As the steady growth policies take effect in a concentrated manner, the new drivers continue to be cultivated and strengthened, and industrial production remains stable, the profits of industrial enterprises continue to recover.

Data released by the National Bureau of Statistics on the 27th show that from January to July, the profits of national large-scale industrial enterprises above the designated size grew by 3.6% year-on-year, accelerating by 0.1 percentage points compared to the January-June period, continuing a stable recovery trend. In July, the profits of large-scale industrial enterprises above the designated size grew by 4.1% year-on-year, with the growth rate accelerating by 0.5 percentage points compared to June, for two consecutive months.

Yu Weining, a statistician at the Industrial Department of the National Bureau of Statistics, stated that the revenue of industrial enterprises has been growing steadily. With the stable recovery of market demand and the improvement of the level of production and sales linkage, the revenue of industrial enterprises has been growing steadily. From January to July, the business income of large-scale industrial enterprises above the designated size grew by 2.9% year-on-year, with the growth rate being the same as that of the January-June period. The stable growth of enterprise revenue has created favorable conditions for the continuous recovery of profits.

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Looking at the industry, among the 41 major industrial categories, the profit growth rate of 21 industries has accelerated or the decline has narrowed compared to the previous month, with a recovery rate of more than 50%.

Among them, the high-tech manufacturing industry leads the profit growth. From January to July, the profits of the high-tech manufacturing industry grew by 12.8% year-on-year, significantly higher than the national large-scale industrial average by 9.2 percentage points, driving the growth of large-scale industrial profits by 2.1 percentage points, with a contribution rate of nearly 60% to the growth of large-scale industrial profits, showing a clear leading role.

As the high-end, intelligent, and green manufacturing process continues to advance, the profits of related industries have grown rapidly. Among them, the manufacturing of lithium-ion batteries, the manufacturing of special equipment for semiconductor devices, and the manufacturing of smart consumer devices have seen year-on-year profit growth of 45.6%, 16.0%, and 9.2% respectively, providing important momentum for promoting high-quality industrial development.

The profits of the equipment manufacturing industry have also maintained stable growth, providing important support for the recovery of large-scale industrial profits. From January to July, the profits of the equipment manufacturing industry grew by 6.1% year-on-year. In terms of proportion, the profits of the equipment manufacturing industry accounted for 35.1% of the large-scale industry, increasing by 0.8 percentage points year-on-year, and the profit structure of industrial enterprises continues to be optimized. Among the 8 industries in the equipment manufacturing industry, 6 have achieved growth. Among them, the railway, ship, aerospace, and electronics industries have seen year-on-year profit growth of 36.9% and 25.1% respectively, driven by rapid production growth, and have maintained a high-speed growth trend since the beginning of the year.

The steady recovery of domestic consumer demand, coupled with the continuous growth of industrial product exports, has jointly driven the profits of the consumer goods manufacturing industry to maintain a good growth trend. From January to July, the profits of the consumer goods manufacturing industry grew by 10.2% year-on-year, with the growth rate being 6.6 percentage points higher than the national large-scale industrial average.

Yu Weining stated that, overall, the benefits of large-scale industrial enterprises continue to recover steadily, but it is also necessary to see that domestic consumer demand is still relatively weak, and the external environment is complex and changeable, and the foundation for the recovery of industrial enterprise benefits still needs to be further consolidated. In the next stage, it is necessary to expand domestic demand more effectively, take targeted measures to smooth the economic cycle, implement and refine various reform arrangements, further promote the development of new quality productive forces in the industrial field, and continuously enhance the continuous improvement and good trend of the industrial economy.

Wen Bin, Chief Economist of China Minsheng Bank, stated that industrial profits are expected to continue to improve in the next stage. The National Development and Reform Commission and the Ministry of Finance have arranged about 300 billion yuan of ultra-long-term special treasury bond funds, significantly expanding the scope of support for the replacement of old products with new ones and increasing subsidy standards, stimulating investment and durable goods consumption. In addition, 1 trillion yuan of ultra-long-term special treasury bonds and special bond funds have been put in place and are being used in succession, which will play a positive role in boosting the confidence of industrial enterprises and consolidating the foundation of industrial economic recovery, and may bring about the recovery of industrial economic profits in the future.Wen Bin also mentioned that the uncertainty of external demand and the insufficiency of domestic demand will continue to constrain the growth of industrial enterprise profits. Although there is currently a phenomenon of export enterprises "rushing to export," the implementation of related tax measures may have an adverse impact on subsequent exports. At the same time, the confidence of market operators still needs to be further boosted, and the insufficiency of effective demand will continue to constrain the growth of industrial enterprise profits.