Latest data released by China's State Bureau of Statistics (CSBS) showed that earnings of the country's industrial enterprises above designated size* totaled RMB1,955.57 billion in the first quarter of 2022, growing 8.5% year-on-year. This included a 148% rise to RMB383.50 billion in the mining industry vs. a 2.1% drop to RMB147.38 billion in the manufacturing industry and a 30.3% decline to RMB98.25 billion in the electricity, heat, gas and water production/supply industry, which were basically within market expectations.
However, sales revenue of the country's paper and paper products industry in the quarter edged up by 4.5% from that of 2021 to RMB357.10 billion. And further to the shock of market analysts, earnings plummeted 49.3% year-on-year to RMB12.56 billion! Obviously, the papermaking and paper products industry, which serves many other industries, is not only affected by the pandemic and other uncertain factors, but also subject to the performance of other industries. However, the sharp decline in profits still worries industry professionals. When large companies with economies of scale, diversified business and operations at home and abroad cannot be free from falling earnings, the dilemma faced by many small and medium-sized enterprises with relatively single products and only limited to the domestic market can be imagined! People are now praying that with the help of the government's macro-control measures such as RRR and interest rate cuts to boost the economy and stimulate consumption, performance of paper and paper products industry will revive, reverse the negative situation and return to the track of positive growth in earnings from the second quarter.

*Individual annual sales revenue at or over RMB20 million.