China Industrial Profits Rose 34.3% in 2021
China’s industrial profit climbed 34.3% in 2021 thanks to strong growth from raw material producers and high-tech manufacturers, official data showed Thursday.
Profit growth slowed sharply at the end of the year, however, rising just 4.2% in December from a year ago, according to figures from the National Bureau of Statistics. In November, industrial profit grew 9.0% from the year-earlier period.
Downstream industries, especially small companies, still faced significant operational pressure, senior bureau statistician Zhu Hong said, noting widening losses at many loss-making businesses.
For the full year, profits at the country’s raw material producers surged 190.7%, while mining companies reported 70.8% growth. High-tech businesses reported 48.4% growth in profits, the statistics bureau said.
By ownership, China’s state-owned industrial companies were the biggest winner in 2021, recording 56% profit growth. Foreign industrial firms reported the smallest profit gains last year with a 21.1% rise, the bureau said.
At the end of last year, the asset-to-debt ratio for all surveyed industrial companies in China dropped 0.1 percentage point to 56.1.
Source: Dow Jones