STAR firms post net profit growth
Totally 10 firms listed in the Shanghai-based SSE STAR market posted net profit growth in the 2019 result forecast, among totally 12, Shanghai Daily learned on Tuesday.
It’s the first time for those companies to post annual results because the new sci-tech innovation board debut in July. Up to now, totally 58 firms have got listed in the STAR market with 180 firms totally in the registration process.
Among the total 12 firms posting annual forecast of 2019, seven firms post net profit growth over 20 percent, including two firms with annual net profit to surpass 100 million yuan (US$14.3 million). Beijing Balance Medical Technology Co, which has finished online and offline initial public offering processes in the market, expected net profit to hit 61.2 million yuan to 65.3 million yuan, 83 to 95 percent growth year on year.
Two semiconductor firms Shenzhen Jpt Opto-electronics Co and Kingsemi Co expected net profit decline in 2019. They attributed the drop to the industry-wide slump and weak demand of their clients which produce LED chips and smartphones.
On average, the 12 firms posted net profit of 2019 over 60 million yuan with expected revenue of 200 million yuan, both over 10 percent growth from a year ago, according to their statements.
The sci-tech innovation board, which was initially proposed during the first China International Import Expo last year, is the country's latest move to reform the capital market and spur innovation. It is designed to focus on companies in high-tech and strategic emerging sectors, with less strict listing criteria but higher requirements for information disclosure. It started trading in July.
Top executives from the STAR-listed firms are also told by regulators to strengthen internal regulation recently, covering govern compliance and information publishing.
On Monday, 150 executives from over 50 STAR-listed firms, including CEOs, CFOs and other senior-level managers, attended a conference on regulation and governance.
They may know much about technology and innovation and now STAR officials should know more about capital market and obey its rules, said the event organizer the Shanghai Stock Exchange.