BEIJING: Profits earned by Chinese industrial companies in November fell 1.4 percent from a year earlier, marking a sixth consecutive month of decline, data from the statistics bureau showed on Sunday.
Industrial profits – which cover large enterprises with annual revenue of more than 20 million yuan from their main operations – fell 1.9 percent in the first 11 months of the year compared with the same period a year earlier, the National Bureau of Statistics said on its website.
The November profits of industrial firms have seen some improvement from the previous month. In October, profits fell 4.6 percent from a year earlier.
The NBS said investment returns for industrial companies in November increased from a year earlier by 9.25 billion yuan ($1.43 billion).
The jump in November profits from the auto manufacturing and electricity sectors, up 35 percent and 51 percent from a year earlier, respectively, helped narrow overall declines, the statistics bureau said.
Mining was still the laggard sector, with profits falling 56.5 percent in the first 11 months of the year from a year earlier, the NBS data showed.
Aluminium producer China Hongqiao Group said in early December it would cut annual capacity by 250,000 tonnes immediately to curb supplies.
China’s top leader last week outlined main economic targets for next year after they held the annual Central Economic Work Conference, where it said the government will push forward “supply-side reform” to help generate new growth engines in the world’s second-largest economy while tackling factory overcapacity and property inventories.
Chinese firms are combating high debt levels, and a growing number of companies have struggled to make bond payments on time this year. The heavy industry, construction and mining sectors remain under severe pressure from slowing demand and falling prices.