Chinese industrial businesses registered a 3.3% increase in its profits. According to reports, the profits of Chinese industrial business reached 6.47 trillion yuan or $1.05 trillion in 2014. In spite of registering an increase in profit, the rate of overall growth of industry was 8.9% lower than what it had registered in 2013, as said by the National Bureau of Statistics. Companies with more than 20 million yuan annual revenue were considered for the calculation by the bureau.
In the last quarter of 2014 the combined profits of these companies fell by 8 percent to 850.73 billion yuan, compared to the previous year. The figures widened the 4.2 percent decline that was registered in the November same year.
This decrease in combined profits came as a result of the slow growth rate of the overall industrial output that dropped to a five year low in 2014. Policymakers in China are concerned about this decline in combined profits and they are keen to implement progressive measures to stimulate growth and revive the lost share of market. The policymakers are further aiming for a considerable reduction of their spending.
He Ping, the NBS statistician pointed out that reasons such as rising cost of products and decline in oil and coal industry profits have attributed to the lower profit percentage recorded in the last quarter of 2014. There are a total of forty one industry categories that were considered during the calculation of yearly industrial profits, out of which twenty eight reported year on year increase in profit, while eleven industries including oil and natural gas saw their profits decline. Among these eleven industries, mining industry registered a major drop of 23 percent in their profit while raw materials experienced a 1.4 percent drop. Consumer goods industry on the other hand reported a 5 percent increase in their profit.