The rise in raw materials affects the profit growth of the Chinese industry .. 122.27 billion dollars in June

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Earnings growth for industrial firms in China slowed for the fourth consecutive month, as higher raw material prices squeezed factory margins, pointing to some weakness in the recovery of the world’s second largest economy.
According to “Reuters”, industrial companies’ profits increased 20 percent year on year in June to 791.8 billion yuan ($122.27 billion), according to data from the National Bureau of Statistics, compared to an increase of 36.4 percent in May.
In the first half of the year, industrial companies’ profits grew 66.9 percent, compared to a sharp decline due to the pandemic a year earlier. Profits increased 45.5 percent in the period from January to June compared to the same period in 2019, before the pandemic.
The Chinese economy grew slightly slower than expected in the second quarter of the year. Officials warn that the recovery is not steady.
The debts of industrial companies increased by 8.5 percent on an annual basis at the end of June, compared to an increase of 8.2 percent at the end of May.
The data covers major industrial companies whose annual revenue from main activities exceeds 20 million yuan.
It is noteworthy that China’s software and information technology sector recorded a strong expansion in revenue and profits in the first half of this year.
The sector’s total software revenue reached 4.42 trillion yuan (about $683.68 billion) in the first six months, up 23.2 percent year on year.
From January to June, companies in the sector generated total profits of nearly 500 billion yuan (about $80 billion), an increase of 13.6 percent over the previous year.
“The growth rate fell 12.3 percentage points from the level recorded in the first quarter due to a higher baseline for the same period of 2020,” the Ministry of Industry and Information Technology said.
Software sector exports reached $24 billion in the first half, up 12.2 percent year on year, while export growth was slightly higher than in the first five months.
Specifically, IT services continued rapid growth, with revenue from e-commerce platform technology and integrated circuit design services in the year-to-date period up 32.4 percent and 24.1 percent, respectively.





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