China Industrial Profits Rise 17.6% in Jan-July 2026, Led by Electronics and High-Tech

Data released by the National Bureau of Statistics on August 27 showed that in the first seven months of 2026, industrial enterprises above the designated size achieved total profits of RMB 4,582.06 billion, up 17.6% year on year. In July alone, profits of these enterprises rose 11.2% year on year. During the January-July period, operating revenue reached RMB 80.92 trillion, up 6.5%, while operating costs totaled RMB 68.79 trillion, up 5.9%. The operating revenue margin stood at 5.66%, up 0.54 percentage points from a year earlier.

By type of enterprise, state-controlled enterprises posted profits of RMB 1,491.89 billion, up 16.3%; joint-stock enterprises earned RMB 3,549.40 billion, up 23.6%; foreign and Hong Kong, Macao and Taiwan-invested enterprises recorded RMB 1,013.78 billion, up 1.2%; and private enterprises achieved RMB 1,135.22 billion, up 10.9%. By sector, mining profits rose 34.9% to RMB 666.05 billion; manufacturing profits increased 18.8% to RMB 3,437.60 billion; and profits in the production and supply of electricity, heat, gas and water fell 5.8% to RMB 478.42 billion.

Electronics-related industries maintained rapid profit growth. In the first seven months, profits in the computer, communication and other electronic equipment manufacturing sector surged 110% year on year, contributing 9.3 percentage points to the overall profit growth of all industrial enterprises. Among them, the integrated circuit industry, represented by computing and memory chips, saw profits jump 18.5 times, contributing over 80% of the electronics sector's profit growth. Profits in computer complete equipment manufacturing, computer peripheral equipment manufacturing, and industrial control computer and system manufacturing rose 330%, 250% and 160%, respectively. Profits in electronic special materials manufacturing, semiconductor discrete device manufacturing, and electronic circuit manufacturing increased 226.8%, 45.8% and 37.1%, respectively.

High-tech manufacturing saw notable profit gains, with profits rising 50.1% year on year in the first seven months, contributing 9.6 percentage points to overall industrial profit growth. Among sub-sectors, profits in optical fiber manufacturing, optical cable manufacturing, and communication system equipment manufacturing grew 468.4%, 62.6% and 55.0%, respectively; profits in navigation, surveying and mapping, meteorological and marine special instrument manufacturing rose 157.8%. Raw materials manufacturing profits increased 55.2%, with non-ferrous metal smelting and rolling up 91.8%, chemical raw materials and chemical products manufacturing up 56.6%, and petroleum processing turning from a loss to a profit, achieving total profits of RMB 42.21 billion.

Some traditional industries saw profit declines. In the first seven months, profits in electrical machinery and equipment manufacturing fell 7.6%, electricity and heat production and supply dropped 8.0%, agricultural and sideline food processing declined 12.3%, automobile manufacturing fell 20.4%, non-metallic mineral products decreased 48.2%, and ferrous metal smelting and rolling dropped 51.2%. The petroleum, coal and other fuel processing industry turned from a loss to a profit.

As of the end of July, total assets of industrial enterprises above the designated size stood at RMB 195.76 trillion, up 6.4% year on year; total liabilities were RMB 114.33 trillion, up 7.1%; and owners' equity totaled RMB 81.43 trillion, up 5.5%. The asset-liability ratio was 58.4%, up 0.3 percentage points from a year earlier. Accounts receivable reached RMB 28.88 trillion, up 8.5%, and finished goods inventory was RMB 7.27 trillion, up 10.8%. In the first seven months, the cost per RMB 100 of operating revenue was RMB 85.00, down RMB 0.47 from a year earlier; expenses per RMB 100 of operating revenue were RMB 8.41, down RMB 0.09. At the end of July, operating revenue per RMB 100 of assets was RMB 72.2, up RMB 0.3 year on year; per capita operating revenue was RMB 1.913 million, up RMB 125,000; finished goods inventory turnover was 21.3 days, up 0.6 days; and the average collection period for accounts receivable was 71.9 days, up 0.9 days.