Profits of China's industrial firms above designated size increased 18.7% year-on-year during the first half (H1) of 2026, data from the National Bureau of Statistics showed on Monday.

These industrial firms with an annual main business revenue of at least 20 million yuan ($2.95 million) saw their combined profits reach 3.95 trillion yuan ($583.28 billion) in the January-June period, according to the data.

Industrial production remained stable, while new growth drivers continued to expand rapidly, providing strong support for profit growth, said Yu Weining, chief statistician with the NBS Department of Industry.

The industrial firms' operating revenue rose 6.5% year-on-year amid steady production growth and a continued recovery in industrial product prices.

The electronics sector was a key driver of growth. As artificial intelligence becomes increasingly integrated into various industries and demand for computing power soars, profits in the electronics industry surged 96.9%, contributing 8.5 percentage points to overall profit growth.

Emerging growth drivers also boosted profits in related industries. Profits in recycled rubber manufacturing and graphite and carbon product manufacturing jumped 133.3% and 61%, respectively.

By ownership type, profits at joint-stock industrial enterprises rose 24.7% year-on-year, while those at state-owned industrial enterprises increased 17.9% and private enterprises, 13%.