Core Viewpoint - The industrial enterprises' revenue shows a "bottoming out" characteristic, with a slight year-on-year growth of 0.9% in July, remaining stable compared to previous months [6][7]. Revenue and Profit Performance - In the first seven months, the cumulative year-on-year revenue growth for industrial enterprises was 2.3%, slightly lower than the 2.5% in the first half of the year [6][7]. - The profit performance was slightly better than revenue, with July's profit total showing a year-on-year decline of 1.5%, an improvement from the previous month's decline of 4.3% [6][8]. - Cumulative profit for the first seven months was down 1.7%, consistent with the first half's decline of 1.8% [8]. Data Breakdown - The "volume" shows volatility, with industrial added value growth peaking at the end of quarters; the "price" has slowed down, with PPI at a low for the year in June and July; profit margins improved significantly in July, driven by a decrease in costs [10][11]. - From January to July, the cost per hundred yuan of revenue increased by 0.24 yuan, lower than the 0.26 yuan increase in the first half of the year [10]. Industry Profit Trends - In the first seven months, industries with positive profit growth were concentrated in four areas: certain mining and raw materials sectors, midstream equipment manufacturing, essential consumer goods, and some public utilities [14][15]. - The largest profit declines were seen in mining (coal and black mining), petrochemical, textile and apparel, and light manufacturing sectors [16]. Marginal Changes in July - "Anti-involution" led to profit improvements in some upstream industries, with raw material manufacturing profits rebounding from a decline of 5% in June to a growth of 36.9% in July [17][18]. - Consumer goods manufacturing also saw a recovery, with July's profit decline narrowing to 1.7% from 4.7% in June [17]. - Midstream manufacturing, benefiting from policy incentives and industrial upgrades, maintained rapid profit growth, with computer communication electronics and transportation equipment growing by 30% and 24.8% year-on-year, respectively [17]. Inventory and Debt Levels - By the end of July, nominal and actual inventories showed significant reduction, with finished goods inventory growth at 2.4%, down 0.7 percentage points from June [20]. - The asset-liability ratio for industrial enterprises remained stable at 57.9%, with a slight year-on-year increase of 0.2 percentage points [22]. Quarterly Outlook - The profit growth rate for industrial enterprises in the third quarter is expected to be better than in the second quarter, with potential for cumulative profit growth to turn slightly positive by the end of the third quarter [25].

Core Insights - The industrial economy in China is showing signs of stabilization and recovery, with a reported revenue of 78.07 trillion yuan for large-scale industrial enterprises from January to July, marking a year-on-year growth of 2.3% [2][3] - Despite a slight decrease in profit margin, high-tech manufacturing sectors have demonstrated significant profit growth, particularly in July, where profits surged by 18.9% compared to June [2][3] Revenue Growth - From January to July, large-scale industrial enterprises achieved a total profit of 40,203.5 billion yuan, reflecting a year-on-year decline of 1.7%, although the decline has narrowed by 0.1 percentage points compared to the first half of the year [3] - In July, the revenue growth rate was 0.9%, maintaining a continuous growth trend for seven months, which supports the recovery of corporate profits [2][3] Sector Performance - The mining sector reported a profit of 4,930.9 billion yuan, down 31.6% year-on-year, while the manufacturing sector saw profits of 30,235.8 billion yuan, an increase of 4.8% [3] - High-tech manufacturing has been particularly strong, with notable profit increases in aerospace manufacturing (40.9%) and integrated circuit manufacturing (176.1%) in July [3] Policy Impact - The "Two New" policies, which include large-scale equipment updates and consumer goods replacement incentives, have emerged as new drivers for industrial growth [5][6] - The equipment update policy has led to significant profit increases in specific sectors, such as electronic and electrical machinery (87.9%) and computer manufacturing (124.2%) [5][6] Financial Health - As of the end of July, the total assets of large-scale industrial enterprises reached 183.67 trillion yuan, a year-on-year increase of 4.9%, while total liabilities were 106.26 trillion yuan, up 5.1% [6] - The asset-liability ratio stands at 57.9%, reflecting a slight increase of 0.2 percentage points year-on-year, indicating a stable financial position [6] Future Outlook - Despite signs of recovery, challenges such as complex external environments and insufficient domestic demand remain, necessitating continued policy support and flexibility to bolster industrial economic foundations [7]

