The net profit of Shanghai company in the first three quarters exceeded 3 trillion yuan

As of October 31, all SSE listed companies except SMIC have disclosed their results for the first three quarters of 2021. According to the data, in the first three quarters, shanghai listed companies achieved a total operating income of 33.92 trillion yuan and a net profit attributable to the mother of 3.14 trillion yuan.

Overall, the Shanghai Main Board Company has shown strong development resilience, production and operation on the main tone of "stability", maintaining the momentum of high-quality development, and strongly supporting the sustained recovery and development of the national economy. Based on scientific and technological innovation, the company has deeply cultivated the main business of science and technology innovation, and the intensity of R&D investment has continued to remain high, becoming an important practitioner of innovation-driven development.

The success of science and technology is constantly increasing

In the first three quarters, the sci-tech innovation board companies achieved a total operating income of 483.957 billion yuan, an increase of 45.08% year-on-year; the total net profit attributable to the mother was 63.020 billion yuan, an increase of 64.01% year-on-year; and the net profit deducted from non-attributable to the mother was 50.796 billion yuan, an increase of 39.25% year-on-year.

From the perspective of growth rate distribution, in terms of operating income, 90% of the companies achieved revenue growth, and 38 companies achieved doubled revenue. In terms of net profit, 70% of the companies achieved a net profit growth attributable to the mother, and 80 companies increased by more than 100%, up to 290 times.

While the performance is growing rapidly, the overall profit quality of the science and technology innovation board companies is maintained. In the first three quarters, the median gross profit margin of the science and technology innovation board companies reached 43%, nearly 40% of the companies had a gross profit margin of more than 50%, and the gross profit margin of 39 companies increased by 5 percentage points over the same period last year; the median net profit margin was 15%, the net profit margin of more than 30% of the companies was more than 20%, and the net profit margin of 70 companies was significantly increased by 5 percentage points over the same period last year.

With the landing of the early research and development results, the product commercialization process of the 19 unprofitable enterprises listed on the Science and Technology Innovation Board has been accelerating, and the performance has continued to improve. In the first three quarters, the total operating income of unprofitable enterprises on the Star Market was 21.611 billion yuan, an increase of 126% year-on-year, significantly higher than the overall level of the Science and Technology Innovation Board; the total net profit attributable to the mother was 3.050 billion yuan, a significant reduction of 2.641 billion yuan over the same period.

Science and Technology Innovation Board companies continue to increase investment in research and development, and the success of science and technology innovation continues to increase. In the first three quarters, the total amount of R&D investment of science and technology innovation board companies reached 37.668 billion yuan, an increase of 40% year-on-year, and the investment amount was close to the level of the whole year of 2020.

Nearly 90% of the main board companies are profitable

In the first three quarters, the Shanghai main board companies achieved a total operating income of 33.44 trillion yuan, an increase of 21.43% year-on-year; the net profit attributable to the mother was 3.08 trillion yuan, and the net profit after deducting non-profit was 2.95 trillion yuan, an increase of 27.14% and 33.45% respectively year-on-year. Among them, in the third quarter, the Shanghai main board company achieved operating income of 11.37 trillion yuan and net profit attributable to the mother of 1 trillion yuan, an increase of 15.75% and 2.23% respectively year-on-year.

A total of 1467 companies on the main board of the Shanghai market were profitable, accounting for 89%, up 2 percentage points from the same period last year. Among them, the net profit of more than 60% of the companies increased year-on-year, and the net profit of 30% of the companies increased by more than 50%. There were 184 loss-making companies, down 25 from the same period last year, and 19 companies that lost money in the first half of the year achieved a turnaround in the third quarter; the total amount of losses was 94 billion yuan, a year-on-year decrease of 3.5%.

In terms of different industries, the performance of strategic emerging industries is obviously better than that of traditional industries, while companies in industries such as environmental protection and new energy power generation have benefited from the continuous implementation of green development concepts and achieved rapid growth in performance. Specifically, the net profit of the photovoltaic equipment industry upstream of new energy power generation in the first three quarters increased by 36.11% year-on-year; the operating income and net profit of downstream new energy power generation enterprises increased by more than 20.56% year-on-year; the operating income and net profit of the environmental protection industry increased by 27.09% and 33.78% respectively year-on-year.

