The reform of the registration-based IPO system on the ChiNext has begun to show results. Since the beginning of this year,149A GEM-listed company released its semi-annual report, with overall performance improving. As of8month16day, already149A GEM-listed company disclosed its semi-annual report. In the first half of the year, this149The total operating income of the company reached2,967.48Yuan, a year-on-year increase20.34%; The total net profit reached221.35Yuan, a year-on-year increase7.73%.
What are the main reasons for the overall positive trend in performance of companies listed on the Growth Enterprise Market (GEM)? Why are companies with positive performance mainly concentrated in the three industries of pharmaceutical biotechnology, basic chemicals, and computers? The vast majority of companies with positive performance have also increased their R&D investment; what does this reflect about the phenomenon? If St. Petersburg Frost & SullivanFrost & Sullivan,Mr. Lu Jing, Partner and Managing Director of Greater China at Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan'), was interviewed by Securities Daily.149An analysis of the semi-annual reports of GEM-listed companies, focusing on their current development status and future trends.
Securities Daily
As the disclosure speed of listed companies' semi-annual reports accelerates, more and more companies on the ChiNext have come to light with their first-half performance.
Judging from the disclosed semi-annual reports, the performance of companies listed on the ChiNext is generally improving.windInformation data shows that as of8month16day, already149A GEM-listed company disclosed its semi-annual report. In the first half of the year, this149The total operating income of the company reached2967.48Yuan, a year-on-year increase20.34%; The total net profit reached221.35Yuan, a year-on-year increase7.73%.
"Since the reform of the ChiNext and the pilot registration-based system, it has stimulated the vitality of the sector, unleashed growth potential, improved the quality of listed companies, and also promoted an overall improvement in company performance over the past two years." Gui Haoming, chief market expert at Shenwan Hongyuan, told the Securities Daily reporter that the ChiNext is positioned precisely to support the listing and financing of 'three innovations and four new' enterprises, meeting the diverse investment and financing needs of the market, attracting a large amount of capital inflow, and providing financial guarantee for company performance growth.
77The company's revenue and net profit have both increased
Companies in strategic emerging industries are showing strong growth momentum
Looking at the GEM companies that have disclosed their semi-annual reports, more than half of them have achieved double growth in both revenue and net profit for the first half of the year.
windInformation data shows that in the first half of this year, in terms of operating income, the above149Among the listed companies on the Growth Enterprise Market, there are112Year-on-year growth at home, proportion75%,6The year-on-year growth rate of home sales exceeded100%In terms of net profit,149There are in the company90Year-on-year growth at home, proportion60%, wherein24Net profit at home doubled year-on-year. It is worth noting that,149There are in the company77Both operating income and net profit at home increased year-on-year, accounting for52%.
Lu Jing, Partner and Managing Director of Frost & Sullivan Greater China, told the Securities Daily reporter that the ChiNext mainly provides a development platform for growth-oriented innovation and entrepreneurship enterprises. In recent years, high-tech enterprises have continuously emerged on the ChiNext, which is in a rapidly ascending industrial cycle phase, indicating good growth potential for these companies. At the same time, the development of growth-oriented enterprises on the ChiNext is less affected by complex internal and external environmental factors, resulting in stable performance growth. Driven by the national industrial transformation and upgrading and policy dividends, the development prospects of ChiNext enterprises, mainly focused on emerging industries, are promising.
In the first half of the year, among the ChiNext companies with both revenue and net profit growth, strategic emerging industry companies showed particularly strong momentum. According towindinformation data, as mentioned above77In the company, there are18Homegrown from strategic emerging industries, proportion23%Compared with the same period last year, this18The company's average revenue growth rate for the first half of the year reached43%The average growth rate of net profit reached55%.
"There are many sub-industries within strategic emerging industries, and a number of 'specialized, refined, distinctive, and innovative' small giant enterprises have emerged. These companies develop faster compared to their industry and peers. At the same time, direct financing channels and equity incentive mechanisms are gradually improving. Various factors have led to rapid growth in revenue and net profit for these companies on the ChiNext." Wang Weijia, general manager of Beijing Sunshine Tianhong Asset Management Company, told the Securities Daily reporter.
Through data analysis, the reporter further found that the aforementioned companies with improved performance on the ChiNext board are mainly private enterprises, and they are mainly concentrated in industries such as pharmaceuticals and biotechnology.windInformation data shows that the above77In the company65Family-owned private enterprises (proportion84%), mainly distributed in the three industries of pharmaceutical biology, basic chemicals, and computer science.
Gui Haoming stated that among the ChiNext companies, private enterprises have obvious development advantages. Most ChiNext private enterprises have a solid industrial foundation or unique advantages in certain fields. These small and medium-sized enterprises can rapidly develop and grow by leveraging the capital market platform.
Lu Jing stated that since the outbreak of the COVID-19 pandemic, pharmaceutical and biotech companies in multiple sub-sectors such as in vitro diagnostics, medical equipment, and vaccines have developed rapidly and successfully listed on the ChiNext. The resonance between policies and the healthcare industry has driven continuous industry development; the basic chemical industry has a high degree of correlation with other industries and serves as a key bridge connecting energy and downstream sub-sectors. The continuous rise in demand for the new energy industry has promoted capacity expansion in the basic materials industry, and profitability has also been continuously improving; the computer industry has seen rapid growth due to the overall upgrade of software and hardware across the industry, with high-tech enterprises involved in fields such as industrial digitization, cloud communication, network security, and cloud computing entering a period of high-speed growth.
Over 80% of companies saw year-on-year growth in R&D investment
26The company has invested over 100 million yuan in research and development
The reporter noted that among the GEM companies that have disclosed their semi-annual reports, there is an obvious positive relationship between performance and the growth rate of R&D investment. The vast majority of companies with improved performance also saw varying degrees of growth in R&D investment.
Gui Haoming believes that R&D investment is an important indicator for measuring the growth potential of companies listed on the Growth Enterprise Market (GEM). A substantial amount of R&D investment also helps to enhance a company's core competitiveness, strengthen its independent innovation capabilities, and thereby promote business performance growth and sustainable development.
windInformation data shows that those that have disclosed their semi-annual reports149Among the companies listed on the Growth Enterprise Market,26R&D expenses exceed 100 million yuan, accounting for17%In terms of the growth rate of R&D investment,149There are in the company124Year-on-year increase in R&D expenses at home, proportion83%With both revenue and net profit growing77In the company,72R&D expenses at home increased year-on-year, accounting for as high as94%, wherein9The year-on-year growth rate of R&D expenses at home exceeded100%.
"The genes of the ChiNext determine that most listed companies are in strategic emerging industries, characterized by high innovation and strong growth potential," said Lu Jing. The majority of companies with improving performance have increased R&D investment, reflecting that their core competitiveness is mainly based on technological innovation. Companies that focus on continuous R&D investment and scientific research innovation often can grasp market trends, meet the waves of the times, and achieve sustained development. In addition, continuous R&D investment also provides a solid guarantee for the long-term development of ChiNext companies, helping them achieve 'spiral' upward growth.
Wang Weijia believes that the development of emerging industries is inseparable from the innovation capabilities of enterprises. The increase in R&D expenses by most high-quality ChiNext companies also indicates that enterprises are paying more attention to research and development innovation. An outstanding emerging industry company can only stand out in the increasingly fierce industry competition by continuously increasing R&D investment and focusing on long-term development.
*This article is reprinted from Securities Daily, reporter Xing Meng , Original title: 149A Closer Look at the Semi-annual Report of a GEM Company: Total Revenue Increased by More Than20%More than half of the companies saw both revenue and net profit increase ">
