Profit growth fell, but the structure improved. From January to November 2021, industrial enterprises above Designated Size nationwide realized a total profit of 7975.01 billion yuan, a year-on-year increase of 38.0%, the previous value of 42.2%, an average increase of 18.9% in the two years, and the previous value of 19.7%. The year-on-year growth rate in November was 9.0%, the previous value was 24.6%, the average growth rate in two years was 12.2%, and the previous value was 26.4%. From the perspective of industries, among the 41 industrial categories, the profits of 26 industries increased year-on-year, increased by 3 compared with the previous month, and the growth area has expanded.
The pulling effect of the middle and upper reaches on profits has weakened. In terms of price, PPI rose to 12.9% year-on-year in November, slightly lower than that in October. With the promotion of the policy of ensuring supply and stabilizing prices, the prices of some bulk commodities fell. In November, the profit of the mining industry increased by 248.4% year-on-year, continuing the rapid growth trend since the beginning of the year, but the growth rate was significantly lower than that of the previous month, which weakened the driving effect on the profit growth of industrial enterprises. Among them, in November, the profit of the coal industry increased by 3.08 times year-on-year, and the previous value was 4.38 times. The year-on-year price increase was still high, but it fell significantly compared with the previous value; In November, the profit growth of ferrous metal smelting and rolling processing industry turned negative, and the profit growth of nonferrous metal smelting and rolling processing industry narrowed significantly.
Downstream profit contribution increased. In terms of industries, the profit situation of 22 industries has improved over the previous month, of which the middle and downstream industries account for more than 80%. From the profit contribution of upstream, middle and downstream, the downstream profit accounted for 50% in November, an increase of more than 10 percentage points over the previous month.
The profit growth of consumer goods manufacturing industry has accelerated significantly. In November, driven by factors such as the stable recovery of consumer goods production and price recovery, the profit of consumer goods manufacturing industry increased by 13.6% year-on-year, significantly accelerated by 10.0 percentage points over the previous month, and the growth rate rebounded for two consecutive months, 4.6 percentage points higher than the average level of industries above designated size. In terms of industries, the profitability of clothing and food is good. The profits of textile, clothing and textile industries increased by 63.1% and 21.7% respectively year-on-year, and the profits changed from decline to increase or accelerated; The profit growth rates of wine and beverage, agricultural and sideline food processing, culture, education, industry and beauty and food manufacturing industries were 16.9%, 14.6%, 14.3% and 13.6% respectively, all achieving rapid growth.
Inventory growth continued to rise. At the end of November, the cumulative year-on-year growth rate of finished goods inventory was 17.9%, an increase of 1.6 percentage points over the previous month, and showed a rebound upward trend after a decline in September. The inventory growth rate has increased for two consecutive months, which may still be driven by the epidemic and price factors. In the future, with the peak decline of PPI, enterprises may gradually enter the active destocking stage.
On the whole, due to the continuous promotion of the measures to ensure supply and stabilize prices, the effect of the policy to help enterprises rescue has been shown, the rapid rise in the prices of some raw materials in the upstream has been initially curbed, the cost pressure of downstream industries has been alleviated, and the profit structure shows the characteristics of improvement. It is expected that the overall profit growth rate will show a downward trend next year, but the decline will not be too fast. Due to the decline of cost pressure, the profits of downstream manufacturing industry will continue to improve.
