Striving for Innovation and Quality—A Look at Operating Performance of SSE STAR Market Companies in 2024

As of April 30, 2025, all 586 companies listed on the STAR Market of Shanghai Stock Exchange (SSE) have disclosed their major operating performance for 2024. Faced with a complex and ever-changing external environment, companies listed on the STAR Market remain steadfast in their commitment to innovation-driven development. They have forged ahead and overcome challenges by making key breakthroughs and strengthening industrial chains, and have driven high-quality development in key industries such as integrated circuits, artificial intelligence, innovative medicine, and advanced manufacturing, contributing to the accelerated development of new quality productive forces and China's high-level self-reliance and strength in science and technology.

I. Forge ahead to consolidate the stable trend

The overall performance is stable and improving. In 2024, companies on the SSE STAR Market reported a total operating revenue of 1,422.17 billion yuan, with a year-on-year increase of 0.24%. Nearly 70% of the companies recorded growth in operating revenue, with a year-on-year improvement of 3.09 percentage points. Among them, 54 companies grew by more than 50%, and 285 companies reached record highs in operating revenue. The total net profit for the year marked 47.523 billion yuan, with 50% of the companies making a net profit growth, up 7.17 percentage points year-on-year. Among these, 30 companies doubled their profits, and 32 companies turned losses into profits. It is worth noting that more than 30 companies disclosed their financial data under non-GAAP based on their own business and investment characteristics, providing additional information to investors to help them understand the development of the companies' core business. For example, BeiGene, Ltd., an innovative drug company that was unprofitable at the time of listing, has made continued disclosure of its operating profit after excluding the impact of non-cash expenses such as share-based payments and depreciation and amortization. Due to its rapid growth in global revenue and effective control of operating expenses, the company has recorded positive adjusted operating profits for three consecutive quarters. In 2024, it secured an adjusted operating profit of 528 million yuan, a year-on-year increase of 5.704 billion yuan.

Technology leaders play a key role. The SSE STAR Market has played its unique role in supporting scientific and technological innovation enterprises, and is gradually becoming a fertile ground and cradle to cultivate leading science and technology enterprises in China. Data shows that the top 10 companies by market value on the STAR Market, such as Semiconductor Manufacturing International Corporation, Hygon Information Technology Co., Ltd., Beijing Kingsoft Office Software, Inc., and Sichuan Biokin Pharmaceutical Co., Ltd, realized an aggregate year-on-year growth of 21.2% and 24.3% in total revenue and net profit in 2024, respectively. Compared with before listing on the STAR Market, the cumulative growth in total revenue and net profit was 175.6% and 394.8%, respectively, which is a leapfrog development. Among them, the revenue of Semiconductor Manufacturing International Corporation hit the milestone of 50 billion yuan for the first time. Advanced Micro-Fabrication Equipment Inc. China has put its high-end etching equipment into widespread use in the ultra-high aspect ratio etching process that is crucial to domestic advanced memory device production lines. Hygon Information Technology Co., Ltd., Cambricon Technologies Corporation Limited, Beijing Kingsoft Office Software, Inc. and other companies have led the technological development and large-scale application of artificial intelligence. At the same time, some leading technology companies have gradually played the core role of chain-leaders, and led technological innovation and coordinated development along the industrial chain through technology empowerment and joint construction of industrial chain ecosystem. For example, Shanghai United Imaging Healthcare Co., Ltd. built a full-chain localization ecosystem which has turned into an industrial innovation cluster with an strong demonstration effect that cultivated nearly 1,000 high-quality domestic suppliers, including nearly 100 specialized and innovative "little giant" enterprises.

