R&D Investment by A-Share Companies Continues to Rise: Synergy Between Technological Innovation and Industrial Upgrade

Shanghai Securities News, Zheng Junting

In the context of cultivating new quality productive forces, many A-share listed companies have actively increased their R&D investment to promote the collaborative advancement of technological innovation and industrial upgrade.

As of April 9, more than 1,100 A-share companies disclosed R&D investment data in their 2024 annual reports. More than 60% of them saw a year-on-year increase in R&D investment, and more than 170 companies' R&D investments accounted for more than 10% of their revenue, with a significant concentration in the biopharmaceuticals and computer sectors.

Targeting "High-end, Precision, and Cutting-edge" Field: Many Companies' R&D Investment Increased Year-on-Year

Companies in the core technology sector focused on "high-end, precision, and cutting-edge" fields, leading to substantial increases in R&D spending. Biopharmaceutical companies considered R&D innovation as their core competitiveness. Jiangsu Hengrui Pharmaceuticals Co., Ltd. invested RMB 8.228 billion in R&D in 2024, up 33.79% year-on-year and accounting for 29.40% of its revenue, with significant results from its ADC platform. The computer industry has ushered in opportunities with the help of AI. Geovis Insighter Technology Co., Ltd. continued to increase its R&D investment in core areas such as satellite measurement and control, resulting in a 44.39% rise in R&D expenses for 2024. It will also advance frontier technology applications in the future. Semiconductor company SMEI invested 455 million yuan in R&D from a high base in 2024, with a year-on-year increase of 27.53% and accounting for 37.75% of revenue, striving to achieve technological and business breakthroughs.

Unleashing New Momentum: Technological Innovation Boosted Performance Growth

R&D investment in traditional industries also produced a "cocoon-breaking effect". Foshan Haitian Flavouring and Food Company Ltd.'s R&D investment in 2024 reached a record high of 840 million yuan, with a cumulative investment of approximately 3.8 billion yuan over the past 5 years. Relying on breakthroughs in core areas through R&D and building technological advantages, it achieved a net profit attributable to its parent company of 6.344 billion yuan, up 12.75% year-on-year, leading the growth rate of net profit. Companies in the basic chemical industry focused on R&D in green and environmental protection fields. In 2024, Shandong Lubei Chemical Co., Ltd.'s revenue and net profit attributable to its parent company increased significantly, and its R&D expenses increased by 92.12% year-on-year. It has made outstanding achievements in energy conservation and emission reduction, and recycled waste resources, with "three wastes" emissions.

Writing a "New Answer Sheet": R&D Investment Continues with No Ending

Many companies focus on planning R&D work in their 2025 business plans. CCGB has overcome many global problems and increased the international market share of Chinese capsanthin. In 2025, it will plan major scientific research projects to achieve "zero to one" breakthroughs in multiple fields. ASR Microelectronics Co., Ltd.'s R&D investment has continued to grow in the past three years, accounting for more than 30% of its revenue. In 2025, it will focus on the research and development of projects such as 5G smartphone SOC chips. Cig Shanghai Co., Ltd. consolidated its competitiveness through R&D. It plans to invest about 480 million yuan in key technology research in 2025, an increase of about 17% over 2024.

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