Financial Focus | Consumption fever emerges and enterprises move towards "new" - new highlights of economic development from the annual reports of listed companies Net profit | Low carbon | Emerging enterprises

Beijing, May 14th: Topic: Consumption fever emerges and enterprises move towards "newness" - new highlights of economic development from the annual reports of listed companies

The disclosure of the 2023 annual reports of listed companies has recently concluded. While the overall performance remains stable, many growth highlights such as consumption, "three new things", and new productivity have emerged, adding new impetus and gathering new momentum for the high-quality development of listed companies.

Consumption and travel are heating up, new business formats and new scenarios are stimulating new growth

295 million people, 166.89 billion yuan... During the May Day holiday that just passed, the tourism consumption market continued to heat up, and the number of domestic tourism trips and the total travel expenditure of domestic tourists continued to increase year-on-year.

In 2023, my country's consumer market will recover and improve, and the annual reports of listed companies also confirm this trend. The performance of listed companies in consumer-related industries has improved significantly.

Statistics from the China Association of Public Companies show that in 2023, listed companies in the transportation, warehousing and postal industries achieved revenue of 2.07 trillion yuan and net profit of 0.17 trillion yuan, a year-on-year increase of 4.78% and 57.13% respectively, which was a significant improvement from the previous year. The net profits of the aviation, railway, and road transportation industries increased by 96.37%, 166.25%, and 28.29% year-on-year, and the four major airlines reduced their losses by 127.1 billion yuan year-on-year. Many industries such as tourism, automobiles, hotels and restaurants, and film and television theaters have all experienced significant growth.

"Industries that have been greatly affected by the epidemic before, such as commerce and retail, consumer services, transportation and other consumer travel industries, rank high in performance growth and have generally turned losses into profits, and the aviation industry has achieved significant reductions in losses." Chief of Research Department of CICC Domestic strategy analyst Li Qiusuo said.

The quality of consumer supply continues to improve, and the performance of high-quality terminal consumer goods is going well. With the innovation of the food and beverage industry, the rapid development of smart home appliances, the rise of domestic brands in the beauty industry, and the steady growth of new energy vehicle consumption, in 2023, the performance of related listed companies on the Shanghai Stock Exchange will achieve rapid growth.

"The consumer market continues to rebound. Behind this is the gradual improvement of the shortcomings in consumption-related infrastructure and service capabilities, and the continuous release of consumption potential. At the same time, new consumption models, new business formats, and new scenarios are constantly emerging, further stimulating new consumption intentions." said Sun Jinju, vice president of Kaiyuan Securities and director of the research institute.

"Integrate and develop multiple tourism resources such as skiing, rime rafting, and snow hiking" "Create a 'time-honored brand and new national trend' characteristic business district" "Innovate and launch health food with the same source of medicine and food"... Many listed companies have passed the innovation station Stabilizing new consumption hot spots and trends, both revenue and net profit achieved rapid growth.

Accelerating the deployment of new quality productivity and outstanding export performance of "three new items"

In 2023, the export share of the "three new items" of electric vehicles, lithium batteries, and photovoltaic products of listed companies will increase significantly. Many companies have accelerated their overseas layout and overseas business expansion, and their performance has significantly improved.

Data shows that in 2023, the revenue of listed companies related to the "New Three Things" will increase by more than 10% year-on-year. The overseas income of listed companies related to the "New Three Things" in the Shenzhen Stock Exchange reached 350 billion yuan, a year-on-year increase of 25.46%.

On the main board of the Shanghai Stock Exchange, many listed automobile brand companies disclosed that global sales of new energy vehicles have maintained rapid growth, and many auto parts companies disclosed that their overseas business revenue has grown rapidly. Industrial companies related to the "Three New Products" of the Beijing Stock Exchange also continue to advance the pace of "going overseas".

The gathering of innovative capital is accelerating, continuously gathering energy for the development of emerging industries. In 2023, more than 60% of the funds raised from IPOs and refinancings in the Shenzhen Stock Exchange will go to strategic emerging industries. Compared with the Shanghai and Shenzhen main boards, the A-share innovation sector has welcomed more newly listed companies - the GEM, Science and Technology Innovation Board, and Beijing Stock Exchange will account for 81% of the total number of newly listed companies and net funds raised by IPOs in 2023. % and 79%.

As of now, there are 489, 495 and 330 listed companies in Shenzhen's three key areas of advanced manufacturing, digital economy and green and low-carbon respectively. On the Shanghai Science and Technology Innovation Board, companies in the new generation information technology, biomedicine, and high-end equipment manufacturing industries account for more than 80%.

"In 2023, high-tech manufacturing companies such as photovoltaic equipment, aviation equipment, and special equipment will be more willing to put into production. In the future, industries related to new quality productivity are expected to start a new round of accelerated layout cycle." Li Qiusuo said.

Companies in traditional industries are also actively developing into “new” industries. Taking Sinotrans as an example, the company continues to increase investment in digital construction, applied for 29 patents in 2023, and launched many logistics technology achievements such as virtual employees, smart forklifts, and automatic loading.

2,115 listed companies released sustainable development reports, with outstanding performance in green and low-carbon industries

Under the guidance of policies, ESG concepts have become the practice of more listed companies. In 2023, a total of 2,115 listed companies will separately prepare and publish the 2023 sustainability report, accounting for 39.7%, an increase of nearly 300 over the previous year.

Bank of China disclosed that the direct greenhouse gas emissions of the entire group in 2023 will be reduced by 4.49% compared with 2019. A Shenzhen coal company disclosed that it will build four green mines in 2023, and one of its power plants will achieve a carbon quota surplus of 3 million tons. A logistics company disclosed that the company's service network to assist the production and marketing of agricultural products will deliver approximately 4.58 million tons of specialty agricultural products in 2023...

"Green and low-carbon development is highly consistent with the concept of high-quality development of listed companies." Sun Jinju said that environmental governance can help reduce the costs and expenses of listed companies and help companies improve resource utilization efficiency. Social responsibility governance helps improve a company's reputation and public trust in it.

Judging from the annual report, the overall performance of the green and low-carbon industry is good. Taking the GEM as an example, 177 companies in the green and low-carbon field achieved operating income of 1.1 trillion yuan and net profit of 76.6 billion yuan, a year-on-year increase of 13.2% and 15.0%, higher than the market average.

Simultaneously with the conclusion of annual report disclosures, the disclosure of listed companies' first quarter reports for 2024 has also concluded, and many positive factors in the industry have emerged.

Statistics from the exchange show that in the first quarter, the performance of companies in advanced manufacturing, green and low-carbon fields in the Shenzhen Stock Exchange was outstanding, and new productivity continued to be cultivated. Many consumption-related industries on the GEM have achieved a "good start", and the export of "three new items" has strong momentum. On the Shanghai Science and Technology Innovation Board, more than 70 companies disclosed that they have made breakthroughs in product research and development or commercialization, and more than 30 companies disclosed that R&D and production projects are accelerating.