Private economy shows vitality and resilience. Private enterprises are an important force in the SSE STAR Market, accounting for more than 80% of the total number of companies on the board. With the support of a series of policies to promote the high-quality development of the private economy, the investment confidence, development vitality, and operating quality and efficiency of private enterprises on the SSE STAR Market have steadily improved. In 2024, companies made more than 160 announcements regarding proposed investments in new projects or progress of project construction. For example, Nanya New Material Technology Co., Ltd. Has planned to invest 1.2 billion yuan to build a high-end IC substrate materials and copper clad laminate industrialization project, and Hymson Laser Technology Group Co., Ltd. Has planned to invest 1 billion yuan to build a high-end laser and intelligent equipment R&D center and manufacturing base project. From the performance point of view, private enterprises have achieved leapfrog development with the support from the capital market. Specifically, 154 companies have doubled their revenue after listing, and 70 companies have doubled their net profits or turned losses into profits. For example, Piotech Inc.'s revenue and net profit since listing have recorded a compound growth rate of 75.6% and 115.8% compared with before listing, respectively. In 2024, the overall payment collection of private enterprises on the STAR Market has improved. The total amount of cash received from selling goods and providing labor services was 1.050758 trillion yuan, up 3.7% year-on-year, 2 percentage points higher than the revenue growth rate.

Enterprises unprofitable at the time of listing show good growth momentum. Benefiting from the support in the capital market, companies that were unprofitable at the time of their listing have stepped up their R&D investments and industrialization efforts, and have achieved breakthroughs in technological innovation and created substantial development momentum. In 2024, 54 companies that were unprofitable at the time of their listing recorded a total operating revenue of 174.479 billion yuan, representing a 24% year-on-year increase, with 26 companies surpassing 1 billion yuan in operating revenue. The total net losses were 13.641 billion yuan, a year-on-year decrease of 35.5%. SICC Co., Ltd. and Piotech Inc. have gone from years of losses before listing to net profits exceeding 100 million yuan and 600 million yuan, respectively, in 2024. So far, 22 companies on the SSE STAR Market have achieved profitability for the first time after listing and have gotten rid of the "U" mark in their stock codes, among which 3 companies including Sinocelltech Group Limited, Sichuan Biokin Pharmaceutical Co., Ltd, Shanghai MicroPort EP MedTech Co., Ltd. got rid of the "U" mark in their stock codes in 2024. Of all the 20 companies listed following the fifth set of standards on the SSE STAR Market, 18 have launched their core products, while the applications for core product launches from the remaining 2 companies have been accepted. 16 companies reported operating revenues exceeding 1 billion yuan, with 4 companies surpassing 10 billion yuan in operating revenue. Companies such as Shanghai Allist Pharmaceuticals Co., Ltd. and Sinocelltech Group Limited have focused on domestic demand, and successfully launched flagship products with annual sales exceeding 1.5 billion yuan, achieving remarkable revenue growth from zero before listing to more than 3.5 billion yuan and 2.5 billion yuan, respectively, in 2024.

II. Pursue innovation to accumulate momentum for progress

SSE STAR Market companies adhere to innovation-driven development and the concept of long-termism. They accelerate the convergence of innovative factors, build innovative momentum, and take a solid and powerful step toward progress.

The ability of scientific and technological innovation continues to advance. The total R&D investment of the SSE STAR Market reached 168.078 billion yuan throughout the year, more than 2.5 times the net profit, marking a year-on-year increase of 6.4% and a compound growth rate of 10.7% in the past three years. The median proportion of their R&D investment to operating income reached 12.6%, continuing to lead all A-share boards. Among them, 107 companies have exceeded 20% in R&D intensity for three consecutive years. By the end of 2024, the STAR Market had gathered around 240,000 R&D personnel, accounting for nearly 30% of the total number of employees. Throughout the year, around 20,000 new invention patents were added, leading to more than 120,000 in total. The patent reserves of leading companies such as Semiconductor Manufacturing International Corporation and CICT Mobile Communication Technology Co., Ltd. all exceeded 10,000. A total of 138 projects led or participated in by those companies won important awards such as the State Science and Technology Advancement Award and the State Technological Innovation Award. More than 60% of companies were selected nationally as enterprises that use special and sophisticated technologies to produce novel and unique products, and 64 ranked among the individual manufacturing champions.

