Core Viewpoint - The industrial enterprises in September showed a significant improvement in both revenue and profit, with a year-on-year revenue growth of 2.7% and profit growth of 21.6%, indicating a positive trend in the industrial sector despite previous fluctuations in earlier months [1][8][9]. Revenue and Profit Growth - In September, the revenue of industrial enterprises increased by 2.7% year-on-year, accelerating by 0.8 percentage points compared to August. The cumulative revenue growth for the first three quarters reached 2.4%, an increase of 0.1 percentage points from the previous value [1][7][8]. - The profit for September saw a year-on-year increase of 21.6%, which is 1.2 percentage points higher than the previous month, marking the second consecutive month of over 20% profit growth. The cumulative profit growth for the first three quarters was 3.2% [1][9][8]. Profit Contribution Analysis - The profit contribution can be broken down into several factors: 1. The industrial added value jumped to a year-on-year growth of 6.5%, driven by export delivery rhythms and policy adjustments [2][11]. 2. The Producer Price Index (PPI) shifted from negative growth to zero growth in August and September, with a narrowing year-on-year decline [2][11]. 3. The profit margin improved, with the revenue profit margin for January to September at 5.26%, a year-on-year increase of 0.04 percentage points, marking the first positive change in profit margin this year [2][11][12]. 4. The improvement in profit margins in August was primarily due to alleviated cost pressures, while in September, it was attributed to a decrease in expenses [2][15]. Industry Performance - The industries leading in profit growth for the first three quarters included non-ferrous metals, essential consumer goods, midstream equipment manufacturing, and public utilities. All eight sectors within equipment manufacturing achieved positive growth [3][18]. - High-growth sub-sectors included smart consumer device manufacturing, electronic component manufacturing, and specialized equipment manufacturing [3][18]. - The industries with the largest profit declines were concentrated in energy and mining, as well as durable and semi-durable consumer goods [3][20]. Marginal Changes in September - The profit improvement in September was influenced by low base effects in sectors like computer communication electronics and automotive, while price recovery in coal, construction materials, and electrical machinery also contributed positively [4][23]. - The nominal inventory of industrial enterprises increased by 2.8% year-on-year by the end of September, while actual inventory growth was slightly lower at 5.1% [5][25][27]. Financial Stability - The asset-liability ratio for industrial enterprises remained stable at 58% as of the end of September, with a slight year-on-year increase of 0.1 percentage points [5][29][30]. - Owner's equity grew by 4.7% year-on-year, reflecting a corresponding increase in profit growth, while liabilities increased by 5.2%, indicating a trend of slowing growth in liabilities since March [5][29][30]. Overall Outlook - The industrial sector's profits have maintained a high year-on-year growth rate of over 20% for two consecutive months, largely supported by base effects and price improvements. The cumulative profit growth for the first three quarters was 3.2%, suggesting a potential end to three consecutive years of negative profit growth [6][30].