China’s industrial profits fell -1.7% YoY to ¥4.02 trillion in Jan–Jul 2025, with continued weakness in mining offset by modest gains in manufacturing and services-related industries.

• State-owned firms’ profits dropped -7.5% YoY, while joint-stock enterprises fell -2.8%; private (+1.8%) and foreign-invested firms (+1.8%) recorded gains.

• By sector, mining profits plunged -31.6% YoY, while manufacturing rose +4.8% YoY and utilities grew +3.9% YoY.

• Sharp declines persisted in coal mining (-55.2% YoY), oil & gas extraction (-12.6% YoY), and chemicals (-8.0% YoY), while strong gains came from food processing (+14.5% YoY), electrical machinery (+11.7%), and electronics (+6.7%).

• Profit margins narrowed to 5.15% (down -0.21 pp YoY) as costs rose +2.5% YoY, faster than revenue growth (+2.3% YoY).

• July alone saw profits fall -1.5% YoY, while receivables (+6.8% YoY) and longer collection periods (+3.7 days YoY) pointed to ongoing financial strain.