民生银行宏观经济研究团队指出，从量、价、利润率三要素看，利润率降幅收窄，带动企业盈利水平持 续恢复。展望下一阶段，随着极端天气的短期扰动消退，供需两侧逐步回归常态，叠加政策发力和"反 内卷"治理持续推进，预计工业企业利润将延续温和修复态势。 银河证券宏观研究团队认为，7月企业利润延续了6月反映的结构性修复信号，在外部环境改善和内部政 策加力的背景下，部分行业企业利润出现改善。从量、价、利润率三要素来看，7月生产的韧性是带动 企业利润降幅收窄的主要动能，同时PPI和利润率边际改善促进利润回升。 前7月黑色金属冶炼和压延加工业利润同比增长近52倍 值得注意的是，1-7月份，黑色金属冶炼和压延加工业企业利润同比增长5175.4%，近52倍，达到643.6 亿元，该增速位列所有行业利润同比增速第一名。 今年上半年，面对外部冲击影响加大、内部困难挑战叠加的复杂局面，我国统筹国内经济工作和国际经 贸斗争，有效实施更加积极有为的宏观政策，国民经济顶住压力、迎难而上，经济运行总体平稳、稳中 向好，原料价格下降带动成本下滑，且在抢出口效应带动下，钢铁行业利润持续好转。 1-6月份，黑色金属冶炼和压延加工业利润总额462.8亿元 ...

Group 1: Industrial Profit Trends - In the first seven months of 2025, the total profit of industrial enterprises reached CNY 40,203.5 billion, a year-on-year decline of 1.7%, with the decline rate narrowing compared to the first half of the year[2] - In July 2025, the profit of industrial enterprises decreased by 1.5% year-on-year, a reduction of 2.8 percentage points from June[2] - The profit margin for industrial enterprises from January to July 2025 was 5.15%, unchanged from June but down 0.21 percentage points from the same period last year[2] Group 2: Price and Demand Dynamics - The Producer Price Index (PPI) for industrial products in July 2025 fell by 3.6% year-on-year and 0.2% month-on-month, indicating low prices that significantly drag down industrial profit growth[2] - Effective demand still has considerable room for improvement, which is crucial for sustaining profit recovery in industrial enterprises[3] Group 3: Policy Impact and Sector Performance - The "Two New" policies continue to support profit recovery, with significant profit growth in sectors like electronic and electrical machinery, which saw increases of 87.9% and 15.3% respectively in July[3] - High-tech manufacturing profits turned from a decline of 0.9% in June to a growth of 18.9% in July, contributing positively to overall industrial profit growth[3] Group 4: Inventory and Market Conditions - As of the end of July 2025, the inventory of finished products in large-scale industrial enterprises increased by 2.4% year-on-year, indicating a high inventory level that requires demand to strengthen for effective destocking[7] - The current inventory-to-sales ratio remains high, suggesting that while there is a willingness to destock, the pace of demand recovery is gradual, leading to potential fluctuations in inventory levels[7]

Core Viewpoint - The profit decline of industrial enterprises has narrowed for two consecutive months, indicating a gradual recovery in corporate profitability driven by stable industrial production and effective policy implementation [1][2]. Group 1: Industrial Profit Trends - In July, the revenue of large-scale industrial enterprises increased by 0.9% year-on-year, while the profit declined by 1.5%, a reduction of 2.8 percentage points compared to June [1]. - The gross profit margin improved, with July's gross profit shifting from a 1.3% decline in June to a 0.1% increase [1]. - The profit decline for the first seven months of the year was reduced by 0.1 percentage points compared to the first half of the year [1]. Group 2: Manufacturing Sector Performance - Manufacturing profits grew by 6.8% year-on-year in July, accelerating by 5.4 percentage points from June, contributing significantly to the overall industrial profit recovery [2]. - The raw materials manufacturing sector saw a profit turnaround, with a 36.9% increase in July, while the consumer goods manufacturing sector experienced a 4.7% decline, narrowing by 3.0 percentage points from June [2]. - High-tech manufacturing profits surged by 18.9% in July, with notable growth in aerospace (40.9%) and semiconductor-related industries, which saw profits increase by 176.1%, 104.5%, and 27.1% respectively [2]. Group 3: Policy Impact and Small Enterprises - The "Two New" policies have shown significant results, with industries such as electronic equipment manufacturing and food production seeing profit increases of 87.9% and 11.3% respectively in July [3]. - Small and medium-sized enterprises showed marked improvement, with profits rising by 1.8% and 0.5% respectively, while private enterprises outperformed the national average with a 2.6% profit increase [3]. Group 4: Future Outlook - The industrial sector faces uncertainties due to external factors and insufficient domestic demand, necessitating the implementation of stable and flexible policies to enhance domestic demand and drive innovation [4].

