In recent years, the Shanghai Stock Exchange has focused on emerging industries such as high-end equipment manufacturing and new-generation information technology, as well as national scientific and technological innovation, and increased financial service support for key areas and weak links, so as to promote a virtuous cycle of science and technology, industry and capital.
Wind data shows that 383 of the newly listed private enterprises since 2020 belong to strategic emerging industries. As of the end of November this year, there were about 709 private enterprises in strategic emerging industries in Shanghai, doubling the number before 2020.
On the whole, Shanghai's private enterprises have formed an open and competitive innovation ecology, and have formed a leader with solid technology accumulation and strong financial strength in key areas of economic development, and scientific and technological innovation has continued to blossom and bear fruit.
Build an innovation ecosystem with competitive advantages
In recent years, with the implementation of a series of key institutional innovations such as the pilot of the Science and Technology Innovation Board and the comprehensive registration system, the Shanghai Stock Exchange has supported and encouraged high-quality "hard technology" enterprises to land in the capital market, and the Shanghai Stock Exchange has also brought together leading enterprises in strategic emerging industries such as semiconductors, photovoltaics, machinery and equipment, large aircraft, and pharmaceuticals.
According to statistics, among the newly listed private enterprises since 2020, about 383 belong to emerging industries, with a total initial offering of about 480 billion yuan, accounting for 38% of the initial financing amount of the Shanghai Stock Exchange in recent years.
"During the issuance review process, we fully felt the market inclusiveness and adaptability brought by the registration system to the company. As the first main board IPO company in Shanghai under the comprehensive registration system, the person in charge of Huaqin Technology said, "The registration system strengthens the value discovery function of the market for enterprises, can guide funds to better promote the development of national key industries, and is conducive to potential enterprises to obtain stronger financing support." ”
Technology companies are generally asset-light, and it is difficult to obtain financial support that matches their core competitiveness. In response to the financing difficulties of such enterprises, the Shanghai Stock Exchange has continuously optimized the financing mechanism, enriched financial support tools, and built a comprehensive and multi-level technology financial service system.
Within six years after its listing, Vail shares directly raised about 16.6 billion yuan with the help of abundant financing tools in the capital market, and achieved a major breakthrough in business scale through mergers and acquisitions, expanding from the original analog business to the image sensor and display chip business, and according to TrendForce data, the company's revenue scale in 2022 entered the top 10 of the world's fabless chip design companies.
In the past three years, about 95 companies in strategic emerging industries have raised about 112.5 billion yuan through private placements, allotments, convertible bonds, etc., providing continuous capital momentum for the development of enterprises.
With the continuous innovation of the system and the continuous smooth financing channels of listing, the rapid development of scientific and technological innovation enterprises in Shanghai has broken the inherent perception of the market on the Shanghai Stock Exchange, especially the main board of the Shanghai Stock Exchange, and has formed a number of scientific and technological innovation enterprise groups with high market recognition and great industry influence.
As of the end of November this year, there were about 709 private enterprises in strategic emerging industries in Shanghai, doubling the number before 2020, and the market value accounted for nearly 4 percentage points from 11.89% to 15.70%, realizing the effective docking of capital and scientific and technological innovation elements.
Cohesive innovation releases new momentum of the industry
It is the trend of the times to open up new fields and new tracks with scientific and technological innovation, and to shape new development momentum and new advantages, and it is also an urgent requirement for high-quality development. Since 2020, private enterprises in Shanghai have adhered to innovation-driven development and continued to increase investment in innovation elements, with a total R&D expenditure of 235 billion yuan, with a three-year compound growth rate of more than 20%, of which 40 companies with R&D expenses exceeding 1 billion yuan, doubling the number in 2019.
From the perspective of R&D intensity, the proportion of R&D expenses of private enterprises in Shanghai to operating income in 2022 will be about 3.4%, an increase of 0.5 percentage points from 2019.
In terms of industries, pharmaceutical and biological, electronics, power equipment, automobiles, and machinery and equipment are the top five R&D expenditure industries in 2022, with 43.1 billion yuan, 32.6 billion yuan, 30.5 billion yuan, 22.3 billion yuan, and 22 billion yuan respectively.
As the enterprise with the largest R&D investment in Shanghai, Great Wall Motors has an unwritten slogan of "excessive R&D". Wei Jianjun, the company's chairman, said, "It's not a waste, it's a more long-term investment." "In the past 10 years, the number of technical personnel of Great Wall Motors has increased from 10,905 to 23,850, R&D investment has increased from 1.691 billion yuan to 12.181 billion yuan, and the number of patents disclosed and authorized has increased from 344 and 308 to 6,042 and 4,652. At present, the company has achieved sales of more than one million for 7 consecutive years, and the penetration rate of intelligent models has reached 86.17%.
