(Source: "Daily Economic News" 2014-4-10 Reporter Hu Jian)

China’s economy is currently in a downturn, and corporate profitability is also declining.

According to data from the National Bureau of Statistics, in the first two months of this year, the main business income of industrial enterprises above designated size nationwide14.76Trillion yuan, year-on-year growth7.96%;In terms of profits, industrial enterprises achieved net profits7793.14100 million yuan, year-on-year increase9.43%, the growth rate is higher than last year12The month has fallen2.8Percentage points.

Yesterday (4month9日）held "IMAInaugural Conference of the American Institute of Management Accountants China Education Steering Committee and the First China Management Accounting Education Seminar",Vice President Zhang Xinmin of w88 casinosaid that the current decline in corporate profits is not only due to tight monetary policy and rising capital costs.

He said that the main crux lies in overcapacity, insufficient effective market demand, and low production capacity utilization, leading to increased costs, which will be directly reflected in corporate financial statements as low gross profit margins. When labor prices remain unchanged, the lower the capacity utilization rate, the higher the unit cost will be.

The high financing costs cannot simply be attributed to the tight monetary environment. w88 slot said that this is often affected by two factors. One is blind investment and expansion by enterprises, and the other is lack of competitiveness of enterprises.

As a financial expert, w88 slot has served as a member of the Issuance Review Committee of the China Securities Regulatory Commission for two terms. He pointed out, "The current situation is that both investors who buy stocks and fundraisers who sell stocks are too speculative. Investors only care about which stocks can rise and speculate on hot topics, and almost no one cares about the long-term development of the company."

w88 slot also told the "Daily Economic News" reporter that the funds raised by the company must contribute to the company's profitability. Some companies mechanically invest according to the prospectus after raising funds, regardless of market changes, which may cause overcapacity.

This is back to the aforementioned vicious cycle of difficulty in improving profits for a large number of companies. From the perspective of micro entities, corporate decision-makers also bear certain responsibilities.

Attachment: Original report link:

http://www.nbd.com.cn/articles/2014-04-10/824593.html