faster recovery, according to data from the National Bureau of Statistics.
In September alone, the profit of industrial enterprises above a designated size spiked by 21.6% YoY, compared to a 20.4% increase in the previous month.
By major industry, profit in electricity and heat production and supply grew by 14.4% YoY, non-ferrous metal smelting and rolling grew by 14%, agricultural and sideline food processing grew by 12.5%, computer, communication and other electronic equipment manufacturing grew by 12%, and automobile manufacturing grew by 3.4%. Ferrous metal smelting and rolling turned profitable YoY, petroleum, coal and other fuel processing narrowed losses, while oil and gas extraction declined by 13.3% and coal mining and washing fell by 51.1%.
In the first three quarters of 2025, industrial enterprises above a designated size generated operating revenue of RMB102.08 trillion, growing 2.4% YoY, while operating costs grew 2.6% to RMB87.34 trillion. The operating profit margin reached 5.26%, up 0.04 percentage points YoY. For every RMB100 of operating revenue, costs amounted to RMB85.56, an increase of RMB0.18 YoY.
By the end of September, total assets of industrial enterprises above a designated size grew by 5.0% YoY to RMB186.27 trillion, while total liabilities grew by 5.2% to RMB107.96 trillion. The asset-liability ratio rose by 0.1 percentage points YoY to 58%. Accounts receivable grew by 5.7% to RMB27.22 trillion, and finished goods inventory grew by 2.8% to RMB6.71 trillion. Operating revenue per RMB100 of assets declined by RMB1.9 YoY to RMB74.7, while inventory turnover days for finished goods increased by 0.2 days YoY to 20.2 days.
Yu Weining, Chief Statistician of the Industry Department at the National Bureau of Statistics, stated that in the first three quarters, local governments and departments earnestly implemented more proactive macro policies, cultivated new growth drivers, and supported rapid growth in high-tech and equipment manufacturing. Combined with the low base effect, profit growth of industrial enterprises above a designated size continued to recover.
During the period, more than half of all industries saw profit growth, and 60% experienced an acceleration in growth. High-tech manufacturing played a significant role in driving the overall trend. In September, profit in high-tech manufacturing grew by 26.8% YoY, contributing 6.1 percentage points to the overall profit growth of industrial enterprises above a designated size, becoming a key force in promoting high-quality industrial development.
Yu Weining emphasized that in the next stage, given the complex external environment and ongoing economic pressures, efforts must continue to expand domestic demand and strengthen the domestic economic cycle, promote dual circulation between domestic and international markets, further stimulate market vitality, boost development expectations, and support stable and healthy growth of the industrial economy.
Repost: AASTOCKS