On March 27, the National Bureau of Statistics released profit data for industrial enterprises above a designated size for the January-February period. Specifically, profits of these enterprises increased by 15.2% year-on-year, accelerating by 14.6 percentage points compared to the full-year growth rate of the previous year.
Notably, significant profit surges were observed in industries such as nonferrous metals, chemicals, and semiconductors during the first two months of the year. The reasons behind these increases and their sustainability have drawn attention.
Price and cost changes have had a major impact. According to the data, the nonferrous metals industry saw profits rise by 148.2%, with aluminum rolling processing, nonferrous metal alloy manufacturing, and copper rolling processing increasing by 264.0%, 205.1%, and 50.8%, respectively. The chemical industry’s profits grew by 35.9%, driven by inorganic salt manufacturing, inorganic acid manufacturing, and organic fertilizer and microbial fertilizer manufacturing, which increased by 518.5%, 306.3%, and 38.5%, respectively.
In terms of industrial relevance, aluminum rolling products are primarily used in lightweighting for new energy vehicles, photovoltaic frames, construction profiles, and power cables. Copper rolling supports power infrastructure, AI data centers, new energy electric drive systems, and consumer electronics. Nonferrous metal alloys are linked to aerospace, military, and high-end equipment manufacturing. In the chemical sector, inorganic salts are key raw materials for glass, photovoltaics, and lithium batteries; inorganic acids are widely used in metal smelting, fertilizer production, and semiconductor cleaning; organic and microbial fertilizers serve green agriculture and soil improvement.
The drivers of profit growth differ between the two sectors. The surge in nonferrous metals profits is largely price-driven, with aluminum and copper prices rising significantly due to supply constraints and emerging demand from new energy and AI sectors. The chemical industry, however, benefits from a low base effect and cost improvements, as lower coal and crude oil prices have eased cost pressures, while production cuts and capacity rationalization have helped restore profit margins. Overall, order volume contributed relatively little to profit growth, with price and cost changes being the core drivers.
The profit structure of industrial enterprises continues to optimize, with the equipment manufacturing sector playing a stabilizing role. In January-February, revenue from equipment manufacturing above the designated size grew by 8.9% year-on-year, 3.6 percentage points higher than the overall industrial average. This rapid revenue growth drove a 23.5% increase in profits for the sector, accelerating by 15.8 percentage points from the previous year. The equipment manufacturing sector accounted for 30.4% of total industrial profits, up 2.0 percentage points year-on-year, indicating continued structural improvement.
Among sub-sectors, five out of eight equipment manufacturing industries saw profit growth, with electronics, railway/ship/aerospace, and electrical machinery growing by 203.5%, 11.4%, and 6.2%, respectively.
High-tech manufacturing also showed strong growth, with profits up 58.7% year-on-year, accelerating by 45.4 percentage points from the previous year. This sector contributed 7.9 percentage points to the overall industrial profit growth, an increase of 5.5 percentage points from the full-year figure. Smart product manufacturing performed well, with profits in smart unmanned aircraft, smart vehicle equipment, and other smart consumer device manufacturing rising by 59.3%, 50.0%, and 31.3%, respectively. The semiconductor industry’s rapid development boosted profits in related segments, with semiconductor discrete device, optoelectronic device, and electronic circuit manufacturing growing by 130.5%, 56.1%, and 19.5%, respectively.
The significant profit growth in electronics and semiconductor discrete device manufacturing, which increased by 203.5% and 130.5% respectively, is attributed to a low base effect from the previous year’s inventory reduction and weak demand cycle, as well as strong demand from AI servers, high-performance computing, and automotive electronics. Price increases for certain products also contributed to profit growth.
Regarding sustainability, while growth rates may fluctuate due to base effects, the overall positive trend remains intact. With continued advances in smart transformation and energy electronics, the semiconductor industry has gradually emerged from its downturn and entered a new upward cycle. Future growth will be driven more by technological innovation and structural opportunities in downstream applications rather than mere base effects, supporting a stable and positive outlook.
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