Funding to fuel OSW’s U.S. expansion and tech platform rollout

SYDNEY, Aug. 21, 2025 /PRNewswire/ — OSW (One Stop Warehouse), Australia’s leading solar wholesaler and distributor, has secured $5.5 million USD in strategic funding from SparkEdge Capital, a top-tier venture capital firm based in Shanghai focused on the energy and technology sectors.

The path to global solar adoption

Founded in 2013, OSW has established itself as the market leader in Australia’s solar sector for over a decade, holding the market share for seven consecutive years. Internationally, the company has built a strong presence across Europe, particularly in the Netherlands and Poland, where it has achieved over 20% market penetration in select regions.

The new capital will fuel OSW’s next phase of international growth in key solar markets, including the United States, Mexico, Spain, and Romania. The funding will also accelerate the rollout of OSW’s proprietary technology platform, GreenSketch, which digitises and connects every stage of the clean energy value chain.

OSW Founder Anson Zhang stated, “We’ve led the Australian market for years – this investment marks a major milestone as we expand into new markets and continue developing the infrastructure needed to support the global energy transition. OSW is building an AI-driven distributed energy industry internet platform – our vision is to become the ‘Amazon’ of clean energy, delivering integrated solutions.”

This year, OSW launched GreenSketch – a platform that is set to revolutionise faster solar deployment and rollout. Greensketch is the world’s first end-to-end solar design platform that offers a zero-cost solution, integrating design, procurement, subsidy applications, and project management in one free-to-use interface.

Backing the future of solar

“We were drawn to OSW’s unique ability to combine smart software with deep sector expertise,” said Bin Wang, Partner at SparkEdge Capital. “Tools like GreenSketch are setting a new standard for clean energy delivery – and we believe OSW is positioned to lead the next wave of global solar adoption.”

With the backing of SparkEdge Capital, OSW is focused on integrating AI-powered tools and automation into every layer of the solar journey – from system design and compliance, to credit scoring and carbon tracking. Strategic partnerships in each region will support local deployment and help scale OSW’s clean energy infrastructure worldwide.

For more information on OSW, please visit the website. For those ready to experience GreenSketch, visit the website to sign up and start designing for free.

-H1 Transaction Volume reached RMB106.1 billion, up 9.4% year-over-year-

-H1 International Transaction Volume reached RMB6.2 billion, up 37.8% year-over-year-

-H1 Revenue reached RMB7,059.0 million, up 11.5% year-over-year-

-H1 International Revenues reached RMB1,507.2 million, up 30.2% year-over-year and representing 21.4% of total net revenues-

SHANGHAI, Aug. 21, 2025 /PRNewswire/ — FinVolution Group (“FinVolution” or the “Company”) (NYSE: FINV), a leading fintech platform in China, Indonesia and the Philippines, today announced its unaudited financial results for the second quarter ended June 30, 2025.

Second Quarter 2025 China Market Operational Highlights

• Cumulative registered users^[6] reached 180.9 million as of June 30, 2025, an increase of 11.5% compared with June 30, 2024.
• Cumulative borrowers^[7] reached 27.9 million as of June 30, 2025, an increase of 7.7% compared with June 30, 2024.
• Number of unique borrowers^[8] for the second quarter of 2025 was 2.2 million, an increase of 22.2% compared with the same period of 2024.
• Transaction volume^[2] reached RMB50.8 billion for the second quarter of 2025, an increase of 9.5% compared with the same period of 2024.
• Transaction volume facilitated for repeat individual borrowers^[9] for the second quarter of 2025 was RMB43.8 billion, an increase of 8.1% compared with the same period of 2024.
• Outstanding loan balance^[4] reached RMB75.4 billion as of June 30, 2025, an increase of 17.4% compared with June 30, 2024.
• Average loan size^[10] was RMB10,056 for the second quarter of 2025, compared with RMB9,956 for the same period of 2024.
• Average loan tenure^[11] was 8.3 months for the second quarter of 2025, compared with 8.0 months for the same period of 2024.
• 90 day+ delinquency ratio^[12] was 1.92% as of June 30, 2025.

