China Earnings Digest: August 10-16, 2026

Editor's note:

Earnings of China companies reflect economic, political, industrial and trade trends affecting the bottom line. To keep you up-do-date, we are compiling a weekly roundup of earnings results from major listed companies. Stock tickers are in parentheses.

TECH

China Literature (0772.HK), a Chinese provider navigating a shift from traditional online reading toward visual content formats, said first-half profit dropped 84 percent to 125.4 million yuan (US$19.9 million), largely on a tax-related charge. Revenue rose 11 percent to 3.5 billion yuan. The company's activities include online advertising and game publishing, comics and audio books, licensing and distribution of film, television, web and animated series, and sales of physical books and online literature. Chief Executive Hou Xiaonan said the company is addressing a shift in consumer trends, with revenue from online reading, its once core business, declining and short dramas and AI-animated dramas driving 42 percent of first-half revenue.

Shanghai-based Hua Hong Grace Semiconductor (688347.SS) reported net profit in the second quarter surged 386 percent to US$38.6 million on record revenue of US$717.5 million. The gross margin edged up 5.6 percent to 16.5 percent. Revenue from the Chinese mainland rose 20 percent to US$563.7 million and was up 77 percent from North America to US$93.8 million. Its acquisition of Huali Microelectronics has received regulatory approval and is expected to be completed in a month.

Nasdaq-listed Huya (Nasdaq: HUYA), a Chinese livestreaming platform focused on video games and esports, said it turned to a profit of 1.6 million yuan (US$200,000) in the second quarter from a-year-earlier loss of 5.5 million yuan. Revenue rose 11 percent to 1.7 billion. The company announced it was doubling the size of this year's share buyback program to US$100 million. Second-quarter livestreaming revenue was flat at about 1.1 billion yuan, and game-related services and advertising increased 54 percent to 638 million yuan. Huya said its "Goose Goose Duck" mobile game re-entered the Top 5 on the Apple App Store free games chart for Chinese mainland at the end of July, and said its games pipeline includes "The Legend of Swordman: Reunion" and "Xiao Xiao Qi Yu."

Hygon Information (688041.SS) reported a 65 percent jump in second-quarter revenue and a nearly 60 percent surge in profit as China's AI computing boom continued to drive demand for domestic processors. The AI developer of central processing units posted a revenue of 5.1 billion yuan (US$706 million), while the net profit reached 1.1 billion yuan, the first time quarterly profit exceeding 1 billion yuan. For the first half, revenue jumped 67 percent to 9.1 billion yuan, while net profit increased nearly 50 percent to 1.8 billion. The company cited continued investment in product lines, rapid development of large AI models and growing deployment of AI agents for earnings growth. Its domain control units are increasingly positioned as domestic alternatives for AI computing workloads as China expands AI data centers and other computing infrastructure.

Chinese e-commerce giant JD.com (Nasdaq: JD/9618.HK) posted its first-quarterly revenue decline in more than a decade on weaker sales of electronics, but profit rose as the company reduced heavy promotional spending on its fast food delivery service. Revenue in the second quarter fell 2.9 percent from a year earlier to 346.4 billion yuan (US$51 billion), while net profit attributable to ordinary shareholders increased 15 percent to 7.1 billion yuan.

Electronics and home-appliance revenue dropped 12 percent from a high base last year fueled in part by government trade-in subsidies. General merchandise sales rose 5.6 percent, and service revenue increased 6.8 percent. Marketing expenses fell 25 percent as JD scaled back spending to promote newer businesses, helping narrow losses at its food-delivery operations.

In the first half, revenue edged up 0.7 percent to 662 billion yuan, but net profit fell 28 percent to 12 billion yuan after heavy food-delivery spending, higher technology investment and a regulatory fine. JD.com competes with Alibaba and Meituan across e-commerce, instant retail and food delivery.

Separately listed JD Logistics and JD Health reported better earnings. JD Logistics posted a 27 percent increase in first-half revenue to 124.7 billion yuan, while profit grew 10.5 percent to 3.3 billion yuan. Revenue from customers outside the JD group jumped 29 percent to 85.4 billion yuan and accounted for nearly 69 percent of the total. Integrated supply-chain revenue rose 18.5 percent to 59.4 billion yuan.

JD Health reported first-half revenue rose 16 percent to 40.9 billion yuan and profit increased a third to 3.4 billion yuan on a gross margin of 26.1 percent. Pharmaceutical product revenue increased 16 percent to 34 billion yuan, led by dermatology, oncology, endocrinology, cardiovascular health and metabolic health. The company said it remains the largest online pharmacy retail platform in China. It also reported buying back 840 million yuan of stock in the period.

