BEIJING, July 27 (Xinhua) -- Profits of China's major industrial firms saw a smaller decline in June 2025, with the manufacturing sector showing significant improvement, official data showed Sunday.

Industrial firms with an annual main business revenue of at least 20 million yuan (about 2.8 million U.S. dollars) saw their combined profits reach 3.44 trillion yuan during the January-June period, down 1.8 percent year on year, according to the National Bureau of Statistics (NBS).

In June, profits of China's major industrial firms slipped 4.3 percent year on year, 4.8 percentage points narrower than the decline seen in May. Notably, profits of major firms in the manufacturing sector reversed from a drop of 4.1 percent to grow by 1.4 percent in June.

The operating revenue of these firms increased by 1 percent year on year in June, maintaining the same growth rate as in May.

"This sustained revenue growth has created favorable conditions for the recovery of corporate profits," said NBS statistician Yu Weining.

Among the manufacturing sectors, equipment manufacturing saw rapid growth in profits last month. The automotive industry stood out in this regard -- achieving a profit surge of 96.8 percent in June, driven both by automakers' sales promotions and increased investment returns from major enterprises.

Profits in the electrical machinery, instrument manufacturing and metal products industries grew by 18.7 percent, 12.3 percent and 6.2 percent, respectively, in June, said Yu.

Industries related to China's industrial transformation and upgrading endeavors reported outstanding profit growth in June -- with the aircraft manufacturing sector seeing profits increase by 19 percent, lithium-ion battery manufacturing recording a profit surge of 72.8 percent, and biomass power generation profits up by 24.5 percent.

Since the beginning of 2025, China has expanded the coverage scope of its equipment upgrades and consumer goods trade-in program, leading to notable profit improvements in relevant industries, said Yu.

Boosted by this policy, the medical equipment manufacturing sector saw profits increase by 12.1 percent in June, while companies on the industrial chain of goods such as consumer electronics and home appliances also enjoyed noteworthy profit increases.

Despite rising challenges and external uncertainties, China achieved steady economic growth in the first half of 2025 -- with its gross domestic product growing by 5.3 percent year on year, NBS data released earlier this month revealed.

The data showed that China's value-added industrial output increased by 6.4 percent compared to the same period last year, fueled by rapid growth in the equipment manufacturing and high-tech manufacturing sectors.

Looking ahead, Yu emphasized the need to advance the building of a unified national market and steadfastly promote the high-quality development of the industrial economy.

"These efforts will continuously consolidate the foundation for the recovery of industrial enterprises' performance," Yu said.