As autumn settles over the Central Plains in September, Henan province is reaping a season of strong results from its capital markets. In the opening year of the “15th Five-Year Plan” period, the regional capital market has tackled structural bottlenecks, fortified its leading industries, and boosted overall quality and efficiency, all while unleashing the vitality of local businesses and advancing the high-quality growth of the private sector. From an expanding board lineup to optimised industry structures, from a surge in direct financing to fresh momentum in mergers and acquisitions, Henan is integrating more deeply into the national capital market reform agenda. With the 2026 interim earnings season now complete, the province's mid-year report card reveals several standout structural highlights.
Key Highlight One: Revenue growth for Henan listed firms hits a five-year high for the period
In the first half of this year, Henan welcomed four new A-share listings, all of them niche leaders with proprietary core technologies. As of August 31, the number of A-share companies headquartered in Henan had climbed to 117, spanning strategic emerging sectors including next-generation information technology, new energy, advanced materials, and high-end equipment manufacturing. In terms of revenue, these Henan A-share firms (collectively referred to as “Henan enterprises” below) rank among the top tier within the six central provinces (Henan, Anhui, Shanxi, Hubei, Hunan, and Jiangxi). The 117 firms recorded combined interim revenue of nearly RMB 580 billion, setting a new record for the period and trailing only Anhui and Jiangxi among the six central provinces. Year-on-year revenue growth for Henan enterprises reached 11.41% on a comparable basis, the strongest first-half performance in five years. Thirteen companies posted interim revenue above RMB 10 billion, with Luoyang Molybdenum (CMOC Group) surging past the RMB 100 billion mark to reach RMB 135.32 billion. Henan Yuguang Gold & Lead reported interim revenue approaching RMB 34.3 billion, driven by higher production volumes and rising market prices for its main products. Nine companies, including Xinning Logistics, Zhengzhou Sino-Crystal Diamond, Do-Fluoride New Materials, and Henan Shijia Photons, posted revenue growth exceeding 50% year-on-year. For instance, Do-Fluoride’s interim revenue rose over 60%, fuelled by growth in its new energy materials and battery segments, while its anhydrous aluminium fluoride core technology remains globally leading with output, sales, and export volumes ranking first in the industry for years. On the net profit attributable to shareholders front, the 117 firms generated combined interim profits exceeding RMB 39.7 billion, second only to Anhui, with nearly 80% of companies turning a profit. Notable gainers included Haoxiangni Health Food, Do-Fluoride, and Xinxiang Chemical Fibre.
Key Highlight Two: Operating cash flow stays positive for four consecutive first-half periods
Cash flow is a key gauge of operational health and liquidity. In the first half of this year, Henan enterprises posted combined net operating cash flow of over RMB 88.4 billion, maintaining an upward trajectory for four straight interim periods. The year-on-year increase reached nearly 26%, roughly double the growth rate seen in the same period last year. Among the six central provinces, Henan stands alone in recording positive first-half operating cash flow growth for four consecutive years. More specifically, over half of Henan enterprises saw their operating cash flow improve year-on-year (either through increases or narrower losses). More than ten companies, including Yutong Heavy Industries, Do-Fluoride, Luoyang Far East Transmission, and Pingdingshan Tianan Coal Mining, saw cash flow surge by over 200%. Do-Fluoride’s interim operating cash flow reached RMB 336 million, up nearly twelvefold, primarily due to matured bank acceptance bills being settled during the period. Pingdingshan Tianan Coal Mining’s operating cash flow jumped over 530% year-on-year, thanks to increased sales revenue.
