In May, with the in-depth advancement of resumption of production and production, the order of production and operation was gradually restored, the profit status of industrial enterprises continued to improve, and the profit growth rate of that month realized from negative to positive. However, cumulatively, profits from January to May fell 19.3% year-on-year, and the decline was still relatively large.
First, the profit growth rate of industrial enterprises changed from negative to positive in May
In May, the total profit of industrial enterprises above designated size in the country reached 582.34 billion yuan, which decreased from a 4.3% year-on-year decrease in April to an increase of 6.0%. The main reasons are:
First, the pressure of rising costs has been significantly eased. In May, the cost per 100 yuan of operating income of industrial enterprises above designated size was 84.29 yuan, an increase of 0.21 yuan year-on-year, and the increase was significantly reduced by 1.00 yuan compared with April, which eased the substantial increase in unit costs since March and April. pressure.
Secondly, the price changes of industrial products increase the profitability of enterprises. In May, the producer prices of industrial producers fell by 3.7% year-on-year, an increase of 0.6 percentage points from April. At the same time, the purchase prices of industrial producers fell 5.0% year-on-year, an increase of 1.2 percentage points from April. The decline in the purchase price of industrial products significantly exceeds the decline in the ex-factory price, which is conducive to increasing the profitability of enterprises.
Third, the profit improvement of key industries such as petroleum processing, power, chemical industry, and iron and steel has improved significantly. The profitability of the oil processing, power, chemical, and steel industries has improved significantly due to multiple favorable factors such as slowing cost pressures, improving market demand, and the emergence of related support policies. The profit of the petroleum processing industry changed from a loss of 21.80 billion yuan in April to a profit of 11.62 billion yuan in May, a year-on-year increase of 8.9%. In May, the profit of the power industry increased by 10.9%, compared with a decrease of 15.7% in April; the profit of the chemical industry decreased by 9.6%, a decrease of 19.7 percentage points from April; the profit of the steel industry decreased by 50.5%, a decrease of 15.1 percentage points.
In addition, the substantial increase in investment income in the month also promoted a significant improvement in profits in May to a certain extent.
Second, the company's profitability continues to improve
First, the level of corporate profits has increased. In May, the operating income margin of industrial enterprises above designated size was 6.82%, a year-on-year increase of 0.29 percentage points, and an increase of 1.15 percentage points from April.
Second, the company's loss situation has improved. At the end of May, the losses of industrial enterprises above designated size fell by 2.7 percentage points from the end of April. In May, the increase in losses of loss-making enterprises narrowed by 11.0 percentage points from April.
Third, the pressure on the inventory of industrial finished products has eased. At the end of May, the growth rate of finished product inventories of industrial enterprises above designated size fell by 1.6 percentage points from the end of April; the turnover days of finished product inventories was 20.9 days, a decrease of 0.8 days from the end of April.
Although the profits of industrial enterprises in May achieved the first increase since this year, the market demand under the influence of the epidemic is still weak, and the continuity of profit recovery needs further observation. First, the growth rate of industrial sales has slowed down. In May, the growth rate of operating income of industrial enterprises above designated size fell by 3.7 percentage points from April; second, the number of industries with improved profits has decreased, among 41 major industries. The profit growth rate of 21 industries was faster or narrower than that in April, and 12 industries were reduced compared with April.
In the next stage, we must continue to thoroughly implement the decision-making and deployment of the Party Central Committee and the State Council, scientifically coordinate the normalization of epidemic prevention and control and economic and social development, do a solid job of "six stability", fully implement the "six guarantees" task, and actively implement various aids. The enterprise-assisted enterprise policy stabilizes the economic fundamentals and promotes the recovery of the industrial economy.
