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Since the implementation of the reform of the ChiNext Board and the pilot project of the registration-based IPO system on 24 August 2020, SZSE actively served the building of a new development pattern, earnestly implemented the state's innovation-driven development strategy, worked hard to maintain the stable operation of ChiNext Board market, facilitated the development of specialized, sophisticated, featured and novel SMEs and injected strong impetus to the real economy. By 31 August 2021, all the 1,014 ChiNext Board-listed companies disclosed operation data for H1 2021. In H1 2021, the net profit of companies listed on ChiNext Board recorded a YOY increase of 33.56%, with leading enterprises performing outstandingly. The growth of strategic emerging industries was strong, the performance of newly listed companies under the registration-based system was stable, and the ability of ChiNext Board to serve innovation-oriented enterprises and start-ups with growth potential was further improved.
I. Rapid growth in overall performance and continuous improvement of development vitality and resilience
80% of companies made profits and 70% saw a growth. In 2020, despite the impact of COVID-19 pandemic and the complicated and changeable domestic and international environment, the annual performance of companies listed on ChiNext Board gained impressive growth. In H1 2021, the domestic economy continued to recover and steadily improved. The performance of ChiNext Board-listed companies maintained rapid growth, achieving a total operating income of CNY 1.17 trillion, a YOY increase of 33.57%, and a total net profit of CNY 112.7 billion, a YOY increase of 33.56%. 880 companies achieved profits, accounting for 86.79%, among which 55 companies made profits of more than CNY 500 million, and 19 companies such as Chongqing Zhifei Biological Products Co., Ltd. and Contemporary Amperex Technology Co., Ltd. made profits of more than CNY 1 billion. 700 companies achieved net profit growth, and 395 companies achieved net profit growth of more than 50%, showing a strong development momentum.
Leading companies continued to lead their peers. The average operating income of the top 100 ChiNext Board-listed companies (by market capitalization) in the first half of the year was CNY 4.625 billion, up 39.07% YOY, and the average net profit was CNY 648 million, up 49.62% YOY. Their income and profit far exceeded the average of the ChiNext Board, maintaining a growth trend. Among 16 companies with a market capitalization of CNY 100 billion, the net profit of 9 companies including EVE Energy Co., Ltd., Shenzhen Inovance Technology Co., Ltd. and Wuxi Lead Intelligent Equipment Co., Ltd. increased by more than 100%.
The performance of newly-listed companies was gratifying. The average operating income of 186 newly-listed companies under the registration-based system was CNY 1.299 billion, representing a YOY increase of 30.98%, exceeding the average of the board. Their net profits averaged CNY 108 million, a YOY increase of 29.84%. Among the newly-listed companies, 129 achieved a YOY increase in net profit, accounting for 69.35%, of which 22 increased their net profit by more than 100%.
II. Support for technical independence and remarkable results in serving the innovation-driven development
Innovation-oriented enterprises and start-ups clustered. At present, 60% of ChiNext Board-listed companies are in strategic emerging industries, with the new-generation information technology, bio-pharmaceuticals, new materials and high-end equipment manufacturing companies accounting for nearly 50% of the board. 132 specialized, sophisticated, featured and novel SMEs are with outstanding nature of innovation.
Investment in research and development (R&D) constantly increased. ChiNext Board actively served the national innovation-driven development strategy, supported listed companies to increase investment in R&D and realize innovative development, and strove to improve the efficiency of innovative capital formation. In H1 2021, the R&D investment by ChiNext Board-listed companies rose by 28.5% YOY. The R&D intensity of 48 companies including Sangfor Technologies Inc. and Betta Pharmaceuticals Co., Ltd. surpassed 20%, and the R&D investment by 4 companies including Contemporary Amperex Technology Co., Ltd. and Shenzhen Mindray Bio-Medical Electronics Co., Ltd. exceeded CNY 1 billion. In H1, the average number of R&D personnel of ChiNext Board-listed companies reached 550, an increase of 51 over the same period of last year. Under the registration-based system, newly-listed companies had about 15,000 patented technologies related to their main business. 66 companies are carrying out researches on related frontier fields in their industries, 57 companies' related products or technologies belong to original or integrated innovation, 125 companies' main technologies and products are in an international or domestic leading position, and 94 companies' technologies and products can promote transformation and upgrading and effectively serve the real economy.
