Profit growth of major Chinese industrial companies slowed during January-April this year, weighed down by the resurgence of domestic COVID-19 cases, according to official statistics, which showed firms with annual main business revenue of at least 20 million yuan ($2.97 million) saw profits grow by 3.5 per cent year on year during the period.
Profit growth, however, was 8.5 per cent in the first three months, said the National Bureau of Statistics (NBS).
The combined profits of those firms hit nearly 2.66 trillion yuan in the first four months, official data showed.
During the period, 19 out of 41 industries saw a year-on-year expansion in their profits. However, 20 industries registered declines.
In the January-April period, profits of the mining industry continued to maintain rapid growth, rising 1.46 times year on year, while the manufacturing sector saw profits down by 8.3 per cent, compared with a 2.1 per cent decline registered in the first quarter.
“The resurgence of COVID-19 cases and global uncertainties dragged down profits of industrial companies in April,” said Zhu Hong, a senior statistician with the NBS.
“However, their performance will recover gradually as the Omicron outbreak stabilizes, factories and companies are resuming production in an orderly manner, and measures to relieve enterprises’ burdens are showing effect,” Zhu added.