China's rubber and plastic products industry achieved a profit of 41 billion yuan in the first quarter of 2016

In the first quarter, China's manufacturing industry's main business income was 2,216.08 billion yuan, a year-on-year increase of 3.5%; the total profit was 1,199.9 billion yuan, a substantial increase of 14.6%.

In the first quarter, among the 41 major industrial sectors, the total profit of 31 industries increased year-on-year, and 10 industries decreased year-on-year.

In the first quarter, the revenue from the business of rubber and plastic products was RMB 696.99 billion, a year-on-year increase of 5.9%; the profit was RMB 41.02 billion, a year-on-year increase of 13.6%.

In the first quarter, the main business income of chemical raw materials and chemical products manufacturing was 1,896.29 billion yuan, a year-on-year increase of 3.8%; the profit was 1,014.4, a year-on-year increase of 20.8%.

In the first quarter, the main business income of the automobile manufacturing industry was 1,772.58 billion yuan, a year-on-year increase of 9.2%; the profit was 144.75 billion yuan, an increase of 8.6%.

In the first quarter, the main business income of computer, communications and other electronic equipment manufacturing industry was 203.52 billion yuan, a year-on-year increase of 4.3%; the profit was 90.32 billion yuan, a year-on-year increase of 35.9%.

In the first quarter, the main business income of the pharmaceutical manufacturing industry was 610.03 billion yuan, a year-on-year increase of 10.1%; the profit was 63.26 billion yuan, a year-on-year increase of 14.2%.

In the first quarter, the revenue from the comprehensive utilization of abandoned resources was 81.13 billion yuan, a year-on-year increase of 6.7%; the profit was 3.33 billion yuan, a year-on-year increase of 29.6%.

Expert interpretation:

Dr. He Ping from the Industry Department of the National Bureau of Statistics explained that in the first quarter of 2016, the total profit of industrial enterprises above designated size increased by 7.4% year-on-year. Among them, the profit in March increased by 11.1%, an increase of 6.3 percentage points over the first two months. The growth of profits of Chinese industrial enterprises has accelerated, mainly for the following reasons:

First, the growth of industrial product sales accelerated. In March, the revenue from the main business of industrial enterprises above designated size increased by 4.6% year-on-year, an increase of 3.6 percentage points over the first two months of the year, which is the month in which the growth of main business income in the month has accelerated the most.

Second, the decline in product prices has narrowed. In March, the ex-factory price of industrial producers fell by 4.3% year-on-year, which was 0.8 percentage points lower than that in January-February; the purchase price fell by 5.2% year-on-year, and the decline was 0.8 percentage points lower than that in January-February. According to preliminary calculations, only the decline in the ex-factory price and purchase price of industrial producers has narrowed, and the year-on-year decrease in profits of industrial enterprises has decreased by 107.6 billion yuan from January to February.

Third, the effect of reducing costs and reducing costs is further manifested. Benefiting from the gradual implementation of a series of cost-reducing and efficiency-enhancing policies, the cost of enterprise growth is lower than that of the main business, and the decline in financial expenses continues to expand. In March, the cost of main business of industrial enterprises above designated size increased by 4% year-on-year, and the growth rate was 0.6 percentage points lower than that of the main business. Financial expenses decreased by 3.9% year-on-year, and the decrease was 1 percentage point higher than that in January and February.

4. Investment income and non-operating net income have a significant impact on profit growth. In March, investment income of industrial enterprises above designated size increased by 20.4% year-on-year, while it decreased by 3% in January-February; net income outside operations increased by 68.3%, an increase of 28.8 percentage points over the first two months. Of the new industrial profits in March, 30.5% came from the increase in investment income and non-operating net income.

In March, China's industrial profit growth rate rebounded, both economically and economically, with imbalance, instability and recovery.

First, new profits are concentrated in a few industries. In March, the five most profitable computer communications and other electronic equipment manufacturing, chemical raw materials and chemical manufacturing, automobile manufacturing, petroleum processing coking and nuclear fuel processing industries, and pharmaceutical manufacturing industries added a total of 50.38 billion new profits. Yuan, accounting for 88.8% of all industrial added profits.

Second, non-main activities such as investment income and non-operating net income have obvious impact on increasing profits, and are not stable and sustainable.

Third, the base of the same period is low. In March 2015, industrial enterprises' profits fell by 0.4%, and the average growth rate for two years was only 5.2%. In addition, historically, profit growth tends to be more volatile than production and income. Profit is the result of a combination of factors such as income, cost and other factors. Small changes and differences in income and cost often lead to large fluctuations in profit growth.