IPO Funds Raised Over 850 Billion Yuan on the Fourth Anniversary of the Opening of the Science and Technology Innovation Board
Beijing, China – July 22, 2023 – The Science and Technology Innovation Board celebrated its fourth anniversary with impressive achievements. Since its inception, the number of listed companies on the board has grown rapidly, from 25 to 546, making it the main battlefield for the capital market to support innovation-driven development strategies.
One of the key indicators of the board’s success is the amount of funds raised through initial public offerings (IPOs). Over the past four years, the Science and Technology Innovation Board has raised over 850 billion yuan ($131 billion) in IPO funds. This year alone, nearly 100 billion yuan has been raised, with an average of more than 2.1 billion yuan raised by each company. This marks a new high in the amount of funds raised by a single company on the board.
The strong performance of the Science and Technology Innovation Board can be seen in the financial results of its listed companies. In the past four years, the operating income, net profit, and R&D investment of these companies have exceeded 1 trillion yuan, 100 billion yuan, and 100 billion yuan, respectively. The compound growth rates of operating income and net profit have reached 30% and 59%, respectively, ranking first among all A-share sectors. More than 30% of the companies have achieved positive growth in net profit for three consecutive years, and 108 companies have achieved a three-year compound growth rate of net profit of over 50%.
The Science and Technology Innovation Board has also witnessed the birth of many high-growth stocks. Thirty-three companies, including Junshi Bio-U, Nuocheng Jianhua-U, and CanSino, have achieved a compound revenue growth rate of over 100% in the past four years. Forty-seven companies, including Novozyme, Wanrun New Energy, and Shengxiang Bio, have achieved a compound growth rate of net profit of over 100% in the same period.
The success of the Science and Technology Innovation Board can also be seen in its market value. The total market value of the 546 listed companies on the board is nearly 6.47 trillion yuan. There are seven companies with a market value of 100 billion yuan and 174 companies with a market value of 10 billion yuan. These high-valued companies include Kingsoft Office, SMIC, and Haiguang Information.
One of the key factors contributing to the success of the Science and Technology Innovation Board is the focus on research and development (R&D) investment. Last year, the R&D expenditure of companies on the board exceeded 100 billion yuan for the first time, reaching 126.7 billion yuan. The growth rate of R&D expenditure has exceeded 27% for four consecutive years. This consistent investment in R&D has resulted in a significant number of invention patents. As of the end of last year, the companies on the board have accumulated 74,700 invention patents, with an average of 153 invention patents per company.
Investors have also benefited greatly from the performance of companies on the Science and Technology Innovation Board. As of July 20, the latest prices of the listed companies have increased by an average of 87% compared to the issue price. Thirteen companies have seen their stock prices increase by over 500%, with Dongwei Technology leading the way with a cumulative increase of more than 12.6 times.
Looking ahead, the Science and Technology Innovation Board is expected to continue bringing greater returns to investors as its performance continues to be realized. With a diverse range of industries represented, including integrated circuits, biomedicine, new energy, industrial robotics, and more, the board is playing a crucial role in fostering innovation and driving growth in these sectors.