(Yicai Global) Dec. 27 -- Profits of industrial enterprises with annual revenue of more than CNY20 million (USD3 million) rose by 22 percent annually from January to November to reach CNY7 trillion, a deceleration of 1.4 percentage points from January to October, with total profits of these enterprises hitting CNY786 billion, up 15 percent from the same time last year, a slowdown of 10 percentage points from October, data China's statistics bureau released Dec. 27 show.
Despite the slowdown in industrial profits last month, the overall efficiency of industrial enterprises continued up this year, said Dr. He Ping with the industry division of China's National Bureau of Statistics (NBS). Slowing profit growth in November was mainly the outcome of stalling price rises. The production prices of industrial producers climbed by 6 percent last month over the same period last year, a drop of 1.1 percentage points from October. The purchase price of industrial producers went up by 7 percent over the same period last year, a drop of 1.3 percentage points from the previous month. Industrial profits increased by CNY63 billion from a year earlier due to the price changes and about CNY94 billion less than in October, preliminary estimates indicate, which is equal to a 14 percentage-point drop in profit growth.
The costs of industrial enterprises above the designated size fell, while their profit margins rose. From January to November, the expenses of every CNY100 of principal business income of relevant industrial enterprises was CNY93, a drop of CNY0.5 from a year earlier. Profit margins from the main business income of industrial enterprises was 6.4 percent, a rise of 0.54 percentage points on the same period last year.
Corporate leverage slipped, as did business risk. By the end of last month, the asset-liability ratio of these large industrial concerns was 56 percent, down 0.5 percentage point from the same period last year. High-tech manufacturing grew rapidly, and its profitability increased. In the first 11 months, revenue from the main business of the high-tech manufacturing industry went up by 13.4 percent annually, 2 percentage points above that of the industrial average. The income margin from main businesses was 6.7 percent, 0.32 percentage points over the industrial average, for an increase of 0.35 percentage points from a year ago.