Profits in the Chemical Raw Materials and Chemical Products Manufacturing Industry Surge 51% in the First Eight Months!

The data shows that rising international crude oil prices boosted the profitability of related industries. In the first eight months, the chemical raw materials and chemical items manufacturing sector achieved a total profit of RMB353.24 billion , a year-on-year increase of 51.0%; the oil and gaseous extraction sector achieved a total profit of RMB276.55 billion, a year-on-year increase of 17.0%; and the petroleum processing sector turned a profit year-on-year, achieving a total profit of RMB56.29 billion.

manufacturing enterprise profits maintained rapid development. From January to August, driven by steady progress in manufacturing production and the expansion of manufacturing product price increases, the operating income of manufacturing companies above designated size increased by 6.6% year-on-year, leading to a 15.7% year-on-year increase in profits. The cumulative development rate has maintained double digits since the beginning of the year. Looking at the three major sectors, profits in the mining sector increased by 35.1%, manufacturing profits increased by 17.4%, while profits in the production and supply of electricity, heat, gaseous, and aquatic environments decreased by 12.0%. In August, affected by the high base in the same period last year, the profit development rate of manufacturing companies above designated size slowed down, growing by 4.2% year-on-year. In terms of gross profit calculated by deducting operating costs from operating revenue, the gross profit of manufacturing companies above designated size increased by 7.5%, 1.9 percentage points faster than the previous month.

The electronics sector significantly contributed to profit development. The accelerated consumption of new technologies, represented by artificial intelligence, has driven increased demand in related fields, propelling rapid profit development in the electronics sector. From January to August, the electronics sector's profits increased by 1.1 times year-on-year, contributing 62.0% to the profit development of all manufacturing companies above designated size, making it a crucial support to the rapid profit development of these companies. Among them, emerging scenarios such as new energy vehicles, the Internet of Things, and computing centers have driven increased demand to chips, leading to profit development of 72.0% and 51.8% respectively in the optoelectronic device manufacturing and semiconductor discrete device manufacturing industries. Rapid research in the electronic basic raw materials sector also boosted profits in the electronic special materials manufacturing and electronic circuit manufacturing industries by 2.3 times and 49.1% respectively.

High-tech manufacturing played a prominent leading role. From January to August, profits of extensive high-tech manufacturing companies increased by 54.7% year-on-year, a development rate 39.0 percentage points higher than that of all extensive industries. From an sector perspective, driven by the accelerated construction of computing infrastructure, the profits of the optical fiber manufacturing and optical cable manufacturing industries increased by 5.3 times and 1.0 times, respectively. In the fields of high-performance servers, workstations, and optoelectronic communications, the profits of computer assembly manufacturing, computer peripheral equipment manufacturing, manufacturing manage computer and system manufacturing, and communication system equipment manufacturing industries increased by 3.9 times, 2.6 times, 1.3 times, and 48.7%, respectively. The instrumentation and new medical instrument and equipment manufacturing sector accelerated its research, with the profits of navigation, surveying, mapping, meteorological and marine special instrument manufacturing, and dental equipment and instrument manufacturing industries growing by 2.2 times and 70.2%, respectively.

The raw materials manufacturing sector achieved rapid development. From January to August, the profits of raw materials manufacturing companies above designated size increased by 47.3% year-on-year, contributing 6.2 percentage points to the overall profit development of manufacturing companies above designated size. From an sector perspective, rising international crude oil and non-ferrous metal prices led to improved profitability in related industries. The chemical sector saw a profit increase of 51.0%; the non-ferrous metals sector saw a profit increase of 82.9%; and the petroleum processing sector turned a profit year-on-year, achieving a total profit of RMB 56.29 billion.

The unit cost of manufacturing companies continued to decline. From January to August, the cost per RMB100 of operating revenue to manufacturing companies above a designated size was RMB 85.07, a year-on-year decrease of 0.41 yuan. The cumulative unit cost of manufacturing companies has continued its year-on-year decline since the beginning of this year. From January to August, the operating profit margin of manufacturing companies above a designated size was 5.66%, a year-on-year increase of 0.44 percentage points. (Source: China Chemical sector News)