China’s large industrial enterprises posted total profits of 3.14 trillion yuan in January-May, up 18.8% from a year earlier on a comparable basis, according to National Bureau of Statistics data released on June 27. In May alone, profits rose 21.1% year on year, easing from 24.7% in April, while cumulative growth for the first five months accelerated from 18.2% in January-April.
Operating revenue increased 5.5% to 56.55 trillion yuan and operating costs rose 4.7% to 48.04 trillion yuan, lifting the operating revenue profit margin to 5.56%, up 0.63 percentage point from a year earlier.
By sector, mining profits rose 33.5% and manufacturing profits increased 20.0%, while profits for electricity, heat, gas and water production and supply fell 2.7%. Industry results were mixed, with profits in computer, communications and other electronic equipment manufacturing up 103.9%, nonferrous metal smelting and rolling up 117.1%, and chemical raw materials and products up 71.6%, while auto manufacturing profit fell 19.8%, electrical machinery and equipment fell 13.7%, non-metallic mineral products fell 48.9%, and furniture manufacturing fell 58.4%.
At the end of May, accounts receivable were 28.17 trillion yuan, up 7.7% year on year, and finished goods inventories stood at 7.14 trillion yuan, up 8.8%. Finished goods inventory turnover days increased to 21.6 and the average collection period for receivables lengthened to 72.6 days.