Second Quarter 2025 International Market Operational Highlights

• Cumulative registered users^[13] reached 42.8 million as of June 30, 2025, an increase of 47.1% compared with June 30, 2024.
• Cumulative borrowers^[14] for the international market reached 8.7 million as of June 30, 2025, an increase of 55.4% compared with June 30, 2024.
• Number of unique borrowers^[15] for the second quarter of 2025 was 2.3 million, an increase of 122.2% compared with the same period of 2024.
• Number of new borrowers^[16] for the second quarter of 2025 was 1.1 million, an increase of 126.4% compared with the same period of 2024.
• Transaction volume^[3] reached RMB3.2 billion for the second quarter of 2025, an increase of 39.1% compared with the same period of 2024.
• Outstanding loan balance^[5] reached RMB2.1 billion as of June 30, 2025, an increase of 50.0% compared with June 30, 2024.
• International business revenue was RMB796.7 million (US$111.2 million) for the second quarter of 2025, an increase of 41.5% compared with the same period of 2024, representing 22.3% of total revenue for the second quarter of 2025.

Second Quarter 2025 Financial Highlights

• Net revenue was RMB3,578.0 million (US$499.5 million) for the second quarter of 2025, compared with RMB3,168.0 million for the same period of 2024.
• Net profit was RMB751.3 million (US$104.9 million) for the second quarter of 2025, compared with RMB551.0 million for the same period of 2024.
• Non-GAAP adjusted operating income^[17], which excludes share-based compensation expenses before tax, was RMB854.8 million (US$119.3 million) for the second quarter of 2025, compared with RMB598.6 million for the same period of 2024.
• Diluted net profit per American depositary share (“ADS”) was RMB2.82 (US$0.39) and diluted net profit per share was RMB0.56 (US$0.08) for the second quarter of 2025, compared with RMB2.07 and RMB0.41 for the same period of 2024, respectively.
• Non-GAAP diluted net profit per ADS was RMB2.97 (US$0.41) and non-GAAP diluted net profit per share was RMB0.59 (US$0.08) for the second quarter of 2025, compared with RMB2.22 and RMB0.44 for the same period of 2024, respectively. Each ADS of the Company represents five Class A ordinary shares of the Company.

Mr. Tiezheng Li, Vice Chairman and Chief Executive Officer of FinVolution, commented, “We sustained healthy growth momentum in the second quarter of 2025, with total transaction volume reaching RMB54.0 billion, up 10.9% year-over-year. Net revenue rose 12.9% to RMB3.6 billion, while net income grew 36.4% to RMB751.3 million year-over-year. These results reflect our strong execution and the resilience of our ‘Local Excellence, Global Outlook’ strategy amid evolving market conditions.

“We also added 1.6 million new borrowers during the quarter, our fourth consecutive quarter exceeding the one-million mark, thanks to effective data-driven marketing and our expanding global footprint. Supported by pioneering technology, international diversification and rising brand recognition, we remain confident in our ability to capture growth opportunities and create long-term value for all stakeholders,” concluded Mr. Li.

Mr. Jiayuan Xu, Chief Financial Officer of FinVolution, continued, “Our second quarter financial performance remained strong across all key metrics. International transaction volume surged 39.1% year-over-year, with loan balance rising 50.0%. Revenue from international markets increased 41.5% to RMB796.7 million, contributing 22.3% of total net revenue, up from 17.8% a year ago, underscoring our accelerating global traction.

“Meanwhile, we maintained a healthy balance sheet with RMB7.9 billion in cash and short-term investments and a conservative leverage ratio of 2.6x. In addition, we further strengthened our financial position by completing a US$150 million convertible bond offering in June and repurchasing US$63.8 million in shares during the first half of 2025, reaffirming our commitment to capital efficiency and shareholder returns,” concluded Mr. Xu.

