On the surface, China's broader economy is slowing, but the performance sheets of Chinese companies reveal drastic restructuring beneath the headline growth.
So far, 1,430 listed companies have disclosed their annual results for 2014. Their average net profit growth of 6.44 percent was lower than that in 2013 as expansion of the world's second-largest economy slipped to a 24-year low last year.
Dig deeper, however, and performances of Chinese companies vary dramatically. Traditional sectors such as non-ferrous metals, mining and chemicals saw business falter, while emerging industries such as computers, electronics and telecommunications reported stellar growth.
In particular, profit growth for China's five biggest banks all slowed to single digits last year, with net profits for Agricultural Bank of China (ABC) up 8 percent, its first single-digit profit rise following a 14.52-percent expansion in 2013.
Net profits of the Industrial and Commercial Bank of China, Bank of China and China Construction Bank as well as the Bank of Communications rose 5.07 percent, 8.22 percent, 6.1 percent and 5.72 percent in 2014, respectively. Their growth was down from 10.17 percent, 12.35 percent, 11.11 percent and 6.82 percent registered in 2013 respectively, reflecting the subdued strength of the real economy.
The biggest loser so far has been the Aluminum Corporation of China, the country's largest smelter of industrial metal, which reported 16.2 billion yuan in net losses for 2014.
In contrast to the struggling industry mammoths, China's nimbler sectors shone a light on the gloomy landscape.
The 34 media companies that have unveiled their annual reports logged average revenue growth of 55.52 percent, while 36 telecommunications companies reported 41.24-percent growth.
Companies related to the Internet and environmental protection also showed staggering growth.
Net profits of Chinese online video service provider LeTV.com jumped 188.79 percent in 2014, while Beijing Water Business Doctor Co., a water treatment firm, posted 96.7 million yuan in net profits in the first quarter, soaring by 376.21 percent on a yearly basis.
"The contrasting performances showed China's growth engine has gradually moved from traditional industries to emerging ones, which is in line with China's economic restructuring," said Zhang Yansheng, secretary general of the academic committee at the National Development and Reform Commission, the top economic planner.
The sound growth of high-tech and emerging industries has emboldened investors. The ChiNext Index, China's Nasdaq-style board that tracks growth enterprises, surged 58.6 percent in the first quarter on the back of technology and environment-related shares.
While encouraging emerging industries to play a larger role in powering growth, Zhang cautioned that traditional sectors should not be overlooked as growth requires the support of the real economy.
For the next stage, China needs to capitalize on the Internet to help traditional industries upgrade and seek new growth, he added.
The task is high on the government's agenda this year. In his work report delivered last month, Chinese premier Li Keqiang pledged to revive conventional growth drivers while encouraging new momentum through innovation and entrepreneurship.
