Focus on the financial reports of listed companies|Looking at the mast on the sea level - looking at the new trend and new quality of China's economy from the financial reports of listed companies

Xinhua News Agency, Beijing, April 30 (Xinhua) -- China Securities Journal published an article on April 30 entitled "Looking at the Mast on the Sea Level -- Looking at the New Trend and New Quality of China's Economy from the Financial Reports of Listed Companies." The article said that standing on the top of a high mountain, a shadowy mast loomed on the sea level, followed by a giant ship that was gradually approaching.

As the most active economic cell, listed companies are the "power source" and "pillar" of China's economy. Listed companies are required to disclose their annual reports and quarterly reports before May every year, which has always been regarded as an excellent window to observe China's economic trends because of their transparency and completeness.

The wind returns to the clouds, the rain is clear, and the lake is warm and bright.

A reporter from the China Securities Journal checked the financial reports of listed companies and went to Guangdong, Zhejiang, Fujian and other places to investigate enterprises and found that the recovery of listed companies was uneven, and there was a temperature difference, but there were also some new changes, new signs and new trends, reflecting the new trend and new quality of China's economy.

New changes: high-end manufacturing is expected to take over as the "leader"

The coast of the South China Sea, north of Maluan Mountain.

The 4,000 acres of BYD Industrial Park is magnificent, and a car is completed here from the assembly of parts to the whole vehicle, with a new car coming off the assembly line every 60 seconds on average, and a steady stream of cars going to all over the world. In the industrial park, BYD's global headquarters, a hexagonal building covering an area of 65,000 square meters and accommodating 9,000 people, stands proudly, attracting the attention of the global new energy vehicle industry. "We only have one idea now, and that is to accelerate, and then accelerate!" said Li Qian, BYD's secretary of the board.

In March this year, BYD rolled off the assembly line of the 7 million new energy vehicles in Jinan, and it took only 4 months to sprint from the 6 millionth. The previous road was much longer, from the first new energy vehicle to the 1 millionth, BYD took 13 years, from 1 million to 3 million in one and a half years, from 3 million to 5 million in 9 months......

In 2023, BYD will have a revenue of 602.315 billion yuan, a year-on-year increase of 42.0%, and a net profit of 30.041 billion yuan, a year-on-year increase of 80.7%. In the case of a high base, BYD achieved a net profit of 4.569 billion yuan in the first quarter of this year, a year-on-year increase of 10.6%.

BYD is the epitome of the development of China's auto industry. In 2023, China's automobile exports reached 4.91 million units, up 57.9% year-on-year, ranking first in the world for the first time. This means that after more than 70 years of ups and downs, China's automobile industry has grown from scratch, from small to large, and finally achieved a historic breakthrough and become one of the pillar industries of the national economy.

(File picture.) Xinhua News Agency)

In recent years, the mainland has insisted on focusing on the real economy for economic development, promoting new industrialization, accelerating the construction of a manufacturing power, and the manufacturing industry has taken the lead.

Macroeconomic data confirms the strength of the manufacturing sector. On the basis of the steady recovery in 2023, the added value of the mainland's industrial and manufacturing industries increased by 6% and 6.7% respectively in the first quarter of this year, which strongly promoted economic growth. Sheng Laiyun, deputy director of the National Bureau of Statistics, said that preliminary estimates show that 6% industrial growth will contribute 37.3% to GDP growth, driving nearly 2 points of GDP growth.

"It will take time to take the lead in the real estate industry, but the trend is already here. Economist Pan and Lin said that all kinds of data show that China's manufacturing is undergoing positive changes, and China's economic pillar is also switching, from the past construction and real estate to industrial manufacturing, especially to high-end manufacturing and emerging manufacturing.

New signs: The "main engine" of consumption adds new thrust

Consumption is the "ballast stone" for the stable operation of China's economy, and it is also the "main engine" for China's economic growth. After three years of the epidemic, the lack of scenes and confidence have been damaged, and consumption on the run has been forced to slow down. As the economic recovery accelerates, new consumer demand and forms emerge, and the "main engine" adds new thrust:

-- Service consumption has reached a new speed. At present, consumption is transforming from physical consumption to service consumption, and service consumption represented by comfort and development consumption accounts for an increasing proportion of residents' consumption. In 2023, the per capita service consumption expenditure of residents nationwide will reach 12,114 yuan, a year-on-year increase of 14.4%.

From the barbecue in Zibo to the ice and snow in "Erbin", and then to the spicy hot in Tianshui, a number of low-key and connotative cities have become new "Internet celebrities"; concerts are hard to find, music festivals are blooming everywhere, and movie box office records are frequently broken......

Consumption enthusiasm "shines" into the "account books" of listed companies and turns into a series of beautiful figures. In 2023, Jin Jiang Hotels' revenue increased by 29.5% and net profit increased by 691.1%, Huangshan tourism revenue increased by 141.2% and net profit increased by 424.3%, and CYTS revenue increased by 50.2% and net profit increased by 158.2%......

-- Consumption upgrading has brought a new atmosphere. In today's consumer market, consumption upgrading and downgrading coexist, and cost-effective and high value have become the key words of competition. The consumption upgrade brought about by the pursuit of quality and personalization is particularly encouraging.

