Original title: The “semi-annual reports” of listed companies in Shanghai and Shenzhen stock markets intensively disclose the source of profits realized by most companies: People’s Daily Overseas Edition
Feel the pace of high-quality economic development through the “semi-annual report”——
The performance growth of listed companies shows vitality (Rui Finance)
Recently, the “semi-annual reports” of listed companies on the Shanghai and Shenzhen stock exchanges have been intensively disclosed. The performance of listed companies reflects the overall situation of China’s economic development from one aspect. In the first half of the year, what was the “gold content” of the transcripts handed over by listed companies? According to expert analysis, in the context of the steady recovery of China’s economy, the overall performance of listed companies has shown a trend consistent with the development of the macro economy. Through the “semi-annual report”, one can also feel the pace of high-quality economic development.
Most companies are profitable
Successfully delivered Beijing Winter Olympic Village and other benchmark projects, and newly developed leading customers in the electric power, automobile, chemical and other industries…Despite the impact of multiple factors such as the increase in raw material prices, Gree Electric uses its brand and technical advantages to continue to accumulate strength for high-quality development .
Gree Electric recently released its 2021 semi-annual report, showing that the company achieved total operating income of 92.011 billion yuan in the first half of the year, an increase of 30.32% year-on-year; net profit attributable to shareholders of listed companies was 9.457 billion yuan, an increase of 48.64% year-on-year.
Similar to Gree Electric, many listed companies performed well in the first half of the year. As of August 23, more than 1,000 companies in the Shanghai and Shenzhen stock markets had disclosed this year’s semi-annual reports. Turning losses into profits and profit growth have become high-frequency vocabularies, and some companies have even increased several times.
Institutional data shows that after excluding the banking and non-bank financial industries, the 1414 listed companies that have disclosed their semi-annual reports achieved a total operating income of 5.63 trillion yuan, an increase of 33% year-on-year, and a cumulative total profit of 444.841 billion yuan, an increase of 61% year-on-year.
Among the 1,414 listed companies mentioned above, 1,303 companies achieved profits in the first half of the year, accounting for 92%. Among them, 931 companies achieved profit growth, 117 companies turned losses into profits, a total of 1,048 companies, accounting for 74%. The profit growth of 311 companies doubled, accounting for 22%, of which 29 companies increased their profit more than 10 times.
“From the data of the semi-annual report, the overall financial situation of listed companies in the first half of the year was good.” Zhao Xijun, co-dean of the China Capital Market Research Institute of Renmin University of China, told reporters that this reflects the business performance of listed companies under the background of China’s economic recovery. Good, showing a trend consistent with macroeconomic development.
Policies help performance rebound
Which industries performed well in the first half of the year? Judging from the information available in the semi-annual report, industries such as pharmaceuticals and biology, electronics, automobiles, chemicals, machinery and equipment have performed well.
Listed companies cover a wide range of industries in the national economy, and from the perspective of performance growth, they also present structural characteristics. Zhao Xijun said that in contrast, strategic emerging industries, Internet-related industries, and new business areas have developed faster. This is also related to changes in consumption habits after the outbreak, reflecting the different impacts of the epidemic on different industries.
At the same time, favorable macro policies such as tax cuts and fee reductions have boosted the performance of listed companies in general. Many companies mentioned in their semi-annual reports that policy support such as tax incentives for high-tech enterprises and tax incentives for small and low-profit enterprises has helped reduce their operating costs and increase their performance.
Jiangsu Boyun Plastic Industry Co., Ltd. maintained a good growth momentum in its main business in the first half of the year. The relevant person in charge of Boyun Plastics said that a series of national policies, tax cuts and fee reductions and other financial support have created a good business environment for the company’s development and provided strong support.
Increase the rate of deduction for R&D expenses of manufacturing enterprises to 100%; include manufacturing enterprises in transportation equipment, electrical machinery, instrumentation, medicine, chemical fiber and other manufacturing enterprises in the scope of advanced manufacturing enterprises’ value-added tax credit and refund policy… Since this year, A series of policies have brought practical benefits to enterprises. “Data from listed companies shows that a series of macroeconomic policy support and measures to promote the resumption of work and production have achieved good results.” Zhao Xijun said.
Accelerating the pace of transformation and upgrading
“In the first half of the year, R&D investment increased by 30% year-on-year.” “The company currently has hundreds of patents and licenses”… In the semi-annual reports of various companies, technological innovation and R&D investment have become another highlight. As the leader and vanguard of the high-quality development of China’s economy, in recent years, Chinese listed companies have continued to increase investment in technological innovation and accelerate their pace of transformation and upgrading.
Data from the Shanghai and Shenzhen stock markets in 2020 show that in the Shanghai stock market, the total R&D investment of main board entity companies is about 540 billion yuan, a year-on-year increase of 16%, of which more than 530 companies have invested more than 100 million yuan in research and development. In the Shenzhen market, non-financial companies invested a total of 444.48 billion yuan in R&D, an increase of 10.8% year-on-year, and maintained growth for three consecutive years. There are 66 companies that have invested more than 1 billion yuan in R&D, and 5 companies have invested more than 8 billion yuan in R&D.
Zhao Xijun said that in recent years, enterprises and the whole society have gradually formed a consensus that China’s economic future development must take the path of technological innovation. It can be seen from the data in the semi-annual report that listed companies pay more attention to scientific and technological research and development, which is reflected in the investment and results.
In terms of market outlook, Zhao Xijun believes that listed companies are still expected to maintain a good momentum of development, but changes in the epidemic, policy adjustments in various countries, abnormal climate and other factors have brought uncertainty to the macro economy. Follow-up should pay special attention to changes in the international situation, especially the market and bulk commodities. Price fluctuations, etc.
Guosen Securities analyzes that the current economic fundamentals are still strong, and the structural direction of “domestic demand, technology, and green” in China’s economic development in the future is clear. The most growing companies in these fields will have more investment opportunities.
Reporter: Li Jie
【Edit: Tian Boqun】
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