Industrial Profits Surge 53.6%: Huangpu District in Guangzhou Posts Fastest Q1 GDP Growth in Four Years

In the opening year of China’s 15th Five-Year Plan period, Guangzhou Development District and Huangpu District have achieved a robust start.
In the first quarter of 2026, Huangpu recorded its fastest GDP growth in nearly four years. Profits of industrial enterprises above designated size reached RMB 13.04 billion, up 53.6% year on year—outperforming national, provincial, and municipal averages. The integrated circuit industry led the city with a growth rate of 35.2%, while AI-related industries expanded by over 30% overall, emerging as a new driver of industrial growth in the district.

Guangzhou Development District and Huangpu District

Industrial Upgrading: Profit Quality Leads, Strategic Emerging Sectors Surge
As a major industrial hub with over 1,300 industrial enterprises above designated size and an annual industrial output value exceeding RMB 800 billion, Huangpu saw 27 of its 33 major industrial categories achieve growth in the first quarter, representing an 81.8% growth footprint. The 53.6% year-on-year increase in industrial profits indicates that enterprises are not only boosting output but also achieving tangible revenue gains.
Continuous structural upgrading is the underlying driver of improved profit quality. The integrated circuit industry grew by 35.2%, and strategic emerging industries, including biotechnology, new materials, and high-end equipment, all achieved double-digit growth. The AI-related sector expanded by over 30%. China's first provincial-level OpenHarmony Adaptation Center was established in the district, Guangzhou's first four new computing infrastructure projects broke ground, and the first AI Agent Industrial Park was unveiled. From computing infrastructure to intelligent manufacturing applications, the high-value-added AI industry is gradually reshaping Huangpu's industrial landscape, continuously boosting overall profit margins.

China-Singapore Guangzhou Knowledge City Biomedical Industrial Park Photo by Jia Zihao

Major projects are settling at an accelerated pace. In the first quarter, 185 industrial projects were signed, with a total agreed investment of RMB 77.7 billion. Construction officially began on the fourth phase of CanSemi, backed by a total investment of RMB 25 billion. Meanwhile, the Tianjie New Energy project boasts both an investment and an estimated output value exceeding RMB 10 billion.
Foreign capital has also cast a "vote of confidence": the number of newly signed landmark foreign-invested projects surged by 190%, and the area of industrial land transferred jumped 350% year on year. AstraZeneca is building a radioconjugate drug (RDC) production and supply base; Panasonic is investing approximately JPY 7.5 billion to expand its high-end "MEGTRON" substrate material production line; and TÜV Rheinland is investing RMB 150 million to establish its Greater Bay Area (Guangdong) Operation Center. The intensive signing of 19 landmark foreign-invested projects underscores the firm commitment of multinational corporations.

CanSemi

A Thriving Ecosystem: Private Sector Growth Accelerates, Talent Compensation Tops the City
Private small and medium-sized enterprises (SMEs) are a direct indicator of Huangpu’s industrial vitality. In the first quarter, the value added of private industrial enterprises above designated size rose by 20.4%, driving the district's overall industrial growth by 5.9 percentage points. Meanwhile, small and micro industrial enterprises above designated size saw their value added increase by 6.8%, contributing 2.8 percentage points to the growth. As China’s first innovation demonstration zone for the initiative "SMEs Can Achieve Great Things," Huangpu’s private sector continues to exhibit robust growth momentum.
R&D investment forms the underlying foundation for retaining enterprises. Huangpu’s R&D expenditure has accounted for over 6% of its GDP for four consecutive years, ranking first among all districts in Guangzhou for six straight years and surpassing the average level of developed economies in Europe and North America. Continuous R&D efforts have yielded a wealth of patents, technologies, and talent, building a competitive advantage that is difficult to replicate.

Guangzhou Development District and Huangpu District are creating an ideal environment for talent to live and work. Photo by Hou Peirong

As businesses prosper, employees benefit. According to the Guangzhou 2025 Enterprise Salary and Labor Cost Analysis Report, the average annual salary of employees in Huangpu exceeded RMB 150,000 in 2024, ranking first in the city. Expanding demand for highly skilled roles—such as semiconductor process engineers, intelligent manufacturing system architects, and pharmaceutical R&D scientists—has driven the overall salary level upward. Over the next few years, the district’s three key industries are expected to generate more than 400,000 job opportunities. Notably, in 2025, XPeng Motors added over 6,000 employees, while major projects like CSOT’s T8 production line released tens of thousands of high-quality jobs.
Profitable enterprises, retained talent, and successful project implementation—a positive cycle of "attracting talent through industry and boosting industry through talent" is rapidly taking shape in Huangpu. In the opening year of the 15th Five-Year Plan, this major industrial hub is delivering tangible results with a determination to forge ahead with innovation. (Written by reporter Lu Jiazhen, Correspondent Pu Xuan)