The decline in profit growth does not change the annual operating situation, and industry is recovering.

“Based on the trend of profits of industrial enterprises last year, this year’s “high before and after low” will be a normal trend of operation. In the first half of the year, the profit growth rate of China's industrial enterprises is still at a relatively high level, which is a performance that is recovering. This year, the industrial economy will maintain a steady and rapid growth, and the annual growth rate will reach 13%."

Recently, the Ministry of Industry and Information Technology released the industrial profit situation from January to July of this year. Xin Guobin, Director of the Office of Supervision and Coordination of the Ministry of Industry and Information Technology, made the above response in an interview with reporters on corporate profits.

According to statistics from authoritative departments, from January to July, China's industrial profits reached 18761 million yuan, an increase of 61.1% over the same period of last year, an increase of 10.7 percentage points from January to June. According to statistics, industrial profits increased by 71.8% year-on-year in the first half of the year, but the rate of increase was 11.2 percentage points lower than that of the period from January to May.

Xin Guobin pointed out that although the profits of industries above designated size in the 24 regions cannot represent the national industrial situation, the decline in profits still deserves special attention. He pointed out that from the data point of view, the current growth rate of industrial profit growth decreased, mainly because with the implementation of the national package of economic stimulus plans, production and operation of enterprises gradually improved, and the year-on-year decline in total profits gradually narrowed.

At the same time, since the second quarter of this year, the production and operation environment of industrial enterprises has tightened. While the prices of some industrial products have fallen, they have faced rising energy, raw materials, and labor costs. For example, since mid-April, the price of steel fell for 12 consecutive weeks, and this year's price of iron ore has been at a high of around US$120/ton. In addition, the increase in expenditure on energy conservation and emission reduction, environmental governance, and financing costs, and the increase in the cost of the company, coupled with the frequent occurrence of natural disasters, have increased pressure on the company's production and operation.

Industry operation is still at normal intervals. The results have shown that Xin Guobin pointed out that the current economic trends should not be underestimated and that the correct year-on-year growth in industrial production and investment growth in July should be viewed correctly. A modest fall in industrial production will help prevent economic imbalances. Turn to overheat quickly. Overall, the current industrial economic operation is still in the normal range.

According to authoritative statistics, in July this year, the year-on-year growth rate of industrial added value above designated size fell from 20.7% at the beginning of the year to 13.4%, and the growth rate fell by 0.3% from the previous month. The year-on-year increase in industrial added value was 3.8% from the beginning of the year. It rose to 10.8%, only 0.1 percentage points faster than in June.

Xin Guobin pointed out that this is a normal operating situation, and it is also the result of the country's active adjustment and control according to the requirements of the energy conservation and emission reduction situation. Since the second quarter of this year, the state has increased its energy-saving emission reduction and elimination of backward production capacity, strictly controlled new projects in high-energy-consuming industries and cancelled preferential electricity prices, which has a significant inhibitory effect on excessively high growth of high-energy-consuming industries. In the first half of the year, the industrial added-value energy consumption of industrial units above designated size changed from a year-on-year increase of 0.38% to a decrease of 1.25%. In the first 7 months, the six high-energy-consuming industries increased by 16.2% year-on-year, a drop of 1 percentage point from the first half of the year and a decrease of 3.2 percentage points from the first quarter, of which the growth rate was 10.5% in July and 1.3 percentage points lower than that in June.

Xin Guobin pointed out that the current growth rate of investment in industrial fixed assets fell, but private investment has started. He pointed out that the start-up and rapid growth of private investment is one of the important contents of structural adjustment and transformation of economic development. From January to July, the growth rate of investment in urban fixed assets was 24.9%, which was 0.6 percentage points lower than that in the first half of the year. However, private enterprise investment showed a start-up trend.

Xin Guobin pointed out that from the known data, the current employment in the industrial sector continues to increase. In the first five months, the average number of employees in industrial enterprises above designated size reached 86.51 million, an increase of 5.4 million over the same period last year, an increase of 6.7%.

In addition, the overall price level has remained basically stable. According to statistics, in July, the ex-factory price of industrial products rose by 4.8% year-on-year, with an increase of 1.6 percentage points from June. In the first seven months, consumer prices rose by 2.7% year-on-year and were controlled within the full-year expected target of 3%.

Foreign trade is also speeding up recovery. According to statistics, in the first 7 months, the total import and export trade volume reached 1.62 trillion U.S. dollars, which exceeded the level of the same period before the international financial crisis. Exports and imports increased by 35.6% and 47.2% year-on-year, respectively. In July, exports rose by 38.1% year-on-year. The actual use of foreign investment increased by 29.2% year-on-year.

Xin Guobin pointed out that overall, at present, China’s industrial economy is in a critical period of transition from rapid growth to stable growth, and economic operation continues to develop in the direction of macroeconomic regulation and control, indicating that the Party Central Committee and the State Council are maintaining growth and expanding domestic demand. At the same time, efforts have been made to achieve structural adjustment and transformation of economic development methods.

"Before high and low," a certain bureau structure focuses on expanding consumption. Xin Guobin said that judging from the current situation, due to the "low before and after high" of the previous year's base, the "high before and after the low" of the industrial economy this year is a foregone conclusion, but it will not happen. There has been a great ups and downs. The annual growth rate is still about 13%, and the 11% expected target set at the beginning of the year can be completed.