Rapid growth in revenues and profits of companies listed on SME board in first half of 2017

date: 2017-9-12

As per the semiannual reports disclosed by 887 companies on the SME board as of August 31, 2017, operating revenue amounts to CNY1.935 trillion on average, up by 26.68% compared with the same period in 2016; net profits are CNY 144 billion, up by 23.20% compared with 2016. In the first half of the year, revenues and profits of SME-board listed companies are growing rapidly, reflecting the vitality of SMEs and the private economy at a time of industrial structuring and economic transition.

 

A number of companies are doing better and getting stronger by making use of the capital market and some have become market-driven blue chips. In the first half of the year, operating revenue of companies ranking among the top 30 (in terms of nets profits) has grown by 24.54% year-on-year to CNY 10.809 trillion on average, and net profits have increased by 28.83% year-on-year to CNY1.434 trillion. There are 21 companies with operating revenue exceeding CNY10 trillion and 16 companies with net profits exceeding CNY1.434 trillion. The net profits of BANK OF NINGBO, YANGHE and HIKVISION in the first half of the year amount to CNY4.765 trillion, CNY3.908 trillion and CNY3.292 trillion, up by 15.14%, 14,15% and 26.22% respectively compared with the same period in 2016. An increasing number of companies are doing better and getting stronger by relying the SME board and are growing into blue chip companies.

 

Companies in the manufacturing industry are embracing the supply-side structural reform and have witnessed a rapid increase in their revenue and profits. In the first half of the year, average operating revenue of 677 manufacturers on the SME board reaches CNY1.597 trillion, up by 29.29% compared with the same period in 2016; net profits amount to CNY124 million, up by 25.66% compared with the same period on 2016. Both revenue and net profits of manufacturing companies are growing fairly fast on average, which is above the average level in the SME board. In 24 out of the 29 sub-divisions of the manufacturing industry, average revenue and net profits are both increased compared with the same period in 2016. In special equipment manufacturing, chemical materials and products manufacturing, and instrument and apparatus manufacturing industries, average net profits grow by 30%, owing to smart manufacturing and business transition and upgrading.

 

Companies on the SME board are actively involved in the Belt and Road construction and are exploiting the new growth opportunities. 145 companies have participated in the Belt and Road construction by means of products exporting, project construction, commodities and services trading and technology exporting. In the first half of the year, average operating revenue of 145 companies amounts to CNY2.836 trillion, up by 35.97% year-on-year; net profits reach CNY195 billion, up by 33.08% compared with the same period in 2016. The scale and increase of both revenue and net profits of these companies are above the average level in the SME board, and the foundation for development in still being reinforced.

 

Companies on the SME board are pushing forward the project of targeted poverty alleviation and are increasing their investment therein. They have invested a total amount of CNY3.076 trillion in the first half of the year, an increase of 70% compared with the whole year of 2016. Relevant work have been carried out to develop industries and transfer employment and in the field education and healthcare.

 

Performance is improving steadily of newly-listed companies. A total of 101 companies were added to the list of the SME board between early 2016 and August 81, 2017. Average operating revenue of these companies reaches CNY599 billion in the first half of the year, up by 18.22% compared with the same period in 2016, and net profits are CNY 62 million, up by 9.03% year-on-year.

 

Besides, except 4 securities companies, the other 873 companies listed on SME board have disclosed their earnings forecast for the first three quarters of 2017, expecting to achieve average net profits between CNY205million and CNY255 million, compared with CNY178 million of the same period in 2016, with growth varying among the companies from 15.17% to 43.26%.