Core Insights - In July, industrial production in China showed stable growth, contributing to a reasonable recovery in price levels and continuous improvement in corporate profitability [1] Group 1: Industrial Performance - In July, the revenue of large-scale industrial enterprises increased by 0.9% year-on-year, while the revenue for the first seven months grew by 2.3%, creating favorable conditions for profit recovery [1] - The profit of large-scale industrial enterprises decreased by 1.5% year-on-year in July, but the decline narrowed by 2.8 percentage points compared to June, marking two consecutive months of narrowing [1] - The gross profit margin improved, with July's gross profit turning from a 1.3% decline in June to a 0.1% increase [1] Group 2: Manufacturing Sector - Manufacturing profits grew significantly, with a year-on-year increase of 6.8% in July, accelerating by 5.4 percentage points compared to June [2] - The raw material manufacturing sector saw profits rebound from a 5.0% decline in June to a 36.9% increase in July, with the steel and petroleum processing industries turning profitable [2] Group 3: High-Tech Manufacturing - High-tech manufacturing profits surged by 18.9% in July, reversing a 0.9% decline in June, significantly contributing to overall industrial profit growth [2] - The aerospace sector experienced a profit increase of 40.9%, while semiconductor-related industries saw profits rise by 176.1%, 104.5%, and 27.1% respectively [2] Group 4: Policy Impact - The "Two New" policies have shown significant results, driving rapid profit growth in various sectors, including electronic and electrical machinery, which saw profits increase by 87.9% [3] - The consumption upgrade policy led to substantial profit increases in computer manufacturing and smart drone production, with growth rates of 124.2% and 100.0% respectively [3] Group 5: Small and Medium Enterprises - Profits for medium and small enterprises improved, with July profits turning from declines of 7.8% and 9.7% in June to increases of 1.8% and 0.5% respectively [3] - Private enterprises reported a profit growth of 2.6%, exceeding the average growth rate of all large-scale industrial enterprises by 4.1 percentage points [3] Group 6: Future Outlook - The industrial sector faces uncertainties due to external factors and insufficient domestic demand, necessitating the implementation of stable and flexible policies to enhance domestic demand and drive innovation [4]

Core Insights - In July, the industrial production of large-scale enterprises maintained stable growth, leading to a gradual recovery in profit levels due to the implementation of policies aimed at reasonable price level recovery [1] Group 1: Industrial Performance - In July, the operating income of large-scale industrial enterprises increased by 0.9% year-on-year, while the profit decreased by 1.5%, a reduction of 2.8 percentage points compared to June [1] - The gross profit margin improved, with July's gross profit turning from a decline of 1.3% in June to a growth of 0.1% [1] Group 2: Manufacturing Sector - Manufacturing profits grew by 6.8% year-on-year in July, accelerating by 5.4 percentage points compared to June, significantly contributing to the overall profit recovery of large-scale industrial enterprises [2] - The raw material manufacturing sector saw profits shift from a decline of 5.0% in June to a growth of 36.9% in July, with the steel and petroleum processing industries turning profitable [2] Group 3: High-Tech Manufacturing - High-tech manufacturing profits surged by 18.9% in July, reversing a decline of 0.9% in June, and played a leading role in the profit growth of large-scale industrial enterprises [2] - Notable profit increases were observed in the aerospace sector (40.9%) and semiconductor-related industries, with integrated circuit manufacturing profits rising by 176.1% [2] Group 4: Policy Impact - The "Two New" policies have shown significant results, driving rapid profit growth in various sectors, including electronic and electrical machinery manufacturing, which saw a profit increase of 87.9% [3] - The implementation of the old-for-new policy in consumer goods led to substantial profit increases in computer manufacturing (124.2%) and smart drone manufacturing (100.0%) [3] Group 5: Small and Medium Enterprises - Profits for medium and small enterprises improved significantly in July, with medium-sized enterprises seeing a profit increase of 1.8% and small enterprises a growth of 0.5% [3] - Private enterprises reported a profit growth of 2.6%, exceeding the average growth rate of all large-scale industrial enterprises by 4.1 percentage points [3] Group 6: Future Outlook - The industrial sector is expected to face challenges due to external uncertainties and insufficient domestic market demand, necessitating the implementation of stable and flexible policies to enhance domestic demand and drive innovation [4]

