Shanghai Stock Exchange: Overall Performance In Semi-annual Reports Of 2007

As of August 31, 2007, the 852 companies listed on the Shanghai Stock Exchange (SSE) had disclosed the semi-annual reports of 2007 as scheduled. The semi-annual reports show a dramatic increase in overall performance of the SSE listed companies. The total business income in the first half of 2007 boasts a year-on-year increase of 24.9%, with a year-on-year net profit increase of 69.2%. The weighted average earning per share was RMB0.204, with the weighted average return on net assets of 7.78%.

Statistics show that the total business income in the first half of 2007 was RMB2,690.9 billion, with a year-on-year increase of 24.9%; the total business profit was RMB398 billion, with a year-on-year increase of 65.2%; the total net profit was RMB290.3 billion, with a year-on-year increase of 69.2%; the weighted earning per share is RMB0.204, with the weighted average return on net assets of 7.78%. 241 out of the 852 listed companies boasted the net profit increase beyond 50%, and 67 companies turned losses into gains.

Companies in the constituents of the SSE 50 Index realized the total business income of RMB1,582.8 billion (accounting for 58.8% of the total of all listed companies) in the first half of 2007, with a year-on-year increase of 26.0%; their total net profit was RMB224.5 billion (accounting for 77.4% of the total of all listed companies), with a year-on-year increase of 68.5%; the weighted average earning per share is RMB0.216, with the weighted average return on net assets of 8.78%.

The performance increase of SSE listed companies has the following features:

1. The performance increase comes mainly from business income, with continuously increasing profitability. According to an analysis on the constitution of the profit increase, the absolute value of the increase in the total business profit of non-financial listed companies is RMB78.16 billion. The increase deducting investment income and gains from change in fair value is RMB59 billion, i.e., 75.48% of the increase in business profit of non-financial listed companies is derived from the business income. Besides, the investment income of these companies in the first half of 2007 totals approximately RMB30 billion, among which about RMB11 billion in total comes from investment income on the securities market (including new shares subscription, stock trading, fund investment, etc.), accounting for only 5-6% of the total profits of listed companies falling into this category.
   Meanwhile, the three expenses (operating expenses, management expenses and financial expenses) of non-financial listed companies only saw a 17% year-on-year increase, lower than the business income growth; their business profit rate (not calculated into the gains from change in fair value, investment income and exchange gains or losses) is 8.27%, higher than last year's 6.83%, indicating a constant elevation in the profitability of listed companies and a durative character of the business increase.
   Concerning the business income, the profitability increase of the 17 financial enterprises on the SSE is more prominent, with a year-on-year increase of 28.4% and 74.1% in the business income and net profit, both higher than the average market level.
   
2. The blue chip bellwether plays a significant role in the overall market performance.
   The performance of blue-chip companies stands prominent, with all the indicators higher than the market level except a slightly lower level of increase in net profit. Most significantly, their net profits account for 77.4% of the total of all listed companies, rendering them the mainstay of listed companies on the SSE. The dramatic performance increase of some super large-scale blue-chip companies, including Industrial and Commercial Bank of China Limited and Ping An Insurance (Group) Company of China, Ltd., has promoted the overall performance of the SSE listed companies.
   
3. The range of loss is somewhat decreased, with conspicuous space of loss reduction.
   In the first half of 2007, a total of 105 companies suffered losses, with the loss proportion of 12.3%. Compared with the losses of 129 companies and the 15.5% loss proportion in the same period of last year, the range of loss has shrunken to some extent. 15 companies suffered losses exceeding RMB0.1 billion, with the total losses of RMB5.244 billion, a conspicuous decrease compared with the RMB6.482 billion losses in the same period of last year.