BEIJING — Most companies listed on China's A-share market delivered robust performance last year, underscoring the vitality and resilience of the world's second-largest economy.

As of Tuesday, 5,304 firms listed on the Shanghai and Shenzhen stock exchanges had released their financial reports for 2024, with 66.42 percent achieving profits, according to financial information provider Wind Info. Notably, 19.21 percent posted a year-on-year net profit increase of over 20 percent.

These reports reflect the underlying strength of the Chinese economy, buoyed by ongoing industrial transformation and a steady buildup in innovation capacity, said Zhu Keli, a researcher with the China Institute of New Economy.

New engines

Financial disclosures showed emerging sectors, from artificial intelligence and new energy to advanced manufacturing, are becoming fresh growth engines driving China's economic development.

According to data from the main board of the Shanghai Stock Exchange, nearly half of China's top 50 listed firms by market capitalization in 2024 came from emerging industries, a marked increase in both number and proportion.

The auto and electronics sectors stood out among emerging industries with stellar net profit growth. The auto industry posted an 11.16 percent year-on-year expansion in net profit while the electronics sector surged 35.18 percent from a year earlier, underlining the strong momentum in tech-related manufacturing.

Auto parts supplier Shuanglin Group, for instance, reported a more than fivefold increase in net profit last year, driven by rising demand from electric vehicle makers such as BYD and Changan Auto. The company has also secured new orders from EV brands like Avatr.

In the electronics sector, Will Semiconductor Co Ltd Shanghai saw its business performance register marked growth last year, with operating revenue hitting a record high. The leading semiconductor producer credited its rapid expansion to a rebound in the sector and surging demand for high-end smartphones and intelligent vehicles in the market.

Innovation-driven growth

Technological innovation emerged as a notable feature of corporate performance last year. China's listed companies have been increasingly betting on frontier and disruptive technologies playing a pivotal role in the country's broader push for innovation-driven growth.

Data showed that in 2024, A-share firms accounted for more than half of corporate research and development spending nationwide and held nearly one-third of all the country's patents. The R&D intensity, measured by R&D expenditure as a share of operating revenue, gained 0.1 percentage point from a year earlier to 2.6 percent.

Chongqing-based automaker Seres, which collaborates with Huawei on Aito cars, invested nearly 7 billion yuan ($970 million) in R&D last year, a surge of about 60 percent year-on-year. Its R&D crew also expanded by about a quarter from a year earlier to over 6,200 people.

By maintaining a strong focus on R&D, the firm has tapped global frontier technologies and innovation resources, facilitating the integration of software and automotive technologies, said Zhang Xinghai, chairman of the company.

In the annual Government Work Report released in March, China's policymakers have pledged to make solid progress in high-quality development, outlining measures to better modernize its industrial system and advance the integration of technological and industrial innovation, among others.

Xinhua