Brief Analysis on Interim Reports Disclosed by Companies Listed on Shenzhen Markets

Brief Analysis on Interim Reports Disclosed by Companies Listed on Shenzhen Markets

Brief Analysis on Interim Reports Disclosed by Companies Listed on Shenzhen Markets

The FINANCIAL -- As of August 31 2015, all of the 1729 companies listed on the Shenzhen markets have disclosed their 2015 interim reports. For the first half of 2015, these companies have made an aggregate operating income of CNY3.072003 trillion and an aggregate net profit of CNY223.073 billion, a year-on-year growth of 5.1% and 23.5% respectively.

From the point of operating income, 61.98% companies have realized a year-on-year growth and 78.24% companies have realized a quarter-on-quarter growth. From the point of net profit, 59.27% companies have realized a year-on-year growth and 71.58% companies have realized a quarter-on-quarter growth. Under the background of economy “new normal”, the performance of Shenzhen listed companies continues to improve, showing a steady increasing trend, according to Shenzhen Stock Exchange.

Represented by new technologies, new business types and new models, the ChiNext board has witnessed stable development. For the reporting period, all the 484 companies listed on the ChiNext board have made an aggregate operating income of CNY209.508 billion, up 29.40% which outperforms the average level of the Shenzhen markets; and an aggregate net profit of CNY22.808 billion, up 20.53%. The companies listed on the ChiNext board have been keeping a high gross profit margin since 2015, reaching 32.40%, which shows a strong characteristic of innovation. Emerging industries, such as Internet, television and entertainment, press and publications, ecological protection and high-end manufacturing, have made sound operating results, with operating income, sales profit and net profit growing by 35.59%, 25.5% and 27.41% respectively, which is significantly higher than the average level of the Shenzhen markets. 40 companies accomplished major assets restructuring with total scale of CNY 25.211 billion (including matching fund-raising), increasing by 110% and 38% respectively over the same period last year. Among them, 35 companies were engaged in industrial integration with M&A targets focusing on software and information technology, Internet, biological medicine, new energy vehicles, environmental control and other emerging areas. The role of ChiNext board to support innovation and start-up enterprises has been further highlighted.

From the viewpoint of the entire markets in Shenzhen, 10 out of 17 industries are reporting year-on-year growth and 16 are reporting quarter-on-quarter growth. Among them, industries of information technology, water, electricity and gas, wholesale and retail, culture and communications and medical and healthcare have made a year-on-year growth rate of over 20% on net profit. Besides, medicine, chemical raw materials and chemical products manufacturing and computer, communications, and other electronic equipment manufacturing are also growing significantly.

Moreover, there are quite a lot highlights in the operation of Shenzhen listed companies in the first half of the year. First, the cash flow situation has been further improved. Shenzhen listed companies, removing finance and real estate companies, are reporting cash flow per share of CNY0.14, up 14.31% which is mainly benefited from the increase in operating activities cash flow. Second, the efficiency of M&A has been increased dramatically. The 136 companies who accomplished major assets restructuring in 2014 have made a growth of 21.62% on operating income and 50.83% on net profit for the first half of 2015, much higher than the overall level. Third, interim dividends are intensified. Cash dividends for the first half of 2015 reached CNY4.26 billion, a year-on-year increase of 130.75%.

So far, 825 Shenzhen listed companies have made performance forecast for the first three quarters in 2015. 509 companies (accounting for 61.69%) are predicting positive and growth, 151 companies of them are predicting a year-on-year growth of over 50%. It is predictable that the performance results of Shenzhen listed companies for the first three quarters are improving steadily.