The level of self-sufficiency and control improves steadily. Facing global technology competition and cooperation in the key areas, companies on the SSE STAR Market have been accelerating import substitution and international initiatives, driving the industry to make a substantial leap from scratch and transform from weak to strong. According to statistics, core products of more than 80% of companies were aimed at import substitution and being independent and controllable, and more than 850 products or technologies of more than 380 companies have reached the international advanced level. For example, Hwatsing Technology Co., Ltd. has reached the milestone of producing more than 500 pieces of 12-inch chemical mechanical polishing (CMP) equipment, and its products have basically covered the domestic large production line of 12-inch integrated circuits. Eyebright Medical Technology (Beijing) Co., Ltd.'s first aspheric phakic intraocular lens product in China has been approved for marketing, which is expected to break the long-term monopoly of overseas leaders in this field. More than 60 companies have launched world-first products, leading the medical equipment, semiconductor materials, photovoltaic components and other sub-sectors to achieve corner overtaking. For example, SICC Co., Ltd. launched the world's first 12-inch silicon carbide substrate product, marking that China's third-generation semiconductor field has moved from "domestic substitution" to "global leadership." Shanghai United Imaging Healthcare Co., Ltd. helped the world's first complex percutaneous coronary intervention (PCI) surgery using "zero noise" digital subtraction angiography (DSA) technology to be successfully completed, which strongly confirmed the technical strength and clinical value of domestic medical equipment.

Companies actively compete for the upper reaches of international value chains. SSE STAR Market companies have diversified their "going overseas" strategy, deeply integrated into the global industrial and supply chains, and competed for the upstream of the value chains, showing a positive momentum. In 2024, SSE STAR Market-listed companies' overseas revenue totaled 430.361 billion yuan, with a year-on-year increase of 6.1%. The overseas revenue of 173 companies increased by more than 30% year on year, and the products of 63 companies were exported to more than 50 countries or regions. High-value-added products have been accelerating their penetration in the global market. The median gross profit margin of overseas sales of companies on the SSE STAR Market reached 40.8%. Products of a total of 37 companies rank first in their own field in the world in terms of shipments, market share, and sales amount. 58 companies participated in the formulation of international standards. 10 innovative drug companies granted overseas rights and interests of innovative drugs to overseas companies through license-out, exporting global influence in the field of technology. In addition, 110 companies on the SSE STAR Market built production capacity in 37 countries or regions. For example, Ningbo Ronbay New Energy Technology Co., Ltd.'s South Korean factory supported the Company's ternary material shipments to lead the world for four consecutive years. More than 80 companies such as Halo Microelectronics Co., Ltd. have overseas subsidiaries, further opening up overseas products, channels, and customer resources to create a win-win global supply chain.

III. String beads together to build a hard-core industrial system

The strategic emerging industries that the SSE STAR Market focuses on serving are highly consistent with the development direction of new quality productive forces. Emerging industry companies such as new-generation information technology, biomedicine, and high-end equipment manufacturing account for more than 80%, with a total market value of more than 5 trillion yuan, becoming an important support for promoting new-type industrialization and high-quality economic development.

Integrated circuit companies usher in good development opportunities. Nearly 120 integrated circuit companies achieved a total revenue of 277.766 billion yuan, a year-on-year increase of 22.2%, and their performance regained an upward trend. Benefiting from the development of AI technology and the recovery of consumer electronics demand, more than 70 chip product companies such as Hygon Information Technology Co., Ltd. and Montage Technology Co., Ltd. have kept up with the positive trend of the industry, with revenue and net profit increasing by 22.5% and 41.4% year-on-year, respectively. Domestic substitution and the recovery of industry prosperity have driven performance to rise. The market share of Semiconductor Manufacturing International Corporation, Hua Hong Semiconductor Limited, Nexchip Semiconductor Corporation, and United Nova Technology Co., Ltd. ranked second, fifth, ninth, and tenth among the world's exclusive wafer foundry companies. More than 10 semiconductor equipment companies seized the opportunity of being independent and controllable, and achieved a total shipment volume of more than 16,000 units in 2024, driving revenue growth by 38.8% year-on-year. Segment leaders such as Advanced Micro-Fabrication Equipment Inc. China, Piotech Inc., and ACM Research (Shanghai), Inc. made breakthrough progress in the R&D of high-end products for etching, thin films, and cleaning. Hwatsing Technology Co., Ltd., Kingsemi Co., Ltd., etc. are working hard to strengthen the weak links of the industrial chain such as ion implantation, glue coating and development, promoting China's integrated circuit industry to move toward high-end arenas.

