The data covered industrial firms with annual main business revenue of at least 20 million yuan (~$3.0 million). For textile, apparel and sourcing supply chains, the manufacturing and raw-material readings are relevant indicators of upstream operating conditions.
China’s major industrial firms posted 17.6 per cent year-on-year profit growth in January–July, with combined profits reaching 4.58 trillion yuan.
Manufacturing profits rose 18.8 per cent, while chemical raw materials and products manufacturing profits jumped 56.6 per cent.
For sourcing and materials buyers, stronger high-tech and raw-material earnings point to firm but uneven factory-sector momentum.
The National Bureau of Statistics said mining industry profits jumped 34.9 per cent to 666.05 billion yuan (~$98.8 billion), while manufacturing profits climbed 18.8 per cent to nearly 3.44 trillion yuan (~$510 billion). Profits in the power, heat, gas and water production and supply sector fell 5.8 per cent to 478.42 billion yuan (~$71 billion), according to the data.
Among major industries, the computer, communications and other electronic equipment manufacturing sector recorded a 110 per cent profit surge. Non-ferrous metal smelting and rolling processing profits jumped 91.8 per cent, chemical raw materials and products manufacturing rose 56.6 per cent, and coal mining and washing increased 50.4 per cent. The petroleum, coal and other fuel processing sector moved from losses to profits.
In the January-July period, the combined revenue of these industrial firms reached 80.92 trillion yuan (~$12.01 trillion), up 6.5 per cent year on year, while operating costs increased 5.9 per cent to 68.79 trillion yuan (~$10.21 trillion).
High-tech manufacturing also showed strong momentum, with profits up 50.1 per cent and contributing 9.6 percentage points to overall industrial profit growth, while raw material manufacturing profits rose 55.2 per cent and added 7.1 percentage points.
Fibre2Fashion News Desk
