China's industrial profits surge 0.8% in Q1, signaling strong recovery momentum

<article><section data-type="rtext"><img data-alt="A robot plays the piano and interacts with the audience at a robot fair in Shenzhen, South China's Guangdong Province on April 24, 2025. The exhibition aims to showcase the latest achievements of the city and the global robotics industry, in order to promote the intelligent manufacturing capabilities of China's robotics industry to the world. Photo: VCG" src="//img.huanqiucdn.cn/dp/api/files/imageDir/9d09f3e05635a621c0df3dc22b8c1171.jpeg?imageView2/2/w/750" />China's major industrial enterprises achieved a significant turnaround in profitability in the first quarter of 2025, with profits of enterprises above the designated size rebounding from a 3.3 percent decline year-on-year in 2024 to a 0.8 percent increase, official data showed on Sunday. In March alone, profits shifted from a 0.3 percent decline in January-February to a 2.6 percent rise, signaling a notable improvement, according to data released by the National Bureau of Statistics (NBS) on Sunday. In the first quarter, profits of large-scale industrial enterprises continued to recover. Despite a more complex and challenging external environment with rising uncertainties, China's macroeconomic policies have proven effective since the start of the year. New and existing policies have worked together to give the industrial economy a strong start, said NBS statistician Yu Weining in a note. Coordinated policy measures as well as the equipment manufacturing and high-tech manufacturing sectors played a crucial role in driving this positive shift, bolstering the overall quality and efficiency of industrial development, Yu said. In the first quarter, the operating income of industrial enterprises above the designated size rose by 3.4 percent year-on-year, with the growth rate accelerating by 0.6 percentage points compared to the first two months. In March, revenue growth reached 4.2 percent, 1.4 percentage points higher than in the first two months, according to the NBS. Nearly 60 percent of sectors have achieved profit increase during this period. Among the 41 major industrial sectors, 24 industries experienced year-on-year profit growth, and 24 industries saw an acceleration in profit growth, a narrowing of decline, or a shift from loss to profit. The manufacturing sector, in particular, saw its profit grow by 7.6 percent in the first quarter. The equipment manufacturing industry became a key profit driver in the first quarter, seeing a growth of 6.4 percent year-on-year, 1 percentage point faster than in the January-February period. It contributed to overall industrial profit growth by 2 percentage points, up 0.6 percentage points from January to February, according to the NBS. High-tech manufacturing also spearheaded industrial quality growth, reversing a 5.8 percent decline in January-February to post a 3.5 percent profit growth in the first quarter, 2.7 percentage points above the overall average, according to the NBS. In March, it surged 14.3 percent, contributing 2.8 percentage points to monthly industrial profit growth. Aerospace manufacturing profits rose 23.9 percent, while artificial intelligence-related sectors, including smart consumer devices, specialized equipment for the electronics industry, and electronic devices and medical devices also posted strong gains, the NBS said. The industrial profit growth signals improved industrial profitability and strong economic recovery momentum, and this helps stabilize market expectations, boost market confidence, and provide strong support for the sustained and healthy development of the economy, Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, told the Global Times on Sunday. The development of the equipment manufacturing and high-tech manufacturing industries contributes to the optimization and upgrading of the industrial structure, improving the quality and efficiency of the economy, Wang said. As an important pillar of the industrial economy, the development of the equipment manufacturing industry not only enhances the overall level of China's industrial manufacturing but also provides strong support and guarantees for the development of other industries. Moreover, the development of high-tech manufacturing promotes the high-end, intelligent and green development of the manufacturing industry, while facilitating the cultivation and growth of emerging industries, injecting new vitality into economic growth, Wang added. Meanwhile, China's equipment renewal and consumer goods trade-in policies have significantly boosted industrial profits in the first quarter, according to the NBS. Large-scale equipment renewal policies spurred 14.2 percent and 9.5 percent year-on-year profit growth in the special and general equipment sectors. The expanded consumer goods trade-in policy drove 78.8 percent profit growth in wearable devices, 65.8 percent in scooters, and 21.7 percent in kitchen appliances, the NBS data showed. According to this year's Government Work Report, 1.3 trillion yuan ($180.31 billion) of ultra-long special treasury bonds will be issued, 300 billion yuan more than in 2024, while 500 billion yuan of special treasury bonds will be issued to support large state-owned commercial banks in replenishing capital, according to the Xinhua News Agency. These ultra-long special treasury bonds will facilitate the implementation of major national strategies and enhance security capacity in key areas, as well as support a new round of large-scale equipment upgrades and consumer goods trade-in programs.</section></article>

China's major industrial enterprises achieved a significant turnaround in profitability in the first quarter of 2025, with profits of enterprises above the designated size rebounding from a 3.3 percent decline year-on-year in 2024 to a 0.8 percent increase, official data showed on Sunday.