Core Insights - In July, profits of large-scale industrial enterprises decreased by 1.5% year-on-year, a reduction of 2.8 percentage points compared to June, marking two consecutive months of narrowing decline [1] - From January to July, total profits of large-scale industrial enterprises reached 40,203.5 billion yuan, down 1.7% year-on-year, with a decline narrowing by 0.1 percentage points compared to the first half of the year [1] - The revenue of large-scale industrial enterprises continued to grow, with a year-on-year increase of 0.9% in July and 2.3% from January to July, creating favorable conditions for profit recovery [1] Industrial Performance - In July, the profits of medium and small enterprises improved significantly, with medium-sized and small enterprises' profits turning from declines of 7.8% and 9.7% in June to increases of 1.8% and 0.5% respectively [2] - Private enterprises saw a profit growth of 2.6% in July, exceeding the national average by 4.1 percentage points [2] - Manufacturing profits grew by 6.8% year-on-year in July, accelerating by 5.4 percentage points compared to June, contributing significantly to the recovery of overall industrial profits [2] High-tech Manufacturing - High-tech manufacturing profits turned from a decline of 0.9% in June to a growth of 18.9% in July, accelerating the overall profit growth of large-scale industrial enterprises by 2.9 percentage points [2] - The "Two New" policies have shown significant effectiveness, driving rapid profit growth in related industries [3] - In July, industries such as electronic and electrical machinery manufacturing, general parts manufacturing, and food and beverage machinery manufacturing saw profit increases of 87.9%, 15.3%, and 11.3% respectively [3]

Core Viewpoint - In July, China's industrial production maintained stable growth, contributing to a reasonable recovery in price levels and continuous improvement in corporate profitability due to the gradual implementation of a series of policies [1]. Group 1: Industrial Revenue and Profit - In July, the revenue of large-scale industrial enterprises increased by 0.9% year-on-year, with a cumulative growth of 2.3% from January to July, indicating sustained revenue growth throughout the year [4]. - The profit decline for large-scale industrial enterprises narrowed by 2.8 percentage points compared to June, marking the second consecutive month of improvement in corporate profitability [4]. Group 2: Manufacturing Sector Performance - In July, manufacturing profits grew by 6.8% year-on-year, accelerating by 5.4 percentage points compared to June, which contributed to an overall increase in profits for large-scale industrial enterprises [8]. - High-tech manufacturing profits rebounded from a 0.9% decline in June to an 18.9% increase in July, further enhancing the profit growth rate for all large-scale industrial enterprises by 2.9 percentage points compared to June [12]. Group 3: Policy Impact and Sector Growth - The "Two New" policies have shown significant effectiveness, continuously driving profit growth in various industries [14]. - In July, industries such as electronic and electrical machinery manufacturing and general component manufacturing saw profits increase by 87.9% and 15.3% year-on-year, respectively. Additionally, profits in computer manufacturing, intelligent unmanned aerial vehicle manufacturing, and household cleaning appliance manufacturing grew by 124.2%, 100.0%, and 29.7% respectively [15]. Group 4: Small and Medium Enterprises - In July, profits for medium and small enterprises within large-scale industries improved significantly, with medium-sized enterprises recovering from a 7.8% decline in June to a 1.8% increase, and small enterprises from a 9.7% decline to a 0.5% increase [18].

Core Insights - In July, profits of large-scale industrial enterprises decreased by 1.5% year-on-year, but the decline narrowed by 2.8 percentage points compared to June, marking two consecutive months of narrowing [1][2] - High-tech manufacturing profits turned from a 0.9% decline in June to an 18.9% increase in July, significantly contributing to the overall profit growth of large-scale industrial enterprises [1][3] Group 1: Industrial Profit Trends - The operating income of large-scale industrial enterprises grew by 0.9% year-on-year in July, with a cumulative growth of 2.3% from January to July, creating favorable conditions for profit recovery [2] - The total profit of large-scale industrial enterprises from January to July was 40,203.5 billion yuan, a year-on-year decrease of 1.7%, with the decline narrowing by 0.1 percentage points compared to the first half of the year [2] - Medium and small enterprises showed significant profit improvement, with profits of medium and small enterprises turning from declines of 7.8% and 9.7% in June to increases of 1.8% and 0.5% in July, respectively [2] Group 2: Manufacturing Sector Performance - Manufacturing profits increased by 6.8% year-on-year in July, accelerating by 5.4 percentage points compared to June, contributing to a 3.6 percentage point increase in overall industrial profits [3] - The raw material manufacturing sector saw profits turn from a 5.0% decline in June to a 36.9% increase in July, with the steel and petroleum processing industries achieving profits of 18.09 billion yuan and 3.46 billion yuan, respectively [3] - High-tech manufacturing profits grew rapidly, with notable increases in the aerospace sector (40.9%) and semiconductor-related industries, including integrated circuit manufacturing (176.1%) and semiconductor device manufacturing (104.5%) [3] Group 3: Policy Impact on Profit Growth - The implementation of the "Two New" policies has led to significant profit growth in related industries, with profits in electronic and electrical machinery manufacturing increasing by 87.9% in July [4] - The "old-for-new" policy for consumer goods has driven profit increases in computer manufacturing (124.2%) and smart drone manufacturing (100.0%) [4] - Related industries such as computer peripheral equipment manufacturing and sensitive components manufacturing also saw profits rise by 57.0% and 51.9%, respectively [4]