China's Kingdee International Software Group (0268.HK) reported a return to profitability in the first half of 2026, driven by strong growth in cloud services and AI-powered products. Revenue for the six months rose 13.6 percent from a year earlier to 3.6 billion yuan (US$540 million), while profit was 54.5 million yuan, turning from a loss of 97.7 million yuan. Cloud services revenue increased 17 percent to 3.1 billion yuan, accounting for 86 percent of revenue. The company is expanding overseas, building local service networks in Southeast Asia and the Middle East.

Beijing-based Lenovo Group (0992.HK), the world's largest maker of computers, turned to a US$609 million net loss attributable to shareholders in its fiscal first quarter ended June 30 from profit of US$538 million a year earlier, largely reflecting a one-time adjustment of US$1.7 billion related to revaluation of warrants. Earnings adjusted to exclude one-time items surged 176 percent to a record US$1.1 billion. Revenue jumped 43 percent to a record US$26.9 billion, with a rise of 25 percent in China and 53 percent in the Americas. The company said AI-related revenue rose 60 percent from a year earlier to US$9.3 billion, or 35 percent of group revenue. Gross profit margin increased by 1.8 percentage points to 16.5 percent.

Lenovo, which holds about a quarter of the global market, said operating expenses in the three months increased 123 percent, including US$4.4 billion spent on advertising and promotions, including the FIFA World Cup. The business segment comprising computers, smartphones and other devices delivered a 27 percent revenue increase. Spending on research and development rose to US$682 million from US$524 million a year earlier. The company took a loss of US$126 million on currency-exchange rates, largely reflecting a stronger yuan when accounting for overseas earnings. Originally called Legend, Lenovo burst on the international scene after the 2005 merger with IBM's PC business. It bought Motorola Mobility in 2014.

Shanghai-based Semiconductor Manufacturing International (SMIC, 688981.SS/0981.HK), the Chinese mainland's largest chip foundry, said second-quarter net profit jumped 400 percent to US$733 million, thanks to increased sales and improved margins. Revenue rose 36 percent to US$3 billion, the highest quarterly revenue in SMIC's history. Gross margin edged up 4.9 percentage points to 25.3 percent. Driven by China's push for semiconductor self-sufficiency and geopolitical tensions, the company drew 90 percent of its earnings from the domestic market, up from 88.9 percent in the first quarter. SMIC said AI will continue to drive robust chip demand in the second half of the year, adding that it will adjust existing capacity and accelerate the ramp-up of new production lines to help ease industry-wide supply constraints.

Nasdaq-listed Chinese media and entertainment giant Sohu (Nasdaq: SOHU) turned to a profit of US$500,000 in the second quarter from a loss of US$20 million a year earlier, thanks to a one-time income tax adjustment of US$13 million and more income from the gaming sector. Revenue in the quarter rose 7 percent year to US$136 million – US$116 million from games. Founder and CEO Charles Zhang said the marketing services, online game revenue and bottom-line performance all outperformed internal expectations.

Chinese multinational conglomerate Tencent (0700.HK) reported a better-than-expected second-quarter revenue on strong domestic gaming sales and AI-driven advertising, but profit fell short of analysts' estimates as the tech giant ramped up capital spending on AI. Revenue rose 11 percent year on year to 204.78 billion yuan (US$30.36 billion), while net profit edged up only 0.7 percent to 56 billion yuan. Domestic gaming revenue jumped 17 percent to 47.3 billion yuan, accelerating from 6 percent growth in the first quarter. Tencent said titles including "Delta Force" and "Valorant" drove the increase.

International gaming revenue declined 0.8 percent because of the stronger Chinese yuan. Capital spending rose to 52.8 billion yuan from 31.9 billion yuan in the first quarter, and the company signaled that will increase in the second half of the year. Tencent's businesses span cloud computing, digital payments, music and video streaming and online healthcare. It is a competitor of ByteDance and Alibaba, with AI products that include Yuanbao chatbot and the WorkBuddy office assistant.

Separately HK-listed Tencent Music Entertainment reported a 32 percent drop in first-half profit from a year earlier to 4.6 billion yuan (US$682 million), although profit adjusted to disregard a large one-time gain last year grew 5.6 percent to nearly 5 billion yuan. In the second quarter of this year, net profit edged up 2.6 percent to 2.5 billion yuan. Half-year revenue rose 6.5 percent to 16.8 billion yuan, largely driven by an 11.5 percent jump in music-related services to 14 billion yuan. Music membership revenue expanded 7.4 percent to 9.4 billion yuan.

Shanghai-listed tech giant Foxconn Industrial Internet (601138.SS) reported a net profit of 23.7 billion yuan (US$3.5 billion) in the first half, up 95 percent year on year. Revenue jumped 54 percent to 557.8 billion yuan on strong demand for AI servers and products tied to AI chips and generative AI expansions across industries.

