BEIJING, Aug. 27 (Xinhua) -- Profits of China's industrial firms above designated size increased 17.6 percent year on year during the first seven months of 2026, data from the National Bureau of Statistics showed Thursday.

File photo: IC

These industrial firms with an annual main business revenue of at least 20 million yuan (about 2.95 million U.S. dollars) saw their combined profits reach 4.58 trillion yuan in the January-July period, according to the data.

In the three major sectors, mining industry profits jumped 34.9 percent to 666.05 billion yuan, and manufacturing profits climbed 18.8 percent to nearly 3.44 trillion yuan. However, profits in the power, heat, gas and water production and supply sector fell 5.8 percent to 478.42 billion yuan.

Among major industries, the computer, communications and other electronic equipment manufacturing sector saw profits surge 110 percent. Non-ferrous metal smelting and rolling processing jumped 91.8 percent, chemical raw materials and products manufacturing rose 56.6 percent, and coal mining and washing increased 50.4 percent. The petroleum, coal and other fuel processing sector turned from losses to profits.

The NBS data also showed that in the first seven months, the combined revenue of these industrial firms reached 80.92 trillion yuan, up 6.5 percent year on year, while operating costs increased 5.9 percent to 68.79 trillion yuan.

Yu Weining, an NBS statistician, attributed the relatively fast profit growth to steady industrial production and the rapid expansion of new growth drivers.

Yu highlighted the electronic sector as the main pillar, with profits surging 110 percent and contributing 9.3 percentage points to the overall industrial profit growth.

High-tech manufacturing also showed strong momentum, with profits up 50.1 percent, contributing 9.6 percentage points to overall industrial profit growth. Raw material manufacturing profits rose 55.2 percent, adding 7.1 percentage points.

Yu noted that the profit margin on revenue stood at 5.66 percent in the first seven months, reaching the highest level for the same period since 2023.

However, Yu cautioned that the international environment remains complex and challenging, while the domestic imbalance of strong supply and weak demand is still prominent. He called for further efforts to expand domestic demand, optimize supply, and advance the upgrading of traditional industries, the growth of emerging sectors and the cultivation of future industries to consolidate the foundation for high-quality industrial development.

In July alone, profits of major industrial firms grew 11.2 percent year on year, according to the NBS.