China’s Industrial Profits Up 15.5% in Jan-Sept Driven by Tech and Manufacturing
China’s industrial sector generated 60337.4亿元 in profits from January through September, marking a 15.5% increase year-over-year according to official data released on October 27.
Electronic Components and High-Tech Manufacturing Drive Profit Expansion
Demand for artificial intelligence calculation infrastructure and advanced memory systems fueled massive gains down the supply chain. National Bureau of Statistics chief statistician Yu Weining detailed that electronic specialized material manufacturing jumped 2.2 times, while semiconductor discrete device production climbed 51.7%. New generation information tech also propelled optical electronic device makers up 69.8% and electronic circuit producers up 62.5%.
High-tech manufacturing overall recorded a 52.0% profit increase, outpacing the broader industrial average by 36.5 percentage points. These high-value segments accounted for 25.5% of total industrial earnings, gaining 6.2 points over the previous year.
Raw Materials Outperform as Commodity Demand Surges
Upstream material providers also posted substantial gains through September. Raw material manufacturing profits climbed 44.9%, contributing 5.9 percentage points to total industrial growth. Non-ferrous metal smelting and processing jumped 79.7%, driven by heavy buying from renewable energy and artificial intelligence hardware developers.
Chemical raw material and product manufacturing expanded by 49.2%. Petroleum processing operations successfully climbed out of negative territory, turning an annual profit of 842.2亿元.
| Sector | January–September Profit Growth |
|---|---|
| Computer, Communication & Electronic Equipment | +103.8% |
| Non-Ferrous Metal Smelting & Pressing | +79.7% |
| Coal Mining & Washing | +57.0% |
| Chemical Raw Materials & Chemical Products | +49.2% |
| Petroleum & Natural Gas Extraction | +21.3% |
Declining Margins Plague Heavy Industries and Utilities
Not all sectors shared in the expansion. Power, heat, gas, and water production and supply utilities saw profits contract 14.3% through September. Automotive manufacturing fell 22.8%, and non-metallic mineral product manufacturing dropped 46.9%.
The steepest contraction landed in the ferrous metal smelting and rolling sector, which suffered a 73.3% drop in profitability. Across all industrial enterprises, unit costs fell slightly to 85.02 yuan per 100 yuan of operating revenue, down 0.45 yuan from the prior year. Operating revenue reached 106.21万亿元, representing a 6.6% increase, while total debt climbed 7.4% to 116.61万亿元 by the end of September.
Large Enterprises and Joint-Stock Companies Lead Profit Growth
Large industrial enterprises grew profits by 18.8% through the first three quarters. Medium-sized firms posted a 15.4% gain, while small enterprises recorded an 8.7% increase. Joint-stock companies led by ownership type with a 20.8% profit rise, followed by state-controlled enterprises at 13.1% and private businesses at 8.7%.