“Consumption + Technology” Reshapes Growth Drivers - SSE Listed Companies Complete 2025 Semi-annual Report Disclosure

Published by the Shanghai Stock Exchange

As of August 30, 2025, companies listed on the Shanghai Stock Exchange (“SSE”) have completed the disclosure of their 2025 semi-annual reports. Data shows that with the incremental policies’ effect being further released, the growth drivers underpinned by consumption and led by technology have become increasingly clear. The high-quality development of listed companies is transitioning through phases of connection and integration, presenting a new pattern that is more balanced and sustainable.

I. Performance Growth Turns Toward Innovation and Real Economy

In the first half of 2025, the SSE-listed companies achieved a total operating revenue of 24.68 RMB trillion, a slight year-on-year decrease of 1.3%; net profit reached RMB 2.39 trillion, up 1.1% year-on-year; and net profit after deducting non-recurring gains and losses stood at RMB 2.29 trillion, increasing by 0.7% year-on-year. A positive momentum was maintained across quarters: in the second quarter, operating revenue and net profit rose by 6.1% and 0.1% month-on-month respectively.

Interim dividends hit a new high. In the first half, 408 SSE-listed companies announced interim cash dividends, with the total dividend amount reaching RMB 555.2 billion, representing year-on-year growth of 12% and 5% respectively. 14 companies distributed dividends exceeding RMB 10 billion each. Real economy enterprises recorded a total R&D investment of RMB 432.6 billion, up 1% year-on-year; the SSE STAR Market-listed companies saw their total R&D investment reach RMB 84.1 billion, a year-on-year increase of 6%, with the median R&D investment ratio standing at 13%, continuing to lead all boards in A-shares. Real economy enterprises achieved a net inflow of operating cash of RMB 1.11 trillion, a year-on-year surge of 32%. The cash content of net profit reached 103%, an increase of 26.2 percentage points year-on-year.

From the perspective of contribution to performance growth, the manufacturing sector maintained a solid foundation. The operating revenue and net profit of the manufacturing industry increased by 3.9% and 7.1% year-on-year respectively, accounting for 78% and 50% of the total growth (excluding non-bank financial institutions). Emerging industries showed stronger momentum: the operating revenue and net profit of emerging industries such as electronics, communications, biomedicine, and rail transit equipment grew by 7.5% and 6.5% respectively. Over the past five years, the share of emerging industries in the operating revenue of manufacturing and related service industries has risen from 39% to 49%, while their profit share has increased from 33% to 50%.

II. Integrated Circuits and Biomedicine Gradually Become New Growth Engines

With The SSE STAR Market as the cornerstone, the integrated circuit and biomedicine industries on the SSE have gradually emerged as “new engines” for performance growth. The number of integrated circuit companies has increased to 138, covering the entire industrial chain including design, manufacturing, and packaging & testing. In the first half, their total operating revenue reached RMB 246.675 billion, and total net profit amounted to RMB 18.943 billion, up 14% and 57% year-on-year respectively. Biomedical enterprises achieved a total operating revenue of RMB 251.109 billion and net profit of RMB 31.862 billion, representing year-on-year growth of 1% and 14% respectively. The SSE STAR Market has become another major global listing destination for biomedical enterprises, following the United States and Hong Kong SAR.

Integrated circuit industry achieves “full-chain growth”. Driven by both domestic substitution and market recovery, leading wafer manufacturing enterprises such as SMIC and Hua Hong Semiconductor maintained full-capacity operation. Semiconductor equipment companies like AMEC (Advanced Micro-Fabrication Equipment Inc.) had sufficient orders. Nine chip design enterprises including Rockchip and Telink Semiconductor saw their profits double year-on-year, serving as the “ballast stone” for the industry’s growth. The rapid penetration of artificial intelligence technology has become a key driver for the upgrading of the integrated circuit industry, opening up broad incremental space for its development. A number of AI computing power enterprises have achieved rapid improvement in operational quality by virtue of their unique technological advantages: Cambricon successfully achieved a turning point of three consecutive profitable quarters, following years of losses since its listing; Hygon Information’s high-end processor products are increasingly applied in the emerging AI large-model industry, driving its net profit to exceed RMB 1 billion for the first time in the first half; Montage Technology led the iteration of DDR5 memory technology, consolidating its position as the world’s largest memory interconnect chip supplier and becoming the “hidden champion” behind AI servers. Companies such as JCET Group, Shengyi Electronics, Intellifusion, and Shijia Photonics have seized development opportunities in segmented areas including advanced packaging, AI materials, scenario-based applications, and optical communications, collectively fostering a diversified growth pattern.

