Industrial Enterprises Profits up 20.9% in the First Five Months    

According to the National Bureau of Statistics on June 27th, the profits accomplished by the industrial enterprises with the production in 2007 being higher than RMB5.0 million was RMB1 094.4 billion in the first five months of 2008, an increase of 20.9% over the same period of 2007. The growth was 4.4 percentage points higher than the previous two months of 2008 but 21.2 percentage points lower than the growth in the same period of 2007.
   The total tax for these industrial enterprises was RMB788.9 billion in the first five months of 2008, an increase of 26.4% over the same period of 2007. The main-business income was RMB18 376.8 billion, up 29.3% year-on-year.
   In reference to 39 major industrial categories, the profit was 54.3% higher for the oil/gas recovery sector, 97.8% higher for the coal sector, 25.6% higher for the iron/steel sector, 26% higher for the chemical sector, 3.9% higher for the nonferrous metal smelting and calendaring sector, 50.9% higher for the construction material sector, 25.9% higher for the special equipment manufacturing sector, 46.3% higher for the communication and transportation equipment manufacturing sector and 36.5% higher for the telecommunication equipment manufacturing sector. The profit was 74.0% lower in the power sector, 26.8% lower in the chemical fiber sector. The oil processing and coking sector saw a loss of RMB44.3 billion in the past five months of 2008, compared with a net profit of RMB35.2 billion in the same period of 2007.
   Some analysts point out that the price rise of oil products starting from June 20th and the power price starting from July 1st (CCR2008, No. 18) will help increase the profit in these industrial enterprises.