2nd LD-Writethru-Economic Watch: China's industrial firms report faster profit growth amid economic recovery

BEIJING, May 27 (Xinhua) -- China's industrial sector continued its recovery trend in the first four months of 2025, with accelerated profit growth, driven by robust performance in new growth areas such as equipment manufacturing and high-tech industries.

Profits of China's major industrial firms increased 1.4 percent year on year in the first four months of the year, up from a rise of 0.8 percent in the first quarter, data from the National Bureau of Statistics (NBS) showed Tuesday. In April alone, profits grew 3 percent compared to the same period last year.

NBS statistician Yu Weining said that the implementation of more proactive and effective macro policies has helped offset external challenges and support relatively rapid industrial production growth, fueling faster profit growth among large industrial firms.

Profits increased in nearly 60 percent of major industrial sectors, with 23 out of 41 categories posting year-on-year profit growth, the NBS said.

The equipment manufacturing sector played a key role in driving the recovery. As China deepens its push for industrial upgrading, the sector has seen sustained improvement in profitability.

From January to April, profits in equipment manufacturing rose 11.2 percent year on year, up 4.8 percentage points from the first quarter. The sector contributed 3.6 percentage points to overall profit growth among large industrial firms.

High-tech manufacturing also recorded faster growth, with profits rising 9 percent year on year during the period. The ongoing shift toward high-end manufacturing fueled profit increases of 24.3 percent in biopharmaceuticals and 27 percent in aircraft manufacturing.

The country's "AI Plus" initiative continued to gain traction, driving strong profit growth across related industries. Profits in semiconductor equipment manufacturing more than doubled, while integrated circuit producers saw a 42.2 percent increase.

Smart technology manufacturers also delivered strong performances, with profits in in-vehicle smart devices, unmanned aerial vehicles and wearable tech rising by 177.4 percent, 167.9 percent and 80.9 percent, respectively.

China's large-scale equipment upgrades and consumer goods trade-ins also provided a strong boost to profit growth. Specifically, the profits of special-purpose equipment and general-purpose equipment makers increased by 13.2 percent and 11.7 percent, respectively.

According to analysts, the accelerating recovery in industrial profits signals a broader economic upturn. China's GDP grew by 5.4 percent year on year in the first quarter of 2025.

"The steady recovery of industrial profits reflects the strong resilience of China's industrial sector," Yu said. However, he cautioned that challenges remain, including a complex global environment, weak demand and falling prices. He also noted that the foundation for sustained profit growth still requires further consolidation.

Looking ahead, Yu said efforts will focus on promoting the integration of technological and industrial innovation, optimizing the industrial structure, accelerating the transformation of traditional industries, and cultivating emerging sectors, as these steps will help support the continued improvement of industrial profitability. Enditem