China's major enterprises report steady growth in profits in April

Profits made by China's major industrial companies edged up in April, with those high-tech manufacturers posting very strong gains, which underscores the Chinese economy’s resilience and ongoing structural upgrade, latest data from the National Bureau of Statistics revealed on Tuesday.

Net profits of major enterprises above the designated size rose by 3.0 percent year-on-year in April, up by 0.4 percentage points from March, while the January-April period saw a 1.4 percent profit increase, 0.6 percentage points faster than in the first quarter. Among 41 major industrial sectors, 23 reported profit growth, and nearly 60 percent of them reported improving income.

The high-tech manufacturing sector has emerged as a leading driver of growth, with their profits surging 9.0 percent in the first four months, accelerating by 5.5 percentage points from the first quarter and outpacing the average manufacturers.

Key growth areas included bio-medicine, aircraft manufacturing, and semiconductor equipment production. The "AI Plus" initiative and the across-the-board digital transformation in the country have helped drive robust growth.

The semiconductor special equipment manufacturing sector saw a remarkable 105.1 percent surge, while electronic circuits making and integrated circuit manufacturing registered notable increases of 43.1 percent and 42.2 percent

Meanwhile, the smart automotive equipment manufacturing witnessed an astonishing 177.4 percent profit spike. The drone manufacturing achieved a significant 167.9 percent profit leap, and the wearables manufacturing posted an impressive 80.9 percent profit increase.

The equipment manufacturing sector also performed strongly, with profits up 11.2 percent in the first four months of this year, contributing significantly to overall industrial growth. 

Government policies, including a large-scale equipment upgrading and the consumer trade-in program further backed up economic growth. Specialized and general equipment manufacturing profits rose 13.2 percent and 11.7 percent, while home appliance sectors expanded over 15 percent due to policy stimulus.

"In general, the steady recovery of industrial profits of major enterprises from January to April demonstrates strong resilience and shock-absorbing capacity," said Yu Weining, an NBS statistician, in a press release.

"Given the uncertainties in the external environment and domestic constraints like insufficient demand, in the coming months, we need to promote integrated development of scientific and industrial innovation, optimize and adjust industrial structure, accelerate the transformation and upgrading of traditional industries, while cultivating and strengthening emerging industries," Yu said.