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As of 31 August, 2016, all of the 1787 companies listed on the Shenzhen markets have disclosed their 2016 interim reports. For the first half of 2016, these companies have made an aggregate operating income of CNY3.476218 trillion and an aggregate net profit of CNY244.051 billion (i.e. an average operating income of CNY1.945 billion and an average net profit of CNY137 million), a year-on-year growth of 8.58% and 5.79% respectively. From the point of operating income, 65.47% companies have realized a year-on-year growth and 77% companies have realized a quarter-on-quarter growth. From the point of net profit, 62.95% companies have realized a year-on-year growth and 61.72% companies have realized a quarter-on-quarter growth. With our economy entering into the important period of transformation and upgrading and facing the complex economic environment at home and abroad, the performance of companies listed on the Shenzhen markets shows a steady increasing trend mainly by industrial upgrading and scientific and technological innovation.
From the viewpoint of the entire markets in Shenzhen, there are many significant highlights in the 2016 performance of companies listed on the Shenzhen markets. Firstly, most industries realize better business performance. 11 out of 17 industries are reporting year-on-year growth and 13 are reporting quarter-on-quarter growth. Among them, industries of information technology, real estate, commercial service, medical and healthcare, public facility management and agriculture have made a year-on-year growth rate of over 20% on net profit. Besides, under the background of policy guidance, technical progress and industrial transformation, industries of culture and arts, manufacturing and retail transformed toward ‘Internet +’ have made a year-on-year growth rate of over 10% on net profit. Secondly, emerging industries realize outstanding business performance. There are 679 strategic emerging industries companies listed on Shenzhen markets, accounting for 37.6% of the total companies, realizing the average growth of 15.14% and 17.43% in operating income and net profit for the first half of 2016 respectively. Thirdly, M&A and restructuring promote listed companies to improve performance significantly. There are 252 companies listed on Shenzhen markets completing major assets restructuring in 2015, which realize extended development via M&A, with the average growth of 27.88% and 28.11% in operating income and net profit for the first half of 2016 respectively, outperforming the overall level of the Shenzhen markets. Besides, the companies listed on Shenzhen markets have actively participated in the national ‘One Belt and One Road’ strategy and strengthened foreign cooperation to improve their business performance.
Represented by traditional industry leaders and state-owned enterprises, the main board has witnessed stable and slower development. For the reporting period, all the 478 companies listed on the main board have made an aggregate operating income of CNY1.915504 trillion, up 1.84% on the year-on-year basis; and an aggregate net profit of CNY112.601 billion, down 7.98% on the year-on-year basis. The top 10 main board listed companies in net profit have made an aggregate net profit of CNY55 billion, accounting for 48.88% of the aggregate net profit of all main board listed companies. Traditional key industries such as banks and real estate, and consuming industries such as food and beverage and household appliances, have maintained development via innovation, up 3.07% in the average net profit for the first half of 2016. In the first half of 2016, PAB, Vanke-A, Gree, Midea Group, Changan Automobile, GF Securities, Wuliangye and China Merchants Shekou realize outstanding business performance and further consolidate their industrial position, of which China Merchants Shekou realizes a year-on-year growth of over 100% in net profit. SZSE main board listed companies realize transformation and upgrading through capital markets, continuously optimize industrial structure, actively implement supply-side structural reform and gain excellent effects.
As the excellent representatives of our small and medium enterprises, SME board listed companies realize continuous performance growth. For the reporting period, 793 companies listed on the SME board have made an aggregate operating income of CNY1.245994 trillion, up 14.87% on the year-on-year basis; and an aggregate net profit of CNY93.467 billion, up 12.70% on the year-on-year basis. And the SME board listed companies excluding financial industry companies have realized the year-on-year growth of 16.48% and 28.66% in operating income and net profit respectively. 617 manufacturing companies listed on SME board adhere to independent innovation and transformation and upgrading, and implement industrial integration and structural optimization, realizing the year-on-year growth of 16.62% and 25.96% in operating income and net profit respectively, of which non-ferrous metal smelting industry represented by lithium ion battery cathode materials and automobile manufacturing industry represented by new energy gain outstanding business performance with the net profit growth of 116.89% and 80.76% respectively. Meanwhile, in the first half of 2016, people's livelihood industries, such as culture, forestry and fishing industry and farm and sideline food processing industry also realize outstanding business performance with the average net profit of CNY172 million and CNY146 million respectively, up 1,138.71% and 122.24% on the year-on-year basis.
The ChiNext board listed companies that aim to serving emerging industry and new economy and creating entrepreneurial and innovation market-oriented engine have gained fast growth. 516 companies listed on ChiNext board have made an aggregate operating income of CNY314.204 billion, up 33.09% on the year-on-year basis; and an aggregate net profit of CNY37.983 billion, up 49.48% on the year-on-year basis; which outperforms the average level of the Shenzhen markets. The emerging industries realize fast development, industries of environmental protection, media, computer and communication gain the operating income growth of 37.91%, 70.44%, 31.30% and 34.96% respectively and the net profit growth of 35.69%, 20.13%, 70.04% and 96.57% respectively. Besides, ChiNext listed companies continuously increase the R&D input, make all efforts to promote the innovation and upgrading in technology, products and service. In the first half of 2016, the total amount of R&D input of companies disclosed research and development data is CNY13.653 billion, up 28.48% on the year-on-year basis, and the average R&D intensity (i.e. the ratio of R&D input to operating income) is 4.63%, which outperforms the average level of the Shenzhen markets.
So far, 838 Shenzhen listed companies have made performance forecast for the first three quarters in 2016. 444 companies (accounting for 52.98%) are predicting positive and growth, 165 companies of them are predicting a year-on-year growth of over 50%. It is predictable that the performance results of Shenzhen listed companies for the first three quarters are improving steadily.
