Electronics Industry Profit Margins To Drop Significantly Lower Than That Of Foreign Funded

By | December 12, 2017

Relevant departments under the Ministry of Information Industry recently

“issued from January to August the economic operation of the electronic information industry”, at present China’s electronic information industry in the foreign-funded enterprises accounted for 71.5% profit, but the industry-wide profit margins are lower than the industry average, and has gradually expand. Industry that this is clearly a trend of concern.

Foreign profit margins than the industry standard

According to data released by Ministry of Information Industry, 1-August, the electronic information industry over the scale of the total manufacturing sector continued to expand, the cumulative realized main business income of 2.64903 trillion yuan, a net increase of 422.92 billion yuan over last year; the added value net increase of 92.04 billion yuan a year earlier, industry-scale industries in the country continue to stay ahead of the industry standard; manufacturing value added growth rate of 8 consecutive months below the national average level of industrial growth.

However, relevant departments of Ministry of Information Industry also point out a problem: foreign profit margins than the industry average.

Relevant departments MII report said the statistics, 1-August foreign profit 65.95 billion yuan, up 15%, but lower than the industry average growth rate of 10.6 percent.

1-8 months, the industry-wide profits of foreign companies accounting for 71.5%, 75.3% higher than from January to May, down 3.8 percent.

Moreover, the report said, since late last year began to lower foreign profit margins industry-wide level, this year in February, May, August data shows that the situation has not improved, but have gradually expand.


significant increase in corporate profits

Ministry of Information Industry recently issued by the relevant department to another report, “1-8 month of Electronic Information Analysis hundred enterprise economic operation” is displayed, the electronic information hundred companies in August this year, total profit before significant increase, an increase of up to 144 %.

To the report, 1-in August, electronic information hundred enterprises to maintain stable growth of income and exports, overall better efficiency. Hundred enterprises accumulated 773.3 billion yuan revenue, an increase of 13%; to achieve a total profit of 23.1 billion yuan, up 144%; taxes paid 22.1 billion yuan, up 24%; to complete the export delivery value of 195.6 billion yuan, up increase of 17%.

With the industry analysis, foreign profit margin lower than the level of the industry is mainly due to price wars. In recent years, in the TV industry, the mobile phone industry, the telecommunications equipment industry and other fields, foreign-funded enterprises in order to maintain or increase market share, the continued implementation of or access to low-end price war, and even ultra-low-end market, resulting in the amount of sales increase, but profits decline.

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