National Bureau of Statistics: Profits of above-scale industrial enterprises increased rapidly in January and February

National Bureau of Statistics: In February, profits of industrial enterprises above designated size increased by 15.2%

In January and February, profits of industrial enterprises above designated size achieved rapid growth

— Chief Statistician Yu Wei Ning of the Industrial Department of the National Bureau of Statistics interprets the profit data of industrial enterprises for January and February 2026

In January and February, various regions and departments accelerated the implementation of more proactive macro policies, focusing on leveraging the integrated effects of existing and incremental policies. The profit growth of industrial enterprises above designated size accelerated, with profits in most industries rebounding. The equipment manufacturing and high-tech manufacturing sectors experienced rapid profit growth, showing a sustained recovery trend in the operational performance of industrial enterprises.

Profits of industrial enterprises grew rapidly, with accelerated growth in operating income. In January and February, profits of industrial enterprises above designated size increased by 15.2% year-on-year, accelerating 14.6 percentage points compared to the entire previous year. From the perspective of gross profit calculated by deducting operating costs from operating income, the gross profit of industrial enterprises above designated size grew by 6.9% year-on-year in January and February, remaining flat for the entire previous year, strongly supporting the rapid growth of profits. Analyzing by the three major sectors, in January and February, manufacturing grew by 18.9%, accelerating 13.9 percentage points compared to the previous year; mining grew by 9.9%, which had a decline of 26.2% in the previous year; the electricity, heat, gas, and water production and supply sector grew by 3.7%. Driven by factors such as accelerated production and warming product prices, the operating income of industrial enterprises above designated size increased by 5.3% year-on-year in January and February, accelerating 4.2 percentage points compared to the previous year, significantly improving revenue growth and creating favorable conditions for profit recovery.

Most industries achieved profit growth, with over 60% of industries rebounding. In January and February, among the 41 major industrial categories, 24 industries saw profit growth year-on-year, with a growth coverage of 58.5%; 26 industries experienced accelerated profit growth or narrowed declines, transitioning from decline to growth, with a rebound coverage exceeding 60%.

The “ballast stone” role of the equipment manufacturing sector is significant, and the profit structure of industrial enterprises continues to optimize. In January and February, the operating income of equipment manufacturing enterprises above designated size grew by 8.9% year-on-year, exceeding the overall growth of all industrial enterprises by 3.6 percentage points. Rapid growth in operating income drove the profit of equipment manufacturing enterprises above designated size to increase by 23.5% year-on-year, accelerating 15.8 percentage points compared to the previous year; profits from equipment manufacturing accounted for 30.4% of all industrial enterprises above designated size, increasing by 2.0 percentage points year-on-year, with a continuously optimizing profit structure. By industry, among the 8 sectors in equipment manufacturing, 5 sectors achieved profit growth, with the electronics, railway ship aerospace, and electrical machinery sectors experiencing rapid profit growth of 203.5%, 11.4%, and 6.2%, respectively.

Profits in high-tech manufacturing grew rapidly, enhancing its leading role. In January and February, profits of high-tech manufacturing enterprises above designated size increased by 58.7% year-on-year, accelerating 45.4 percentage points compared to the previous year; this contributed to a 7.9 percentage point increase in profits for all industrial enterprises above designated size, with the contribution enhancing by 5.5 percentage points compared to the previous year. By industry, the manufacturing of smart products developed well, with profits in the manufacturing of smart unmanned aerial vehicles, smart vehicle-mounted equipment, and other smart consumer devices growing by 59.3%, 50.0%, and 31.3%, respectively; the rapid development of the semiconductor industry drove profit growth in related sectors, with profits in the manufacturing of semiconductor discrete devices, optoelectronic devices, and electronic circuits growing by 130.5%, 56.1%, and 19.5%, respectively.

New driving forces significantly boosted profits in related raw material manufacturing. In January and February, driven by the rapid development and increased demand in industries related to new driving forces, profits in raw material manufacturing above designated size increased by 88.3% year-on-year, accelerating 71.1 percentage points compared to the previous year. By industry, the non-ferrous sector saw profit growth of 148.2%, with profits in aluminum rolling processing, non-ferrous metal alloy manufacturing, and copper rolling processing growing by 264.0%, 205.1%, and 50.8%, respectively; the chemical industry experienced profit growth of 35.9%, with profits in inorganic salt manufacturing, inorganic acid manufacturing, and organic fertilizers and microbial fertilizers manufacturing growing by 518.5%, 306.3%, and 38.5%, respectively.

The unit cost of industrial enterprises declined, and profit margins improved. In January and February, the cost for every 100 yuan of operating income for industrial enterprises above designated size was 84.83 yuan, a year-on-year decrease of 0.24 yuan, marking the first year-on-year decline in cumulative costs since 2022; the profit margin was 4.92%, an increase of 0.43 percentage points year-on-year.

Profits improved across enterprises of different sizes, with private enterprises experiencing a recovery in profit growth. By size, in January and February, profits of medium-sized industrial enterprises above designated size increased by 31.5% year-on-year, accelerating 27.3 percentage points compared to the previous year; large and small enterprises shifted from declines of 0.2% and 0.8% in the previous year to growth of 8.7% and 17.1%, respectively. By enterprise type, profits of state-controlled enterprises grew by 5.3% year-on-year, compared to a decline of 3.9% in the previous year; profits of private enterprises increased by 37.2%, remaining flat in the previous year.

Overall, profits of industrial enterprises above designated size grew rapidly, but it is also important to recognize the fluctuating international environment, rising external risks, especially the spillover risks of geopolitical conflicts, and the numerous unstable and uncertain factors. Meanwhile, during the domestic economic transition period, the recovery of profits in industry sectors remains uneven. In the next phase, it is essential to thoroughly implement the spirit of the Central Economic Work Conference and the arrangements from the National Two Sessions, continue to expand domestic demand, optimize supply, develop new types of productivity suited to local conditions, and deepen the construction of a unified national market to promote the continuous and healthy development of the industrial economy.

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Editor: Shi Xiuzhen SF183