China’s industrial profits rose 1.4% YoY in Jan-Apr 2025 to ¥2.12 trillion, the strongest increase since July 2024, with April alone up 3.0% YoY.

• Manufacturing profits increased 8.6% YoY, while mining sector profits dropped -26.8% YoY due to steep declines in coal and oil-related industries.
• Private enterprise profits rose 4.3% YoY, while state-owned enterprise profits fell -4.4% YoY.
• Operating income rose 3.2% YoY, outpaced by a 3.4% YoY increase in costs, pulling the profit margin down to 4.87% (-0.09 pp YoY).
• Inventory turnover days rose to 21.0 (+0.2 days YoY), and the average accounts receivable collection period lengthened to 70.3 days (+4.0 days YoY).
• Notable sector gains included agricultural food processing (+45.6%), non-ferrous smelting (+24.5%), and electrical machinery (+15.4%), while coal (-48.9%) and auto (-5.1%) profits declined.