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More than 700 Chinese companies listed on the domestic A-share market had released their financial results for 2025 as of Sunday, with hard-tech firms posting impressive earnings performances, according to domestic financial service provider iFinD. 

Among the 737 A-share companies that had released their results, 634 reported profits, while 103 reported losses. Notably, hard-tech fields such as artificial intelligence (AI), computing power, semiconductors, and communication equipment have become the core drivers of earnings growth, the data showed.

For instance, Shenzhen-based Biwin Storage Technology Co, a manufacturer specializing in memory chip products, said that its revenue grew by 68.82 percent year-on-year to 11.3 billion yuan ($1.63 billion), and net profit surged 429.07 percent to 853 million yuan, according to the company's filing with the Shanghai Stock Exchange.

The company said that seizing opportunities in the wave of AI development, and for different application scenarios such as device-side, edge, and cloud inference, it has built a comprehensive storage solution portfolio. In the emerging field of AI device-side applications, its products are being used by well-known domestic and international enterprises including Meta, Google, Alibaba and Xiaomi in their smart wearable devices such as AI/augmented reality glasses and smart watches.

In addition, as the monthly penetration rate of new-energy vehicles exceeded the 50 percent threshold for the first time in 2025 in a historic breakthrough, enterprises in related fields also delivered impressive financial results. As the global leader in power batteries, CATL's net profit exceeded 72.2 billion yuan, a 42.28 percent year-on-year increase.

Tian Lihui, dean of the Institute of Finance and Development at Nankai University, told the Global Times on Sunday that the impressive earnings performance of A-share companies underscores the structural landscape of China's economic transition from old to new growth drivers and its high-quality development, with the country's economic growth engine shifting from traditional factor-driven models to a new paradigm dominated by scientific and technological innovation and global competitiveness.

"The explosive growth of hard-tech sectors represented by AI and semiconductors is a result of joint effect of a new round of global technological revolution and China's industrial upgrading strategy," Tian said. 

On one hand, the global wave of AI computing power investment has provided a huge incremental market for relevant enterprises, while on the other hand, breakthroughs in key links such as digital chip design, packaging, and testing show that the self-reliance of the domestic industrial chain has achieved leapfrog development, he said.

Overall, the total market capitalization of A-shares has exceeded 110 trillion yuan, and enterprises in strategic emerging industries account for 45 percent of the weight in the CSI 300 Index, showing continuously gathering momentum toward new and high-quality directions, Wu Qing, heat of the China Securities Regulatory Commission, said at a press conference on March 6.

This year's Government Work Report stated that "we will improve full life-cycle, whole-of-chain financial services for scientific and technological innovation and establish routine fast-track channels for public listings, mergers, acquisitions, and restructuring for sci-tech enterprises developing core technologies in key fields."

Amid the stable development of China's A-share market and policies supporting innovation-driven development, some foreign financial institutions have also expressed confidence in the market.

"Under the baseline scenario, we expect the overall earnings growth of all A-shares to increase to 8 percent year-on-year in 2026. In terms of profit margins, the rollout of more supportive policies and the advancement of the anti-involution campaign are expected to further improve the profit margins of the non-financial sector," Meng Lei, China equity strategist at UBS Securities, said in a note sent to the Global Times recently.

"Considering incremental macro policies, the spark of scientific and technological innovation, and continuous reforms in the capital market and market capitalization management, we believe the valuation of the A-share market is expected to recover in the medium term," Meng noted.