China’s industrial profits fell -1.8% YoY in Jan–Jun 2025 to ¥3.44 trillion, the strongest YTD decline so far this year, since weighed down by sharp declines in mining and energy-related sectors.

• Manufacturing profits rose +4.5% YoY to ¥2.59 trillion, while mining sector profits plunged -30.3% YoY.
• State-controlled firms’ profits declined -7.6% YoY, while private (+1.7% YoY) and foreign-invested firms (+2.5% YoY) saw modest gains.
• Notable profit gains occurred in ferrous metal smelting (+13.7x), food processing (+22.8% YoY), and electrical machinery (+13.0% YoY); coal mining (-53.0% YoY) and chemical production (-9.0% YoY) saw sharp contractions.
• In June alone, industrial profits declined -4.3% YoY, reinforcing the trend of weakening earnings momentum.
• Operating income rose +2.5% YoY, but costs rose faster (+2.8% YoY), compressing the profit margin to 5.15% (-0.22 pp YoY); the average collection period extended to 69.8 days (+3.9 days YoY).