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Year 2016 was the outset of the “13th Five-year Plan”. During this year, the listed companies on SME Board, as representatives of China’s outstanding SMEs, have played significant roles in serving the real economy and the supply-side structural reform, supporting independent innovation, upgrade and transformation, stimulating industrial integration and optimizing structure.
In the domestic economic environment where progress has been made in stability, SME Board companies have delivered satisfactory results through hard work and innovation. As of 28 February 2017, 834 companies have disclosed their 2016 preliminary earnings estimates or annual reports. In 2016, SME Board enterprises achieved the average operating revenue of 3.592 billion yuan, up 17.81% from that in 2015, and the average net profit of 272 million yuan, up 32.56% from that in 2015. With the strong support of national policies, they have continued to energetically promote independent innovation, upgrade and transformation as well as optimize their structures, enabling a new peak of net profit growth rate in the recent five years and showcasing their powerful economic vitality and promising development trend.
Among 16 industries, 12 industries including AFHF (agriculture, forestry, husbandry and fishery), software and info technology services, architecture and manufacturing realized year-on-year growth. Manufacturing industry, from which the SME Board companies outnumber all the other industries, delivered a year-on-year growth rate of 39% in terms of net profit, far greater than that in 2015. Also, favorable results in the supply-side reform of services were harvested.
As the cradle for cultivating industrial flagships, SME Board has assembled many excellent companies of sub-classified industries and played exemplary and guiding roles in development. In 2016, 641 and 604 companies from the board realized operating revenue growth and net profit growth respectively and their respective proportion to the SME Board members was 77% and 72%. 63% or 528 companies of the board experienced dual growth in revenue and profit. In addition, 54 companies of the board achieved the operating revenue of more than 100 billion yuan and 44 companies made the net profit of over one billion yuan, 18 and 19 units greater respectively than that of the same period in last year. More and more SME Board companies are making use of the capital market platform to expand and excel, having gradually grown into quality blue-chip enterprises. The top 30 companies, in terms of net profit, mainly come from the fields of finance, computer communications, equipment manufacturing and medicine. Their operating revenue and net profit averaged 20.181 billion yuan and 2.632 billion yuan respectively, respective year-on-year growth rates of 21% and 25%. Among the top 30, the net profit of 20 outperforms including Hikvision, BYD, SF Holding, Goertek, Robam Appliances and Zhejiang NHU grew more than 20%.
SME Board has become an important force for promoting independent innovation and industrial upgrade as more than 70% of the board members are hi-tech companies and their net profit growth rates outrun the board average. On the board, 647 units are hi-tech companies and 249 are from strategic emerging industries, with their respective year-on-year net profit growth rates being 35% and 39%. They have stuck to innovative development, valued R&D investment, and realized upgrades in technologies, products and services, featuring promising prospects.
SME Board features active M&A and restructuring and enjoys a sound general trend. While paying great attention to their main businesses, the board companies develop M&A and restructuring by centering on industrial integration to expand industrial chains, transform and upgrade. Moreover, some model enterprises get enlisted on SME Board via restructuring, playing positive influences on improving the overall performance of the board. In 2016, 78 companies completed major assets restructuring and their average year-on-year growth rates in operating revenue and net profit were 37% and 149%, far greater than the board averages. Active M&A and restructuring not only optimizes resources allocation, but also improve resources service efficiency and company performance.