Second Quarter 2025 Financial Results

Net revenue for the second quarter of 2025 was RMB3,578.0 million (US$499.5 million), compared with RMB3,168.0 million for the same period of 2024. This increase was primarily due to the increase in loan facilitation service fees and other revenue, partially offset by the decrease in guarantee income.

Loan facilitation service fees were RMB1,515.3 million (US$211.5 million) for the second quarter of 2025, compared with RMB1,110.5 million for the same period of 2024. The increase was primarily due to the increase in the transaction volume and average rate of transaction service fees. 

Post-facilitation service fees were RMB425.6 million (US$59.4 million) for the second quarter of 2025, compared with RMB389.2 million for the same period of 2024. This increase was primarily due to the rolling impact of deferred transaction fees.

Guarantee income was RMB1,046.6 million (US$146.1 million) for the second quarter of 2025, compared with RMB1,298.9 million for the same period of 2024. This decrease was primarily due to the decrease in risk-bearing loans in the China market and was partially offset by an increase in such loans in international markets, as well as the rolling impact of deferred guarantee income. The fair value of quality assurance commitment upon loan origination is released as guarantee income systematically over the term of the loans subject to quality assurance commitment. 

Net interest income was RMB272.1 million (US$38.0 million) for the second quarter of 2025, compared with RMB218.8 million for the same period of 2024. This increase mainly resulted from the increase in the average outstanding loan balances of on-balance sheet loans in the China market and was partly offset by a decrease in net interest income in international markets due to our strategy of deepening cooperation with local institutional partners.

Other revenue was RMB318.3 million (US$44.4 million) for the second quarter of 2025, compared with RMB150.5 million for the same period of 2024. This increase was primarily due to the increase in the contributions from other revenue streams.

Origination, servicing expenses and other costs of revenue were RMB674.5 million (US$94.2 million) for the second quarter of 2025, compared with RMB575.2 million for the same period of 2024. This increase was primarily due to the increase in facilitation costs and loan collection expenses as a result of higher outstanding loan balances. 

Sales and marketing expenses were RMB606.4 million (US$84.7 million) for the second quarter of 2025, compared with RMB473.3 million for the same period of 2024, as a result of our more proactive customer acquisition efforts focusing on quality borrowers in both China and the international markets.

Research and development expenses were RMB129.0 million (US$18.0 million) for the second quarter of 2025, compared with RMB119.3 million for the same period of 2024. This increase was primarily due to the increased investment in technology development.

General and administrative expenses were RMB110.2 million (US$15.4 million) for the second quarter of 2025, compared with RMB101.9 million for the same period of 2024. This increase was primarily due to the increased benefits we provided to our employees.

Provision for accounts receivable and contract assets was RMB106.3 million (US$14.8 million) for the second quarter of 2025, compared with RMB57.2 million for the same period of 2024. The increase was primarily due to higher transaction volume of off-balance sheet loans in the international markets. 

Provision for loans receivable was RMB98.4 million (US$13.7 million) for the second quarter of 2025, compared with RMB92.0 million for the same period of 2024. This increase was primarily due to the increase in the outstanding loan balance in the China market, partially offset by improved credit performance in the international markets.

Credit losses for quality assurance commitment were RMB987.1 million (US$137.8 million) for the second quarter of 2025, compared with RMB1,190.6 million for the same period of 2024. The decrease was primarily due to the decrease in risk-bearing loans in the China market, partially offset by the increase in risk-bearing loans in the international markets.

Impairment of goodwill, intangible assets and other long-lived assets was RMB50.4 million (US$7.0 million) for the second quarter of 2025, compared with nil for the same period of 2024. The increase was primarily due to an impairment of goodwill related to a certain micro-lending company acquired by the Group in 2017, following a performance review during the quarter.

Operating profit was RMB815.5 million (US$113.8 million) for the second quarter of 2025, compared with RMB558.5 million for the same period of 2024.

