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Recently, the Research Institute of Shenzhen Stock Exchange (SZSE) released the Empirical Analysis of 2013 Annual Reports of Listed Companies on SZSE’s Multi-tiered Capital Market. According to the analysis report, the 1577 listed companies on SZSE realized total revenue of RMB 5667.461 billion in 2013, an increase of 11.71% on a year-on-year basis. Listed companies on the Main Board, SME Board and ChiNext realize 8.85%, 16.30% and 23.99% of increase on total revenue respectively. During the period from 2011 to 2013, companies on the Main Board, SME Board and ChiNext posted an average revenue growth rate of 36.17%, 53.04% and 56.97% respectively, or a compound annual growth rate (CAGR) of 10.84%, 15.24% and 16.22% respectively. In 2013, the net profits of SZSE-listed companies that were attributed to parent companies totaled RMB 323.665 billion, up by 17.34%; the number for the Main Board, SME Board and ChiNext were 26.65%, 5.18% and 10.48% respectively.
At present, there are altogether 532 listed companies on SZSE that are in strategic emerging industries, accounting for 33.08% of all the SZSE-listed companies. These included 82 Main Board-listed companies, 221 SME Board-listed companies and 229 ChiNext-listed companies. In 2013, these 532 companies reported an average sales gross margin of 24.23%, higher than the average level of 20.21% for all SZSE-listed companies. The 532 companies completed total fixed asset investment of RMB 142.5 billion in 2013, an increase of 13.34% on a year-on-year basis and much higher than the average level of 1.67% for all SZSE-listed companies. Relevant data indicated that as a new economic growth engine, emerging industries show sound momentum of development and have a promising future.
In 2013, total R&D expense of SZSE-listed companies stood at RMB 133.606 billion, or an average of RMB 85 million per company, which was 2.67% higher than 2012. In 2013, 21companies’ R&D expense exceeded RMB 1 billion, among which 10 companies’ R&D expense topped RMB 2 billion. R&D intensity (R&D expenditure as a percentage of revenue) of 397 listed companies exceeded 5%. These companies accounted for 25.15% of all the SZSE-listed companies, 0.91 percentage point higher than the previous year. 171 SME Board-listed companies and 194 ChiNext-listed companies had a R&D intensity of over 5%. Dominated by enterprises in strategic emerging industries, ChiNext led the three boards with an average R&D intensity of 7.76%.
Excluding the financial industry, the average growth rate of fixed asset investment of SZSE-listed companies was 1.67% in 2013. Fixed asset investment of high energy-consuming, high emission and high resource-consuming industries continued to decline. Traditional pillar industries and infrastructure industry maintained steady growth. Emerging industries and hi-tech manufacturing industry maintained rapid growth. The growth rate of fixed asset investment of computer, communications and other electronic equipment manufacturing industries was up to 35.30% in 2013.
In 2013, SZSE-listed companies launched 324 M&A and restructuring bids (including major asset restructuring, acquisition of assets through issuance of shares, and other form of M&A deals) valuing RMB 195.182 billion, up 68.24% over the pervious year. The value of M&A and restructuring deals involving companies listed on the Main Board, SME Board and ChiNext were up by 48.33%, 116.15% and 130.29% over the previous year respectively.
In 2013, 1171 SZSE-listed companies announced their cash dividend plans, which were 16 companies more than the number in 2012. They accounted for 74.30% of all the SZSE-listed companies, 1.02 percentage points higher than the previous year. Dividend payout was RMB 93.348 billion, up 2.23% on a year-on-year basis. Employment maintained growth, pointing to the positive effect of equity incentives. The 1577 listed companies on SZSE had 6.0475 million employees on their payrolls, up by 5.34% on a year-on-year basis. The number of employees of listed companies on the Main Board, SME Board and ChiNext rose 1.53%, 8.43% and 12.69% respectively.
The report showed that in the past year, SZSE Main Board operated smoothly. Blue chip companies continued to grow and have become the backbone propping up the stability of the market. The SME Board has given birth to a number of sizable and distinctive leading enterprises that have obvious driving effect and increasingly growing representation of their sectors. After four years since its inception, ChiNext has become an important platform on which innovative enterprises grow and become stronger. ChiNext has also served as a barometer of new economy. Listed companies on ChiNext are mainly in electronic information technology, environmental protection, new materials, new energy, high-end manufacturing industries, bio-pharmaceuticals, etc. The innovative feature of ChiNext became more prominent.
The report also indicated that 5 primary industries and 10 secondary industries under the manufacturing industry posted negative profit growth. Performance of a few traditional industries continued to deteriorate due to the persistence of excess capacity. The overall performance of agriculture-related listed companies was not optimistic. In addition, SZSE’s penetration to western areas has yet to be improved. SZSE will continue to optimize and augment the multi-tiered capital market to serve China’s economic restructuring and transformation.
