CHINA EARNINGS DIGEST: February-January 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, starting with a catchup for the first two months of this year.

Technology

Baidu (9888.HK / NY:BIDU)

Beijing-based Baidu, China's largest search engine and a heavyweight in AI development, posted a 4 percent drop in fourth-quarter revenue to US$4.7 billion as weakness in ad revenue took the shine off strong growth in its cloud computing business.

Net income plunged 66 percent to US$255 million. Revenue from Baidu's core AI-powered business, which includes its cloud infrastructure unit, AI applications and its robotaxi division, jumped 48 percent to US$1.6 billion, accounting for 43 percent of general business revenue.

For the full year, revenue fell 3 percent to US$18.5 billion from a year earlier, with an operating loss US$833 million. Net income dropped 76 percent to US$799 million. The company spent US$3 billion on research and development, which has totaled more than US$14.6 billion over the past three years.

The company said its Apollo Go robotaxi service has delivered 20 million rides to date, expanding from the Chinese mainland to Europe and the Middle East. Meanwhile, the company's advertising unit, which has been a prime revenue driver, has been struggling in a highly competitive ad market beset by weaker consumer spending.

AI has become the "new core of Baidu," said Chief Executive Robin Li, touting the performance of Baidu's Kunlunxin chips, building on a proprietary architecture with compatibility across various AI models in sectors such as finance, energy and telecommunications.

NetEase (9999.HK / NY:NTES)

NetEase, a Chinese Internet and mobile games giant, said fourth-quarter profit fell 30 percent from a year earlier to 6.2 billion yuan (US$892.6 million) and revenue rose 3 percent to 27.5 billion yuan. Operating expenses increased 11 percent, related to marketing costs.

Chief Executive William Ding called it a "healthy quarter" that reflected the company's successful games, that include the "Fantasy Westward Journey" series and titles like "Eggy Party," "Sword of Justice" and "Where Winds Meet." He cited the incorporation of AI to make its products more interactive for users.

Games revenue rose 3.4 percent, revenue from its educational tool Youdao was up 17 percent, and cloud music sales rose 4.6 percent. For 2025, NetEase said revenue rose to 112.6 billion yuan from 105.3 billion yuan a year earlier, and net profit shot up 14 percent to 33.8 billion yuan.

Semiconductor Manufacturing International (0981.HK / 688981.SS)

Shanghai-based Semiconductor Manufacturing International, Chinese mainland's largest contract chipmaker, said fourth-quarter profit attributable to owners of the company rose 61 percent from a year earlier to US$173 million on a 13 percent increase in revenue to US$2.5 billion. The company's gross margin fell to 19.2 percent from 22.6 percent, and capacity utilization was 96 percent.

For all of 2025, the company said profit surged 39 percent to US$685 million on a 16 percent rise in revenue to US$9.3 billion. Capital spending totaled US$8.1 billion. SMIC said it expects flat revenue growth in the current quarter. In an earnings call with investors, Co-Chief Executive Zhao Haijun said orders from smartphone vendors and makers of lower-end electronics products are getting squeezed by strong demand for AI-related semiconductors reported. Chips for smartphones accounted for about a quarter of revenue in the fourth quarter, and consumer electronics comprised about 40 percent.

Taiwan Semiconductor Manufacturing: (2330.TW / NY:TSM)

Taiwan Semiconductor Manufacturing (TSMC), one of the world's largest chipmakers, posted a 35 percent increase in fourth-quarter profit to US$16 billion, on a 21 percent increase in revenue to a record US$33.1 billion, beating estimates. The company's computing division, which includes AI and 5G applications, comprised 55 percent of sales in the last quarter of 2024, with smartphone sales contributing 32 percent.

TSMC said advanced chips measuring 7-nanometer or smaller made up 77 percent of total wafer revenue. The company forecasts revenue in the first quarter of 2026 will hit up to US$36 billion and capital spending will total up to US$56 billion in 2026. On an earnings call with investors.

CC Wei, TSMC chairman and chief executive, said the company is aware of the global shortage in memory chips but its focus on high-end phones is less sensitive to price changes. TSMC has been expanding globally in recent years, with major projects underway in Japan, Europe and the US.

Lenovo (0992.HK / NY:LNVGY)

Lenovo Group, the world's largest maker of computers, reported a 21 percent drop in profit to US$546 million for its fiscal third quarter ended December 31. Revenue rose 18 percent from a year earlier to a quarterly record of US$22.2 billion. The results included a one-time US$285 million restructuring charge. The Beijing-based company said its global market share was 25 percent at the end of 2025.

Lenovo designs, manufactures and marketing of consumer electronics, personal computers, software and services. The company said revenue from its AI server business achieved high double-digit growth in the quarter, with a US$15.5 billion pipeline. Originally called Legend, the company burst on the international scene after the 2005 merger with IBM's PC business.