Biopharmaceutical companies move toward a new development stage of commercialization. More than 110 biopharmaceutical companies achieved a total revenue of 148.277 billion yuan, an increase of 18.1% year-on-year, and a net profit of 3.391 billion yuan, turning losses into profits year-on-year. Their innovation and revenue generation went up hand in hand. So far, biopharmaceutical companies on the SSE STAR Market have promoted 27 domestic Class 1 innovative drugs to be approved for marketing, and 32 indications of 16 products have been included in breakthrough treatment varieties, filling domestic gaps and changing the global medical landscape in key treatment areas such as tumors, cardiovascular and cerebrovascular diseases, and rare diseases. For example, RemeGen Co., Ltd. focused on telitacicept in the field of autoimmune diseases and has continued to cover new indications such as myasthenia gravis and IgA nephropathy, bringing more treatment options to patients around the world. Dizal (Jiangsu) Pharmaceutical Co., Ltd.'s sunvozertinib is the only oral small molecule targeted drug approved worldwide for the treatment of non-small cell lung cancer with EGFR20 exon insertion mutation. The commercialization has also been accelerated. In 2024, 31 innovative drug enterprises achieved a total revenue of 61.7 billion yuan, with a year-on-year increase of 45.6%, and their net loss decreased by 62.1% year on year. Medical device companies continue to deepen their research in electrophysiology, vascular intervention, and orthopedic materials. After listing, more than 1,000 Class III medical device products have been approved for registration. The three-dimensional pulse multi-morphology overall solution independently developed by APT Medical Inc. has been officially approved for clinical application, marking a new breakthrough in the field of atrial fibrillation ablation treatment with domestic devices.

High-end equipment manufacturing and new materials companies compete to be "hidden champions". Nearly 180 companies achieved a total revenue of 294.609 billion yuan, a year-on-year increase of 3.7%, showing trend of significant marginal improvement. Nearly 70% achieved year-on-year growth in operating revenue, and nearly 50% achieved quarter-on-quarter growth of net profit in the fourth quarter. SSE STAR Market companies continue to empower "high-end, intelligent and green" upgrading of the manufacturing industry. For example, Kede Numerical Control Co., Ltd. has achieved large-scale application of more than 1,300 high-end CNC machine tools in aerospace, aviation and other fields, successfully filling many domestic technical gaps, with an independence rate of 85% and a localization rate of 95% for core components. More than 100 pieces of world's or domestic first major equipment such as super-large-diameter shield machine "Jianghai" independently developed by China Railway Construction Heavy Industry Corporation Limited have been successfully applied to more than 200 major projects at home and abroad, demonstrating the great technical strength. Western Superconducting Technologies Co., Ltd.'s superconducting products, high-end titanium alloys and other products have completely achieved import substitution, solving the bottleneck problem of aircraft manufacturing, and are widely used in major national equipment, large-scale scientific projects, etc.

In addition, based on the core technology reserves and industrialization advantages, the companies listed on the SSE STAR Market actively integrate with national strategies, make forward-looking deployments in new segments of future industries, and cultivate new development momentum. In the field of embodied intelligence, more than 10 companies provide full-chain support for robots from body development, power hardware to control systems. In the field of artificial intelligence, more than 30 companies have taken root in large model training, algorithm optimization and scenario implementation to promote the large-scale application of AI technology in new scenarios such as intelligent driving, smart medical care, and smart manufacturing. In the field of low-altitude economy, nearly 20 companies work together around fuselage materials, drone R&D and manufacturing, and air traffic control systems to form a relatively complete industrial chain.

IV. Make determined reforms to promote high-quality development

As a new round of capital market reform measures, such as the STAR Market Eight Measures and M&A Six Opinions, were implemented at an accelerated pace, the adaptability and inclusiveness of the SSE STAR Market system have been continuously improved, supporting the development of new quality productive forces to a new level.

