Abstract On July 27th, the National Bureau of Statistics released the profit data of industrial enterprises above designated size in the first half of 2018. In this regard, Dr. He Ping from the Industrial Division of the National Bureau of Statistics conducted an interpretation. He Ping said that in the first half of the year, China's industrial profits have achieved rapid growth, and the supply-side structural reforms have achieved remarkable results.

On July 27, the National Bureau of Statistics released the profit data of industrial enterprises above designated size in the first half of 2018. In this regard, Dr. He Ping from the Industrial Division of the National Bureau of Statistics conducted an interpretation. He Ping said that in the first half of the year, China's industrial profits achieved rapid growth, the supply-side structural reforms achieved remarkable results, and the overall benefits of industrial enterprises improved. Among them, the new profits are mainly from industries such as steel, building materials and oil exploration. He Ping believes that although the growth rate of industrial production in June has declined from May, the price increase has obviously supported the growth of profits.

According to the financial data of industrial enterprises released by the National Bureau of Statistics, in the first half of this year, the profits of industrial enterprises above designated size increased by 17.2% year-on-year, and the growth rate was 0.7 percentage points higher than that in January-May. Among them, the profit in June increased by 20%, and the growth rate dropped by 1.1 percentage points from May.

First, the supply side structural reforms have achieved remarkable results

First, the cost continues to decline. In the first half of the year, the cost and expenses of the main business income per 100 yuan of industrial enterprises above designated size were 92.57 yuan, down 0.4 yuan year-on-year; among them, the cost per 100 yuan of main business income was 84.42 yuan, down 0.37 yuan year-on-year. Second, the leverage ratio continues to decrease. At the end of June, the asset-liability ratio of industrial enterprises above designated size was 56.6%, down 0.4 percentage points year-on-year. Among them, the asset-liability ratio of state-owned holding companies was 59.6%, down 1.2 percentage points year-on-year, and the effect of de-leveraging by state-owned enterprises was more obvious.

Second, the overall improvement of the efficiency of industrial enterprises

First, profitability has increased significantly. In the first half of the year, the profit margin of the main business of industrial enterprises above designated size was 6.51%, an increase of 0.41 percentage points year-on-year. Second, the turnover of finished goods inventory accelerated. At the end of June, the inventory turnover days of finished products of industrial enterprises above designated size were 16.4 days, a decrease of 0.1 days compared with the same period of last year.

Third, the new profits mainly come from industries such as steel, building materials and oil exploitation.

In the first half of the year, the industries with more new profits were mainly: oil and natural gas mining, profits increased by 3.1 times; ferrous metal smelting and rolling processing industries increased by 1.1 times; non-metallic mineral products industry, increased by 44.1%; chemical raw materials and chemicals Product manufacturing, an increase of 29.4%; electricity, heat production and supply, an increase of 27.4%. The contribution of these five industries to the profit growth of all industrial enterprises above designated size is 67%.

Fourth, the price increase boosted the rapid growth of profits in June

Although the growth rate of industrial production in June was lower than that in May, the price increase has obviously supported the growth of profits. In June, the ex-factory price of industrial producers rose by 4.7% year-on-year, an increase of 0.6 percentage points over May. The purchase price of industrial producers rose by 5.1% year-on-year, and the growth rate was 0.8 percentage points higher than that in May. According to estimates, the price change in June boosted profit growth by 0.3 percentage points over May.

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