Non-GAAP adjusted operating income, which excludes share-based compensation expenses before tax, was RMB854.8 million (US$119.3 million) for the second quarter of 2025, compared with RMB598.6 million for the same period of 2024.

Other income was RMB114.5 million (US$16.0 million) for the second quarter of 2025, compared with RMB67.7 million for the same period of 2024. The increase was mainly due to the increase in government subsidies.

Income tax expense was RMB178.7 million (US$24.9 million) for the second quarter of 2025, compared with RMB75.2 million for the same period of 2024. This increase was mainly due to the increase in pre-tax profit and the increase in effective tax rate.  

Net profit was RMB751.3 million (US$104.9 million) for the second quarter of 2025, compared with RMB551.0 million for the same period of 2024.

Net profit attributable to ordinary shareholders of the Company was RMB747.0 million (US$104.3 million) for the second quarter of 2025, compared with RMB551.1 million for the same period of 2024.

Diluted net profit per ADS was RMB2.82 (US$0.39) and diluted net profit per share was RMB0.56 (US$0.08) for the second quarter of 2025, compared with RMB2.07 and RMB0.41 for the same period of 2024, respectively.

Non-GAAP diluted net profit per ADS was RMB2.97 (US$0.41) and non-GAAP diluted net profit per share was RMB0.59 (US$0.08) for the second quarter of 2025, compared with RMB2.22 and RMB0.44 for the same period of 2024, respectively. Each ADS represents five Class A ordinary shares of the Company.

As of June 30, 2025, the Company had cash and cash equivalents of RMB5,297.3 million (US$739.5 million) and short-term investments, mainly in wealth management products and term deposits, of RMB2,595.0 million (US$362.3 million).

The following chart shows the historical cumulative 30-day plus past due delinquency rates by loan origination vintage for loan products facilitated through the Company’s platform in China’s Mainland as of June 30, 2025. Loans facilitated under the capital-light model, for which the Company does not bear principal risk, are excluded from the chart.

Click here to view the chart. 

Capital Market Update

On June 24, 2025, the Company announced the completion of the offering of the convertible senior notes in an aggregate principal amount of US$150 million due 2030. Concurrently with the pricing of this offering, the Company repurchased approximately 6.4 million ADSs with an aggregate value of approximately US$60.7 million at a price of US$9.51 per ADS (“concurrent repurchase”).

Business Outlook

We achieved strong growth by firmly executing our “Local Excellence, Global Outlook” strategy, driven by effective customer acquisition and product diversification. Amid evolving market dynamics, we remain confident in our ability to navigate market evolution while accelerating our global expansion and international growth trajectory. The Company reiterates its full-year 2025 total revenue guidance to be in the range of approximately RMB14.4 billion to RMB15.0 billion, representing year-over-year growth of approximately 10.0% to 15.0%.

The above forecast is based on the current market conditions and reflects the Company’s current preliminary views and expectations on market and operational conditions and the regulatory and operating environment, as well as customers’ and institutional partners’ demands, all of which are subject to change.

Conference Call

The Company’s management will host an earnings conference call at 8:30 PM U.S. Eastern Time on August 20, 2025 (8:30 AM Beijing/Hong Kong Time on August 21, 2025).

Dial-in details for the earnings conference call are as follows:

Participants should dial in at least five minutes before the scheduled start time and ask to be connected to the call for “FinVolution Group”.

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at https://ir.finvgroup.com.

A replay of the conference call will be accessible approximately one hour after the conclusion of the live call until August 27, 2025, by dialing the following telephone numbers:

About FinVolution Group

FinVolution Group is a leading fintech platform with strong brand recognition in China, Indonesia and the Philippines, connecting borrowers of the young generation with financial institutions. Established in 2007, the Company is a pioneer in China’s online consumer finance industry and has developed innovative technologies and has accumulated in-depth experience in the core areas of credit risk assessment, fraud detection, big data and artificial intelligence. The Company’s platforms, empowered by proprietary cutting-edge technologies, features a highly automated loan transaction process, which enables a superior user experience. As of June 30, 2025, the Company had 223.6 million cumulative registered users across China, Indonesia and the Philippines.