M&As support high-quality industrial integration. Since the release of the STAR Market Eight Measures in June 2024, there have been 100 new industrial M&A deals on the SSE STAR Market, with a disclosed transaction amount exceeding 24.7 billion yuan. Among them, 32 involve major asset restructuring or securities issuance, exceeding the sum over the years before the release of the STAR Market Eight Measures. A total of 27 deals involved the acquisition of unprofitable targets, 7 involved acquisition of companies with proposed IPOs, and 14 acquired overseas assets. Asset evaluation, transaction pricing, and performance commitments are becoming more market-oriented and diversified. All parties involved in the transactions closely followed the logic of the industries and actively supplemented and strengthened the chains, striving to get better and stronger. For example, Primarius Technologies Co., Ltd., a leading domestic EDA company, has planned to acquire Analog Circuit Technology Inc., a leading IP design company, and took the lead in creating an industrial form with deep integration of domestic "EDA+IP". Jiangsu HHCK Advanced Materials Co., Ltd., a leading semiconductor packaging material company, has planned to acquire Hysol Huawei Electronics Co., Ltd., a company in the same industry, to consolidate its leading position in the industry and build a world-class semiconductor packaging material company.

Equity and bond financing helps continuous R&D innovation. In terms of follow-on offerings, the "light asset, high R&D investment" identification standard was issued to support qualified companies to break through the limit on the proportion of working capital replenishment and invest the raised funds in R&D. At present, 8 companies have disclosed relevant follow-on financing plans in accordance with this standard, with a financing scale of more than 17.5 billion yuan. The Dizal (Jiangsu) Pharmaceutical Co., Ltd. case was implemented first and has successfully raised 1.773 billion yuan, of which 967 million yuan will be used for the R&D of drugs with "global new" potential such as DZD8586. In terms of bonds, China Railway Signal & Communication Corporation Limited issued the first SSE STAR Market central SOE sci-tech innovation corporate bond at a coupon rate of 2.2%-2.4%, successfully raising 2.5 billion yuan to promote the continuous improvement of the company's R&D strength and technological innovation capabilities. In addition, 5 companies including SICC Co., Ltd. and Mabwell (Shanghai) Bioscience Co., Ltd. submitted H-share issuance applications to the Hong Kong Stock Exchange to connect with international capital to help global development.

State-owned capital and industrial capital demonstrates strong empowerment effect. A total of 9 SSE STAR Market-listed companies actively introduced state-owned capital or industrial capital as controlling shareholders, empowering long-term healthy development through investment in key resources such as technology, market, and channels. For example, semiconductor equipment company Kingsemi Co., Ltd. introduced the industry's leading state-owned enterprise NAURA Technology Group Co., Ltd. as its controlling shareholder, and the two sides will fully share supply chain, R&D, and customer resources. The quantum technology company Quantumctek Co., Ltd. was acquired by China Telecom Quantum Group, a subsidiary of China Telecom Corporation Limited, and relying on the advantages of China Telecom's full network resources, they will jointly promote the systematic development of the quantum communication industry. The in vitro diagnostic company HOB Biotech Group Co., Ltd. was controlled by Sino Biopharmaceutical Limited, a listed company on Hong Kong Stock Exchange, and the two sides have deepened cooperation in clinical R&D, marketing channel expansion and products.

V. Take multiple measures to enhance investors' sense of gain

The concept of "corporate value and return enhancement" is quickly taking shape. Since the SSE STAR Market took the lead in launching the "corporate value and return enhancement" special action in January 2024, SSE STAR Market-listed companies have actively participated in it and assumed their major responsibility for improving their quality and investment value. During the disclosure of this year’s annual reports, more than 470 SSE STAR Market-listed companies evaluated their 2024 action plans and released their 2025 action plans at the same time, accounting for over 80% of the total SSE STAR Market companies, an increase of 6.14 percentage points over last year. Judging from the information disclosed, most companies made in-depth assessments of the performance of the previous year and put forward targeted practical measures for this year around improving business quality and accelerating the development of new quality productive forces. For example, companies such as Espressif Systems (Shanghai) Co., Ltd. and Shanghai Haohai Biological Technology Co., Ltd. completed their fundraising investment projects on schedule and have planned to continue to improve the economic benefits of fundraising investment projects. Companies such as Shanghai Electric Wind Power Group Co., Ltd. and Shanghai Junshi Biosciences Co., Ltd. completed their cost reduction and efficiency improvement goals as planned and would continue to improve their cost reduction and control capabilities. Anji Microelectronics Technology (Shanghai) Co., Ltd., Geovis Technology Co., Ltd. and other companies successfully completed their R&D and invention patent application targets and have planned to continue to increase their R&D investment intensity.

