China’s National Bureau of Statistics said on the 27th that profits at industrial firms above a designated size rose 15.5% in the first quarter of 2026 (January-March) from a year earlier to 1.69604 trillion yuan (about 39.5 trillion yen). The growth rate was 0.3 percentage points higher than in January-February, as rapid expansion in artificial intelligence and semiconductors boosted profits at related parts makers.
In March alone, profits increased 15.8% from a year earlier, with the growth rate 0.6 percentage points higher than in January-February.
By major sector in January-March, manufacturing, which accounts for 70% of the total, rose 19.1% to 1.23843 trillion yuan, accelerating from 18.9% growth in January-February. Mining increased 16.2% to 256.33 billion yuan. Profits at electricity, heat, gas and water production and supply fell 3.2% to 201.28 billion yuan, turning negative.
High-tech manufacturing profits jumped 47.4%, lifting the overall growth rate by 7.9 percentage points. Driven by AI and semiconductor-related industries, optical fiber manufacturing rose 4.4 times, optoelectronic device manufacturing increased 43.0%, and display device manufacturing gained 36.3%. With demand rising for smart products, smart unmanned aerial vehicle (drone) manufacturing climbed 53.8%, and other smart consumer equipment manufacturing rose 67.3%.
Equipment manufacturing profits increased 21.0%. Computer, communications and other electronic equipment manufacturing rose 2.2 times, while railway, ship, aerospace and other transport equipment manufacturing increased 16.7%, widening its growth by 5.3 percentage points.
Raw materials manufacturing profits rose 77.9%. As strategic emerging industries such as aerospace, new energy and next-generation IT expanded rapidly, nonferrous metal smelting and rolling processing more than doubled profits. Petroleum, coal and other fuel processing swung from a loss a year earlier to a profit of 22.94 billion yuan. Chemical raw materials and chemical products manufacturing increased 54.5%.
By contrast, automobile manufacturing profits fell 17.7%, extending the decline. The bureau cited continued double-digit drops in domestic sales amid a review of measures to promote adoption of new energy vehicles, as well as rising operating costs.
By ownership type in January-March, state-owned enterprises posted a 10.1% increase to 619.61 billion yuan. Private firms rose 20.9% to 1.30546 trillion yuan. Foreign-invested firms increased 1.2%, turning positive after a 3.8% decline in January-February. Individually owned businesses rose 25.4%.
Industrial firms’ revenue increased 5.0% to 33.19129 trillion yuan. Operating costs rose 4.5% to 28.18859 trillion yuan.
* This article has been translated by AI.
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