In March alone, profits shifted from a 0.3 percent decline in January-February to a 2.6 percent rise, signaling a notable improvement, according to data released by the National Bureau of Statistics (NBS) on Sunday.

In the first quarter, profits of large-scale industrial enterprises continued to recover. Despite a more complex and challenging external environment with rising uncertainties, China's macroeconomic policies have proven effective since the start of the year. New and existing policies have worked together to give the industrial economy a strong start, said NBS statistician Yu Weining in a note.

Coordinated policy measures as well as the equipment manufacturing and high-tech manufacturing sectors played a crucial role in driving this positive shift, bolstering the overall quality and efficiency of industrial development, Yu said.

In the first quarter, the operating income of industrial enterprises above the designated size rose by 3.4 percent year-on-year, with the growth rate accelerating by 0.6 percentage points compared to the first two months. In March, revenue growth reached 4.2 percent, 1.4 percentage points higher than in the first two months, according to the NBS.

Nearly 60 percent of sectors have achieved profit increase during this period. Among the 41 major industrial sectors, 24 industries experienced year-on-year profit growth, and 24 industries saw an acceleration in profit growth, a narrowing of decline, or a shift from loss to profit. The manufacturing sector, in particular, saw its profit grow by 7.6 percent in the first quarter.

The equipment manufacturing industry became a key profit driver in the first quarter, seeing a growth of 6.4 percent year-on-year, 1 percentage point faster than in the January-February period. It contributed to overall industrial profit growth by 2 percentage points, up 0.6 percentage points from January to February, according to the NBS.

High-tech manufacturing also spearheaded industrial quality growth, reversing a 5.8 percent decline in January-February to post a 3.5 percent profit growth in the first quarter, 2.7 percentage points above the overall average, according to the NBS. In March, it surged 14.3 percent, contributing 2.8 percentage points to monthly industrial profit growth.

Aerospace manufacturing profits rose 23.9 percent, while artificial intelligence-related sectors, including smart consumer devices, specialized equipment for the electronics industry, and electronic devices and medical devices also posted strong gains, the NBS said.

The industrial profit growth signals improved industrial profitability and strong economic recovery momentum, and this helps stabilize market expectations, boost market confidence, and provide strong support for the sustained and healthy development of the economy, Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, told the Global Times on Sunday.

The development of the equipment manufacturing and high-tech manufacturing industries contributes to the optimization and upgrading of the industrial structure, improving the quality and efficiency of the economy, Wang said.

As an important pillar of the industrial economy, the development of the equipment manufacturing industry not only enhances the overall level of China's industrial manufacturing but also provides strong support and guarantees for the development of other industries. Moreover, the development of high-tech manufacturing promotes the high-end, intelligent and green development of the manufacturing industry, while facilitating the cultivation and growth of emerging industries, injecting new vitality into economic growth, Wang added.

Meanwhile, China's equipment renewal and consumer goods trade-in policies have significantly boosted industrial profits in the first quarter, according to the NBS.

Large-scale equipment renewal policies spurred 14.2 percent and 9.5 percent year-on-year profit growth in the special and general equipment sectors. The expanded consumer goods trade-in policy drove 78.8 percent profit growth in wearable devices, 65.8 percent in scooters, and 21.7 percent in kitchen appliances, the NBS data showed.

According to this year's Government Work Report, 1.3 trillion yuan ($180.31 billion) of ultra-long special treasury bonds will be issued, 300 billion yuan more than in 2024, while 500 billion yuan of special treasury bonds will be issued to support large state-owned commercial banks in replenishing capital, according to the Xinhua News Agency.

These ultra-long special treasury bonds will facilitate the implementation of major national strategies and enhance security capacity in key areas, as well as support a new round of large-scale equipment upgrades and consumer goods trade-in programs.

Meanwhile, China's equipment renewal and consumer goods trade-in policies have significantly boosted industrial profits in the first quarter, according to the NBS.