2nd LD-Writethru-Economic Watch: China's industrial profits swing back to growth, up 0.8 pct in Q1

BEIJING, April 27 (Xinhua) -- The combined profit of major industrial enterprises went up 0.8 percent year on year in the first quarter of 2025, reversing the 3.3 percent decline in 2024, the National Bureau of Statistics (NBS) said on Sunday.

The growth ended the profit downturn that had persisted since the third quarter of last year, NBS statistician Yu Weining said.

Industrial firms with an annual main business revenue of at least 20 million yuan (about 2.78 million U.S. dollars) saw their combined profits reach 1.51 trillion yuan during the first quarter.

"Despite an external environment that is becoming more complex and severe with increasing instability and uncertainty, the effects of China's macro policies have continued to emerge since the beginning of the year," Yu noted.

Incremental and existing policies have worked together to promote a strong start for the industrial economy, the statistician said.

Profits increased in nearly 60 percent of China's major industrial sectors during the period, with 24 out of 41 major industrial categories registering year-on-year profit growth.

The manufacturing sector showed remarkable improvement, with its profit climbing by 7.6 percent year on year in the January-March period, an increase of 2.8 percentage points compared to the first two months.

Equipment manufacturing has become a key driver of profit growth. In the first quarter, the profit of equipment manufacturing industries rose by 6.4 percent year on year, 1 percentage point higher than in the first two months.

Their profit accounted for 32 percent of the total profit of major industrial enterprises, contributing to an overall profit increase of 2 percentage points.

Additionally, China's large-scale equipment renewals and consumer goods trade-ins have also boosted industrial profit.

Specifically, the profits of special-purpose equipment and general-purpose equipment makers increased by 14.2 percent and 9.5 percent, respectively, year on year. Profits for wearable smart device manufacturers and moped manufacturers soared by 78.8 percent and 65.8 percent, respectively.

During the first quarter, the combined business revenue of China's major industrial enterprises grew by 3.4 percent year on year, 0.6 percentage points higher than in the first two months.

China will continue to work on the detailed implementation of existing and incremental policies to fully release policy potential and promote the development of industrial enterprises, Yu said. Enditem