China Securities Journal｜Cash Flow Improves Significantly! 87 SSE-Listed Equipment Manufacturing Companies Achieve Net Profit of Nearly RMB 51.3 Billion in 2024

Translated from China Securities Journal's Taurus APP

As of press time on April 17, data showed that 87 equipment (machinery, rail transit and power grid equipment) manufacturing companies listed on Shanghai Stock Exchange (SSE) that have disclosed their annual reports achieved an operating income of RMB 819.1 billion in 2024, a year-on-year increase of 4.9%, and a net profit of nearly RMB 51.3 billion, up 5.7% year on year.

Starting from the fourth quarter of 2024, with the joint efforts in stock policies and a package of incremental policies, all regions and departments have tried to form physical workloads at a faster pace, which are reflected in the financial reports of equipment manufacturing enterprises. In addition to the increase in the annual operating income and net profit, cash flow has improved significantly. The average net cash flow generated by operating activities of the above 87 enterprises in 2024 amounted to RMB 873 million, compared with RMB 687 million in 2023. Notably, the average net operating cash flow in the fourth quarter of 2024 reached RMB 671 million, showing a significant increase from RMB 172 million in the third quarter of the same year, and also an improvement from RMB 647 million in the fourth quarter of 2023.

Meanwhile, a number of equipment manufacturing companies have stepped up their R&D investment. With the average R&D investment intensity remaining stable, the total R&D investment of the above 87 companies in 2024 was approximately RMB 47.6 billion, representing a 10.2% year-on-year increase; the average R&D expenditure was RMB 521 million, up 9.7% year on year.

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