For more information, please visit https://ir.finvgroup.com

Use of Non-GAAP Financial Measures

We use non-GAAP adjusted operating income, non-GAAP operating margin, non-GAAP net profit, non-GAAP net profit attributable to FinVolution Group, and non-GAAP basic and diluted net profit per share and per ADS which are non-GAAP financial measures, in evaluating our operating results and for financial and operational decision-making purposes. We believe that these non-GAAP financial measures help identify underlying trends in our business by excluding the impact of share-based compensation expenses and expected discretionary measures. We believe that non-GAAP financial measures provide useful information about our operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making.

Non-GAAP adjusted operating income, non-GAAP operating margin, non-GAAP net profit, non-GAAP net profit attributable to FinVolution Group, and non-GAAP basic and diluted net profit per share and per ADS are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as analytical tool, and when assessing our operating performance, cash flows or our liquidity, investors should not consider it in isolation, or as a substitute for net income, cash flows provided by operating activities or other consolidated statements of operation and cash flow data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review our financial information in its entirety and not rely on a single financial measure.

For more information on this non-GAAP financial measure, please see the table captioned “Reconciliations of GAAP and Non-GAAP results” set forth at the end of this press release.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.1636 to US$1.00, the rate in effect as of June 30, 2025 as certified for customs purposes by the Federal Reserve Bank of New York.

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “target,” “confident” and similar statements. Such statements are based upon management’s current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, uncertainties as to the Company’s ability to attract and retain borrowers and investors on its marketplace, its ability to increase volume of loans facilitated through the Company’s marketplace, its ability to introduce new loan products and platform enhancements, its ability to compete effectively, laws, regulations and governmental policies relating to the online consumer finance industry in China, general economic conditions in China, and the Company’s ability to meet the standards necessary to maintain listing of its ADSs on the NYSE, including its ability to cure any non-compliance with the NYSE’s continued listing criteria. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and FinVolution does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

For investor and media inquiries, please contact:

In China:
FinVolution Group
Head of Capital Markets
Yam Cheng
Tel: +86 (21) 8030-3200 Ext. 8601
E-mail: ir@xinye.com 

Piacente Financial Communications
Jenny Cai
Tel: +86 (10) 6508-0677
E-mail: finv@tpg-ir.com   

In the United States:
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: finv@tpg-ir.com

BEIJING, Aug. 21, 2025 /PRNewswire/ — Quhuo Limited (NASDAQ: QH) (“Quhuo” or the “Company“), a leading gig economy platform focusing on local life services, today announced that it will change the ratio of its American Depositary Shares (“ADSs“) to Class A ordinary shares (the “ADS Ratio“) from the current ADS Ratio of one ADS to ten (10) Class A ordinary shares, par value US$0.0001 per share, of the Company (the “Class A Ordinary Shares“), to a new ADS Ratio of one ADS to nine hundred (900) Class A Ordinary Shares.

A post-effective amendment to the ADS Registration Statement on Form F-6 will be filed with the U.S. Securities and Exchange Commission (the “SEC“) to reflect the change in the ADS Ratio. The Company anticipates that the change in the ADS Ratio will be effective on August 25, 2025 (U.S. Eastern Time), subject to the effectiveness of the post-effective amendment to the ADS Registration Statement on Form F-6 on or before that date. Quhuo’s ADSs will continue to be traded on The Nasdaq Stock Global under the same symbol “QH” under a new CUSIP number – 74841Q308.

For Quhuo’s ADS holders, the change in the ADS Ratio will have the same effect as a one-for-90 reverse ADS split and will have no impact on an ADS holder’s proportional equity interest in the Company. Each ADS holder of record at the close of business on the date when the change in ADS Ratio is effective will be required to surrender and exchange every ninety (90) existing ADSs then held for one (1) new ADS. Deutsche Bank Trust Company Americas, as the depositary bank for Quhuo’s ADS program, will arrange for the exchange of the current ADSs for the new ones, if needed.

