China Industrial Profits Return to Growth in 2025

Profits at China’s industrial firms rose 0.6% to CNY 7.40 trillion in 2025, marking the first annual increase since 2021. Foreign-invested enterprises, including those funded by Hong Kong, Macao, and Taiwan, recorded profits of CNY 1.74 trillion, up 4.2% year on year. Private enterprises posted profits of CNY 2.28 trillion, unchanged from the previous year. In contrast, state-owned holding enterprises saw profits fall 3.9% to CNY 2.06 trillion, while joint-stock enterprises reported a slight decline of 0.1%, with total profits reaching CNY 5.54 trillion. By sector, manufacturing profits rose 5.0% to CNY 5.69 trillion, while the electricity, heat, gas, and water production and supply sector saw profits increase 9.4% to CNY 872.12 billion. Meanwhile, profits in the mining industry fell sharply by 26.2% to CNY 834.51 billion.

Profits at China’s industrial firms edged up 0.1% yoy to CNY 6.63 trillion in January–November 2025, notably easing from a 1.9% increase in the first ten months but still marking a fourth consecutive gain since August. The sharp slowdown underscored weakening year-end demand and persistent cost pressures. State-owned enterprises saw profits slip (-1.6% vs flat previously), while private firms inched lower (-0.1% vs 0.9%). Foreign-invested firms, including those backed by Hong Kong, Macao, and Taiwan, also lost momentum (2.4% vs 3.5%). By sector, computers and communications (15.0%), utilities (11.8%), non-ferrous smelting (11.1%), autos (7.5%), agriculture (4.8%), general manufacturing (4.8%), special equipment (4.6%), and electrical machinery (4.2%) led gains. Losses were steep in coal mining (-47.3%), oil and gas (-13.6%), textiles (-8.2%), and chemicals (-6.9%), though fuel processing narrowed declines. In November alone, profits fell 13.1% yoy, deepening from October’s 5.5% drop.

Profits at China’s industrial firms rose 1.9% yoy to CNY 5.95 trillion in the first ten months of 2025, easing from a 3.2% growth in the prior period as demand softened and pricing pressures persisted. Private-sector earnings weakened sharply (1.9% vs 5.1% in Jan–September), while state-owned enterprises were broadly flat after the prior 0.3% decline. By industry, profits grew for non-ferrous metal smelting (14.0%), electricity and heat production (13.1%), computers and communications (12.8%), agriculture (8.5%), electrical machinery (7.0%), general manufacturing (6.2%), special equipment (5.0%), and auto (4.4%). In contrast, profits fell sharply in coal mining (-49.2%), oil and gas (-12.5%), textiles (-6.1%), and chemicals (-5.4%). Simultaneously, ferrous metal smelting shifted to profit while fuel processing cut losses. In October alone, profits dropped 5.5% yoy, reversing a 21.6% jump in September and marking the first fall in three months.