Profits of Chinese major industrial firms stood at 88.72 billion yuan ($12.9 billion), which fell 22.9 percent year-on-year, in the first two months of 2023, data from the National Bureau of Statistics (NBS) showed on Monday.
Despite industrial production seeing a rebound, market demand hadn't fully recovered, NBS statistician Sun Xiao said in a statement.
Major industrial firms' revenue was down 1.3 percent year-on-year.
The decline in revenue was greater than the drop in costs, weighing on gross corporate profits, Sun added.
Sun said the Producer Price Index (PPI) dropped 1.1 percent year-on-year in January to February, due to the high base of the same period last year, putting pressure on firms' profits.
As the industrial production continues to recover, electricity demand has increased, and driving the profit of the electricity industry up 53.1 percent, continuing the trend of rapid growth.
In the next stage, as the order of production and life returns to normal, the profits of industrial enterprises will gradually recover, Sun added.