No fractional ADSs will be allocated in connection with such ADS Ratio change. The aggregate fractions, if any, will be sold and the net proceeds (after deduction of fees, taxes, and expenses) will be distributed to the entitled ADS holders.

As a result of the change in the ADS Ratio, Quhuo’s ADS trading price is expected to increase proportionally, although the Company can give no assurance that the ADS trading price after the change in the ADS Ratio will be equal to or greater than 90 times the ADS trading price before the change.

About Quhuo

Quhuo Limited (NASDAQ: QH) is a leading workforce operational solutions platform in China. Quhuo provides tech-enabled, end-to-end operational solutions to blue-chip on-demand consumer service businesses in industries with significant e-commerce exposure, primarily including on-demand food delivery, mobility services, housekeeping and accommodation. Quhuo’s platform helps its industry customers mobilize a large team of workers and utilizes a combination of training, performance monitoring and refinement, and incentives to transform them into skilled workers who can follow industry-specific, standardized and highly efficient service procedures. Within the on-demand consumer service ecosystem, the Company plays a unique and indispensable role as the link between consumer service businesses and end consumers to enable the delivery of goods, services and experiences to consumers.

Safe Harbor Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding Quhuo’s anticipated timeline for the ADS Ratio change and its expectations regarding the ADS price following the change. Forward-looking statements include statements containing words such as “expect,” “anticipate,” “believe,” “project,” “will” and similar expressions intended to identify forward-looking statements. These forward-looking statements are based on Quhuo’s current expectations and involve risks and uncertainties. Quhuo’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks and uncertainties related to Quhuo’s abilities to (1) manage its growth and expand its operations, (2) address any or all of the risks and challenges in the future in light of its limited operating history and evolving business portfolios, (3) remain in its competitive position in the on-demand food delivery market or further diversify its solution offerings and customer portfolio, (4) maintain relationships with major customers and to find replacement customers on commercially desirable terms or in a timely manner or at all, (5) maintain relationships with existing industry customers or attract new customers, (6) attract, retain and manage workers on its platform, and (7) maintain its market shares in relation to competitors in existing markets and its success in expansion into new markets. Other risks and uncertainties are included under the caption “Risk Factors” and elsewhere in the Company’s filings with the SEC, including, without limitation, the Company’s latest annual report on Form 20-F. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and Quhuo undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.

BEIJING, Aug. 20, 2025 /PRNewswire/ — The final year of the 14th Five-Year Plan (2021-25) is already halfway through. How has China’s economy performed in the first half of 2025?

The country’s GDP expanded by 5.3 percent year-on-year over the period, outpacing growth rates in the same period last year and the full-year figure, ranking among the top in major economies. Meanwhile, total imports and exports reached a record high between January and June, with exports increasing by 7.2 percent year-on-year.

This shows that amid the volatile global economy, China’s economy has maintained steady progress, demonstrating strong vitality and resilience.

How to carry out economic work going forward?

A meeting of the Political Bureau of the Communist Party of China (CPC) Central Committee on July 30 called for maintaining the continuity and stability of policies while making them more flexible and predictable, concentrating efforts on keeping employment, businesses, markets and expectations stable, effectively promoting the positive interplay between domestic and international economic flows, and striving to accomplish the annual economic and social development targets and tasks for this year and successfully completing the 14th Five-Year Plan.

Planning is important, but most crucial is implementation. All regions and departments should take on greater responsibility and act more proactively, focusing intently on promoting high-quality development, consolidating and expanding the positive economic recovery trend, and decisively achieving the goals of the 14th Five-Year Plan.

Strategic focus

To ensure sound economic work at present, it’s imperative to correctly grasp the situation, recognize development advantages, and maintain strategic focus.