Biomedicine industry enters a new phase of commercial harvest and sustainable growth. Innovative drug companies have reached multiple industry milestones: in the first half, 17 Class 1 innovative drugs were approved for domestic marketing, and 20 overseas business development (BD) transactions were completed, with the total potential transaction value exceeding 26.4 billion US dollars. BeiGene’s zanubrutinib achieved revenue of over 10 RMB billion in the first half, becoming the first domestic innovative drug to rank among the world’s top 50 best-selling drugs, driving the company to reach a key turning point of achieving its first net profit after deducting non-recurring gains and losses since its establishment; Dizal Pharmaceutical’s novel targeted drug ZEGFROVY (Sunvozertinib) for lung cancer received accelerated approval for marketing from the U.S. FDA, becoming China’s first globally innovative drug independently developed and approved in the United States; Hengrui Pharmaceuticals achieved another record-high performance in the first half, with operating revenue of RMB 15.76 billion and net profit of RMB 4.45 billion. There were 6 Class 1 innovative drugs being launched, and the revenue contribution of the innovative drug segment reached 60%; WuXi AppTec, relying on its integrated CRDMO (Contract Research, Development and Manufacturing Organization) business model covering the entire life cycle of new drug R&D, doubled its net profit in the first half to RMB 8.56 billion.

III. Consumption Expansion and Quality Improvement

The potential of consumption has been continuously released. Companies in consumer sectors such as food & beverages and home appliances achieved year-on-year growth of 12% in operating revenue and 2% in net profit respectively, becoming an important support for stable growth.

Trade-in policy continues to deliver results. The auto industry recorded a 6% year-on-year increase in operating revenue in the first half. New energy vehicle (NEV) sales of companies including Guangzhou Automobile Group, SAIC Motor, and Great Wall Motor rose by nearly 30% year-on-year. Seres saw its net profit surge 81% year-on-year in the first half, with cumulative NEV sales exceeding 170,000 units. The home appliance industry achieved a 10% year-on-year growth in net profit. Haier Smart Home ranked first in both online and offline market shares; the sales proportion of a variety of energy-saving and smart home appliances increased significantly, driving its net profit up 16% year-on-year in the first half. Hisense Visual took the lead in the industry’s trend of large-screen products: in the all-channel market for 100-inch and larger products, its retail volume and sales share reached 41.65% and 48.66% respectively, retaining the top position in China.

Steady growth of basic consumption and accelerated rise of new consumption. Basic consumption maintained steady growth while new consumption grew rapidly. Eastroc Beverage, in the first half, saw its revenue from electrolyte drinks increasing by 214% year-on-year; new categories such as tea drinks and coffee grew fast, driving its operating revenue and net profit up 36% and 37% year-on-year respectively; Haitian Flavouring covered multi-scenario seasoning needs for kitchens and dining tables with one-stop solutions, achieving a 13% year-on-year growth in net profit; Angel Yeast maintained stable output and prices in its fermentation business; its strategic new product yeast protein was promoted smoothly, with net profit rising 16% year-on-year. New consumption types such as self-indulgent consumption, spiritual consumption, and IP-based consumption gained increasing popularity. Insta360 has its new products including the panoramic camera X5, Ace Pro 2 street photography set, and GO Ultra sold well, pushing its operating revenue up 51% year-on-year in the first half; Shanghai Film developed film ecological economy through high-quality content screenings, innovative marketing models, and cross-industry integration during the Shanghai International Film Festival. It achieved a cumulative box office of RMB 2.212 billion in the first half, up 26% year-on-year, with its market share rising to 7.57%; Shanghai Bailian Group co-hosted themed events with BilibiliWorld, recording a significant increase in foot traffic during the exhibition; sales rose by 31%, and 35% of its brands achieved record-high performance.