How popular is Archaeopteryx? A "Year of the Dragon Limited Edition" jacket was fried to 16,000 yuan, and it was sold out when it opened the door, and the topic of hard to find a piece of clothing rushed to the hot search on Weibo. Many people don't know that from the acquisition of Amafen Sports, the parent company of Arc'teryx, for 37.1 billion yuan in 2019, to the complete exit of the Arc'teryx brand, Anta has been in operation for four years.

Ding Shizhong, Chairman and CEO of Anta Group, said that thanks to the blessing of high-end brands such as Arc'teryx, Anta has become a rival to Nike in the global market. According to the financial report, in 2023, Anta will achieve revenue of 62.66 billion yuan, an increase of 16.4%, and a net profit of 10.24 billion yuan, an increase of 34.9%. Anta has surpassed Nike China for two consecutive years and ranked first in China's sports footwear and apparel industry.

-- Rural consumption opens up new space. As the "low-key majority" on China's economic map, rural areas and counties have greater consumption potential. In the first quarter of this year, the retail sales of rural consumer goods increased by 5.2% year-on-year, surpassing the growth rate of urban areas, showing stronger vitality.

What is China's future consumption potential? Starbucks' latest financial report shows that Starbucks has covered 857 of China's nearly 3,000 county-level administrative districts. Starbucks Global CEO Na Sihan said on the earnings call: "Our new stores in China's county-level markets are performing strongly, and the company is accelerating the pace of market sinking and will open stores in more new counties in China. ”

According to data from e-commerce platforms, the fastest growth in sales of imported fruits such as Chilean cherries, Thai durians, and Vietnamese jackfruit is precisely in third- and fourth-tier cities. Upgraded home appliances such as underwear washing machines, built-in micro-steaming and baking machines, smart showers, and smart clothes dryers are pouring into the county market, and the turnover will increase by more than 10 times year-on-year during the 2024 Chinese New Year Festival.

New trend: "Corico gas" has gradually become a new temperament

One of the original intentions of the establishment of the capital market is to bring together capital from all walks of life to support scientific and technological innovation. Judging from the annual report, more and more listed companies, with the help of capital, are under pressure to increase scientific research, strive to bombard the door of innovation, and pick up more "crown pearls".

Integrated circuits. In 2023, dragged down by factors such as insufficient demand for consumer electronics, the total revenue and net profit of 152 comparable semiconductor companies will decline, but the total R&D expenditure will be 66.67 billion yuan, a year-on-year increase of 14.1%. Chip design companies such as Haiguang Information and Loongson Zhongke have made steady progress in the domestic computing power chip track, semiconductor EDA companies such as Huada Jiutian and Primarius Electronics have continued to break through, and semiconductor material leaders such as Shanghai Silicon Industry and Jiangfeng Electronics have accelerated their process nodes.

In terms of innovative drugs. How difficult is it to develop a new drug? There is a "rule of thirty" in the industry: it takes 10 years, costs $1 billion, and has a success rate of less than 10%. The innovative drug industry will enter an adjustment cycle in 2021, and some companies will have tight cash flow. However, this has not deterred listed companies. In the past 10 years, Hengrui Pharmaceutical has invested a total of 40 billion yuan to develop 16 innovative drugs, more than 90 independent innovative products are under clinical development, and nearly 300 clinical trials have been carried out at home and abroad.

Digital economy. The aerospace information industry is a future industry that countries around the world are competing to develop. As the first stock of the mainland's digital earth industry, Zhongke Xingtu has forged the "eye of the starry sky" with an independent and controllable new track, and has become a rising new force. In 2023, Zhongke Xingtu's revenue will increase by 59.5% and its net profit will increase by 41%.

……

After reading the financial reports, one cannot help but sigh: Try to see that today's domain is actually a world of innovation! With the blessing of capital and driven by innovation, the atmosphere of "Corico" of listed companies has gradually become stronger, and China's economy has increasingly shown a new quality.

——To the new. In 2020, the added value of China's strategic emerging industries accounted for 11.7% of GDP, in 2023 it will be about 13%, and it is expected to exceed 17% in 2025. At present, more than half of the more than 5,000 A-share listed companies are engaged in strategic emerging industries.

- Xiang Zhi. According to data from the Ministry of Industry and Information Technology, the mainland has become the world's largest industrial robot application country for many years, and the annual new installed capacity of industrial robots accounts for more than 50% of the world's total. In 2023, the market share of domestic industrial robots will exceed 50% for the first time, reaching 52.45%. A number of enterprises such as Inovance Technology, Eston, and Green Harmonic have grown rapidly.

- To the green. The mainland has vigorously promoted green development, cultivating a total of 5,095 green factories, 371 green industrial parks, 605 green supply chain management enterprises, and more than 500 professional green manufacturing service institutions. As of press time, nearly 2,000 A-share listed companies have released their 2023 ESG-related reports, becoming pioneers in green development.

Some changes in listed companies are small lotus only showing sharp corners, some are rising and falling spirals, and some are painful and happy. However, the trend is gradually emerging, the direction is clear, and no amount of pain and suffering can stop the pace of China's economic transformation. Because the mast is first revealed, it is a signal that the giant ship is about to sail, it is the dawn that will become a grand sight in the future, and it is the hope of reality. (ENDS)