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    Home > Active Ingredient News > Drugs Articles > Ernst & Young: profit margin of nearly half of enterprises in China has declined

    Ernst & Young: profit margin of nearly half of enterprises in China has declined

    • Last Update: 2013-05-30
    • Source: Internet
    • Author: User
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    Source: according to the latest research report released by the economic reference daily on May 30, 2013, although enterprises in China are generally profitable, they are facing increasing pressure in terms of profit margin Nearly half of the respondents said their company's profit margin was lower than that of the past two years, while less than a quarter of the respondents said their profit margin had increased The survey involved more than 1700 chief executives and senior managers from Chinese enterprises, including local and multinational enterprises Most of the companies in the survey remained profitable, with only 3% of respondents reporting a loss in the previous fiscal year However, 48% of the companies surveyed said their profit margin was lower than two years ago Even for state-owned enterprises that are less affected by international trade, although their competitive environment is not so fierce and their overall situation is better than other types of enterprises, 42% of the respondents said that their profit margin has declined The report points out that in most industries, enterprises are facing the double pressure of slowing income growth and high cost inflation, which leads to a serious squeeze on profit margin It is worth mentioning that the current slowdown in economic growth seems to have hit the industrial sector the most, especially the telecommunications, industrial and consumer goods industries In terms of industries, 63%, 61% and 52% of respondents in the three industries respectively said their profit margins were lower than two years ago "Overcapacity has become a huge problem for many industrial and consumer goods manufacturers, so many enterprises have to reduce commodity prices to solve it."
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