Core Insights - In July, the revenue of industrial enterprises above designated size increased by 0.9% year-on-year, while the profit decreased by 1.5%, showing a narrowing decline compared to June [1] - The manufacturing sector saw a profit increase of 6.8% in July, with significant contributions from raw material manufacturing and high-tech manufacturing sectors [2] - The implementation of the "Two New" policies has led to rapid profit growth in related industries, particularly in equipment manufacturing and consumer goods [3] - Small and medium-sized enterprises showed notable profit improvements, with private enterprises outperforming the national average [4] Revenue and Profit Trends - The revenue growth for the first seven months of the year was 2.3%, indicating a favorable condition for profit recovery [1] - The profit decline for the first seven months was reduced by 0.1 percentage points compared to the first half of the year, suggesting a continued improvement in profitability [1] Sector Performance - Raw materials manufacturing profits rebounded from a 5.0% decline in June to a 36.9% increase in July, with steel and petroleum processing industries turning profitable [2] - High-tech manufacturing profits increased by 18.9% in July, contributing significantly to the overall profit growth of industrial enterprises [2] Impact of Policies - The "Two New" policies have shown clear effectiveness, with specific industries like electronic equipment manufacturing experiencing profit growth of 87.9% [3] - The consumer goods sector benefited from trade-in policies, with computer manufacturing profits doubling [3] Small and Medium Enterprises - Medium and small enterprises reported profit growth of 1.8% and 0.5% respectively in July, marking a significant improvement from previous declines [4] - Private enterprises' profits increased by 2.6%, exceeding the average growth rate of all industrial enterprises by 4.1 percentage points [4] Future Outlook - The industrial profit recovery is expected to continue as external uncertainties diminish and market demand stabilizes [4] - Emphasis on policy continuity and innovation is crucial for sustaining industrial economic growth [4]

Profit Trends - From January to July 2025, industrial enterprises achieved a total profit of CNY 40,203.5 billion, a year-on-year decrease of 1.7%[1] - In July, profits decreased by 1.5% year-on-year, a significant improvement from the previous month's decline of 4.3%[1] - The profit margin for January to July was recorded at 5.15%, with a year-on-year decline of 0.25 percentage points, showing a narrowing drop compared to the previous month's 0.26 percentage points[1] Revenue and Production - Total operating revenue for the same period was CNY 78.07 trillion, reflecting a year-on-year growth of 2.3%[1] - The industrial added value in July grew by 5.7% year-on-year, despite a 1.1 percentage point decline in growth rate compared to previous months[1] - Export growth in July was 7.2%, surpassing the ten-year average of 3.6%[1] Cost and Inventory Management - The cost per CNY 100 of operating revenue was CNY 85.57, an increase of CNY 0.24 year-on-year, while expenses decreased by CNY 0.08 to CNY 8.38[1] - Finished goods inventory reached CNY 6.67 trillion, with a year-on-year growth of 2.4%, indicating a slowdown in nominal inventory growth[1] - The raw material inventory index fell to 47.7%, and the finished goods inventory index decreased to 47.4%, indicating a tightening balance in production and sales[1] Sector Performance - High-tech manufacturing saw a profit increase of 18.9% in July, with aerospace and semiconductor sectors leading with growth rates of 40.9% and rapid increases, respectively[2] - Consumer manufacturing sectors, including paper and textiles, showed negative growth, with the automotive manufacturing sector also experiencing a decline after a brief recovery in June[2] - The mining sector was the most significant drag on profits, with a notable decline in profit margins[1]

Core Insights - In July, industrial production maintained stable growth, leading to a reasonable recovery in price levels and continuous improvement in corporate profitability [1] - The revenue of industrial enterprises above designated size increased by 0.9% year-on-year in July, with a cumulative growth of 2.3% from January to July [1] - Although industrial profits are still declining, the rate of decline has narrowed for two consecutive months, with a 1.5% year-on-year decrease in July, which is 2.8 percentage points less than in June [1] Revenue and Profit Trends - The manufacturing sector saw a significant profit increase of 6.8% year-on-year in July, accelerating by 5.4 percentage points compared to June, contributing to the overall improvement in industrial profits [2] - The profits of raw material manufacturing turned from a 5.0% decline in June to a 36.9% increase in July, with notable recoveries in the steel and petroleum processing industries [2] - High-tech manufacturing profits grew by 18.9% in July, reversing a 0.9% decline in June, significantly boosting overall industrial profit growth [3] Small and Medium Enterprises - Profits of small and medium-sized industrial enterprises turned positive in July, with medium-sized and small enterprises experiencing profit growth of 1.8% and 0.5%, respectively [4] - Private enterprises reported a profit growth of 2.6%, exceeding the national average by 4.1 percentage points, indicating a faster recovery in the private sector [4] - The positive turnaround in profits for small and medium enterprises is attributed to effective policy measures, improved business environment, and enhanced financing support [4] Policy Implications - Experts emphasize the need for stable and continuous policy support to further expand domestic demand and promote the transformation and upgrading of traditional industries [4]

