(Yicai) Jan. 27 -- China’s industrial enterprises above a designated size posted a 0.6 percent increase in profits last year, reversing a downward trend that had persisted for three consecutive years, according to data released today by the National Bureau of Statistics.

Industrial enterprises with annual main business revenue exceeding CNY20 million (USD2.9 million) generated total profits of CNY7.4 trillion (USD1.06 trillion) last year, the NBS said. In the earlier period from 2022 to 2024, China’s industrial profits had declined by 4 percent, 2.3 percent, and 3.3 percent, respectively.

In December alone, profits of industrial enterprises above a designated size rebounded sharply, shifting from a year-on-year decline of 13.1 percent in November to growth of 5.3 percent, an improvement of 18.4 percentage points, according to the data.

China implemented more proactive macroeconomic policies and accelerated the advancement of new-type industrialization last year, which supported a steady recovery in industrial economic performance, said Yu Weining, chief statistician at the NBS’ industrial department.

New growth drivers, represented by the equipment manufacturing and high-tech manufacturing industries, played a clear supporting role, while the profit structure of traditional industries continued to improve, Yu said.

Profits in China’s large-scale equipment manufacturing industry rose 7.7 percent from a year earlier, contributing 2.8 percentage points to overall industrial profit growth and marking the strongest sectoral impact, Yu noted. Profits in the high-tech manufacturing industry increased 13.3 percent, providing strong momentum for high-quality industrial development.

By industry, the semiconductor value chain led gains, with profits in integrated circuit manufacturing and semiconductor device manufacturing equipment surging 173 percent and 128 percent, respectively. The smart consumer sector also performed strongly, as profits from unmanned aerial vehicle manufacturing and smart vehicle equipment manufacturing rose 102 percent and 89 percent, Yu said.

The transformation and upgrading of traditional industries also generated new momentum. Profits in the biobased chemical fiber manufacturing industry climbed 89 percent last year, even as overall profits in the chemical fiber manufacturing industry fell 4.5 percent. In addition, the biomass power generation industry recorded profit growth of 48 percent, 34 percentage points higher than the overall growth rate of the power industry, Yu added.

Despite the improvement, changes in the external environment and the growing pains associated with industrial transformation mean some enterprises continue to face operational difficulties. In the next stage, China should further promote deeper integration between technological innovation and industrial innovation, continue to optimize the industrial structure, and drive sustained improvements in industrial enterprise profitability, Yu said.

Editors: Dou Shicong, Emmi Laine