Investors' sense of gain continues to increase. SSE STAR Market-listed companies have significantly improved their awareness and actions to increase investor returns while taking into account R&D investment and sustainable development. More than 60% of the companies launched cash dividend plans for 2024, with a total dividend amounting to 38.682 billion yuan. Among them, more than 290 companies paid cash dividends at a ratio of more than 30%. 119 companies implemented dividend distribution in their interim reports and before the Spring Festival to share growth dividends with investors. Since 2024, 320 companies have launched repurchase and shareholding increase plans, with a total upper limit of more than 35 billion yuan. 78 companies used special loans to implement repurchases and shareholding increases, with a total upper limit of nearly 9 billion yuan.

The quality and efficiency of ESG information disclosure are improved. Companies listed on the STAR Market actively integrate ESG concepts and requirements into their business models and management systems, continuously setting ESG examples in the field of scientific innovation. In 2024, 241 SSE STAR Market-listed companies disclosed their separate ESG reports, covering all STAR 50 Index companies and 66% of STAR 100 Index companies. All 586 companies disclosed diverse ESG practice in relevant chapters of their annual reports. In terms of science and technology ethics, scientific ethical norms are followed in innovative decision-making and practice. For example, Shanghai Junshi Biosciences Co., Ltd. took into account animal welfare to the greatest extent while ensuring the scientificity and reliability of research. In terms of supply chain security, efforts are made to co-build a win-win ecosystem. For example, INTCO Recycling Resources Co., Ltd. conducted desk or on-site assessments of 1,040 suppliers and provided capacity-building projects for 368 suppliers. In terms of data security, protection in all aspects is in place to ensure data security. For example, Hangzhou Ezviz Network Co., Ltd. built a governance framework including data security management, technology, operation, supervision and evaluation systems, which has passed the information security and privacy compliance certification of multiple consulting and audit institutions around the world.

VI. Make long-term efforts to optimize the market ecology

Index-based investing has become a new trend. Since 2024, 16 indexes such as the STAR 200 Index and the STAR Market Composite Index have been released. At present, the number of SSE STAR Market indices has reached 28. The STAR Market index system covering scale, theme, strategy and other types has been constructed to provide diversified investment options for medium- and long-term funds. By the end of 2024, the scale of domestic and overseas STAR Market index products was 243.695 billion yuan, including 185.431 billion yuan for STAR 50 Index products at home and abroad, an increase of 25.8% from the beginning of 2024, making it the 4th largest broad-based index product and the largest single-market ETF product in China.

Patient capital continues to grow. As of the end of the first quarter of 2025, there were more than 77,000 active accounts held by professional institutional investors, and all institutional investors accounted for over 60% of the total holdings. The total market value of the SSE STAR Market held by fund investors exceeded 1.2 trillion yuan, a year-on-year increase of 37%, accounting for more than 20%. Overseas professional institutional investors such as Northbound Stock Connect investors, QFIIs and RQFIIs held more than 3% of the positions, while long-term funds such as social security, insurance and annuity all accounted for more than 4% of the holdings. In the first quarter of 2025, the holding proportions of the above two types of institutions have increased, and the trend of "long-term investment of long-term funds" has gradually strengthened.

Value investment is gaining popularity. In 2024, the market value of the top 50 STAR Market companies accounted for 45.4% of the total on the board, and their turnover exceeded 34%, an increase of more than 3 percentage points compared to 2023. The top 10 companies by market capitalization accounted for 23.5% and 19.2%, respectively, in terms of market value and turnover. As transaction concentration increases, market funds are increasingly being invested in leading companies. At the same time, according to data disclosed in the first quarter report, 79 SSE STAR Market-listed companies were heavily held by the social security fund, with a total market value of more than 16 billion yuan, of which 30 were STAR 50 Index and STAR 100 Index companies.