Hua Hong Semiconductor (866347.SS / 1347.HK)

Shanghai-based Hua Hong Semiconductor, a leading China chip foundry, said it turned to a profit of US$17.5 million in the fourth quarter from a year earlier loss of US$25 million on a surge in memory chip prices. Revenue rose 22 percent to a quarterly record of US$600 million. On an earnings call with investors, company President Bai Peng said, "Memory certainly is in high demand nowadays. If the supply gets tighter, it does give us more opportunity to increase prices."

The company, which makes logic chips regarded as the "brains" of electronic devices, said its gross margin in the last quarter of 2025 rose 1.6 percentage point to 13 percent. For the full year, Hua Hong reported a 5.6 percent decline in profit to US$55 million and a revenue rise of 20 percent to US$2.4 billion. It is forecasting first-quarter revenue of up to US$660 million.

Sugon (920808.CH) and Hygon (688041.SS)

Sugon and Hygon Information, which called of a planned merger in December, announced strong profit growth for 2025, benefitting from expanding domestic demand for computing power. Sugon, an AI server provider, reported a 10.5 percent increase in net profit to 2.1 billion yuan (US$300 million). Revenue rose 14 percent to 15 billion yuan.

The company's growth reflects its pivot to high-performance AI infrastructure. Sugon remains a major shareholder of Hygon, which makes graphic processing units. Hygon reported net profit last year surged 32 percent to 2.5 billion yuan on a 57 percent surge in revenue to 14.4 billion yuan. The company said the increases reflect deeper penetration into the domestic market for AI chips and high-end processors. The decision to drop merger plans came after a deal that looked good on paper proved complicated in detail because it involved other entities.

Cambricon (688256.SS), Moore Threads (688795.SS) and MetaX (688802.SS)

Three of the hottest tech startup stocks on the Shanghai exchange delivered earning that analysts said justified their popularity with investors. Beijing-based Cambricon, often called "China's Nvidia," reported 2025 net profit of 2.1 billion yuan (US$301 million), its first annual profit since listing in 2020. Revenue rose 450 per cent from a year earlier to 6.5 billion yuan.

Chip designer Moore Threads, which listed in December, said annual revenue surged 243 percent to 1.5 billion yuan, with its loss narrowing to 1 billion yuan. The Beijing-based company said this week that it has achieved full-stack compatibility between its flagship MTT S5000 graphics processing unit and Alibaba Cloud's Qwen 3.5 series. Shanghai-based MetaX Integrated Circuits, which also listed in December, posted a 121 percent increase in revenue to 1.6 billion yuan, with its loss reduced from a year earlier to 781 billion yuan.

Consumer market

Trip.com (9961.HK / NY:TCOM)

Shanghai-based multinational travel agency Trip.com, the largest online travel service provider in the world, said fourth-quarter net income almost doubled to 4.3 billion yuan (US$613 million) on a 21 percent rise in revenue to 15.4 billion yuan, as tourism fully recovered from after-effects of the coronavirus pandemic years.

For the full year, Trip said profit rose 94 percent to 33.4 billion yuan on a 17 percent rise in revenue to 62.4 billion. Revenue from accommodation bookings rose 21 percent in 2025, ticketing was up 12 percent, and packaged tours rose 21 percent. The company's shares are listed in Hong Kong and New York. It operates under a portfolio of brands, including Ctrip, Qunar and Skyscanner. Trip said it is fully cooperating with the State Administration for Market Regulation, which has notified the company that it is the subject of an antitrust investigation.

Luckin Coffee (NY:LKNCY)

Luckin Coffee, China's largest café chain and a mainland competitor of Starbucks, posted a 39 percent drop in fourth-quarter net income from a year earlier to 518.2 million yuan (US$74 million), on a 33 percent revenue increase to 12.8 billion yuan. Operating expenses rose 39 percent to 11.9 billion yuan related to costs of opening new outlets.

Profit margin dropped to 4.1 percent from 8.8 percent. For the full year, revenue rose 43 percent to 49.2 billion yuan, and net income was up 22 percent to 3.6 billion yuan. The coffee giant opened 8,708 new outlets, bringing the total number to 31,048. Luckin sold about 4.1 billion freshly made drinks in the year, roughly equivalent to three cups per person on the mainland. The chain last year expanded to the US.

IQiyi: (NY:IQ)

Nasdaq-listed online entertainment video provider iQiyi, sometimes called "China's Netflix," narrowed its fourth-quarter loss to 5.8 million yuan (US$800,000) from 189.4 million yuan a year earlier. The company, majority-owned by Chinese tech giant Baidu, said revenue rose 3 percent to 6.8 billion yuan.

The Beijing-based company, which has about 100 million paid subscribers, said revenue from memberships was flat and ad sales were down 6 percent. Content costs rose 11 percent on what the company said was "a more robust lineup of original dramas."

For the full year, iQiyi said revenue fell 7 percent to 27.3 billion yuan and it turned to a net loss of 206.3 million yuan from a profit of 764.1 million yuan a year earlier. Among the most popular shows last year was the "Strange Tales of Tang Dynasty" franchise. The company said membership grew 30 percent in 2025, and it is deploying AI tools to cut production costs.

