Listed firms report slower profits in H1

BEIJING -- Chinese listed firms recorded sharply slower growth in net profits in the first half of the year as the country's economy downshifted, according to companies' new semi-annual results.

The combined net profits of 846 listed firms that have released earnings reports as of Monday, or more than a third of all listed firms in the country, climbed 1.74 percent year-on-year in the first half of 2012, calculations by financial data provider Wind Information showed.

The growth rate was well below a 22.35-percent net profit increase posted by 2,272 listed firms in the same period of last year.

The 846 companies raked in about 132.8 billion yuan ($20.9 billion) in net profits in the first six months of this year, with their second-quarter net profit growth slowing to 0.14 percent year-on-year from 3.93 percent in the first quarter.

Less than half of those companies saw net profits increase in the first half from a year earlier, while 96 firms reported a net profit growth of more than 50 percent and 31 returned to profits.

The metal industry was among the worst hit, as 31 non-ferrous firms reported a 22.29 percent retreat in their total net profits and five steel and iron companies saw a 41.03-percent shrink.

Sectors less sensitive to economic cycles, including pharmacy and food industries, bucked the headwind and maintained steady net growth rates of 6.25 percent and 35.13 percent respectively.

Of China's powerful 283 centrally administered state-owned enterprises excluding financial firms that are listed, 87 have released semi-annual results as of Monday and combined to post a 7.37 percent year-on-year decline in net profits in the first half, according to Wind Information.

Faltering exports and a cooling property sector slowed China's economic growth rate to 7.6 percent in the second quarter, the lowest level since the first quarter of 2009.