To The Moon

In the first half of 2026, listed companies on the A-share market collectively generated a net profit attributable to shareholders of 3.58 trillion yuan, marking a robust 19.5% year-on-year increase and signaling a significant overall recovery. However, profit distribution remains highly skewed: the top 5% of firms by net profit, totaling 278 companies, accounted for 3.07 trillion yuan in combined earnings. These companies are predominantly in the financial and resources sectors, but also include technology firms such as ChangXin Technology.

With the conclusion of the 2026 interim reporting season, performance data from over 5,500 A-share companies shows a clear trend of "overall recovery coupled with structural divergence." According to data from the China Association for Public Companies, as of August 31st, 5,557 listed companies disclosed their interim results. Their combined revenue reached 37.76 trillion yuan, up 7.6% year-on-year, while their total net profit attributable to shareholders hit 3.58 trillion yuan, a 19.5% year-on-year increase, with profit growth notably outpacing revenue growth.

Despite this rapid profit expansion, a significant K-shaped divergence remains evident across the market. Leading companies and those in booming sectors contribute the majority of profits, while over a thousand listed firms reported losses. The top 5% of companies contributed 85.75% of the entire market's attributable net profit. Moreover, the incremental growth in net profit during the half was primarily driven by large-cap entities and giants in high-prosperity sectors. Notably, ten large-cap companies contributed roughly half of the total net profit increase for all A-share firms.

Among these, China Life Insurance and ChangXin Technology alone accounted for nearly 30% of the market's net profit increment. ChangXin Technology made history as the first technology company ever to break into the top ten of the A-share profitability rankings, highlighting the emergence of new tech industry leaders in the market. This trend is vividly reflected across various sectors. Benefiting from the artificial intelligence industry wave, the electronics sector posted a 195.11% growth in net profit attributable to shareholders, becoming the strongest performer. The STAR Market and ChiNext, both focused on innovation, saw significantly higher profit growth than main-board companies.

Where to Begin with the Numbers

Looking at profitability from another angle, the increase in net profit during the half was largely fueled by a few large firms and giants in thriving sectors. Ranked by net profit attributable to shareholders, the top 5% of companies, totaling 278 with an entry threshold of 1.702 billion yuan set by Anker Innovations, generated a combined 3.07 trillion yuan, representing 85.75% of the market's total net profit. The remaining 5,278 companies earned 509.791 billion yuan, just 14.25% of the total. The bottom 50% of firms, 2,778 companies, posted a combined net loss of 202.357 billion yuan. The median company, Qiaoyin Shares, reported a net profit of 43.57 million yuan for the half, while the top earner, ICBC, achieved 173.682 billion yuan—a nearly 4,000-fold difference between the two.

The sci-tech innovation boards showed outstanding performance. The STAR Market witnessed an explosive earnings season, with its 616 companies achieving revenues of 1.01 trillion yuan, up 38.6%, and a net profit attributable to shareholders of 144.887 billion yuan, surpassing the total for the entire year of 2025. The profit growth rate was a staggering 437.6%, the highest among all boards. However, internal profitability varies greatly, with 66.4% of companies profitable, the lowest proportion of any board. The ChiNext also delivered strong results, with revenues of 2.55 trillion yuan, up 22.34%, and a net profit of 202.753 billion yuan, up 32.73%.

Main-board companies on the Shanghai and Shenzhen exchanges still hold the dominant share of profits, posting a combined net profit of 3.22 trillion yuan, which is 89.94% of the entire market. Their growth rates lag, however, with the Shanghai main board at 12.8% and Shenzhen at 22.13%. The Beijing Stock Exchange, despite its smaller relative size, saw 83% of its 339 listed companies achieve profitability. By industry, profit growth in the first half was concentrated in technology, resources, and finance. Among 31 Shenwan primary industries, 18 saw profit increases.

Key Drivers Behind the Performance

Sectors with significant profit declines were largely tied to domestic demand and the economic cycle, with real estate, agriculture, and the auto sector among the hardest hit. The electronics industry, fueled by the AI revolution and the memory super-cycle, became the market's strongest sector. Its 518 companies achieved 2.65 trillion yuan in revenue, up 37.8%, and a net profit of 258.72 billion yuan, up 195.11%—the highest growth in the A-share market. Within electronics, the semiconductor sub-sector showed the most elasticity, with net profits surging over 6-fold. Companies like Longsys, Netac Technology, ChangXin Technology, Biwin Storage, Shannon Semiconductor, Puri Semiconductor, and GigaDevice all saw their interim profits increase by over 1,000%.

The financial sector remains the main stabilizer of A-share profits. Banks and Non-bank Financial institutions ranked first and second by net profit size, with combined earnings of 1.64 trillion yuan, representing 45.81% of the total market profit. Resource stocks are also major profit generators, with PetroChina and Non-ferrous Metals ranking fourth and fifth respectively. The 278 companies in the top 5% for profitability are primarily financial and resource behemoths, with Banks and Non-bank Financial institutions making up 22.7% of this group and contributing 52.1% of its profits. Technology sectors have made the fastest strides in profitability enhancement.

Notably, only two industries recorded overall losses during the half: real estate and agriculture, with losses of 31.63 billion yuan and 12.58 billion yuan respectively. The property sector's struggles stem from the downturn cycle and asset revaluation, while the agriculture sector is hurting from oversupply and rock-bottom hog prices.

ChangXin Cracks the Top Ten

At the individual stock level, the most profitable companies remain the state-owned financial and oil giants, with ICBC, CCB, ABC, China Life, Bank of China, and PetroChina each exceeding 100 billion yuan in half-year profits. In a historical first, ChangXin Technology, a domestic chip giant on the STAR Market, entered the top ten with a net profit of 77.61 billion yuan. The company had made headlines on its listing day, July 27th, by surpassing ICBC to claim the title of the A-share market's most valuable listed company. Technology's profit contribution is even more striking when examining net profit increments. Ten companies contributed about half of the market's 581.22 billion yuan net profit increase. The insurance behemoth China Life and ChangXin Technology stood out with incremental profits of 93.56 billion yuan and 79.94 billion yuan respectively.

Analysts suggest that the accelerated profit growth in the second quarter was powered by AI and resources. China Life benefited from a boom in insurance investment income, while ChangXin Technology rode the memory super-cycle. On the loss-making side, Vanke became the "loss king" of the A-share market again with a deficit of 14.95 billion yuan, following its record-breaking annual loss of 88.556 billion yuan in 2025. Other major loss-makers include Muyuan Foods, Tongwei, China Fortune Land, GAC Group, Wens Foodstuff, China Southern Airlines, LONGi Green Energy, Huafa, and OCT, predominantly leaders in real estate, photovoltaics, and livestock industries. Market experts believe the second half of the year may see quicker sector rotation, with strong earnings visibility in AI and resources.