Industrial profits by Chinese firms went down to $108.85 billion or 676.12 billion yuan in November. It was down by 4.2 percent, representing the largest yearly decline since August 2012.

However, reckoned from January until November, profits were still up 5.3 percent compared to the same period in 2013, said data from the National Bureau of Statistics.

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The bureau attributed the higher prices to lesser room for profit, weaker sales and protracted dip in pricing power among producers. The effect of the lower profits was particularly felt among coal, oil and basic commodity producers.

As a result, profits in coal mining dipped in November by 44.4 percent and in oil and gas industries by 13.2 percent.

But while the country's energy processing sectors logged a 34.2 percent lower profits, technology industries logged high profits for the same month, telecoms by 20.7 percent, electronics and machinery by 15.1 percent and vehicle makers by 16.7 percent.

In its analysis, the NBS said, quoted by Reuters, "This suggests that on the one hand, in the context of weak investment demand, stable consumption demand provided a certain degree of support; on the other hand, promoting industry restructuring is having a positive effect on efficiency."

The NBS adds that the unbalanced nature of the performance placed regulators in a difficult situation because if they place more focus on lightweight technology products and services than industries that are heavy on credit and energy usage, they must still avoid the situation leading toward a financial system crisis.

Tagsindustrial profit