Most of the Shanghai main board companies belong to the traditional pillar enterprises of the national economy. Judging from the report card of the third quarterly report, the growth rate of the entity enterprises on the main board of the Shanghai market is faster, and the quality of profitability continues to improve. According to the data, in the first three quarters, the entity companies on the main board of Shanghai achieved a total operating income of 26.21 trillion yuan, an increase of 26.49% year-on-year, a net profit of 1.35 trillion yuan, and a net profit of 1.23 trillion yuan after deducting non-profits, an increase of 52.69% and 81.27% respectively year-on-year, and the growth rate was much higher than the overall level of the Shanghai market. The net profit of entity companies accounted for 43.85% of the main board of the Shanghai market, a significant increase of 7.21 percentage points over the same period last year.

The high performance of entity enterprises has benefited from the improvement of operational efficiency and the decline in debt levels. The data shows that the return on net assets of entity companies was 7.89%, an increase of 2.16 percentage points over the same period last year; the turnover rate of accounts receivable reached 7.25 times, an increase of 1.03 times year-on-year, and the ability to collect funds on credit was significantly enhanced; the net flow of operating cash increased by 50.26% year-on-year, and the ratio to net profit was 1.18, reflecting a strong profitability. At the end of the third quarter, the interest-bearing liabilities of entity companies accounted for 38.87% of total liabilities, down 1.51 percentage points from the beginning of the year, of which the asset-liability ratio of manufacturing was 52.3%, lower than the overall level of entity enterprises in Shanghai.

Improving the quality of listed companies has achieved initial results

From a micro point of view, the performance improvement of listed companies is a positive feedback of the company's dedication to the main business; from a macro point of view, it is a manifestation of China's economic resilience. In addition, the work of improving the quality of listed companies has achieved initial results and is in line with expectations.

In October 2020, the State Council issued the Opinions on Further Improving the Quality of Listed Companies. Subsequently, the Shanghai Stock Exchange formulated the "Three-Year Action Plan for Promoting the Improvement of the Quality of Listed Companies in Shanghai", comprehensively promoted the implementation of the Opinions of the State Council, and vigorously promoted the high-quality development of Shanghai companies. Up to now, the above-mentioned action plan has made positive progress, and there is a trend of further deepening and improving in multiple dimensions such as the steady operation of mergers and acquisitions, restructuring and refinancing, equity incentives and employee stock ownership plans, encouraging the normalization of performance briefings of listed companies, standardizing corporate governance, promoting the resolution of risks of listed companies, increasing the investigation and handling of illegal crimes, strictly implementing the new rules on delisting, and resolutely implementing important deployments.

In terms of the gradual normalization of performance briefings, since the beginning of this year, performance briefings have become an important tool for investor relationship management of listed companies, providing new scenarios for investors to exercise shareholder rights and supervise and constrain listed companies. In the industry's view, the performance briefing is not only an effective bridge for communication between listed companies and investors, but also an important channel to promote the high-quality development of listed companies. With the disclosure of the third quarterly report, nearly 100 companies in Shanghai have held the third quarterly report performance briefing.

In terms of promoting the resolution of risks of listed companies, since 2021, the Shanghai Stock Exchange has promoted nearly 70 companies to solve the problem of capital occupation or illegal guarantees, involving a total amount of 49.3 billion yuan. On the basis of reducing the high proportion of pledge companies to less than 100 last year, we will further promote nearly 20 companies to resolve pledge risks.

In terms of strict implementation of the new delisting regulations, since 2021, shanghai has achieved various types of delisting, including 5 financial compulsory delisting, 3 transactional compulsory delisting, and 6 delisting through liquidation restructuring and active delisting. In addition, 41 companies have been delisted risk warnings and 36 companies have been implemented other risk warnings.

Source: China Securities News