Instrumentation shows a significant increase in revenue from January to September

It has been almost a month since we entered the fourth quarter of 2014. How did the instrumentation industry perform in the first three quarters of 2014?

On October 28, 2014, the National Bureau of Statistics released data. From January to September, the total profit of industrial enterprises above designated size reached 4,365.22 billion yuan, an increase of 7.9% year-on-year, and the growth rate fell 2.1 percentage points from January to August; Activity profit was RMB408,138 million, an increase of 7.5% over the same period of last year. The growth rate was down 2.1% from January to August.

In September, total profits of industrial enterprises above designated size reached 563.39 billion yuan, an increase of 0.4% year-on-year.

From January to September, among state-owned and state-controlled enterprises, state-owned and state-controlled enterprises achieved total profits of 110.165 billion yuan, up 0.2% year-on-year; collective enterprises realized total profits of 36.25 billion yuan, up 2.4%; and joint-stock enterprises realized total profits of 2,869.21 billion yuan. , an increase of 6.2%; foreign and Hong Kong, Macao and Taiwan investment companies to achieve a total profit of 1067.94 billion yuan, an increase of 13.6%; private enterprises to achieve a total profit of 1,430.04 billion yuan, an increase of 9.7%.

In the 41 industrial sectors, from January to September, the total profits of 33 industries increased year-on-year, one industry remained flat, and seven industries decreased year-on-year. Among them, instrument and meter manufacturing industry realized a total profit of 44.02 billion yuan, a year-on-year increase of 10.2%. From other data, from January to September, instrument and meter manufacturing industry realized a main business income of 577.38 billion yuan, an increase of 11.0% year-on-year; its main activity profit was 41.05 billion yuan, a year-on-year increase of 9.6%.

In August this year, the General Administration of Quality Supervision, Inspection and Quarantine issued an analysis report on the status of product quality in the first half of 2014. The report shows that China's equipment manufacturing industry, the average quality management maturity is only 63.5 (out of 100 points), the effectiveness of enterprise quality management system needs further improvement. According to reports, the quality management maturity survey of the equipment manufacturing industry is the second survey of the quality management of industrial enterprises nationwide since 2009, and it is the scale of seven industries including instrument and meter manufacturing in the equipment manufacturing industry. The company conducts a sample survey and conducts research.

The survey results of AQSIQ indicate that the immature quality management and the low localization rate of key equipment and components are still the major bottlenecks restricting the transformation and upgrading of instrumentation and other equipment manufacturing industries.

From the above data of profit and income alone, the instrumentation industry performed well in the first three quarters, and the growth rate was stable. However, the results of the quality inspection by the General Administration of Quality Supervision, Inspection and Quarantine also served as a wake-up call for the industry. Transformation and upgrading are particularly urgent.

In September this year, the State Council executive meeting decided to deploy and improve the accelerated depreciation of fixed assets. One month later, the Ministry of Finance and the State Administration of Taxation issued the “Notice on Perfecting the Enterprise Income Tax Policy for Accelerating Depreciation of Fixed Assets” (Caihe [2014] No. 75). The income tax policy for accelerated depreciation of fixed assets. According to this policy, newly purchased fixed assets after January 1, 2014, including those in the instrument and meter industry, can shorten the depreciation period or adopt a method for accelerating depreciation.

Accelerated depreciation method can defer the tax period of corporate income tax when the income is certain. With the introduction of such policies, it is expected that the instrumentation will perform better in the fourth quarter.