On the last day of January 2023, the National Bureau of Statistics announced the profit of industrial enterprises above designated size in 2022. According to the data, the total profit of industrial enterprises above designated size will reach 840.385 billion yuan in 2022, down 4.0% from the previous year.

In 2022, among the 41 major industrial businesses, 21 industries had a year-on-year increase in total profit, 19 industries had a decline, and 1 industry had a profit from loss. Among them, the total profit of the papermaking and paper products industry was 62.11 billion yuan, down 29.8% year on year. The total profit of printing and recording media reproduction industry was 43.13 billion yuan, down 3.7% year on year.

In terms of operating revenue in 2022, industrial enterprises above designated size achieved revenue of 137.91 trillion yuan, an increase of 5.9% over the previous year. Among them, the operating revenue of papermaking and paper products industry reached at 1522.89 billion yuan, up 0.4% year on year; The printing and recording media reproduction industry achieved operating revenue of 764.52 billion yuan, down 1.5% year on year.

Zhu Hong, senior statistician of the Industry Department of the National Bureau of Statistics, said when interpreting the profit data of industrial enterprises, although the profit of industrial enterprises declined in 2022, the profits of upstream and downstream enterprises continued to change. At the same time, it should also be noted that there are still many unstable and uncertain factors in China and abroad, the pressure of enterprise operation is still high, and the recovery of industrial enterprise benefits still faces many challenges.

The profit structure of industrial enterprises has improved in 2022 -- Zhu Hong, senior statistician of the Industry Department of the National Bureau of Statistics, interprets the profit data of industrial enterprises

In 2022, in the face of grave and complicated international environment and the impact of multiple unexpected factors, all regions and departments, under the strong leadership of the Party Central Committee with Comrade Xi Jinping as the core, effectively coordinated the epidemic prevention and control and economic and social development, effectively implemented a series of policies and follow-up measures to stabilize the economy. Therefore, the industrial production is generally stable, and the profit structure of enterprises has also improved, mainly showing the following characteristics:

First, the revenue of industrial enterprises kept growing but the profit decreased. In 2022, the industrial economy was generally stable, the sales of production continued to grow, and the operating income of industrial enterprises above designated size increased by 5.9% over the previous year. Affected by multiple unexpected factors, the profit of industrial enterprises above designated size decreased by 4.0% compared with the previous year due to the high base of the same period. Among them, the profits of steel, oil processing and vaccine industries decreased significantly. After excluding the above industries, the profits of other industrial enterprises above the designated size increased by 5.6% over the previous year.

Second, the proportion of equipment manufacturing profits rose. In 2022, the profit of the equipment manufacturing industry increased 1.7% over the previous year, continuing the growth trend of the previous three quarters; The profit of equipment manufacturing industry accounted for 34.3% of the industrial enterprises above the designated size, an increase of 2.0% points over the previous year, and the structure of industrial enterprises' profit improved. In terms of perspective of industry segments, the profit of railway, ship, aviation and aerospace transportation equipment industry increased by 44.5% over the previous year, achieving rapid growth; Driven by the new energy industry and other industries, the electrical and mechanical industry that has driven the largest increase in industrial profits increased its profits by 31.2%, which has accelerated for 8 consecutive months.

Third, the profits of most consumer goods industries have improved. As the remarkable effect of the policy of promoting consumption and expanding domestic demand, market demand has rebounded, and the vitality of the consumer goods has increased. In 2022, among the 13 major consumer goods industries, the profit of 8 industries improved from January to November. Among them, the profits of wine, beverage, tea, tobacco, furniture and food industries increased by 17.6%, 11.9%, 7.9% and 7.6% respectively over the previous year, maintaining a rapid growth.

Fourth, the profits of mining industry and electric water industry maintained a high growth rate. In 2022, the profit of mining industry increased by 48.6% over the previous year, and the profit of power, heat, gas and water production and supply industry increased by 41.8%. Among them, the profit of coal mining and exploiting increased by 44.3%, with a rapid growth; The oil and gas exploitation industry was driven by the rise in oil prices, with a profit increase of 109.8%; The profit of the power industry increased by 86.3% driven by the increase in electricity demand and the low base in the same period.

Fifth, the cost pressure of enterprises has been eased. In 2022, the cost in per 100 yuan of operating revenue of industrial enterprises above designated size is 84.72 yuan, which is 0.08 yuan and 0.13 yuan lower than that of January to November and the first three quarters respectively. In December, the cost in per 100 yuan of business income of the enterprise was 84.01 yuan, a year-on-year decrease of 0.05 yuan, which is the first decline since the beginning of the year. The reduction of unit cost is conducive to the recovery and improvement of enterprise profits.

Sixth, the growth rate of enterprise inventory continued to decline. At the end of 2022, the inventory of finished products of industrial enterprises above designated size increased by 9.9% over the previous year, and the growth rate fell by 1.5 and 3.9 percentage points respectively from the end of November and the end of the third quarter; The turnover days of finished goods were 17.6 days, 0.6 days, and 0.4 days less than the end of November and the end of the third quarter respectively. The growth rate of enterprise inventory continues to fall, and the inventory turnover has accelerated, which is conducive to improving the efficiency of capital utilization and promoting the recovery of industrial production.

In generally, although the profits of industrial enterprises will decline in 2022, the upstream and downstream structures of that will continue to improve. It should also be noted that there are still many unstable and uncertain factors in China and abroad, the pressure of enterprise operation is still large, and the recovery of industrial enterprises' profits still faces many challenges. In the next stage, we should better coordinate epidemic prevention and control and economic and social development, vigorously boost market confidence, actively expand domestic effective demand, consolidate the foundation for the stable recovery of industrial enterprises' benefits, and promote the overall improvement of industrial economic operation in 2023.