Events
On April 27, the National Bureau of statistics released data that from January to March, industrial enterprises above Designated Size achieved a total profit of 195557 billion yuan, a year-on-year increase of 8.5%; Industrial Enterprises above Designated Size achieved an operating income of 31.27 trillion yuan, a year-on-year increase of 12.7%; The operating cost was 26.29 trillion yuan, an increase of 13.5%; The profit margin of operating revenue was 6.25%, a year-on-year decrease of 0.24 percentage points. (National Bureau of Statistics)
Comments
From January to March, the profits of industrial enterprises increased steadily. From January to March, industrial enterprises above Designated Size achieved a total profit of 195557 billion yuan, a year-on-year increase of 8.5%, an increase of 3.5 percentage points compared with the previous February, still continuing the rapid growth trend since the second half of last year. The profits of industrial enterprises maintained rapid growth. On the one hand, it was due to the continuous recovery of the production end. From January to March, the added value of industries above designated size increased by 6.5% year-on-year. Although the commencement of some industrial enterprises was affected by the epidemic, China's industrial production still achieved rapid growth in the first quarter. Driven by demand, the profits of Chinese industrial enterprises achieved steady growth. On the other hand, the performance of industrial enterprises is better supported by inflation.
The rise in commodity prices has driven the profit growth of industrial enterprises. The year-on-year increase of PPI in coal mining and dressing industry and oil and gas mining industry in March expanded to 53.9% and 47.4% respectively, driving the industry profit in the first quarter to increase by 1.89 times and 1.51 times respectively. International geopolitical conflicts and other factors led to a sharp rise in commodity prices, which jointly led to a rapid increase in profits in relevant industries. The Russian Ukrainian conflict is a black swan incident this year. Under the influence of the Russian Ukrainian conflict, commodity prices have soared. Although the dispute has eased slightly in the past two weeks, the price of crude oil is still fluctuating at a high level of $100. Affected by this, the price of raw materials in China is also affected. The cost pressure of middle and lower reaches enterprises increases and the profit margin decreases. The current high commodity prices are affected by supply. In the follow-up, as the current Russia Ukraine negotiations have not made substantive progress, there is great uncertainty, and commodity prices will fluctuate at a high level. Only after the supply is alleviated, the high price of bulk commodities will be alleviated, and the cost pressure of small and medium-sized enterprises is still large.
Driven by the policy of tax reduction and fee reduction, the cost of enterprises decreased. At present, the spread of the epidemic has disturbed the production and operation of enterprises, especially the pressure on small, medium-sized and micro enterprises. The National Bureau of Statistics said that we should continue to do a good job in ensuring the supply and price of bulk commodities, effectively reduce the production costs of enterprises, especially the costs of middle and downstream enterprises, implement the supporting policies for the manufacturing industry and the tax reduction and fee reduction policies for small and micro enterprises, help enterprises solve difficulties, and promote the stable operation, quality and efficiency of the industrial economy.
Risk tips: the overseas epidemic fluctuates more than expected, the downstream demand is less than expected, and the monetary policy changes.
