Regions and departments have taken proactive measures and implemented comprehensive policies, precisely and effectively executing more proactive macroeconomic strategies while developing "new quality productive forces" tailored to local conditions. Consequently, industrial production has seen steady progress, new growth drivers have expanded rapidly, and profits of industrial enterprises above designated size have achieved significant growth.
Industrial enterprise profits grew rapidly.Precision Machining China In the first half of the year, against the backdrop of stable industrial production and a continued rebound in industrial product prices, the operating revenue of industrial enterprises above designated size rose by 6.5% year-on-year, an acceleration of 1.5 percentage points compared to the first quarter. This accelerated revenue growth drove an 18.7% year-on-year increase in profits for these enterprises—an acceleration of 3.2 percentage points over the first quarter. By sector, profits in mining and manufacturing grew by 33.5% and 20.1% respectively (accelerating by 17.3 and 1.0 percentage points compared to the first quarter), while profits in the electricity, heat, gas, and water production and supply sector declined by 4.2%. In June alone, profits of industrial enterprises above designated size nationwide rose by 15.1% year-on-year.
Profits in electronics-related industries surged. In the first half of the year, the accelerated integration of artificial intelligence across various fields and a sharp rise in demand for computing power drove a 96.9% year-on-year profit increase in the electronics industry. This sector contributed 8.5 percentage points to the overall profit growth of industrial enterprises above designated size, serving as a key pillar of that expansion. Specifically, within the server and high-performance workstation segments, profits in computer manufacturing and computer peripheral equipment manufacturing rose by 689.3% and 305.8%, respectively. In the electronic device sector, profits in integrated circuit manufacturing and semiconductor discrete device manufacturing grew by 2,579.5% and 31.2%, respectively. In the electronic components and specialized materials sector, profits in specialized electronic materials manufacturing and electronic circuit manufacturing increased by 209.7% and 26.9%, respectively.
Rapid development of new growth drivers fueled significant profit growth in related industries. In the first half of the year, the rapid expansion of industries associated with new growth drivers spurred substantial profit growth in related sectors. Specifically, within non-metallic material-related sectors, profits in the industries of reclaimed rubber manufacturing and graphite and carbon product manufacturing grew by 133.3% and 61.0%, respectively; among metal material-related sectors, profits in aluminum and copper smelting rose by 117.1% and 53.9%; in sectors related to data center interconnectivity, profits in optical fiber and optical cable manufacturing increased by 410.4% and 39.8%; and among equipment manufacturing sectors, profits in additive manufacturing equipment and specialized semiconductor device equipment manufacturing grew by 55.4% and 18.7%.
Profits in the raw material manufacturing industry grew rapidly. In the first half of the year, profits of raw material manufacturing enterprises above designated size increased by 71.7% year-on-year, driving the profit growth of all industrial enterprises above designated size by 8.8 percentage points. By sector, driven by factors such as robust demand for non-ferrous metal products like copper and aluminum, profits in the non-ferrous metal industry rose by 99.4%, contributing 4.7 percentage points to the overall profit growth of industrial enterprises above designated size; driven by rising prices of products along the petroleum industry chain, the petroleum processing industry turned a profit (reversing previous losses), while profits in the chemical industry grew by 67.8%.
Profits across various types of enterprises grew rapidly. By enterprise type, profits of joint-stock industrial enterprises and state-controlled industrial enterprises above designated size rose by 24.7% and 17.9% year-on-year, respectively—accelerating by 3.8 and 7.8 percentage points compared to the first quarter. By enterprise size, profits of large, medium, and small industrial enterprises above designated size grew by 20.3%, 21.3%, and 12.9%, respectively.
Unit costs for industrial enterprises continued to decline, Precision Machining Chinaand profitability improved. In the first half of the year, the cost per 100 yuan of operating revenue for industrial enterprises above designated size was 84.89 yuan, a year-on-year decrease of 0.55 yuan; the cumulative unit cost for industrial enterprises has maintained a downward trend throughout the year. During this period, the profit margin on operating revenue for these enterprises stood at 5.70%, up 0.59 percentage points year-on-year, marking the highest cumulative level recorded since the beginning of 2024. Overall, industrial enterprises above designated size achieved rapid profit growth in the first half of the year. At the same time, however, we must recognize that the external environment remains complex and volatile, and international commodity price trends are still uncertain; industrial enterprises also face challenges such as insufficient market demand and significant pressure regarding capital turnover. Moving forward, we must fully implement the decisions and plans of the CPC Central Committee and the State Council, adhering to the principle of making progress while maintaining stability and tailoring measures to local conditions. We must continue our efforts to cultivate and expand emerging and future industries while upgrading and transforming traditional industries, thereby ensuring a smooth transition between old and new growth drivers and promoting the high-quality development of the industrial economy.