Global Times | A-share firms see rising earnings, revenues in Q3, fueled by tech
The third-quarter financial reports of A-share companies have been largely disclosed, with overall earnings and revenues having improved, and strong demand in the tech sector has become a key driving force for firms' performance, according to industry reports.
The year-on-year growth rate in net profits expanded in the third quarter, and the single-quarter net profit growth rate for all A-shares in the third quarter was 11.6 percent, said a report by China Merchants Securities.
The report also said that the single-quarter revenue growth rate for all A-shares continued to improve, reaching 3.6 percent.
The expansion of A-share profits in the third quarter was primarily driven by factors including robust demand in the technology sector. The rapid development of artificial intelligence (AI) applications significantly boosted demand and performance in related industrial chains, such as semiconductors and optical modules, the research report said.
The China Association for Public Companies released its third-quarter operating performance report for listed companies on Saturday.
As of Friday, 5,446 listed companies had disclosed their third-quarter reports. The data showed that in the first three quarters, listed companies collectively achieved total operating revenue of 53.46 trillion yuan ($7.51trillion) and net profit of 4.70 trillion yuan, up 1.36 percent and 5.50 percent, respectively.
Listed companies' third-quarter revenue and net profit increased by 3.82 percent and 11.45 percent year-on-year, respectively, and by 2.40 percent and 14.12 percent quarter-on-quarter, respectively.
The association said that AI data storage demand has been expanding, and the listed companies in the storage chip industry have seen increased revenue.
China is doubling down on technological innovation to power its high-quality development.
The China Innovation Index, a barometer of the country's innovation capability, rose 5.3 percent from the 2023 level to 174.2 last year, the Xinhua News Agency reported, citing data from the National Bureau of Statistics (NBS). The innovation environment has continued to improve, with higher investment, faster growth in outputs and stronger drivers of economic activity, the bureau said.
The country's sci‑tech innovation efforts are delivering an effective boost to growth, with the innovation effectiveness index reaching 132.4 last year, up 1.9 percent from a year earlier, according to the NBS. The sub-index measuring the proportion of added value from new technologies, new industries and new business models in total GDP increased by 4.3 percent year-on-year.