Holiday tourism and cultural tourism promote each other. Tourism scenic spot companies focused on creating “new scenarios, new experiences, and new ways to play”, achieving a 58% year-on-year growth in net profit. Sunriver Culture Tourism drove the night economy with the model of “cultural IP + tourism + technology”, with net profit up 54% year-on-year. Tianmu Lake integrated natural elements of the scenic spot into its music festivals,. and during the May Day holiday, the number of tourists received increased by 5.31% year-on-year, and net profit rose by 4% year-on-year. Huangshan Tourism: Huangshan Scenic Area received a total of 2.2641 million inbound tourists, up 5.82% year-on-year, with revenue increasing by 13% year-on-year. The appeal of “Travel in China, Shop in China” continued to strengthen. Shanghai Pudong International Airport and Guangzhou Baiyun International Airport saw their net profit increasing by 28% and 71% year-on-year respectively. In the first half, the total number of takeoffs and landings on international routes reached 160,100, and passenger throughput hit 24.2927 million, up 17.60% and 25.11% year-on-year respectively. Yuyuan Tourist provided rich oriental aesthetic tourism and shopping experiences for domestic and foreign consumers, and during the May Day holiday, it received over 1 million visitors and achieved cumulative sales of over RMB 100 million, doubling year-on-year.

IV. Traditional Industries Pursue Innovation and Transformation

The transformation and upgrading of traditional industries is a key driver for developing new quality productive forces. On the SSE, industries such as iron & steel and mechanical equipment broke through the “involution” dilemma through technological innovation, moving towards high-value-added fields, with their net profit increasing by 235% and 21% year-on-year respectively. Baoshan Iron & Steel: The proportion of high-end and differentiated products such as automotive steel sheets and silicon steel exceeded 60%, and it ranked first in the global market share of grain-oriented silicon steel products; Nanjing Iron & Steel: The gross profit ratio of advanced steel materials reached 46.67% in the first half, up 3.2 percentage points year-on-year, becoming the core engine for performance growth; Hengli Hydraulic built a solid technological barrier in the field of high-end hydraulic components and successfully delivered ultra-long-stroke inner guide hydraulic cylinders for casting machines; Neway Valve achieved multiple milestones in high-end fields such as nuclear energy and marine engineering, the delivery volume of nuclear-grade valves hit a record high, and a number of high-end products drove its performance up by 30%.

In-depth advancement of digital and intelligent transformation. ZMJ Group Company Limited built the world’s first lighthouse factory in the coal machinery industry, and with 23 automated production lines and 150 robots operating in coordination, its production efficiency increased by 200%, and the product turnover days decreased by 72.4%; Sany Heavy Industry constructed a full-process digital manufacturing operation platform with an “intelligent brain” to realize flexible allocation and precise scheduling of personnel, equipment, and materials in production; Hangcha Group: The independently developed project “Research and Application of Key Technologies for Safe Operation of Unmanned Forklifts in Complex Scenarios”, assisting domestic unmanned forklifts to achieve leapfrog development; Hengtong Optic-Electric built an intelligent optical fiber and cable factory based on all-optical network + AI, and was selected into the first batch of excellent-level intelligent factories by the Ministry of Industry and Information Technology; Jointown Pharmaceutical increased digital investment in two key areas - intelligent warehouses and AI scheduling, and the operating revenue of its digital logistics and supply chain solutions increased by 25% year-on-year in the first half.

Accelerated process of “expanding green development and enhancing efficiency”. The thermal power industry has long faced challenges of homogeneous competition and low-carbon transformation. Relevant enterprises actively promoted green upgrading: Huadian Power International upgraded towards higher parameters, higher efficiency, and higher added value through innovative means such as ultra-supercritical unit transformation, integrated energy services, and carbon capture, utilization, and storage (CCUS) technology; Huaneng Power International added 7,987.31 MW of grid-connected controllable installed capacity for clean energy; the proportion of low-carbon clean energy installed capacity rose to 39.12%; Yutong Bus completed the full technological upgrading of the “three electric systems” (battery, motor, and electronic control) for domestic pure electric buses and coaches, achieving technological breakthroughs in lower energy consumption and better operation; its performance increased by 16% year-on-year in the first half; Fuyao Glass integrated solar cell modules into glass interlayers; a single sunroof can generate 290 kWh of electricity annually, helping reduce vehicle carbon emissions; Junzheng Group: The green, low-carbon, and environmentally friendly degradable plastic recycling industrial chain project has been fully completed and put into operation, with its performance increasing by 27% year-on-year.

