BEIJING, Aug. 16 (Xinhua) -- China's broader economy is slowing, but financial reports of domestic listed companies revealed ongoing economic restructuring with strong growth in the new economy.
As of Monday, some 544 listed companies had released semi-annual financial reports, with 69.49 percent of them posting growing business revenue while 60.66 percent reported higher net profits.
A breakdown of the companies' balance sheets showed diverging trends. Traditional sectors such as coal mining, textiles and chemicals saw business falter, while emerging industries such as pharmaceuticals, entertainment and computers posted strong growth, said Li Haitao, a professor with Cheung Kong Graduate School of Business (CSGSB).
Of the 163 high-tech and cultural sector companies that have unveiled their semi-annual reports, 83.44 percent posted revenue increases, while 71.78 percent had rising net profits.
Beijing Sanju Environmental Protection and New Materials Co., Ltd. had the highest net profit at 804 million yuan (121 million U.S. dollars), while Shenzhen Yitoa Intelligent Control Co., Ltd., a maker of smart control systems for home appliances, saw the largest gain in net profits of 2,579.28 percent, amounting to some 101 million yuan.
Nanjing Baose Co., Ltd., a chemical equipment maker, forecast up to 58 million yuan in losses of net profits attributable to shareholders of the listed company, down from a gain of 2 million yuan in the same period of 2015.
It attributed the losses to a "dramatic contraction" of the chemical industry market as prices of large commodities hover at low levels.
The energy sector is also struggling as a slump in coal prices saw corporate performance plummet.
Inner Mongolia Pingzhuang Energy Resources Co., Ltd., a coal producer, predicted over 220 million yuan in losses of net profits attributable to shareholders of the listed company, surging 180 million year on year.
Firms listed on the ChiNext Board, China's NASDAQ-style board of growth enterprises, led the rally as nearly 70 percent forecast growth and 97 entities expected to double their net profits.
Data from the released reports of ChiNext Board firms showed a total net profit of 36.9 billion yuan, expanding 49.7 percent year on year.
The interim financial reports also suggest companies listed on the strategic emerging industry board are spending lavishly in high-end technology, with 38 firms recording an 18.14-percent year-on-year increase in investment.
Data from the National Bureau of Statistics (NBS) showed investment in the hi-tech sector grew 14.2 percent in July, gaining 1.1 percent from the first half.
China's economy grew 6.7 percent year on year in the second quarter, flat with the first quarter, the slowest pace since the global financial crisis but still within the government's target range of 6.5-7 percent for 2016.
As China adapts to its "new normal," an important mission is accelerating the rise of new development dynamics, which are gaining momentum, NBS spokesperson Sheng Laiyun said at a press conference on Aug. 12.
In the first seven months of 2016, China produced 215,000 new energy cars and sold 207,000, an increase of 119.8 percent and 122.8 percent over the same period last year, respectively, according to the China Association of Automobile Manufacturers.
As China deepens its reforms, its economy will be supported by growing new development dynamics, said CSGSB's Li. Enditem
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