High-intensity R&D investment has yielded fruitful innovation results, and by improving the level of transformation of scientific and technological achievements, scientific and technological innovation has released strong development momentum. In 2022, the capitalized amount of R&D expenditure of private enterprises in Shanghai was RMB27.1 billion, and the R&D capitalization rate was 9.59%, about 1.25 percentage points higher than that of the Shanghai Stock Exchange as a whole. The transformation of R&D achievements strongly supports the innovation of traditional processes, and the level of digitalization and intelligence is steadily advancing. In the machinery manufacturing industry, Sany Heavy Industry invests more than 5% of its sales revenue in R&D every year, and has independently developed a series of landmark products to lead China's high-end equipment manufacturing, including the world's first fully hydraulic grader, three-stage concrete pump, non-foaming asphalt mortar truck, etc.
Haier Smart Home has built a "10+N" open innovation system, with "10" representing the top 10 R&D centers and "N" representing N innovation centers and innovation networks. Through the "10+N" innovation touchpoint, the company synergistically integrates with global resources to jointly promote technology patenting, patent standardization and standard internationalization. Up to now, Haier Smart Home has launched more than 200 original technologies that have a significant impact on the industry, and all innovative achievements have been quickly transformed into the industrial chain.
Private enterprises in Shanghai are also forward-looking in future industries such as life and health, gene technology, etc., to build a first-mover advantage. "20 years ago, the domestic chemical and pharmaceutical industry was dominated by the production of generic drugs, and in the face of multinational pharmaceutical groups seizing the Chinese market, the company must embark on a road of independent innovation. Hengrui Pharmaceutical said that the company has invested more than 30 billion yuan in R&D in 10 years, and has carried out a wide range of layouts in the fields of tumors and autoimmune diseases, and has 13 self-developed Class 1 innovative drugs, 1 self-developed Class 2 new drugs and 2 cooperative innovative drugs approved for marketing in China, and more than 80 independent innovative products are under clinical development, and more than 270 clinical trials have been carried out at home and abroad, forming a virtuous circle of listing a batch, clinical batch and development batch.
It is particularly noteworthy that the Science and Technology Innovation Board, as the main position of "hard technology" enterprises, has become more and more significant in the demonstration effect and agglomeration effect of key industrial chains such as integrated circuits, biomedicine, and new energy. As of the end of September 2023, a total of 303 companies on the Science and Technology Innovation Board have been selected into the list of national-level specialized, special and new "little giant" enterprises, 35 companies have been rated as "single champion" demonstration enterprises in the manufacturing industry, and 40 companies' main products have been rated as "single champion" products in the manufacturing industry, accounting for 6% of the total number of companies in the sector after deduplication.
Scientific and technological innovation promotes the high-quality development of private enterprises
Focusing on the needs of industrial development, private enterprises in Shanghai have increased investment in science and technology, strengthened investment-driven, innovation-driven, and industry-driven, continuously accumulated new kinetic energy, accelerated the shaping of new advantages, continued to enhance development momentum, and achieved rapid growth in business performance. Compared with 2019, the R&D expenditure of Shanghai's communications, power equipment, medicine and biology industries will increase by 54%, 123% and 99% in 2022, and the net profit will increase by 516%, 339% and 127%, realizing a positive cycle of R&D growth and performance excellence, so that the "key variable" of scientific and technological innovation can be transformed into the "maximum increment" of high-quality development.
Great Wall Motor's R&D investment capitalization in 2022 is as high as 62.53%, and its investment in automotive intelligence, electrification, and new models has enabled the company to maintain a profit growth rate of more than 20% under the incentive of competition.
Large R&D investment has also brought better market performance to related companies. In 2022, the average price-earnings ratio and price-to-book ratio of Shanghai private enterprises with R&D investment exceeding 100 million yuan and R&D intensity exceeding 5% will reach 46 times and 3.71 times, respectively, which is higher than the average valuation level of other private enterprises of 25 times and 2.38 times.
A number of high-quality innovative private enterprises that have attracted market attention and recognition have emerged in the Shanghai Stock Exchange, realizing the expansion of leading companies. At present, the number of private enterprises in Shanghai with a market value of 100 billion yuan and more than 50 billion yuan has reached 14 and 39 respectively, an increase of nearly 80% compared with the end of 2019.
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