Over 1,200 SSE-listed Companies with Active Response to the "Corporate Value and Return Enhancement" Initiative Achieved Remarkable Results

Securities Times, Zhang Shuxian

It has been nearly one year since the launch of the special action initiative of "corporate value and return enhancement", and the SSE has continued to promote it and achieved remarkable results. At present, over 1,200 SSE-listed companies have actively responded and launched action plans, accounting for more than half of the total and covering a market value of about 39 trillion yuan. The coverage rate of SSE 180 and SSE 380 companies is even over 80%. Under the guidance of the special action, SSE-listed companies have achieved great improvement in their operating capacity, governance level, return capability, and investment value.

Since February 2025, about 40 companies have announced new action plans. SSE-listed companies generally take operation quality improvement as the basis. For example, Shengyi Technology Co., Ltd. promotes refined management to stabilize product quality. At the same time, SSE-listed companies are actively cultivating new quality productive forces. For instance, Yangtze Optical Fibre and Cable Joint Stock Limited Company has accelerated the intelligent transformation of optical communication products, built smart factories in multiple places, and explored 5G + industrial Internet scenarios. Driven by the special action, SSE-listed companies have shifted from the scale-oriented approach to the quality-oriented one and from focusing on growth to emphasizing returns.

SSE-listed companies have achieved phased results in improving quality and efficiency. First, the market structure is more reasonable. The number of leading companies has increased, and the market value proportion of scientific and technological innovation-driven companies has increased. Over the past three years, the number of listed companies in emerging industries has accounted for 70% of the newly listed companies. Second, the operations and development are more stable. The compound growth rate of the overall revenue and net profit over the past three years has reached nearly 9%. In the first three quarters of 2024, the total operating revenue accounted for nearly 40% of GDP, and the R&D expenses of entity companies increased by 2% year on year. Third, there are expectations for risk clearing. Over the past three years, 58 companies were delisted, capital occupation and illegal guarantee balance dropped significantly, and the number of high-proportion pledged companies decreased by 170.

In terms of returning investors, SSE-listed companies actively give back through dividends, share increases, and buybacks. The compound annual growth rate of dividends over the past three years has averaged 15%. The actual distribution amount in 2024 accounted for 80% of the total market. The amount of share increases and buybacks increased significantly. In 2024, the actual buybacks increased by more than 90% year on year and the actual share increases increased by nearly 70% year on year. After Zhongtai Securities Co., Ltd. went public, it distributed cash dividends of 1.659 billion yuan continuously and the first interim dividend in 2024. Shenzhen Kinwong Electronic Co., Ltd. insisted on a high proportion of cash dividends totaling 2.309 billion yuan (tax included) and will improve the dividend decision-making mechanism in the future. Beiqi Foton Motor Co., Ltd. bought back 86,363,100 shares for the cancellation and reduction of registered capital. Jinan Shengquan Group Share Holding Co., Ltd. used 370 million yuan to buy back the company's shares twice in 2024.

The special action of "corporate value and return enhancement" for SSE-listed companies has not only improved the quality and efficiency of enterprise operations but also enhanced investors' confidence. In the future, with the deepening of the action, SSE-listed companies will aim at high-quality development and inject more vitality into the capital market through technological innovation, industrial upgrading, and returns to investors.

The above information is provided for reference purposes only and does not constitute investment advice.