V. Foreign Trade Exports Demonstrate Strong Resilience

In the first half of the year, over 830 SSE-listed manufacturing companies achieved a total overseas revenue of RMB 1.1 trillion, a year-on-year increase of 5%. Among them, private enterprises’ overseas revenue exceeded RMB 740 billion, growing by 6% year-on-year and contributing nearly 70% of the total overseas revenue, making them the main force in innovative overseas expansion.

Diversified overseas markets expand foreign trade growth space. Emerging markets continued to expand. China Commodities City Group focused on developing emerging markets such as the Middle East, South America, and Africa, adding 13 new overseas projects; the influence of Xiamen Xiangyu’s high-quality China-Indonesia routes reached a new level, with the market share of the Indonesia Sulawesi-China route remaining the highest. High-quality cooperation under the “Belt and Road Initiative” advanced steadily. Ningbo-Zhoushan Port has built over 300 container shipping routes, serving as the optimal connection point between the “Belt and Road Initiative” and the “Yangtze River Economic Belt”; CRCC Jakarta–Bandung High-Speed Railway has transported over 9.9 million passengers, becoming a signature project of China-Indonesia cooperation under the Initiative; CRCHI, a leader in tunnel boring machines (TBMs), won bids in Serbia, Romania, South Korea, and other countries, with contract value exceeding RMB 1.8 billion in the first half. Brand globalization accelerated. Ecovacs, focusing on global market expansion, saw its overseas business grow by 67% year-on-year in the second quarter; King Long Motor’s overseas sales network covers more than 170 countries and regions, achieving good results in markets such as Israel, Saudi Arabia, Sweden, Tunisia, and Vietnam in the first half, with the group’s total exported buses increasing by 52.4% year-on-year; Zhongce Rubber’s all-steel radial tires and other products are sold to major countries and regions across six continents, with its overseas market share continuously rising as it actively catches up with international leading tire brands.

Technological innovation and iteration drive incremental international orders. In the first half, Huayou Cobalt’s export volume of ternary cathode materials accounted for 57% of China’s total ternary cathode exports, and the shipment proportion of its ultra-high nickel 9-series products used in e-VTOL low-altitude aircraft and humanoid robots exceeded 60%; Quectel Wireless Solutions, based on modules for 5G and smart cockpits, integrated hardware-software full-link solutions such as antennas to provide network access capabilities for massive terminal customers worldwide including in Europe and North America, with its overseas operating revenue growing by 49% year-on-year in the first half; Aiko Solar Energy focused on optimizing and innovating N-type ABC technology, with ABC module shipments reaching 8.57 GW in the first half, a year-on-year increase of over 400%, and securing leading market shares in Switzerland, the Czech Republic, the UK, and other markets. A number of innovative products gained greater international recognition. Sino Medical’s HT Supreme drug-eluting stent received conditional approval from the U.S. FDA, becoming the first domestically developed Class III high-end implantable medical device in China to apply for Pre-Market Approval (PMA) from the U.S. FDA; all components of MicroPort EP’s IceMagic® cryoablation system have obtained certification under the EU Medical Device Regulation (MDR), officially entering the international market.

VI. Expansion and Diversification of ETF Products

Incremental capital accelerated its pace into the market via ETFs. As of the end of August, the scale of the SSE-listed ETFs exceeded RMB 3.7 trillion, accounting for over 70% of the domestic ETF market, with 5 products each having a scale of over RMB 100 billion. Among them, equity ETFs reached approximately RMB 2.6 trillion in scale, and bond ETFs amounted to around RMB 450 billion. Since the beginning of this year, capital inflows have exceeded RMB 350 billion, and key broad-based ETFs such as CSI 300 ETF, CSI 500 ETF, and SSE 180 ETF have become important long-term allocation tools for institutional investors. Meanwhile, the quality and scale of the SSE-listed ETF products have accelerated. In the first half, a total of 96 new ETFs were listed, raising RMB 78.8 billion in total, surpassing the full-year level of 2024. Among these, 50 were broad-based ETFs, including 16 SSE STAR Market Composite Index ETFs with a total scale of nearly RMB 20 billion, and 8 SSE 180 ETFs with a combined scale of over RMB 22 billion. The launch of the first batch of CSI A500 Enhanced ETFs and SSE STAR Market Composite Index Enhanced ETFs has further enriched investors’ diversified allocation options.

