Companies listed at the Small and Medium-Sized Enterprise Board of the Shenzhen Stock Exchange have finished disclosure of their interim reports of 2008 by 31 August 2008. 10 out of the 268 companies have included their financial information in listing-related documents.
Statistics indicated that the overall performances of those companies have been growing steadily in spite of negative effects such as rising cost, appreciation of RMB and natural disasters. The average business income and average net profit for the H1 of 2008 are 644 million yuan and 51.41 million yuan, with an increase of 36.42 percent and 47.08 year on year respectively. 105 out of 268 companies had net profit increment exceeding 30 percent, and 70 others more than 50 percent.
As the rapid development of market scale and utilization of capital market platform, there emerged a number of companies with better performance. 28 out of 268 companies had their net profit exceeded 100 million yuan, and 67 others exceeding 50 million yuan, representing 72.30 percent of the total net profit. Income from main business contributed to the performances for those companies. The overall income from main business accounts for 98.24 percent of the total profit.
Some of those companies’ operation affected by negative elements such as appreciation of RMB, adjustment of bank credit interest ratio and raising labor cost, companies suffered from loss and those who had more than 30 percent of loss represent 20.15 percent of the total number of companies.
Some companies experienced sharp performance fluctuation and they need to strengthen anti-risk abilities, especially companies engaging in non-ferrous industry. Luoping Zinc and Electricity (SZSE: 002114) suffered loss of 6.58 million yuan due to price drop of its main product of lead bullion.
Other elements such as increase on basic expenditures and reduction on amount of cash flow also cast shadow on interim performance for those companies.
By 30 August 2008, the Shenzhen Stock Exchange has send 32 inquiries to those companies to verify problems such as inaccurate information and significant information omission. The exchange would take relevant measures to solve those problems in collaboration with securities regulators.