China’s National Bureau of Statistics recently released a report that showed that the profits of industrial enterprises above designated size (enterprises with an annual sales over 20 million yuan) reached 6,471.53 billion yuan in 2014, a year-on-year rise of 3.3 percent. Their profits of core business reached 6,047.17 billion yuan, a year-on-year rise of 1.6 percent.
According to the statistics, the profits of industrial enterprises above designated size reached 850.73 billion yuan in December 2014, a year-on-year decrease of 8 percent, marking a 3.8 percent drop compared to November.
Among these enterprises - profits made by state-owned and state-controlled enterprises in 2014 reached 1,400.67 billion yuan, a year-on-year decrease of 5.7 percent; profits of collective-owned enterprises reached 53.8 billion yuan, up 0.4 percent; and profits of corporate enterprises reached 4,296.28 billion yuan, an increase of 1.6 percent.
Additionally, profits of foreign funded enterprises, and enterprises funded by Hong Kong, Macao and Taiwan, reached 1,597.18 billion yuan, an increase of 9.5 percent; and profits of private enterprises reached 2,232.26 billion yuan, up 4.9 percent.
The income from core business of these enterprises reached 109,464.65 billion yuan, up 7 percent year-on-year. The cost of the core business reached 93,749.34 billion yuan, up 7.5 percent.
Concerning 41 branches of industry in 2014 - the profits of the coal mining industry reached 624.57 billion yuan, down 23 percent year-on-year; profits of manufacturing enterprises reached 5,373.25 billion yuan, up 6.5 percent; and the profits of electricity, heat, gas and water production and supply reached 473.71 billion yuan, up 17.1 percent.
A total of 28 branches of industry achieved year-on-year revenue growth in 2014, while two branches remained at the same level of growth and 11 branches saw a drop in growth.
The profits of the textile industry rose 3.6 percent year-on-year; profits of chemical materials and chemical products manufacturing industry increased 1.7 percent; profits of non-metallic minerals products industry increased 3.9 percent; and profits of non-ferrous metal smelting and rolling processing industry increased 2.5 percent.
The profits of general-purpose equipment manufacturing increased by 6.5 percent; automobile manufacturing up 18.1 percent; electrical machinery up 13.7 percent; production of computers, communication and other electrical appliances up 17.1 percent; and the profits of industries of electricity, heat, gas and water production and supply increased 19.1 percent.
Branches of industries with declining profits included: coal and mining, which declined 46.2 percent; extraction of petroleum and natural gas dipped 13.7 percent; agricultural foods processing fell 0.4 percent; petroleum processing and coking industry down by 79.2 percent; ferrous metals smelting and rolling processing industry dropped 2.7 percent, special-purpose equipment manufacturing declined 0.6 percent.
At the end of 2014, the total volume of accounts receivable concerning these enterprises reached 10,516.8 billion yuan, a year-on-year increase of 10 percent. The total value of finished products reached 3710.96 billion yuan, an increase of 12.6 percent.
The rate of profit of industrial enterprises above designated size in 2014 reached 5.91 percent. The cost of every 100 yuan received from core business was 85.64 yuan. An investment of 100 yuan meant that core business achieved a profit of 125.2 yuan. The inventory turnover cycle for finished goods was 13.3 days.