China’s industrial profits rose +0.6% YoY to ¥7.40tn in 2025, indicating marginal annual growth with sharp sector divergence.

• Total profit of industrial enterprises above designated size reached ¥7,398.20bn (+0.6% YoY), showing near-flat overall profit expansion across the year.

• State-owned enterprises recorded profits of ¥2,056.10bn (-3.9% YoY), while joint-stock firms slipped -0.1% YoY to ¥5,540.83bn, pointing to continued weakness among domestically controlled firms.

• Foreign, Hong Kong, Macao, and Taiwan-invested enterprises posted ¥1,744.74bn (+4.2% YoY) in profits, contrasting with flat private enterprise profits of ¥2,281.06bn (0.0% YoY).

• By sector, mining profits fell sharply to ¥834.51bn (-26.2% YoY), while manufacturing profits rose +5.0% YoY to ¥5,691.57bn and utilities increased +9.4% YoY to ¥872.12bn, highlighting downstream strength versus upstream contraction.

• Within manufacturing, ferrous metal smelting surged +3.0x YoY, non-ferrous metals rose +22.6% YoY, and electronics manufacturing increased +19.5% YoY, while chemicals (-7.3% YoY), textiles (-12.0% YoY), and coal mining (-41.8% YoY) declined.

• Operating income grew +1.1% YoY to ¥139.20tn, but operating costs rose faster at +1.3% YoY, pushing the profit margin down -0.03 pp YoY to 5.31%.

• Balance sheet metrics showed total assets up +4.3% YoY to ¥188.41tn, liabilities up +4.2% YoY, and the asset-liability ratio edging down -0.1 pp to 57.6%, indicating modest leverage improvement.

• Accounts receivable increased +4.7% YoY to ¥27.43tn and finished goods inventories rose +3.9% YoY to ¥6.73tn, alongside longer collection periods of 67.9 days (+3.6 days YoY), pointing to slower cash turnover despite stable sales growth.

China’s industrial profits rose +0.1% YoY to ¥6.63 trillion in Jan-Nov 2025, signaling flat aggregate earnings amid sector divergence.

• Total profit of industrial enterprises above designated size reached ¥6,626.86bn (+0.1% YoY), indicating near-stagnant profit growth over the January-November period.

• By ownership, state-controlled enterprises saw profits fall -1.6% YoY to ¥2,008.36bn, while joint-stock firms declined -0.4% YoY to ¥4,956.56bn, showing broad softness among domestically controlled firms.

• Foreign, Hong Kong, Macao, and Taiwan-invested enterprises recorded profit growth of +2.4% YoY to ¥1,635.53bn, contrasting with a -0.1% YoY decline in private enterprise profits to ¥1,931.99bn.

• By sector, mining profits dropped sharply -27.2% YoY to ¥789.63bn, while manufacturing profits rose +5.0% YoY to ¥5,031.79bn, highlighting a clear split between upstream and downstream activity.

• Utilities, including electricity, heat, gas, and water supply, posted profit growth of +8.4% YoY to ¥805.44bn, continuing to outperform the broader industrial average.

• Within manufacturing, profits rose strongly in computers and communications equipment (+15.0% YoY), non-ferrous metal smelting (+11.1%), and auto manufacturing (+7.5%), while textiles (-8.2%), chemicals (-6.9%), and non-metallic minerals (-4.6%) declined.

• Operating income increased +1.6% YoY to ¥125.34tn, but operating costs rose faster at +1.8% YoY, pushing the operating income profit margin down -0.08 pp YoY to 5.29%.

• Balance sheet indicators showed accounts receivable up +5.5% YoY to ¥28.40tn and average collection periods lengthening by +3.7 days to 70.4 days, pointing to slower cash conversion alongside modest inventory growth of +4.6% YoY.

China’s industrial profits rose +0.9% YoY to ¥4.69 trillion in Jan–Aug 2025, marking a modest rebound, though trends diverged sharply by ownership and sector.

• State-owned holding firms’ profits fell -1.7% YoY to ¥1.52 trillion, while joint-stock firms rose +1.1% YoY to ¥3.49 trillion.

• Private enterprises grew +3.3% YoY to ¥1.31 trillion, and foreign/HK/Macau/Taiwan-invested firms increased +0.9% YoY to ¥1.17 trillion.

• By sector, manufacturing profits rose +7.4% YoY to ¥3.52 trillion, while mining plunged -30.6% YoY to ¥566 billion; utilities (electricity, heat, gas, water) gained +9.4% YoY to ¥604 billion.

• Coal mining profits collapsed -53.6% YoY, while oil & gas extraction fell -12.4% YoY; in contrast, non-ferrous smelting rose +12.7% YoY and electrical machinery gained +11.5% YoY.

• Auto manufacturing slipped -0.3% YoY, while computers, communications, and electronics rose +7.2% YoY.

• Operating income grew +2.3% YoY to ¥89.6 trillion, but costs rose faster at +2.5% YoY, pushing the profit margin down -0.06 pp to 5.24%.

• Accounts receivable increased +6.6% YoY to ¥27.2 trillion, and average collection periods lengthened by +3.7 days to 70.1, signaling tighter cash flow.

• In August alone, profits rebounded +20.4% YoY, reversing July’s -1.5% decline.