657 SSE-listed Companies Achieved a Net Profit of 3.65 Trillion Yuan and Performance in Many Industries Improved

Translated from Securities Times, Zhang Shuxian

As of April 9, 657 companies listed on the Shanghai Stock Exchange (SSE) disclosed their 2024 annual reports, with the accumulated net profit attributable to the parent company reaching 3.65 trillion yuan, a year-on-year increase of 9.2%. Nearly 400 companies have improved their performance, 209 of which have a year-on-year increase in net profit of more than 20%, about 70 have doubled their performance year-on-year, and 114 have increased their performance by more than 50%. The positive announcement rates of companies on the SSE 50 and SSE 180 indexes exceeded 80% and 70% respectively, with outstanding performance in many industries such as agriculture, forestry, animal husbandry and fishery, automobiles, and non-ferrous metals.

Structural optimization: The signal of recovery in the advanced manufacturing field has increased

The Shanghai Stock Exchange (SSE) performed well in new momentum and new areas, and the industrial structure continued to optimize. High-tech manufacturing industries such as automobiles, light manufacturing, pharmaceutical biology, and electronics have accelerated their growth, with profits increasing by 62%, 32%, 30%, and 11% year-on-year respectively. The R&D investment of companies that have disclosed their annual reports increased by 7.87% year-on-year. The biopharmaceutical industry is transforming towards "innovation", and the performance of companies such as Shanghai Shyndec Pharmaceutical Co., Ltd. and Shandong Lukang Pharmaceutical Co., Ltd. has increased. The electronics industry has recovered strongly, and the semiconductor and AI-related fields have performed well. Shanghai Belling Co., Ltd. achieved year-on-year growth of 32% and 66% in operating income and net profit respectively.

Supportive policies: The consumer market continues to be prosperous

A series of consumption promotion policies have helped unleash domestic demand, and the performance of industries such as travel, food and beverage in the Shanghai Stock Exchange (SSE) has been good, with profits achieving varying degrees of growth. The operating income and net profit of Eastroc Beverage (Group) Co., Ltd. increased by 40.6% and 63.1% year-on-year respectively, reflecting the explosive growth of demand in the functional beverage market; Zhejiang China Commodities City Group Co., Ltd. achieved year-on-year growth of 39.3% and 14.9% in operating income and net profit respectively. Yiwu International Trade City attracted more than one million visits of global buyers throughout the year, covering more than 230 countries and regions, and the procurement share of emerging markets continued to increase.

Forward-looking perspective: Many companies are optimistic about the market situation this year

Preliminary earnings preannouncements signal steady growth, with 236 companies that have not yet disclosed their annual reports already revealing positive earnings forecasts for 2024. Many listed companies are optimistic about the market in 2025. Shanghai Jin Jiang International Hotels Co., Ltd. is optimistic about the tourism economy in 2025 based on leading indicators such as urban and rural residents' willingness to travel and the degree of recovery of the tourism supply chain, as well as trend indicators such as the tourism market, macroeconomic and social development policies. Shengyi Technology Co., Ltd. believes that the growth trend of the electronics industry in 2025 is optimistic; according to Prismark's forecast, the scale of the global electronics industry will reach USD 2.719 trillion, a year-on-year increase of 6.9%. Server/data storage has become the biggest highlight and growth point, and the market size prospects are considerable.

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