Looking around the world, unilateralism and protectionism have been on the rise, with the external environment becoming increasingly complex, grim and uncertain. Domestically, the country’s economy is underpinned by a stable foundation, multiple advantages, strong resilience, and great potential, and the supporting conditions and fundamental trends for long-term sound economic development have not changed.

The future of China is filled with both opportunities and challenges.

To consolidate and expand the positive momentum of the economic recovery, the key lies in concentrating efforts on managing our own affairs well and firmly grasping the initiative for development.

From “village galas” that greatly promoted rural cultural tourism to “Su Chao” – the grassroot football league that boosted the “ticket economy,” China’s consumption market has seen robust development. In the first seven months, the country’s total retail sales of consumer goods grew by 4.8 percent year-on-year, while the final consumption expenditure contributed 52 percent to GDP growth. Domestic demand has become a main driver and stabilizer of economic expansion.

Domestic demand as the mainstay and internal circulation are unique advantages of a large economy. The more complex the external environment is, the more we must anchor development strategies in strengthening domestic circulation and take multiple measures to expand domestic demand.

In order to encourage consumers to spend, efforts should be made in areas including promoting reasonable wage growth, broadening property income channels, and boosting farmers’ incomes to enhance their spending capacity. Meanwhile, efforts should also be made to innovate diversified consumption scenarios, improve supply in fields including culture and tourism, catering, healthcare and sporting, and continuously optimize the consumption environment.

The potential of the ultra-large market will continue to be unleashed through deepening special initiatives to boost consumption, while expanding goods consumption and cultivating new growth points.

It is also important to expand effective investments. From restoring old urban residential communities and constructing underground utility networks to improving public service facilities, new urbanization has vast scenarios of “investing in the people.” For every 1 percentage point increase in China’s urbanization rate, it could generate over 200 billion yuan ($27.83 billion) in annual consumer demand and drives trillions of yuan in new investment demand.

To consolidate and expand the positive momentum of economic recovery, it is also critical to seize development opportunities and respond to external uncertainties with determined opening-up.

Since the beginning of this year, China’s foreign trade and foreign investment have maintained stable performance, with a 3.5 percent year-on-year growth in total imports and exports in the first seven months, demonstrating its full resilience.

China is also steadily expanding its presence in the international market. In the first half of the year, China’s trade with over 190 countries and regions recorded growth, with the trade volume with 61 trading partners exceeding 500 billion yuan, an increase of five compared with the same period last year. It is necessary to roll out a combination of policies to continuously leverage the stabilizing effect of foreign trade on economic growth.

In addition, China has also continuously enhanced the attractiveness of its market. Starting from December 18, the Hainan Free Trade Port will officially launch island-wide independent customs operation. The number of duty-free items in Hainan will rise to about 6,600, accounting for 74 percent of all tariff categories. This a part of China’s continuous rollout of policies facilitating free and convenient trade, demonstrating the country’s determination to expand its door wider to the rest of the world.

New growth drivers

To ensure sound economic work at the moment, it is crucial to adhere to the new development philosophy to continuously foster new growth drivers and new strengths in economic development.

At sea, the country’s second domestically built large cruise ship, the Adora Flora City, successfully completed its float-out. On land, the CR450 electrical multiple unit, the world’s fastest high-speed train with a test speed of 450 kilometers per hour, has redefined new global benchmarks for speed. In the sky, three astronauts of the Shenzhou 20 successfully entered the Chinese space station, and the domestically produced large aircraft C919 has carried more than 2 million passengers.

In the first seven months of this year, the output of above-scale high-tech manufacturing companies grew by 9.5 percent year-on-year. In July, industrial robot output surged 24 percent year-on-year. As of June, the country’s valid patents reached 5.01 million, up 13.2 percent year-on-year. All of these show that China’s innovation ecosystem has demonstrated vibrant momentum and industrial upgrading has made great strides.

Philosophy guides action. Under the guidance of the new development philosophy, China is continuously boosting innovation and foster new quality productive forces. In this process, China’s unique strengths must be given full play.