The role of innovation as a driver was remarkable. To serve the building of a new development pattern, ChiNext Board endeavored to achieve greater results in supporting independence in science and technology and promoting green and low-carbon transformation. In H1, the average operating income and net profit of companies in strategic emerging industries increased by 37.29% and 38.63% YOY respectively. The new energy vehicle industry was committed to the goal of peak carbon emissions and carbon neutrality, and developed rapidly. In H1, the average net profit was CNY 456 million, a YOY increase of 150.44%, far exceeding the average of the board. Thanks to the recovery of infrastructure and investment in fixed assets, orders of high-end equipment manufacturing increased, and net profit in H1 increased by 59.79% YOY. Affected by the continuous overseas pandemic and strong demand for anti-pandemic products, the sales volume of medical protective appliances, in vitro diagnostic products, life support equipment, COVID-19 vaccine and other products continued to grow, and the net profit of bio-industry increased by 40.17% YOY. In addition, the net profit of energy conservation and environmental protection, new energy and new materials industries also increased by over 40% YOY.
The specialized, sophisticated, featured and novel SOEs listed on ChiNext Board recorded an average operating income of CNY 428 million and a net profit of CNY 64 million, up 42.15% and 45.04% YOY respectively, showing strong development potential. Over 90% of specialized, sophisticated, featured and novel SOEs achieved profits, nearly 80% achieved net profit growth, and more than 20% achieved net profit growth of more than 100%.
III. Reform stimulating board vitality and smooth and efficient financing channels
The inclusiveness of the board was enhanced. The ability of ChiNext Board to serve innovation-oriented enterprises and start-ups with growth potential improved. Since the listing of the first group of enterprises under the ChiNext Board registration-based IPO system on 24 August 2020, ChiNext Board has conformed to the general trend of innovation, creativity and originality, focused on serving innovation-oriented enterprises and start-ups with growth potential, supported the deep integration of traditional industries with new technologies, new industries, new business formats and new models, and adopted more market-oriented and diversified issuance and listing conditions. As of August 31, 28 enterprises of those applying under the registration-based system have submitted an application according to the second set of listing standards. Among them, Medprin Regenerative Medical and RML have been listed. The diversified listing conditions have produced results, and their inclusiveness for scientific and technological innovation enterprises at different stages of development has been further enhanced.
Direct financing was facilitated and factor resources were channeled faster to the field of scientific and technological innovation. In H1 2021, ChiNext Board's IPO raised funds of CNY 52.729 billion, a YOY increase of 231.07%. Listed companies carried out 102 times of refinancing, a YOY increase of 251.72%. Raised funds amounted to CNY 111.223 billion, a YOY increase of 336.82%. Shares were issued to specific targets 71 times, an increase of 60 times over the same period last year, and the issuance amount was CNY 67.838 billion, a YOY increase of 547%. Convertible bonds were offered publicly 31 times, 15 more than the same period last year, with the amount of CNY 43.385 billion, representing a YOY increase of 202.5%. The proportion of direct financing increased from 9.15% in H1 2020 to 21.85%. Of particular note, 220 companies posted more than 50% of direct financing, an increase of 134 over the same period last year.
On the occasion of the first anniversary of the implementation of the reform, ChiNext Board-listed companies realized remarkable results in the first half of the year, fully demonstrating the vitality and driving force brought by the registration-based system reform. Remaining committed to the positioning of ChiNext Board of serving innovative, productive and creative enterprises, and conventional industries integrated with new technology, new industry, new business form, and new model, SZSE will apply the new development philosophy completely, accurately and comprehensively, and give top priority to supporting scientific and technological innovation, serving specialized, sophisticated, featured and novel enterprises and boosting the high-quality development of the economy. SZSE will enhance regulation and service, forestall and defuse major risks, maintain the high-quality operation of ChiNext Board registration-based IPO system and contribute to the high-level circulation of technology, capital and the real economy.
