Innovation Fuels Growth Momentum as Private Listed Companies Steadily Improve Operating Performance

Translated from Xinhua News Agency, Yao Junfang

The private economy serves as a crucial foundation for high-quality development, with the capital market offering robust support for its growth and expansion. Recently, the 2024 annual reports of A-share listed companies were fully disclosed, unveiling the "report cards" of private listed companies. Private companies listed on the Shanghai Stock Exchange (SSE) stood out with exceptional performance, demonstrating strong resilience and vitality.

Currently, private enterprises account for nearly two-thirds of A-share listed companies, and around 80% of companies in the STAR Market are private enterprises. Private companies on the SSE hold a significant position across various sectors. In 2024, the operating revenue of private enterprises listed on the SSE main board grew by 2.6% year-on-year, surpassing the overall market level. Multiple business metrics showed continuous improvement: total asset turnover rate turned ratio reversed its previous decline and increased year-on-year, inventory turnover rate increased year-on-year, and operating cash flow growth expanded quarter by quarter. On the STAR Market, 195 private companies achieved simultaneous growth in revenue and net profit in 2024, with 41 posting revenue growth exceeding 50% and 86 reporting net profit growth above 50%.

The enhanced operating quality and efficiency of private listed companies is inseparable from robust investment in R&D as well as innovation-driven strategies. Data from the China Association for Public Companies shows that in 2024, the overall R&D intensity of private listed companies reached 4.19%, significantly exceeding the market average. Private enterprises listed on the SSE main board invested a total of RMB 266.4 billion in R&D throughout the year, with an R&D intensity higher than the overall level of the main board. The total R&D investment of private enterprises on the STAR Market amounted to RMB 84.6 billion, reflecting a year-on-year growth of 5.31%. Leading private companies in various industries or niche markets invested over RMB 10 billion in R&D annually, with many achieving an R&D investment-to-revenue ratio exceeding 10%. These companies are predominantly focused on high-tech sectors such as new energy, biomedicine, and advanced manufacturing.

The capital market has also supported the development of private companies on the SSE. For example, 154 companies on the SSE STAR Market doubled their revenue post-listing, while 70 doubled their net profit or turned losses into profits. In 2024, over 160 private listed companies on the STAR Market announced plans for investment in new projects or updates on project construction progress.

In recent years, a series of policies aimed at promoting the high-quality development of the private economy have been introduced. In the annual reports of listed companies, many enterprises in the fields of new energy and advanced manufacturing highlighted the positive impact of these policies on their industries and businesses. The China Securities Regulatory Commission emphasized that it will provide robust support for private enterprises in stock and bond financing and further improve the multi-tier market system. With the combined support of policies and capital markets, private companies on the SSE are expected to gain greater backing for their R&D innovation and technology applications, further unleashing growth potential and exploring broader development opportunities.

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