Workers assemble vehicles at a SAIC Motor plant in Shanghai on April 23. (ZHU XINGXIN / CHINA DAILY)
BEIJING - Profit growth of China's major industrial firms slowed during the first four months of 2022, weighed down by the resurgence of domestic COVID-19 cases, official data showed on Friday.
China's major industrial firms, each with annual main business revenue of at least 20 million yuan ($2.97 million), saw profits grow 3.5 percent year-on-year in the January-April period. However, profit growth was 8.5 percent in the first three months, said the National Bureau of Statistics.
During the January-April period, 19 out of 41 industries saw a year-on-year expansion in their profits, however, 20 industries registered declines
The combined profits of those firms hit nearly 2.66 trillion yuan in the first four months, the data showed.
During the period, 19 out of 41 industries saw a year-on-year expansion in their profits, however, 20 industries registered declines.
In the January-April period, profits of the mining industry continued to maintain rapid growth, rising 146 percent year-on-year, while the manufacturing sector saw profits down 8.3 percent, compared with a 2.1-percent decline registered in the first quarter.
From January to April, profits of industrial enterprises in the eastern region fell 16.7 percent year-on-year. However, in the central and western regions, which were less affected by the epidemic, industrial companies saw their profits maintain rapid growth during the period, surging 18.2 percent and 47.5 percent year-on-year, respectively.
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"The resurgence of COVID-19 cases and global uncertainties dragged down profits of industrial companies in April," said Zhu Hong, a senior statistician with the NBS.
Automated logistics equipment (in blue) help workers dispatch courier delivery parcels at a warehouse in Guanghan, Sichuan province, on Nov 8. (HE HAIYANG / FOR CHINA DAILY)
In the central and western regions, which were less affected by the epidemic, industrial companies saw their profits maintain rapid growth during the period, surging 18.2 percent and 47.5 percent year-on-year, respectively
"However, their performance will recover gradually as the Omicron outbreak stabilizes, factories and companies are resuming production in an orderly manner, and measures to relieve enterprises' burdens are showing effect," Zhu said.
China has adopted a slew of measures to stabilize the economy and support market entities, including greater tax refunds and fee cuts, more financing support and the elimination of logistics obstacles.
Several days after a State Council executive meeting proposed 33 pro-growth measures in six areas, Premier Li Keqiang on Wednesday asked government departments to introduce practical implementation measures by the end of May.
Li also urged local authorities to introduce policies in light of local conditions to help market entities tide over difficulties and stabilize and create jobs.
"We will work hard to unblock bottlenecks in industrial and supply chains, help enterprises overcome difficulties, and create more favorable conditions for the continued recovery of industrial enterprises' business performance," Zhu said.
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