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.