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As of October 31, 2018, except for ST Changsheng Bio-technology, 2,126 SZSE listed companies disclosed their Q3 reports on schedule. With the continuous deepening of the supply-side structural reform, SZSE listed companies actively adapt to the overall strategic development of the country to promote economic transformation and upgrading. They focus on their main businesses and industries, and maintain stable and standard operation. As a result, their operating performance have achieved smooth growth and their corporate quality improved steadily. In the first three quarters of 2018, SZSE listed companies achieved a total operating income of CNY8.428417 trillion, a year-on-year increase of 15.65%; and their total net profit attributable to shareholders of the parent companies (hereinafter referred to as "net profit") was CNY603.811 billion, a year-on-year increase of 9.54%.
In terms of boards, the Main Board companies, mainly consisting of state-owned enterprises and blue-chip enterprises, benefited most from the supply-side structural reform. Their profitability continued to increase while their income scale maintained a certain growth rate. 474 companies achieved a total operating income of CNY4.201307 trillion, a year-on-year increase of 10.75%; and their total net profit was CNY289.982 billion, a year-on-year increase of 11.46%. The SME Board companies, mainly consisting of enterprises in the manufacturing industry, benefited from the transformation and upgrading of the real economy. They continuously increased investment in R&D to achieve continuous growth by higher quality and enhanced efficiency. As a result, they earned outstanding growth in income scale. 918 companies achieved a total operating income of CNY3.291211 trillion, a year-on-year increase of 16.45%; and their total net profit was CNY228.839 billion, a year-on-year increase of 7.51%. For ChiNext companies, their growth rate slowed down. 734 companies realized a total operating income of CNY935.899 billion, a year-on-year increase of 15.88%; and their total net profit was CNY84.989 billion, a year-on-year increase of 3.15%. However, in terms of median, the medians of year-on-year growth rate of ChiNext companies were 17.90% and 9.58% for operating income and net profit respectively, which was better than or close to the overall level of the SZSE market.
In terms of the nature of companies, for state-owned enterprises, with the deepening of SOE reform and the further optimization and deepening of state-owned capital distribution, the operating performance of state-owned listed companies showed a relatively strong growth trend. In the first three quarters of 2018, the 417 central and local state-owned companies achieved a total operating income of CNY3.071469 trillion, a year-on-year increase of 12.72%; and their total net profit was CNY223.129 billion, a year-on-year increase of 18.32%. Their income and profit growth rates were higher than that the average level of the SZSE market.
In terms of industries, traditional supply-oriented industries regained their vitality. Cyclical industries in the middle and upper reaches of the industrial chain showed a strong comparative advantage. The net profit growth rate of petroleum, petrochemical and coal industries began to rally, and the benefits of iron and steel, building materials and chemical industries continued to improve. Meanwhile, the performance of downstream industries showed a certain differentiation. The actual consumer demand expansion was less than expected. Thus, the net profit growth rate of food and beverage, tourism and catering, home appliances, textiles and clothing declined slightly.
In terms of operational efficiency, the overall operation of SZSE listed companies remained stable. The total financial expense for the first three quarters of 2018 amounted to CNY136.699 billion, a year-on-year increase of 14.70%. The debt financing cost further increased, but basically kept in line with the growth rate of operating income. At the end of the reporting period, the overall asset-liability ratio was 63.19%, down 3.25% compared to the beginning of the year; the total inventory balance CNY4.345934 trillion, up 16.77% compared to the beginning of the year and slightly higher than the growth rate of operating income; and the total ending balance of goodwill CNY904.05 billion, up 9.94% compared to the beginning of the year. The proportion of goodwill to total asset increased by 0.06% compared to the beginning of the year, which was basically stable.
