The performance sheets of Chinese companies reveal an encouraging landscape on reform efforts despite slowdown in the country’s economy, Tuesday’s Economic Information Daily reported.
As of Monday, 1,796 listed companies have released their preliminary half-year results, with 63 percent of them reporting net profit growth, while 449 seeing profits go up by at least 50 percent, according to data given by financial service provider Wind.
Performances were split. Emerging industries such as new energy vehicles, film and media reported robust growth, while traditional sectors such as mining saw business falter.
According to Wind, 54 of 64 companies in the film and media sector reported profit growth in the first half year, thanks to investment, mergers and acquisitions (M&A).
Buoyed by sales growth in new energy vehicles and demand for lithium batteries, Tianqi Lithium forecast net profits would increase 17-fold while Beijing Easpring Material Technology Co., Ltd. expects a 37-fold increase.
In contrast, the picture for traditional industries is bleak. Two thirds of companies in the mining sector reported losses.
The ongoing reform has helped out iron and steel companies and real estate ventures with reduced supply glut. Wind data showed 63.2 percent of iron and steel companies and 52 percent of real estate firms reporting profit gains.