From January to November, China's rubber and plastic products industry's profit reached 17.82 billion yuan, an increase of 8.6%

In November, China's industrial enterprises above designated size achieved a total profit of 774.57 billion yuan, a year-on-year increase of 14.5%, and the growth rate was 4.7 percentage points faster than that in October.

Industry situation

From January to November, among the 41 major industrial sectors, the total profit of 30 industries increased year-on-year, one was flat and 10 was reduced.

From January to November, the revenue from the business of rubber and plastic products was RMB 29,315.60 million, a year-on-year increase of 5.1%; the profit was RMB 178.25 billion, a year-on-year increase of 8.6%.

From January to November, the main business income of chemical raw materials and chemical products manufacturing industry was 788.33 billion yuan, a year-on-year increase of 5.3%; the profit was 447.32 billion yuan, a year-on-year increase of 14.4%.

From January to November, the main business income of the automobile manufacturing industry was 714.54 billion yuan, a year-on-year increase of 14.0%; the profit was 594.71 billion yuan, a year-on-year increase of 12.7%.

From January to November, the main business income of computer, communication and other electronic equipment manufacturing industry was 87.384 billion yuan, a year-on-year increase of 7.4%; the realized profit was 411.81 billion yuan, a year-on-year increase of 17.7%.

Expert interpretation

China's industrial profit growth accelerated in November, and the company's efficiency in the first 11 months was steadily improving.

First, the accelerated growth of production and sales and the increase in prices have accelerated the growth of profits in November. The main reasons are:

Industrial production and sales growth have accelerated. In November, the added value of industrial enterprises above designated size increased by 6.2% year-on-year, and the growth rate was 0.1 percentage points higher than that in October. The income from main business of industrial enterprises increased by 8.2% year-on-year, and the growth rate was 2.8 percentage points faster than that in October.

The price increase has expanded significantly. In November, the ex-factory price of industrial producers rose by 3.3% year-on-year, an increase of 2.1 percentage points over October.

Industries such as electronics, special equipment and petroleum processing are driving significantly. In November, computer communications and other electronic equipment manufacturing profits increased by 45.4% year-on-year, down 9.7% in October; special equipment manufacturing profit increased by 17.9% year-on-year, 30% in October; oil processing coking and nuclear fuel processing industry profits year-on-year The growth rate was 162.7%, and the growth rate was 69% faster than that in October. The above three industries collectively increased the profit growth rate of industrial enterprises above designated size by 6.1 percentage points.

Second, from January to November, the profits of industrial enterprises above designated size increased by 9.4% year-on-year, and the efficiency of enterprises was gradually stabilized. Specifically in:

Industrial producer prices have risen markedly. From January to November, the industrial producers' ex-factory price index was 98%, up 3.2 percentage points year-on-year, indicating that the domestic industrial product market demand situation has eased.

The profit decline of the mining industry narrowed, and the profit growth of the equipment manufacturing and high-tech manufacturing industries accelerated. From January to November, the profit of the mining industry decreased by 36.2% year-on-year, with a decrease of 20.3 percentage points year-on-year; the profit of the equipment manufacturing industry increased by 10% year-on-year, and the growth rate accelerated by 5.5 percentage points year-on-year; the profit of high-tech manufacturing industry increased by 18.1% year-on-year. Accelerated by 7.4 percentage points year-on-year.

Corporate profit margins have risen. From January to November, the profit rate of the main business of industrial enterprises above designated size was 5.85%, an increase of 0.26 percentage points year-on-year.

Third, the company's destocking, deleveraging, and cost reduction continue to show

Enterprise inventory levels have decreased. At the end of November, the inventory of finished products of industrial enterprises above designated size increased by 0.5% year-on-year, and the growth rate slowed by 4.1 percentage points year-on-year. The inventory turnover days of finished goods were 14.1 days, a decrease of 0.5 days compared with the same period last year.

Corporate leverage has declined. At the end of November, the asset-liability ratio of industrial enterprises was 56.1%, down 0.6 percentage points year-on-year.

The unit cost has been reduced. From January to November, the cost of industrial enterprises' main business income per 100 yuan was 85.76 yuan, a year-on-year decrease of 0.14 yuan.

Although the profits of industrial enterprises have continued to grow since the beginning of this year, the current improvement in quality and efficiency in the industrial sector still faces unfavorable factors. First, the rapid growth of profits is based on the lower base of the previous year. From January to November 2015, industrial profits fell by 1.9% year-on-year, and the average growth rate of profits for two years was only 3.6%, which was lower than the average annual growth rate of industrial production of 6.1%.

Second, excessive profit growth depends on the rebound in prices of raw materials such as petroleum processing and steel. From January to November, due to the rebound in prices of major commodities, the raw material industry contributed 67.9% to the growth of industrial profits of all scales. Among them, the petroleum processing coking and nuclear fuel processing industry contributed 21.6%, and the ferrous metal smelting and rolling processing industry contributed 19.9. %.

The third is that “returning difficulties” is still a major obstacle to the current production and operation of enterprises. At the end of November, accounts receivable of industrial enterprises above designated size increased by 9% year-on-year, and the growth rate was 4.6 percentage points higher than that of the main business. The average payback period of accounts receivable was 37.9 days, an increase of 1.4 days.