70 A-Share Firms Pre-Announce H1 Results, 87% Report Profit Growth
Seventy A-share listed companies have released their first-half 2026 performance forecasts as of July 6, and nearly 90% reported a positive outlook, signaling continued resilience in China’s corporate sector amid a period of economic transformation. According to data from Wind, 61 out of 70 companies — or 87.14% — reported positive expectations, comprising 46 expecting profit growth, 9 expecting slight increases, and 6 expecting a turnaround from losses to profits.
Strong Start to Earnings Season
The early wave of pre-announcements sets an optimistic tone for the upcoming H1 2026 earnings season, as reported by Securities Daily. Nine companies are projected to achieve net profits exceeding 5 billion yuan (approximately US$690 million), including Luxshare Precision, GTJA Haitai Securities, and Satellite Chemical.
Luxshare Precision, the “Apple supply chain” leader, expects net profit attributable to shareholders of 7.8 to 8.1 billion yuan, representing year-on-year growth of 18% to 22%. The company attributed its performance to diversified business布局, global production capacity allocation, and deepened cooperation with core domestic and international clients.
Shenzhen Longsys Electronics and China Merchants Energy Shipping each expect operating revenue exceeding 20 billion yuan, according to the same report.
AI Supply Chains Lead the Charge
From an industry perspective, the companies reporting positive results are concentrated in semiconductor and AI-related supply chains, with high景气度 spanning computing power, storage, and optical modules. The Xinhua News Agency noted that this concentration has driven related listed companies into a collective earnings harvest period.
Zhu Hualei, Senior Investment Advisor at Shaanxi Jufeng Investment, told Securities Daily: “The AI industry chain has become the core driver of this round of earnings growth, driven by the continuous iteration of global and domestic large language models, which has pulled demand higher. Domestic suppliers, with their mature manufacturing capabilities and rapid delivery response, have deeply integrated into this global hardware expansion cycle.”
Structural Transformation in Focus
The earnings divergence between technology and traditional sectors reflects China’s ongoing economic restructuring. Yang Delong, Chief Economist at Qianhai Open Source Fund, commented: “Driven by the wave of AI technological revolution, demand in the technology sector has surged, achieving rapid growth, while some traditional industries have seen relatively slower growth due to the transition between old and new growth drivers.”
This divergence comes against a broader backdrop of improving macroeconomic conditions. In April 2026, China’s Producer Price Index (PPI) turned positive for the first time in 41 months, as reported by QQ News, marking a historic inflection point that signaled the end of a prolonged deflationary period in industrial production. Analysts at Guosheng Securities noted that historically, each PPI recovery cycle has been accompanied by a shift from valuation-driven to earnings-driven market phases.
Broader Market Implications
The strong early earnings data supports the thesis that A-shares are transitioning to an earnings-driven “Bull Market Phase III,” where fundamentals rather than valuations will drive market direction. Multiple major brokerages, including CITIC Securities, CICC, and GTJA Haitai, have characterized 2026 as a transition year for A-shares, with the “15th Five-Year Plan” (2026–2030) serving as a key policy catalyst.
Goldman Sachs’ chief China equity strategist has maintained a cautiously optimistic outlook on Chinese equities, and the market’s consensus expectation for A-share 2026 earnings growth was revised upward from 16% to 23%, partly reflecting the impact of PPI turning positive.
Outlook and Key Questions
While the early data is encouraging, it represents only 70 of approximately 5,000 A-share companies. Key questions remain: Can AI-driven earnings growth be sustained as global AI infrastructure buildout matures? Will the earnings recovery broaden beyond technology sectors to include traditional industries? And how might external risks such as US-China trade tensions impact the trajectory?
As reported by China Daily, the coming weeks will see a flood of additional earnings pre-announcements that will provide a fuller picture of China’s corporate earnings landscape for the first half of 2026.