In April, China’s various regions and departments accelerated the implementation of more proactive policies, responding vigorously to external challenges. As a result, industrial production achieved rapid growth, driving a faster increase in the profits of industrial enterprises above the designated size. Notably, emerging sectors such as equipment manufacturing and high-tech manufacturing recorded strong profit growth, underscoring the resilience of China’s industrial economy.
Industrial Enterprise Profit Growth Accelerates
From January to April, the profits of industrial enterprises above the designated size increased by 1.4% year-on-year, 0.6 percentage points faster than the growth from January to March, continuing the positive recovery trend. Among 41 major industrial sectors, 23 saw year-on-year profit growth—accounting for nearly 60% of all sectors. In April alone, the profits of these enterprises grew by 3.0% year-on-year, up 0.4 percentage points from March.
Equipment Manufacturing Plays a Leading Role
As the industrial sector continues to optimize and upgrade, the profitability of the equipment manufacturing industry has steadily improved. From January to April, profits in the equipment manufacturing sector rose by 11.2% year-on-year, accelerating by 4.8 percentage points compared to the first quarter. This sector contributed 3.6 percentage points to the overall industrial profit growth, up 1.6 points from the contribution made during January–March, highlighting its leading role.

Among the eight sub-industries within equipment manufacturing, seven achieved double-digit profit growth, and six accelerated compared to the first quarter. For instance, profits in the following sectors grew notably:

Instrumentation: +22.0% (up 6.7 percentage points from Q1)

Electrical machinery: +15.4% (up 7.9 points)

General equipment: +11.7% (up 2.2 points)

Electronics: +11.6% (up 8.4 points)
High-Tech Manufacturing Sees Faster Profit Growth
From January to April, profits in high-tech manufacturing rose by 9.0% year-on-year, an acceleration of 5.5 percentage points over the first quarter and 7.6 points higher than the average across all large industrial enterprises.

With the continued push toward advanced manufacturing, industries such as biological pharmaceuticals and aircraft manufacturing saw profits increase by 24.3% and 27.0%, respectively. As the “AI+” initiative gained momentum, profits surged in sectors like:

Semiconductor equipment manufacturing: +105.1%

Electronic circuit manufacturing: +43.1%

Integrated circuit manufacturing: +42.2%

Smart products are also propelling digital-intelligent transformation, with profits in related fields soaring:

Smart vehicle equipment manufacturing: +177.4%

Unmanned aerial vehicle manufacturing: +167.9%

Wearable smart devices manufacturing: +80.9%

Continued Impact of “Two New” Policies (Editor’s Note:  “Two New” Policies is a government-led trade-in program.)
From January to April, regions and departments made full and effective use of ultra-long-term special treasury bonds to expand and strengthen the “Two New” (new infrastructure and new urbanization) policies. Under the influence of policies supporting large-scale equipment upgrades, profits in special-purpose and general-purpose equipment sectors rose by 13.2% and 11.7% year-on-year, together contributing 0.9 percentage points to overall industrial profit growth.

Sub-industries that experienced particularly rapid profit growth:

Specialized electronic and electrical equipment: +69.8%

General-purpose components manufacturing: +24.7%

Equipment for mining, metallurgy, and construction: +18.3%

The effect of consumer goods renewal policies is also becoming evident. In particular:

Specialized home appliance parts manufacturing: +17.2%

Kitchen appliances: +17.1%

Non-electric home appliances: +15.1%

Summary
Overall, from January to April, industrial enterprises above the designated size saw steady recovery in profits, demonstrating the strong resilience and shock-absorbing capacity of China’s industrial sector. However, it remains important to recognize that the international environment still harbors uncertainties, and domestic constraints such as insufficient demand and falling prices persist. The foundation for sustained recovery in industrial enterprise profitability needs further reinforcement.

In the next stage, it will be crucial to thoroughly implement the decisions and deployments of the CPC Central Committee and the State Council—advancing the integration of technological and industrial innovation, adjusting the industrial structure, accelerating the transformation and upgrading of traditional industries, cultivating and expanding emerging industries, and promoting the sustained and sound recovery of industrial enterprise performance.

Editor: Zhiyu Wang