Key Highlight Three: Growth in the ChiNext/STAR boards and strategic emerging industries hits a four-year interim high
Accelerating the development of new quality productive forces is central to driving high-quality economic growth during the “15th Five-Year Plan”. In recent years, Henan has capitalised on its regional strengths by intensifying upgrades to traditional industries, while both its dual-innovation boards (ChiNext and STAR Market) and strategic emerging industries have expanded rapidly. In the first half, the 35 ChiNext/STAR-listed companies recorded combined revenue of nearly RMB 27 billion, up over 11% year-on-year – the fastest interim growth in four years. Their combined net profit approached RMB 1.5 billion, with nearly 70% of firms profitable. Leading performers included Runfeng New Materials, Xinqianglian, and Henan Shijia Photons. For strategic emerging industries, Henan enterprises posted combined revenue of RMB 28 billion, up 12.47% year-on-year – also a four-year interim high – while net profit reached around RMB 2.4 billion, up nearly 7%. For the first time in three years, both segments achieved double-digit interim revenue growth simultaneously. By sub-sector, next-generation information technology, new energy vehicles (NEVs), and high-end equipment manufacturing posted the fastest revenue growth, with NEV revenue rising nearly 19% year-on-year – the highest among central provinces within the same strategic emerging industries category. Revenue from next-generation IT companies grew nearly 20%, while the biotech sector saw growth of close to 9%. On the profit side, next-generation IT firms saw interim net profit jump nearly 55%, followed by a near 21% rise in high-end equipment manufacturing.
Key Highlight Four: Private enterprises emerge as a key growth engine, with revenue contribution hitting a record high
As vital participants in the market economy, private firms play an irreplaceable role in stabilising growth and fostering innovation. Across Henan, private enterprises are largely concentrated in real-economy manufacturing sectors such as machinery, basic chemicals, and power equipment, showing strong market vitality and contributing significant incremental earnings. Data for the first half shows that private Henan A-share companies generated combined revenue of nearly RMB 336.2 billion, a record high for the period and second among the six central provinces. Their combined net profit reached almost RMB 23.9 billion, the highest among the central six. In terms of growth, private Henan firms saw interim revenue rise by nearly 14% year-on-year – the fastest first-half pace in five years and among the top performers in the central region. Their revenue contribution to total Henan enterprise revenue reached approximately 58%, also a five-year interim high and the highest among the six central provinces.
Key Highlight Five: Niche industries such as lab-grown diamonds and computing metals carve out a distinct path
As one of the few provinces in China boasting all 41 industrial categories, Henan has made developing new quality productive forces a top priority, carving out a distinctive “Central Plains advantage” in frontier areas like lab-grown diamonds and computing metals. While only a handful of A-share companies are involved in lab-grown diamond operations nationwide, Henan is home to six, including SF Diamond, Henan Huifeng Diamond, and Zhengzhou Sino-Crystal Diamond. Additionally, several companies are engaged in computing metals, such as CMOC Group, Henan Shenhuo Coal & Power, and Henan Mingtai Aluminium. Zhengzhou Sino-Crystal Diamond has cracked three core technologies – diamond limit growth, diamond heat sinks, and special diamond production – setting a world record with a 247.82-carat man-made diamond single crystal, while also breaking foreign monopolies on special semiconductor-grade diamond materials, solving the challenge of nanoscale wafer planarisation. Looking at the broader picture, Henan A-share companies in lab-grown diamonds and computing metals have seen steady improvement in earnings, with both revenue and net profit growing consistently. In the first half, CMOC Group, Shenhuo Coal & Power, and Jiaozuo Wanfang Aluminum all achieved sales gross margins at five-year interim highs, while Huifeng Diamond reached a four-year interim high in this metric.
Key Highlight Six: R&D investment exceeds RMB 11 billion for five consecutive first-half periods
Sustained R&D spending is fundamental to maintaining core competitiveness. From 2022 through 2026, Henan A-share companies have channelled over RMB 11 billion into research and development during each first-half period. This year, interim R&D investment reached nearly RMB 12 billion, marking the second-highest first-half figure in five years. Yutong Bus, Muyuan Foods, and Lomon Billions Group each invested more than RMB 500 million in R&D during the period. Yutong Bus allocated RMB 829 million, a record for any first-half period. Muyuan Foods invested RMB 709 million, maintaining R&D above RMB 700 million for four straight interim periods. The company continues to advance intelligent innovation by applying data-driven and AI-based equipment and technologies across its pig farming operations. It has developed key smart solutions including intelligent environmental control, feeding, and inspection systems, alongside exploring functions such as disease detection through sound and image analysis and predictive diagnostics. Through an IoT platform, data from frontline smart devices is consolidated and analysed to build big-data models for pig farming, enabling precise management down to individual units, equipment, and pigs – all while achieving efficient full-scenario data control. Currently, Muyuan is developing a pig farming large model that leverages AI to transform experience-based decisions into clear, rule-based algorithmic models, covering data collection, analysis, decision-making, and command issuance throughout the entire chain. This aims to equip every farmer with an advanced assistant to address technical and management challenges, making pig farming easier and more efficient. These technological innovations have significantly boosted production efficiency. In terms of R&D intensity, over 40 Henan enterprises recorded an intensity above 5% in the first half, with 15 firms – including Hualan Biological Vaccine, Xinkaipu, and Tianma Technology Group – exceeding 10%.
