STAR Market Annual Report Insights: Over 80% of companies have core products aimed at import substitution and technological self-sufficiency, actively contributing to high-level self-reliance in science and technology

Translated from CHINAFUND Wen Yan

In 2024, companies listed on the SSE STAR Market achieved fruitful innovation results. More than 80% of them focused on import substitution and independent controllability in their core products. More than 850 products or technologies from over 380 companies reached international advanced levels, achieving all-around breakthroughs in key fields such as integrated circuits, biomedicine, and high-end equipment, supporting the national strategy of self-reliance and strength in science and technology.

Cultivating "Innovative Power" and "Technology Reservoir"

The SSE STAR Market adheres to its "hard technology" positioning, demonstrating impressive R&D investment and output. In 2024, the total R&D investment of companies listed on the SSE STAR Market reached RMB 168.078 billion, exceeding 2.5 times their net profit, with a year-on-year increase of 6.4%. The compound growth rate over the past three years was 10.7%, and the median R&D-to-revenue ratio stood at 12.6%, ranking among the highest in China's A-share market. By the end of 2024, the SSE STAR Market had gathered 240,000 R&D personnel, accounting for nearly 30% of total employees. The year saw the addition of 20,000 invention patents, bringing the cumulative total to over 120,000. Leading enterprises like Semiconductor Manufacturing International Corporation and CICT Mobile Communication Technology Co., Ltd. have over 10,000 patents in reserve. Projects from 138 companies have received national-level scientific and technological awards, with more than 60% of companies recognized as national-level specialized, sophisticated, distinctive, and innovative enterprises, and 64 have achieved single-item champion status.

Technological achievements are rapidly being transformed into productive forces; biopharmaceutical companies on the SSE STAR Market have facilitated the approval of 27 domestically produced Class 1 innovative drugs, while medical device companies have cumulatively registered over 1,000 Class III medical devices in fields such as electrophysiology, vascular intervention, and orthopedic materials. Semiconductor equipment companies shipped over 16,000 units in 2024.

Nurturing "Global New" and "Made in China"

SSE STAR Market companies aim for independent control and tackle "bottleneck" technologies to enhance the resilience of key industrial chains. Hwatsing Technology Co., Ltd.’s CMP equipment fills domestic gaps, and progress has been made in ion implantation following the acquisition of Xinyu Semiconductor. Companies on the SSE STAR Market are committed to "source innovation" from 0 to 1, with over 60 companies launching globally innovative products. Shanghai United Imaging Healthcare Co., Ltd.'s self-developed DSA has received FDA certification, breaking the international monopoly and providing a Chinese solution for the global interventional field.

Empowering "Intelligence" and "High-End Development"

SSE STAR Market companies are laying out their strategies in cutting-edge sectors, promoting the upgrade of manufacturing towards "high-end, intelligent, and green" development. Kede Numerical Control Co., Ltd.'s high-end machine tools have achieved large-scale applications in aerospace and aviation. The super-large diameter shield machine developed by China Railway Construction Heavy Industry Corporation Limited serves over 200 domestic and international projects. Supcon Technology Co., Ltd. has launched innovative products to support the intelligence of process industries. In the field of artificial intelligence applications, Arcsoft Corporation Limited has expanded visual algorithm applications from smartphones to emerging sectors such as smart wearables and intelligent vehicles. Beijing Kingsoft Office Software, Inc. has integrated AI to enhance office efficiency, while ORBBEC INC. focuses on 3D visual perception, promising further advancements in smart manufacturing.

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