China's Industrial Profits Surge 18.7% In First Half Of 2026

China's industrial enterprises above designated size recorded total profits of 394.80 billion yuan from January to June, marking an 18.7% year-on-year increase.

State-Owned And Private Enterprises Report Profit Growth

During the first six months, state-controlled industrial enterprises achieved total profits of 1.31 trillion yuan, up 17.9% year on year.

Joint-stock enterprises recorded profits of 3.04 trillion yuan, increasing 24.7%. Foreign-funded enterprises and enterprises funded by Hong Kong, Macao, and Taiwan investors posted total profits of 887.32 billion yuan, up 2.6%. Private industrial enterprises achieved profits of 965.56 billion yuan, representing a 13.0% increase.

Mining And Manufacturing Sectors Drive Profit Expansion

From January to June, the mining industry reported total profits of 574.50 billion yuan, rising 33.5% year on year.

The manufacturing sector recorded profits of 2.97121 trillion yuan, an increase of 20.1%. The production and supply sectors of electricity, heat, gas, and water reported profits of 402.27 billion yuan, down 4.2%.

Key Industries Show Diverging Profit Trends

Among major industries, non-ferrous metal smelting and rolling processing reported the strongest profit growth, with profits increasing 99.4% year on year.

Profits in computer, communication, and other electronic equipment manufacturing rose 96.9%, while chemical raw materials and chemical products manufacturing increased 67.8%.

Coal mining and washing industry profits grew 41.1%, oil and natural gas extraction rose 16.6%, textile industry profits increased 16.6%, and general equipment manufacturing grew 1.5%.

Meanwhile, specialized equipment manufacturing profits declined 0.1%, electricity and heat production and supply fell 6.2%, electrical machinery and equipment manufacturing decreased 8.6%, agricultural and food processing dropped 12.0%, automobile manufacturing declined 19.5%, ferrous metal smelting and rolling processing fell 25.0%, and non-metallic mineral products manufacturing decreased 47.8%.

The petroleum, coal, and other fuel processing industry turned losses into profits during the period.

Industrial Revenue And Profitability Improve

From January to June, industrial enterprises above designated size generated operating revenue of 69.26 trillion yuan, up 6.5% year on year.

Operating costs reached 58.80 trillion yuan, increasing 5.9%. The operating profit margin stood at 5.70%, improving by 0.59 percentage points compared with the same period last year.

Industrial Assets And Liabilities Continue To Expand

By the end of June, industrial enterprises above designated size held total assets of 194.60 trillion yuan, up 6.1% year on year.

Total liabilities reached 113.52 trillion yuan, increasing 6.6%, while owners' equity totaled 81.08 trillion yuan, up 5.4%.

The asset-liability ratio stood at 58.3%, rising 0.3 percentage points year on year.

Receivables And Inventory Levels Increase

At the end of June, accounts receivable of industrial enterprises above designated size totaled 28.60 trillion yuan, up 8.1% year on year.

Finished goods inventory reached 7.11 trillion yuan, increasing 9.5%.

Cost Efficiency Indicators Improve

From January to June, industrial enterprises spent 84.89 yuan in costs for every 100 yuan of operating revenue, a decrease of 0.55 yuan year on year.

Expenses per 100 yuan of operating revenue stood at 8.45 yuan, down 0.06 yuan compared with the previous year.

Business Efficiency Indicators Remain Stable

By the end of June, industrial enterprises generated 72.3 yuan of operating revenue for every 100 yuan of assets, an increase of 0.5 yuan year on year.

Average operating revenue per employee reached 1.913 million yuan, up 127,000 yuan.

Finished goods inventory turnover stood at 21.1 days, increasing 0.4 days year on year.

The average recovery period for accounts receivable was 71.7 days, up 0.8 days.

June Industrial Profits Increase 15.1%

In June, industrial enterprises above designated size recorded a 15.1% year-on-year increase in profits.