Key Highlight Seven: Overseas revenue contribution reaches a record high, topping the central six provinces
Against the backdrop of a globally reshaped operating landscape and the unfolding of the national “15th Five-Year Plan”, Chinese companies are increasingly moving overseas from an option to a necessity – and Henan A-share firms are no exception. Data shows that in the first half, overseas revenue from Henan A-share companies exceeded RMB 160 billion, ranking second among the six central provinces. The overseas revenue contribution ratio (overseas revenue/total revenue) reached nearly 28%, with both absolute figures and contribution ratio hitting historical first-half highs; the contribution ratio stands as the highest among the central six. Six companies, including CMOC Group and Henan Shijia Photons, reported overseas contribution ratios above 50%. CMOC’s ratio exceeded 90%, while Shijia Photons approached 60%, up over 13 percentage points from the same period last year.
Key Highlight Eight: A steady commitment to shareholder returns – five-year interim dividend total leads central provinces
Driven by ongoing regulatory guidance, resilient corporate profitability, and improving cash flows, Henan A-share companies have maintained consistent dividend distributions. Based on interim dividend data across the past five years (2022-2026), combined dividends paid or announced during the first half total over RMB 23 billion, the highest among the six central provinces. CMOC Group, Hualan Biological Engineering, and Pinggao Electric announced the largest interim dividends among Henan A-share firms, with CMOC proposing a payout of RMB 2.032 billion – its first interim dividend since 2016.
Key Highlight Nine: Targeted financial support channels into the real economy, with xFusion planning an RMB 8 billion IPO
In recent years, Henan listed companies have accelerated their investment and financing activities, directing financial resources precisely into the real economy. As of August 31, Henan A-share companies had raised nearly RMB 5.7 billion in total funding this year (including IPOs and refinancing), surpassing the combined total of the previous two years. This strong start lays the groundwork for deepening investment and financing reforms during the “15th Five-Year Plan” period. Four new companies have listed this year: Tianhai Electronics, Shenglong Shares, Haichang Intelligent, and Jiachen Intelligent. Tianhai Electronics raised RMB 2.148 billion in its IPO; the company is a well-known auto parts supplier with long-term partnerships involving Chery Automobile, SAIC Motor, Geely Automobile, and Changan Automobile. Shenglong Shares is a leading large-scale molybdenum producer focused on the production, processing, and sales of strategic molybdenum products, playing a key role in the national molybdenum industry. Among companies in the pipeline, seven are advancing through the IPO process (excluding terminated cases). Century Digital has received regulatory approval and is awaiting issuance, while Luoyang Bearing Group has completed issuance and is set to list. Notably, xFusion is progressing steadily with its IPO. xFusion is a computing infrastructure and digital intelligence services provider focused on bridging the gap between computing power, data, and enterprise intelligent applications. In 2025, the company achieved revenue exceeding RMB 50 billion and surpassing RMB 58 billion, with computing business revenue accounting for 99.72% of its main business income; AI server revenue alone represents over half of that. The company plans to raise RMB 8 billion on the ChiNext board – if actual fundraising reaches at least RMB 6 billion, it could become the second-largest IPO in the history of the ChiNext market. Among companies undergoing IPO tutoring, Henan Jianghe Paper and Henan Dr. Jinshi Seed have passed the tutoring acceptance stage, while 30 others, including Luoyang Tongyi New Material and Jiaozuo Creaison Heavy Industry, are currently receiving IPO guidance.
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