China Industrial Profits Rise 15.5% In First Quarter Data

Profits at China's industrial firms rose steadily in the first quarter of 2026, supported by robust gains in manufacturing and private-sector strength, official data showed.

Industrial firms above the designated size recorded combined profits of 1.696 trillion yuan in the January–March period, up 15.5% year-on-year, according to the National Bureau of Statistics.

By ownership structure, state-controlled industrial enterprises posted profits of 619.61 billion yuan, up 10.1%. Joint-stock firms reported profits of 1.305 trillion yuan, rising 20.9%. Foreign-invested firms, including those from Hong Kong, Macau and Taiwan, recorded 383.73 billion yuan, up 1.2%, while private companies saw profits increase 25.4% to 430.53 billion yuan.

By sector, mining profits reached 256.33 billion yuan, up 16.2%. Manufacturing posted 1.238 trillion yuan, a 19.1% increase, while utilities — including electricity, heat, gas and water production and supply — fell 3.2% to 201.28 billion yuan.

Among key industries, computer, communications and other electronic equipment manufacturing saw profits more than double, while non-ferrous metals smelting and rolling processing also rose more than 120%. Chemical raw materials and products manufacturing increased 54.5%, and coal mining and washing rose 6.7%. Petroleum and coal processing swung from loss to profit.

By contrast, several sectors posted declines, including automobile manufacturing, down 17.7%, non-metallic mineral products, down 42.6%, textile manufacturing, down 7.8%, and agricultural and food processing, down 6.0%. Iron and steel smelting and rolling turned from profit to loss.

Industrial firms generated operating revenue of 33.19 trillion yuan, up 5.0%, while total costs rose 4.5% to 28.19 trillion yuan. The profit margin on revenue stood at 5.11%, up 0.46 percentage points from a year earlier.

At the end of March, total assets of industrial firms stood at 190.50 trillion yuan, up 5.3%, while liabilities rose 5.5% to 110.19 trillion yuan. Owners' equity increased 5.1% to 80.31 trillion yuan, leaving the asset-liability ratio unchanged at 57.8%.

Accounts receivable climbed 6.7% to 27.03 trillion yuan, and finished goods inventories rose 5.2% to 6.78 trillion yuan.

Cost per 100 yuan of revenue fell to 84.93 yuan, down 0.40 yuan, while expense per 100 yuan of revenue edged down 0.01 yuan to 8.50 yuan.

Efficiency indicators showed mixed trends. Revenue per 100 yuan of assets fell slightly to 70.1 yuan, while revenue per employee rose to 1.849 million yuan, up 105,000 yuan. Inventory turnover days increased to 21.5 days, and average accounts receivable collection period lengthened to 72.6 days.

In March alone, industrial profits rose 15.8% year-on-year, indicating sustained — though uneven — recovery momentum across China's industrial economy.