China's Industrial Profits Drop 38% in January-February Due to COVID-19 Impact

[Asia Economy Beijing=Special Correspondent Park Sun-mi] Due to the impact of COVID-19, the profits of industrial enterprises in China for January and February decreased by 38% compared to the same period last year.

On the 27th, the National Bureau of Statistics of China announced that the profits of industrial enterprises for January and February amounted to 410.7 billion yuan, a 38.3% decrease compared to the same period last year.

This decline is greater than the 3.3% decrease recorded for industrial profits from January to December last year. The industrial enterprise profit growth rate is an indicator showing the profitability trends of companies in the industrial sector. China calculates this indicator monthly for enterprises with annual sales exceeding 20 million yuan.

The year-on-year decline in industrial enterprise profits was largest among foreign-funded and Hong Kong and Macao enterprises at 53.6%. Private enterprises recorded -36.6%, and state-owned enterprises recorded -32.9%.

By sector, out of 41 industries, 37 experienced profit decreases except for 4 industries. The electronics (-87.0%), automobile (-79.6%), electrical machinery (-68.2%), and chemical (-66.4%) industries were particularly hard hit.

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