(Yicai Global) May 27 -- Profits at China’s industrial firms soared 106 percent in the first four months of this year on increasing demand for manufactured goods. But rising commodity prices will have an impact on future earnings, the National Bureau of Statistics cautioned.

Profits at manufacturers with annual revenue of more than CNY20 million (USD3.14 million) climbed to CNY2.59 trillion (USD406.125 billion) in the four months ended April 30, according to figures the NBS published today. Compared with the same period of 2019, the gain was 49.6 percent.

Since the beginning of 2021, earnings have been growing quickly due to a continued pickup in demand and improved production and operation, the NBS said.

From January to April, state-owned enterprises logged CNY838.07 billion (USD131.24 billion) in profit, an increase of 108 percent from a year ago. Joint stock companies and businesses funded by investors from abroad or from Hong Kong, Macao and Taiwan had profits of CNY725.02 billion, up 107 percent, while private businesses reported a 69 percent leap to CNY767.27 billion.

Profits in the non-ferrous and ferrous metal smelting and processing fields have more than quadrupled as a result of higher commodity prices.

Earnings at automakers surged 158 percent, while those in the oil and natural gas sector rose 119 percent. Oil, coal and other energy producers returned to profit in the period, according to the NBS.

The bureau also pointed out that due to the overseas pandemic and a complicated international environment, the basis of China’s industrial recovery is not yet solid. Earnings at some consumer goods makers, in particular, have not yet returned to pre-Covid levels.

Coupled with increasing commodity prices, pressure on mid- and downstream firms has intensified significantly, it said. China will work to ensure the supply of commodities and keep prices stable, so as to promote sustained and healthy development of the industrial economy, the NBS added.

Editor: Peter Thomas