China: China's major industrial firms recorded accelerated profit growth in the first five months of 2026, driven by surging demand for AI-related electronics and new energy materials, official data showed.
According to Oman News Agency, profits of industrial enterprises with annual revenue of at least 20 million yuan ($2.93 million) rose 18.8 percent year-on-year to 3.14 trillion yuan in the January-May period. The growth rate surpassed the 18.2 percent recorded in the first four months, with May alone posting a 21.1 percent increase.
Industrial revenue grew 5.5 percent year-on-year in the first five months, rising 0.3 percentage points from the January-April period, supported by strong production and higher producer prices. Equipment manufacturing remained a key driver, with profits rising 14.1 percent and contributing 5.2 percentage points to overall growth.
The electronics sector led the surge with a 103.9 percent profit jump, contributing 43.1 percent to total industrial profit growth, as the global AI boom spurred demand for advanced computing and memory products. Raw materials manufacturing profits soared 83.1 percent, contributing 10.2 percentage points, while non-ferrous metals profits rose 117.1 percent on higher copper and aluminium prices. The oil processing sector returned to profitability, and chemicals posted a 71.6 percent gain.
High-tech manufacturing maintained double-digit growth, with profits up 44.7 percent, contributing 8.0 percentage points. Optoelectronic device profits rose 53.8 percent, discrete device manufacturing gained 40.6 percent, and specialised electronic materials surged 665.4 percent.
Corporate cost burdens continued to ease. For every 100 yuan of operating revenue, industrial firms incurred costs of 84.95 yuan in January-May, down 0.59 yuan year-on-year - the fifth consecutive monthly decline. The operating profit margin rose to 5.56 percent, up 0.63 percentage points from a year earlier, marking the highest for any cumulative period since 2024.