By 31 October 2008, 273 companies listed at the Small and Medium-Sized Enterprise (SMEs) Board of the Shenzhen Stock Exchange (SZSE) have disclosed the third-quarter reports. The average business income for SMEs is 980 million yuan, increased 31.65 percent year on year, net profit is 76.11 million yuan, rose 32.38 percent while earnings per share and net returns on equity are 0.35 yuan and 9.86 percent respectively. Report from the SZSE showed that those companies ensured steady growth for the overall performance by exploring market, cutting cost and others means amid the global financial turmoil.
260 out of the 273 companies reported profit for the first three quarters, representing 95.24 percent of the total number. 101 companies have more than 30 percent increase on business income year on year, while 96 have 30 percent-strong increment on net profit, and 68 companies’ profit growth rate exceeded 30 percent.
Those companies contributed profits to main business income. Their non-recurring gains and losses is 806 million yuan, representing 4 percent of total net profit.
SMEs had aggregately operational cash flow net amount of 47.67 million yuan for the first three quarters, a surge from last year’s 33.90 million. It is notable that companies dealing in real estate have comparatively less operational cash flow for this period. Five realty companies’ operational cash flow net amount dropped 36 percent from that of the first half of this year.
SMEs took effective measures to cut expenses ensuring profit to keep in pace with business income. Statistics showed that operational expenses, administrative expenses and financial expenses increased 40.67%?36.27% and 30.35% respectively year on year, but kept in line with income and net profit growths.
However, the widespread financial crisis and changes of microenvironment cast shadow on SMEs, who had obviously downward profit growth rate. Demand from the overseas market plunged due to the financial crisis. Export-oriented enterprises with 50 percent-odd export rate had aggregate business income of 270 million, plummeted 16 percent from that of the corresponding period of last year.
SMEs’ average balance of account receives reached 159 million, increased a bit when compared to last year’s 137 million.
According to performance forecast for the whole year of 2008 in the Q3 report release by SMEs, 159 companies expect profit, accounting for 58 percent of total companies while 77 companies forecast profit decrease or loss, representing 28 percent.