IMAX China (1970.HK)

IMAX China Holding, the Hong Kong-listed company that provides digital and film-based motion picture technologies in Chinese mainland, Hong Kong, Taiwan and Macau, said 2025 profit rose 70 percent from a year earlier to US$38 million on a 26 percent rise in revenue to US$102 million. The company, an arm of Canadian-based IMAX Corp, operates 810 IMAX theaters in the region and also digitally remasters Hollywood and Chinese-language films into the IMAX format.

Its Chinese-language box office surged two-thirds last year, driven by the hit domestic animation film "Ne Zha 2." The company said it remains focused on Chinese-language films because they outpace Hollywood movies in ticket sales. The company, which has a partnership with China's Wanda Film, said it earned more than US$28 million in ticket sales over the 2026 Chinese Lunar New Year holiday, with "Pegasus 3" delivering the strongest box office since "Ne Zha 2."

Anta Sports (2020.HK)

Sportswear brand Arc'teryx, which teamed up with Chinese fireworks artist Cai Guoqiang last year to stage what turned out to be a fiasco fireworks show in the Himalayan foothills of China, has survived the bad publicity. It reported that global sales in its women's wear clothing segment surged more than 40 percent in the fourth quarter.

Chinese sportswear retailer Anta Sports owns a majority stake in Arc'teryx's parent Amer Sports. Helsinki-based Amer said China revenue in last year surged 43 percent to US$1.9 billion last year, becoming its second-largest market. The Himalayan fireworks show sparked a public outcry across China for the environment damage it caused.

Supor (002032.SZ)

Chinese kitchen appliance maker Supor reported its first annual profit decline since 2021, citing weaker exports and lower interest income. Net profit attributable to shareholders in 2025 fell 6.6 percent to 2.1 billion yuan (US$300 million), while net profit excluding non-recurring items dropped 7.3 percent to 1.9 billion yuan.

Revenue rose 1.5 percent to 22.8 billion yuan. Gross margin edged up slightly as the company stepped up cost-control and efficiency measures. However, selling expenses increased on intensified domestic competition and higher spending on marketing.

Property

Sun Hung Kai (0016.HK)

Hong Kong-based Sun Hung Kai Properties, a major investor in Chinese mainland malls, offices and hotels, said revenue for the six months ended December 31 rose 32 percent from a year earlier to HK$52.7 billion (US$6.7 billion). Profit attributable to shareholders climbed 36 percent to HK$10.3 billion. Property sales in the period doubled to HK$4.9 billion, but commercial rental net income commercial fell 1 percent.

The company said the mainland residential market remained in a state of consolidation. Contracted sales of 1.3 billion yuan were mainly driven by Cullinan West, a waterfront serviced apartments project joint-venture with Hangzhou IFC, its wholly owned Forest Park project in Guangzhou and its joint-venture Oriental Bund project in Foshan.

Gross rental income on the mainland remained relatively stable at 2.8 billion yuan (US$400 million). The company said its Shanghai IFC Mall remains a preferred destination for luxury flagship brands, and its Nanjing IFC Mall has emerged as a popular venue for concertgoers and football fans. However, it added, "headwinds" in the office leasing market on the mainland continued to weigh on rents and occupancy rates.

New World Development (0017.HK)

New World Development, one of Hong Kong's big four developers, posted a net loss of HK$3.7 billion (US$477 million) in its fiscal first half ended December 31 on valuation write-downs. The result narrowed from a loss of HK$6.6 billion a year earlier. Revenue fell 50 percent from a year earlier to HK$8.39 billion. The company's China arm has extensive residential, retail and commercial projects in major mainland cities, including K11 malls. On the mainland, property revenue reached 934 million yuan (US$128 million).

Pharma and medical

BeOne (688235.SS / NY:ONC)

BeOne Medicines, a Sino-US company involved in developing cancer therapies and formerly known as BeiGene, reported the company turned to a US$185 million fourth-quarter profit from a year earlier loss of US$79.4 million on a 33 percent increase in revenue to US$1.5 billion. For the full year, BeOne posted a US$447.1 million profit, turning from a loss of US$568.2 million a year earlier.

Revenue expanded 40 percent to US$5.3 billion. Global sales of Brukinsa, an oral anticancer medication used to treat some forms of leukemia and lymphoma, surged 49 percent to US$3.9 billion in the year, and sales of Tevimbra, another oral anticancer drug, rose 19 percent to US$737 million. The company, founded in Beijing in 2010, said it expects revenue this year of between US$6.2 billion and US$6.4 billion

United Imaging (688271.SS)

Shanghai-listed United Imaging, a global leader in advanced medical imaging and radiotherapy equipment, reported 2025 revenue jumped 34 percent from a year earlier to 13.8 billion yuan (US$2 billion) on surging demand for premium health-care equipment. Profit increased 50 percent to 1.8 billion yuan.

Zai Lab (9688.HK / NY:ZLAB)

China biopharma company Zai Lab said 2025 revenue rose 15 percent to US$460 million, with its net loss narrowing to US$176 million. For the fourth quarter, the company posted a loss of US$69.4 million on a 77 percent gain in revenue to US$128 million. The company is developing drugs to treat cancer and infectious diseases.