On June 27th, the National Bureau of Statistics released the profit situation of industrial enterprises above designated size nationwide from January to May 2025.

Data shows that from January to May 2025, the total profit of industrial enterprises above designated size nationwide reached 2.72043 trillion yuan, down 1.1% year on year. Among them, the total profit of the paper and paper products industry was 14.13 billion yuan, down 22.5% year on year; the total profit of the printing and recording media reproduction industry was 12.92 billion yuan, up 0.3% year on year.

In terms of operating revenue, industrial enterprises above a certain size achieved a revenue of 54.76 trillion yuan, representing a year-on-year increase of 2.7%. Specifically, the paper and paper products industry generated revenue of 563.86 billion yuan, down 1.7% year on year; while the printing and reproduction of recorded media industry achieved revenue of 260.71 billion yuan, up 1.0% year on year.

Statistician Yu Weineng from the Industry Department of the National Bureau of Statistics explains

Profit data of industrial enterprises from January to May 2025

From January to May, the total profit of industrial enterprises above designated size reached 2.72 trillion yuan, showing a year-on-year decline and exhibiting the following characteristics:

Multiple factors have contributed to the decline in profits of industrial enterprises. From January to May, the total profits of industrial enterprises above a designated size reached 2.72043 trillion yuan, an increase of 603.41 billion yuan compared to the period from January to April. However, due to multiple factors such as insufficient effective demand, declining industrial product prices, and short-term fluctuations, profits decreased by 1.1% year-on-year. In terms of profit composition, short-term factors such as investment income had a high base from the same period last year, dragging down the profit growth rate of industrial enterprises above a designated size by 1.7 percentage points from January to May.

The gross profit and revenue of industrial enterprises have maintained growth. From January to May, although the profits of industrial enterprises above a certain size declined year-on-year, from the perspective of gross profit calculated by deducting operating costs from operating revenue, the gross profit of these enterprises increased by 1.1% year-on-year, driving the overall profit growth of these enterprises by 3.0 percentage points. In terms of operating revenue, from January to May, the operating revenue of industrial enterprises above a certain size increased by 2.7% year-on-year. The sustained growth trend of industrial enterprises' revenue has created favorable conditions for the recovery of profitability in the next stage.

The role of the equipment manufacturing industry as a "ballast" has become increasingly prominent. The transformation and upgrading of the industrial economy continue to advance, and the equipment manufacturing industry maintains a high level of efficiency. From January to May, the profits of the equipment manufacturing industry increased by 7.2% year-on-year, driving the profit growth of all industries above designated size by 2.4 percentage points, and providing a prominent support to the profits of industries above designated size. From an industry perspective, among the eight industries in the equipment manufacturing sector, seven industries achieved profit growth. Among them, the profits of the electronics, electrical machinery, and general equipment industries increased by more than double digits, with growth rates of 11.9%, 11.6%, and 10.6%, respectively.

"Going up to the sky and down to the sea" fully demonstrates the vitality of high-quality industrial development. From January to May, China's "three aviation" industries, including aerospace, aviation, and maritime, developed rapidly, driving the profits of the railway, shipbuilding, and aerospace industries to increase by 56.0% year-on-year. Among them, driven by the second anniversary of the successful commercial operation of domestically produced large aircraft, the launch of the lunar landing phase of the manned lunar exploration project, and the continuous new achievements of commercial aerospace enterprises, the profits of aircraft manufacturing, spacecraft, and carrier rocket manufacturing industries increased by 120.7% and 28.6% respectively, while driving the profits of aerospace-related equipment manufacturing industry to increase by 68.1%. Against the backdrop of vigorous development of the marine economy, the profits of shipbuilding and related equipment manufacturing industries increased by 85.0%, among which the profits of metal ship manufacturing increased by 111.8%, and the profits of related marine supporting equipment manufacturing and offshore engineering equipment manufacturing increased by 63.2% and 15.4% respectively.

The effects of the "two new" policies continue to emerge. From January to May, relevant departments in various regions intensified their efforts to promote the implementation of the "two new" policies, effectively unleashing the vitality of domestic demand. Driven by policies related to large-scale equipment renewal, the profits of the general equipment and special equipment industries increased by 10.6% and 7.1% year-on-year, respectively, collectively driving a 0.6 percentage point increase in profits of industrial enterprises above a designated size. Among them, the profits of industries such as electronic and electrical machinery special equipment manufacturing, general parts and components manufacturing, mining and metallurgical construction special equipment manufacturing, and metal processing machinery manufacturing grew rapidly, with growth rates of 39.3%, 26.7%, 14.5%, and 11.3%, respectively. The policy of encouraging the trade-in of old consumer goods for new ones has achieved significant results in expanding its scope, with profits in industries such as smart consumer equipment manufacturing, other household electrical appliances manufacturing, and household kitchen appliances manufacturing increasing by 101.5%, 31.2%, and 20.7%, respectively.

Profits of private and foreign-funded enterprises have continued to grow. From January to May, among industrial enterprises above a certain size, profits of private enterprises and foreign-invested enterprises, including those from Hong Kong, Macao, and Taiwan, increased by 3.4% and 0.3% year-on-year, respectively. These figures were 4.6 and 1.4 percentage points higher than the average level of all industrial enterprises above a certain size, respectively, and contributed 0.9 and 0.1 percentage points to the overall profit growth of these enterprises.

In the next stage, we must thoroughly implement more proactive and effective macro policies, focus on strengthening the domestic circulation, reinforce innovation-driven development, solidly promote high-quality industrial development, and lay a solid foundation for the recovery of industrial enterprises' profits.