China Industrial Profits Rise 1.37x in Q1 2021 as Printing Sector Gains 49.3% and Paper Profits Double

Figures newly released by China's National Bureau of Statistics (NBS) show that industrial enterprises above designated size generated combined profits of RMB 1,825.38 billion in January–March 2021, a 1.37-fold increase year on year. Against the same period of 2019, profits rose 50.2%, equal to an average two-year growth of 22.6%.

By sector, 39 of the 41 major industrial categories recorded year-on-year profit growth, one turned a loss into a profit and one narrowed its losses. Two segments closely linked to the flexible packaging value chain stood out: paper and paper products booked total profits of RMB 24.76 billion, up 112.7% year on year, while printing and reproduction of recording media reached RMB 7.12 billion, up 49.3%.

Revenue moved in the same direction. Over January–March, industrial enterprises above designated size posted operating revenue of RMB 27.48 trillion, up 38.7% year on year, against operating costs of RMB 22.91 trillion, up 36.5%; the operating revenue profit margin came in at 6.64%, 2.76 percentage points higher than a year earlier. Paper and paper products generated RMB 340.10 billion in revenue (+37.3%), and printing and reproduction of recording media RMB 153.54 billion (+30.8%).

Zhu Hong, a senior statistician with the NBS Department of Industry, said in her reading of the data that the first quarter saw science-based and targeted macro policies, further consolidation and expansion of gains in coordinating epidemic control with economic and social development, and a continued recovery of the industrial economy. Production and operations improved steadily, profits kept recovering at a fast clip and operating efficiency kept rising, delivering a solid start to the year. Profit growth was broad-based, with nearly 40% of industries doubling their profits; raw material manufacturing was a clear driver of industrial profit growth, while equipment manufacturing and high-tech manufacturing maintained strong momentum.

Taken as a whole, industrial enterprise performance in the first quarter kept recovering rapidly — yet the trajectory of the global pandemic and the international environment still carry considerable uncertainty, recovery remains uneven across sectors, and sharply higher raw material prices are steadily adding to cost pressure on enterprises, so the foundation for recovery still needs to be reinforced. Looking ahead, the focus is on maintaining continuity and stability in macro policy, shoring up weak links, unlocking potential and building advantages, expanding effective demand, improving development quality and efficiency, consolidating the real economy's recovery base and keeping the industrial economy on a sustained, stable and healthy track.

— Reprinted from China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-377423.html