Profit Trends - From January to July 2025, industrial enterprises achieved a total profit of CNY 40,203.5 billion, a year-on-year decrease of 1.7%[1] - The operating revenue for the same period was CNY 78.07 trillion, reflecting a year-on-year growth of 2.3%[1] - In July, profits decreased by 1.5% year-on-year, a significant improvement from the previous month's decline of 4.3%[1] Production and Margins - Industrial production showed resilience with a 5.7% year-on-year increase in July's industrial added value, despite a 1.1 percentage point decline from the previous month[1] - The Producer Price Index (PPI) showed marginal improvement, with a year-on-year decline of 3.6% in July, the same as the previous month, but with a reduced month-on-month decline[1] - The profit margin for January to July was recorded at 5.15%, remaining stable compared to the previous value, with a year-on-year decline of 0.25 percentage points[1] Inventory and Costs - As of July, finished goods inventory reached CNY 6.67 trillion, with a year-on-year growth of 2.4%, indicating a slowdown in nominal inventory growth[1] - The cost per CNY 100 of operating revenue was CNY 85.57, an increase of CNY 0.24 year-on-year, while expenses decreased by CNY 0.08 to CNY 8.38[1] Sector Performance - High-tech manufacturing saw a profit increase of 18.9% in July, reversing a 0.9% decline in June, with aerospace manufacturing profits soaring by 40.9%[2] - Consumer manufacturing sectors, such as paper and textiles, experienced negative growth, with the automotive manufacturing sector also seeing a profit decline in July after a recovery in June[2] Future Outlook - Future profit trends will depend on the continuation of domestic demand expansion policies and the effectiveness of "anti-involution" measures in manufacturing[2] - The report highlights the importance of monitoring external demand and geopolitical risks, particularly in the context of US-China trade negotiations[2]

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 - The economic development new momentum index for China in 2024 is projected to be 136.0, reflecting a 14.2% increase from the previous year, indicating strong growth in new industries, new business formats, and new models [1] Group 1: Economic Vitality - The economic vitality index for 2024 is estimated at 130.9, up 14.5% year-on-year, with 27.37 million new business entities established, averaging 24,000 new enterprises daily [2] - High-tech industry investment is expected to grow by 8.0%, outpacing overall investment growth by 4.8 percentage points, with high-tech manufacturing and services increasing by 7.0% and 10.2% respectively [2] - The express delivery sector is projected to handle 175.1 billion packages, generating revenue of 1.4034 trillion yuan, contributing to new consumption growth and economic circulation [2] Group 2: Innovation-Driven Growth - The innovation-driven index for 2024 is forecasted at 138.5, a 13.2% increase from the previous year, with R&D expenditure reaching 3.6 trillion yuan, up 8.3% [3] - Basic research funding is expected to rise to 249.7 billion yuan, a 10.5% increase, with the number of specialized "little giant" enterprises reaching 14,600 [3] - The number of high-value invention patents per 10,000 people is projected to increase by 2.2 to 14, with technology contract transaction value reaching 6.8354 trillion yuan, up 11.2% [3] Group 3: Network Economy - The network economy index is anticipated to reach 142.4 in 2024, reflecting a 16.2% increase, with mobile internet access traffic expected to hit 3,376 billion GB, an 11.6% growth [4] - The number of 5G base stations is projected to reach 4.25 million, accounting for 33.6% of total mobile base stations, an increase of 4.5 percentage points from the previous year [4] - Online retail sales are expected to reach 15.2 trillion yuan, growing by 7.2%, with physical goods online retail sales increasing by 6.5%, outpacing the growth of total social retail sales by 3.0 percentage points [4] Group 4: Continuous Transformation and Upgrading - The transformation and upgrading index for 2024 is projected at 127.8, a 12.5% increase, with the added value of strategic emerging industries continuing to accelerate [5] - High-tech manufacturing value added is expected to grow by 8.9%, outpacing the growth of overall industrial value added by 3.1 percentage points, with its share rising to 16.3% [5] - Non-fossil energy's share of total energy consumption is expected to increase by 1.8 percentage points, with electric vehicle exports surpassing 2 million units and lithium battery exports exceeding 3.9 billion units, setting a historical high [5]

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]