CHINA (Reuters) – The industrial profit growth of large enterprises in May continued a good momentum with a year on year growth of 16.7 percent, China’s National Bureau of Statistics (NBS) announced on Tuesday.
The total industrial profits of large enterprises in May reached about 626 billion Yuan (around 95 billion US dollars), increasing 16.7 percent year on year. The growth rate is 2.7 percentage points higher than in April.
The equipment manufacturing industry accounted for 29.3 percent of the newly increased profits, rising 5.5 percentage points over April. The mining industry accounted for 35.5 percent, with a decrease of 18 percentage points comparing with April. In general, the structure of China’s profit growth continued improving.
The profits of the auto, electricity and tobacco industries saw improvement. Both the auto and tobacco industries ended the decreasing trend, with a year on year growth of 4 percent and 82.4 percent respectively. Comparing with April, the drop in electricity and heat production and supply narrowed by 10.2 percentage points.
In the first five months of this year, the supply-side structural reform continued to show its effect. In view of the leverage ratio, the debt to assets ratio of large industrial enterprises had fallen 0.7 percentage point year on year by the end of May. The costs for every 100 Yuan of revenue of large industrial enterprises decreased by 0.04 Yuan in the first five months of the year.