SSE STAR Market index products guide long-term funds to gather in “innovation”. With both quantity and quality improving, the SSE STAR Market index products provide abundant targets for funds to invest in “hard technology”, making the SSE STAR Market the A-share sector with the highest proportion of index-based investment. Since the start of this year, 7 new indices (including the SSE STAR Market Composite Index and SSE STAR Private Enterprise Index) have been launched on the SSE STAR Market, bringing the total number of the SSE STAR Market indices to 32. As of the end of August, 93 ETFs have been listed on the SSE STAR Market, with a total scale of RMB 287.6 billion. Among them, the scale of domestic and overseas the SSE STAR 50 Index products reached nearly RMB 200 billion, an increase of over 8% compared to the beginning of the year. Index-based products represented by the SSE STAR Market ETFs have become important tools for attracting funds to gather in new quality productive forces and guiding medium- and long-term funds into the market. Medium- and long-term investors have significantly increased their allocation to SSE STAR Market ETFs, with the total allocation scale exceeding RMB 40 billion as of the end of June.

VII. Policy Implementation Driven by Case Studies

Since the release of the Six Measures for Mergers and Acquisitions, the vitality of M&As and restructurings has increased significantly. In the first half of 2025, the number of newly added asset restructuring cases among the SSE-listed companies reached 378, a year-on-year increase of 23%, including 55 newly added major asset restructuring cases (a year-on-year surge of 224%), with a total transaction value exceeding RMB 160 billion, far exceeding the same period last year. A number of innovative and demonstration cases have been implemented successively: Guotai Junan Securities completed its absorption and merger of Haitong Securities; CSSC obtained approval for its absorption and merger of China Shipbuilding Industry Corporation; and Hengli Heavy Industry completed the delivery of assets injected into Guangdong Songfa Ceramics Co., Ltd. Hundreds of billion yuan scale transactions continued to emerge: China Shenhua acquired coal and power assets from its controlling shareholder to further consolidate its core business competitiveness; Zhejiang Expressway issued shares to absorb and merge Zhengyang Development, enabling high-quality expressway assets to return to the A-share market through M&A. Cross-border M&A achievements continued to accumulate: Grandblue Environment completed the privatization and delivery of Canvest Environmental Protection (a company listed in Hong Kong SAR); Shenzhen Original Advanced obtained approval for its cross-border share exchange acquisition of AAMI; and ENN Natural Gas’ plan to issue H-shares for the privatization of ENN Energy continued to advance. Industrial M&As and shareholder capital injections continued to play a role: Inner Mongolia Mengdian Huaneng acquired wind power assets from its shareholder to expand into the green power sector; CNSIG Inner Mongolia Chemical Industry acquired a large natural soda mine in Inner Mongolia to consolidate core resources and strengthen asset quality.

Eight Measures for The SSE STAR Market and “1 + 6” Reform Measures Gradually Implemented, Elevating Support for New Quality Productive Forces. The Eight Measures for The SSE STAR Market have promoted industrial integration as the main line of M&As and restructurings. Since its release, over 130 new industrial M&A deals have been launched, with disclosed transaction value exceeding RMB 40 billion. Among these, 44 deals involved major asset restructurings or securities issuance, which is more than twice the total number of such deals in all years before the release of the Eight Measures. Leading companies have accelerated industrial chain integration: United Nova Technology’s share issuance to acquire United Nova Yuezhou has been approved and completed, marking the first successfully implemented restructuring deal to acquire high-quality unprofitable assets since the release of the Eight Measures; Hua Hong Semiconductor is planning to issue shares to acquire control of Huali Microelectronics, which will not only resolve horizontal competition but also expand its 12-inch production capacity, demonstrating firm confidence in the specialty process wafer foundry industry. The SSE STAR Market’s “1 + 6” policy has precisely empowered the development of high-quality technology-based enterprises. Since its release, 15 new IPO applications have been accepted, including 4 unprofitable enterprises; in terms of applying the fifth set of listing standards, 1 enterprise has been accepted, and 2 previously applied enterprises have obtained approval. At the same time, 32 existing enterprises in the SSE STAR Market’s Growth Tier have shown strong development momentum, with operating revenue increasing by 37.79% year-on-year in the first half and net profit losses narrowing significantly by RMB 7.123 billion.