China’s industrial profits declined -1.1% YoY in Jan–May 2025 to ¥2.72 trillion, with May alone down -9.1% YoY, as weakness in mining and energy offset gains in manufacturing.

• Manufacturing profits rose +5.4% YoY, while mining industry profits fell -29.0% YoY and power/utilities increased +3.7% YoY.
• Private enterprise profits grew +3.4% YoY; state-owned enterprise profits fell -7.4% YoY; foreign-funded firms rose slightly (+0.3% YoY).
• Strong gains were seen in food processing (+38.2%), electronics (+11.9%), and electrical machinery (+11.6%), while auto (-11.9%) and coal (-50.6%) sectors contracted.
• Operating income rose +2.7% YoY, but costs outpaced at +3.0% YoY, pulling the profit margin down to 4.97% (-0.19 pp YoY).
• Inventories rose +3.5% YoY, accounts receivable increased +9.0% YoY, and the average collection period extended to 70.5 days (+4.1 days YoY).