Its parent company Hon Hai Technology (2317.TPE), more commonly known as Foxconn, said second-quarter profit rose 35 percent to a record T$60 billion (US$1.9 billion) and revenue jumped to an all-time high of T$2.53 trillion. The world's largest maker of contract electronics for companies like Apple and Nvidia, said profit in the first half rose 27 percent to T$109.9 billion on a 35 percent rise in revenue to T$4.65 trillion. Foxconn Chief Executive Michael Chiang stated the company continues to expand its market share in AI server racks, driven by strong demand from cloud service providers. With Nvidia's Vera Rubin racks entering mass production in the third quarter, revenue in that segment is expected to grow in the double-digits this year, he said. Shipments of high-performance networking products are moving ahead and full-year revenue from 800G and higher switches is expected to double. Foxconn employs 900,000 people globally in factories operating in China, the US, Mexico, Vietnam and other countries.

CONSUMER

Chinese ride-hailing platform DiDi (USOTC: DIDIY) reported higher second-quarter revenue and record transactions, but aggressive spending on overseas expansion sharply eroded underlying profit. Revenue rose 10.8 percent from a year earlier to 62.5 billion yuan (US$8.7 billion), while total transactions increased 13 percent to 5 billion. International transactions jumped 29 percent and gross transaction value surged 61 percent, helped by growth in food delivery. But the international segment's adjusted operating loss widened nearly fourfold to 2.9 billion yuan as DiDi increased incentives and marketing spending. Group sales and marketing expenses climbed 67 percent to 5.4 billion yuan. DiDi posted a net profit of 869 million yuan, turning from a 2.5-billion-yuan loss a year earlier, though the comparison was distorted by a one-time 5.3-billion-yuan provision for a shareholder lawsuit in 2025. Adjusted profit, which strips out extraordinary items, fell 91 percent to 284 million yuan.

Premium liquor maker Kweichow Moutai (600519.SS) reported net profit in the first half fell 2 percent to 44.5 billion yuan (US$6.6 billion). Revenue rose 1.5 percent to 90.7 billion yuan. The Shanghai-listed company said it produced 41,000 tons of its signature Moutai, a fiery distilled liquor widely consumed at major celebrations and given as gifts. In the second quarter, net profit dropped 36 percent from the prior quarter to 17.3 billion yuan. Kweichow said it expects continued industry competition and structural adjustment but remains confident in achieving full-year targets. Meanwhile, Zhao Shuyue, former deputy Party secretary of Moutai Group, is under investigation by Guizhou Province authorities for alleged severe violations of law, joining a series of executives probed since 2025.

Shanghai-based Tingyi Holding Corp (0322.HK), which owns the iconic Master Kong brand of instant noodles and beverages, reported first-half net profit increased 7.5 percent year on year to 2.9 billion yuan (US$429 million) on a 1.1 percent increase in revenue to 45.5 billion yuan. Income from its instant noodles rose 2 percent, while income of beverages gained 0.7 percent. Its juice segment fell 13 percent, but tea rose 9.1 percent.

PROPERTY

Hong Kong-based property developer Wharf Holding (0004.HK), which has extensive investments on the Chinese mainland, said first-half profit tumbled 91 percent from a year earlier to HK$48 million (US$6 million) on a 6 percent drop in revenue to HK$5.3 billion. The company said the property sector on the Chinese mainland remained subdued. Wharf said it has been progressively reducing its exposure to Chinese mainland development properties since 2019, with contract sales in that sector falling in the first half to 345 million yuan from 859 million yuan, mainly from projects in Chengdu and Suzhou. The company operates Shanghai Wheelock Square and International Financial Squares in Changsha, Chengdu, Chongqing and Wuxi. Vacancies in its Chinese mainland office sector remain elevated due to "severe oversupply," the company said, and occupancy and room rates in hotels in operates in Changsha, Chengdu, Suzhou and Chongqing remained "under pressure."

TELECOM

China Mobile (600941.SS/0941.HK), the nation's largest telecoms operator, reported a 3 percent decline in the second-quarter revenue from a year earlier to 272 billion yuan (US$38 billion), while net profit fell about 7.5 percent to 50 billion yuan. For the first half, the company reported revenue of 538 billion yuan, down 1.1 percent, and a 6.3 percent decline in net profit 79 billion yuan. Weakness in traditional telecom services outweighed rapid growth in AI and computing services, although sharply improving cash flow was a bright spot. Revenue from its communications business fell 5.7 percent in the first half. The company cited a transition from old to new growth drivers, market conditions and a change in government value-added tax policies. Revenue from computing services rose 14 percent, with intelligent computing revenue surging 130 percent to 5.3 billion yuan. Revenue from artificial intelligence data center jumped 486 percent year on year.