China’s complete industrial system and strong supporting capacity have enabled its manufacturing sector to maintain the top global position in terms of overall scale for 15 consecutive years, with the output of over 220 major industrial products leading globally. These advantages will empower China to seize the initiative amid global industrial and supply chain restructuring.

Moreover, China boasts abundant talent, with over 5 million STEM (science, technology, engineering, and mathematics) graduates annually. By advancing the integrated development of education, technology, and talent, China will unlock the full potential of talent dividends, fueling even greater innovation momentum.

It is critical for China to seize precious opportunities. With various developments, 2025 is hailed as the first year of mass production of humanoid robots in China, and various types of robots are evolving rapidly. Meanwhile, the development of artificial intelligence (AI) is taking speed in China. By seizing the critical opportunities of the new scientific and technological revolution, China is advancing its manufacturing sector toward high-end, intelligent, and green transformation, paving the way for broad prospects of “Made in China.”

To grasp the key tasks on the path forward, China must intensify efforts to address systemic weaknesses, leverage competitive strengths, and enhance institutional safeguards, striving to achieve greater self-sufficiency in key industrial chains. Moreover, more efforts will be made to promote the deep integration of sci-tech innovation and industrial innovation and adhere to green development.

Strong momentum

To ensure sound economic work at the moment, it is crucial to fully mobilize the enthusiasm of all sectors to provide strong momentum for high-quality development.

China is striving to fully release policy effects to maintain stable economic operation. In the first half of the year, all regions and departments withstood pressure and tackled challenges head-on, accelerating the implementation of more proactive and effective macro policies.

Notably, the meeting of the Political Bureau of the CPC Central Committee held on April 25 called for stabilizing employment, enterprises, markets, and expectations, and deployed a package of policies that have played a critical role in effectively responding to external shocks and promoting sustained economic recovery. Facts have proven that “more proactive and effective macro policies” are highly practical and effective.

Monetary policy tools such as reserve requirement ratio and interest rate cuts retain ample room for adjustment. Fiscal tools, including fiscal deficits, special-purpose bonds, and special government bonds, retain room for further expansion as needed, demonstrating that China’s macro policy toolkit remains sufficient.

Going forward, it is important to maintain sustained momentum in macro policies while applying timely adjustments. This involves not only advancing the implementation of existing policies and established measures to ensure continuity and stability but also enhancing policy reserves to swiftly roll out new initiatives as required. By balancing flexibility and predictability, China will be able to leverage macroeconomic governance capabilities to respond to evolving external conditions.

This year marks a critical year for advancing comprehensive reforms. In the first half of the year, China’s reforms have deepened across multiple fronts, continuously injecting momentum and vitality into high-quality economic development. For example, the country implemented the Private Sector Promotion Law and revised the Anti-Unfair Competition Law to ensure fair market participation for all economic entities, while reducing the market access negative list and issuing guidelines on building a national unified market that further dismantle market barriers.

Enterprises are the basic cells of the national economy and the driving force behind economic growth. To consolidate and expand the positive momentum of economic recovery, it is imperative to closely address enterprises’ pressing concerns, spare no efforts to alleviate difficulties, and continuously stimulate the vitality of micro entities.

For example, to reduce operating costs for enterprises, the authorities have implemented policies such as structural tax and fee reductions, established sci-tech innovation bonds to provide low-cost refinancing funds, and promote more flexible enforcement measures like “light penalties or exemptions.”

Now is the time to fully unleash our capabilities and forge ahead through wind and rain.

Guided by Xi Jinping Thought on Economy, we must comprehensively implement the decisions and plans of the CPC Central Committee, maintain resolve, enhance momentum, and stimulate vitality. By leveraging development opportunities, potential, and advantages, and consolidating and expanding the positive momentum of economic recovery, we will undoubtedly achieve the goals and tasks outlined in the 14th Five-Year Plan with high quality and lay a solid foundation for a strong start to the 15th Five-Year Plan (2026-30).