What happened
As of Aug 30, 5,550 A-share listed companies had disclosed their 2026 semi-annual reports, with total R&D investment surpassing 810 billion yuan and R&D intensity reaching 2.25%. Six companies each spent more than 10 billion yuan on R&D, led by BYD's 28.86 billion yuan, followed by China Construction, China Mobile, ZTE, CATL and SAIC.
BYD sustained heavy R&D even as revenue and net profit declined, spending more than double its net profit and unveiling a self-developed 4nm smart-driving chip. CATL's R&D grew 12.7% to 11.38 billion yuan, China Mobile's rose 6.5% to 13.8 billion yuan, and China Construction invested 16.27 billion yuan in smart construction technologies.
Semiconductor R&D spending jumped over 20% year on year, with Changxin Technology, NAURA, SMIC, Hygon and AMEC leading the sector. Several companies are also expanding into embodied intelligence and GPUs to build new growth engines.
Why it matters
The sustained R&D push highlights a strategic pivot among A-share leaders from scale and reserve competition to technology and innovation competition. Companies are investing heavily even when profits are under pressure, signaling a long-term commitment to building technical moats across AI, semiconductors and new energy vehicles.
This focus aligns with the broader effort to cultivate 'new quality productive forces', a concept highlighted in the report. As leading firms move from applied innovation to foundational research, R&D intensity is becoming a key metric for assessing future competitiveness.
Key facts
Total R&D investment by A-share companies surpassed 810 billion yuan in H1 2026, with an R&D intensity of 2.25% across 5,550 reporting firms.
BYD led with 28.86 billion yuan in R&D, more than double its net profit, while six companies each spent over 10 billion yuan.
Semiconductor R&D spending rose more than 20% year on year; Changxin Technology's R&D jumped 87.38% and SMIC's revenue grew 19.4% with net profit up 94.16%.
What to watch next
Watch how leading companies convert high R&D spending into commercial products, especially in areas like embodied intelligence, AI chips and smart construction.
Expect continued expansion into GPU and robotics-related businesses as companies seek second growth curves beyond their core operations.