Data from the National Bureau of Statistics indicated that profits fell 20.6 percent from January to April compared to the same period last year, and fell 21.4 percent in the first three months.
In April alone, corporate profits fell Industrial sector 18.2 percent year on year, according to the National Bureau of Statistics, which only provides monthly data sometimes. Profits fell 19.2 percent in March.
Chinese companies are suffering amid weak demand at home and in key markets for the country’s exports.
And she said Lenovothe world’s largest personal computer maker, this week said revenue and quarterly profit declined in the January-March period, and the company cut its workforce by eight to nine percent to cut costs, as global demand for personal computers continued to slump.
Foreign companies reported a 16.2 percent drop in profits from January to April compared to the same period last year, while private sector companies’ profits fell 22.5 percent, according to the data.
The bleak earnings readings came after a host of economic indicators for April, including industrial production, retail sales and real estate investment, hinted that the recovery in the world’s second-largest economy is running out of steam.
The industrial profit data covers companies with annual income of at least 20 million yuan ($2.89 million) from their core operations.