SHANGHAI, Aug. 31 (Xinhua Silk Road) -- Shanghai-listed companies posted their strongest first-half earnings growth in four years in 2026, with technology and manufacturing firms leading a broad-based recovery fueled by innovation, industrial upgrading and stronger operating efficiency, according to data released by the Shanghai Stock Exchange (SSE) on Sunday night.
For the six months ended June 30, 2026, the 2,318 SSE-listed companies generated combined revenue of 26.22 trillion yuan (about 3.87 trillion U.S. dollars), up 6.3 percent from a year earlier. Net profit surged 17.6 percent to 2.82 trillion yuan, while net profit excluding non-recurring items rose 17.2 percent to 2.69 trillion yuan, marking the fastest growth since 2022.
Nearly 80 percent of SSE-listed companies remained profitable in the first half. Among them, 924 reported year-on-year profit increases, 339 of which posted net profit growth of more than 50 percent, and 142 returned to profitability.
The performance offers an encouraging start to China's 15th Five-Year Plan period (2026-2030), with listed companies showing a continued shift toward higher-quality growth and greater reliance on technological innovation and the real economy.
-- Manufacturing, the real economy provide strong support
Non-financial SSE-listed firms, or real-economy companies, maintained solid growth in the first half, with aggregate revenue rising 4.5 percent and net profit increasing 19.3 percent year-on-year.
Manufacturing companies significantly outperformed the broader market, with revenue climbing 12.8 percent and net profit surging 40.3 percent year-on-year.
More than 90 percent of manufacturing subsectors remained profitable, with electronics, non-ferrous metals, and petroleum & petrochemicals leading in profit growth, posting year-on-year increases of 322 percent, 68.9 percent, and 25.9 percent, respectively.
-- Technology firms deliver strong growth
SSE-listed technology companies are increasingly translating innovation into commercial results as they capitalize on a new wave of technological and industrial transformation.
The STAR Market, or the SSE's Science and Technology Innovation Board, has emerged as a key engine for developing what China calls "new quality productive forces."
STAR Market firms generated 1.01 trillion yuan in revenue in the first half, up 38.6 percent year-on-year, while net profit soared 437.6 percent to 144.89 billion yuan. Their first-half profit already exceeded the combined earnings they recorded for the whole of 2025.
Among them, 36 companies listed on the sci-tech growth tier of the STAR Market also showed improving operating efficiency and stronger momentum. Their revenue rose 29.1 percent year-on-year, while net losses narrowed by 62.3 percent, highlighting their rapid transition from early-stage growth to more mature operations.
-- Financial health, operating fundamentals improve
Underlying operating indicators continued to strengthen. Real-economy companies generated 1.52 trillion yuan in operating cash flow in the first half, up 35.1 percent year-on-year and equivalent to 1.2 times their net profit, providing a stronger cushion against financial and operating risks.
Gross profit margin edged up 1.5 percentage points from a year earlier, while the median gross margin of STAR Market companies remained relatively high at 36.8 percent.
Meanwhile, the median debt-to-asset ratio fell 0.1 percentage point from the beginning of the year, pointing to a gradual strengthening in corporate balance sheets.
-- R&D, investment sustain long-term growth
Companies continued to increase investment in research and development as they sought to strengthen their long-term competitiveness. Real-economy companies spent more than 475 billion yuan on R&D in the first half, up about 6.5 percent year-on-year. STAR Market companies accounted for 104.4 billion yuan of that investment, an increase of 14.6 percent, with median R&D intensity staying high at 12.6 percent.
Capital spending in emerging industries also remained elevated as companies invested in upgrading production lines, expanding capacity and purchasing equipment. Cash outflows for the acquisition of long-term assets totaled 406.6 billion yuan in the first half, up 4.4 percent year-on-year, suggesting that companies are continuing to channel resources into capacity upgrades and future growth despite a still-evolving economic environment. (Contributed by Ji Lei, Du Kang and Gao Pan, edited by Li Xueqing with Xinhua Silk Road, lixueqing@xinhua.org)
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