（Institute of Quality Development Strategy，Wuhan University;Coordination Innovation Center of Macro Quality Management in Hubei Province）
Abstract: This paper analyzes the profitability and influencing factors of manufacturing enterprises, making use of the first-hand CEES data. Based on the theory of profitability analysis, the paper researches the status of the enterprises’ profitability and how the factors like market structure, government regulation, enterprise characteristics, et al. The results show that the government regulation results in high profit, but it will do harm to the operation efficiency; in the more comparative industries, the effects of the technology innovation to profitability differentiates according the regulation strength: in the weak regulation industries, the R&D investment is significantly positive to profitability, while in the strong regulation industries, its effect is significantly negative. The enterprises’ characteristics, such as product quality, human capital have significantly positive effect to both profit rate and profit growth rate. Hence, the suggestion of this paper is that, weakening the regulation to the market, improve the market competitiveness of enterprises. Changing the growth model of enterprises from the “monopoly rents” to competiveness promotion.
Key Words: Profit Rate; Profitability; CEES Data; Influencing Factors