On April 6, 2021, the main board of Shenzhen Stock Exchange and the small and medium-sized board were officially merged (hereinafter referred to as the “merger of the two boards”). Up to now, the merger of the two boards has completed one year. After the merger of the two boards, Shenzhen entered a new stage of development, forming a new market pattern of “main board + gem”, with clearer and better structure and richer and better functions.
In the past year since the merger of the two boards, a total of 28 enterprises have been listed on the Shenzhen main board. So far, the total market value of 1493 main board Companies in Shenzhen has exceeded 22 trillion yuan, better serving the high-quality development of the capital market and providing assistance for the stable and healthy development of economy and society.
The interviewed experts believe that since the merger of the two boards, the Shenzhen main board has generally operated smoothly, the market performance is in line with expectations, and the reform has achieved good results. The development foundation of the sector is more solid, the profitability of industry companies is generally improved, and manufacturing companies build the “basic sector” of the sector. The leading aggregation effect is more significant, and the leading role of leading enterprises is more prominent, leading the high-quality development of the sector.
Shenzhen main board company total market value
over 22 trillion yuan
With the merger of the two boards, the functional structure of the main board of Shenzhen stock exchange is more sound, and the market vitality is further improved.
Since the merger, the 28 newly listed enterprises have raised a total of more than 23 billion yuan, including leading enterprises in China’s subdivided industries. For example, kangguan technology is the leader of China’s intelligent display, and Inner Mongolia Dazhong Mining Co.Ltd(001203) is a Chinese iron ore enterprise with obvious reserves advantages. The IPO Financing scale of the two companies exceeds 1.5 billion yuan, and the fund-raising is mainly invested in the main industry expansion projects, which strongly supports the company to further consolidate its industry position and enhance its competitive advantage.
Today, the Shenzhen market structure is more perfect. So far, there are 1493 main board Companies in Shenzhen, with a market value of more than 22 trillion yuan. Shenzhen has formed a market pattern dominated by the main board and gem, providing more appropriate direct financing services for enterprises of different types and growth stages.
Judging from the situation of this year, the merger of the two boards was successful According to Yang Changcheng, chief economist of Shenwan Hongyuan Group Co.Ltd(000166) securities, “after the merger, three major markets have been formed: Shenzhen Stock Exchange’s’ main board + gem ‘,’ Shanghai Stock Exchange’s’ main board + science and Innovation Board ‘, and Beijing stock exchange, which correspond to China’s three major economic circles and reflect the multi-level capital market development layout with different functional positioning. Among them, the capital market system of Shenzhen stock exchange is also more in line with the current capital market environment.”
“Since the merger of the two boards for one year, the overall operation has been stable.” Dong zhongyun, chief economist of AVIC securities, told the reporter of Securities Daily that on the one hand, the main institutional arrangements of the small and medium-sized board in terms of issuance and listing, information disclosure, trading mechanism and investor suitability requirements are basically consistent with those of the main board. The merger of the two boards was originally a natural choice to comply with the law of market development. After the merger, the sector structure of the Shenzhen stock exchange is more reasonable; On the other hand, the overall arrangement of the merger of the two boards has little impact on market operation and investor transactions.
“The merger of the Shenzhen main board and the small and medium-sized board is an important measure to promote the stock reform of the capital market. After the merger, the overall operation is stable and in line with the expected effect of the market.” Zhao Xijun, CO president of China Capital Market Research Institute of Renmin University of China, told the reporter of Securities Daily that at present, the market structure of Shenzhen is more optimized. The main board of Shenzhen has been significantly improved in terms of sector perfection, function and operation efficiency, so as to further promote the optimal allocation of resources in the capital market.
sector foundation becomes more solid
manufacturing companies build “basic market”
After the merger of the two boards, the role of manufacturing companies in “stabilizing the foundation” is prominent, and the development foundation of the board is more solid.
Shenzhen main board company has maintained strong resilience under the complex economic situation outside China, and its performance has maintained stable growth as a whole, especially in the manufacturing industry. Data show that by the end of March, 1152 companies had disclosed performance data, of which 547 companies disclosed annual reports or performance letters. It is expected to achieve an average operating revenue of 15.462 billion yuan, a year-on-year increase of 29.61%, and an average net profit of 1.113 billion yuan, a year-on-year increase of 26.47%.
From the perspective of industry distribution, the average net profit of 10 major industries of the CSRC on the Shenzhen main board is positive, and the average net profit of mining industry, transportation, storage and postal industry, manufacturing industry, power, heat, gas and water production and supply industry is 847 million yuan, 617 million yuan, 591 million yuan and 432 million yuan respectively.
By the end of March, there were 981 Shenzhen main board manufacturing companies, accounting for 65.71%, which had built the “basic sector” of the sector and laid the foundation for the development and growth of Shenzhen main board. Among them, there are both more traditional basic manufacturing companies and leading advanced manufacturing companies in the industry, which jointly drive the technological innovation and industrial agglomeration of the upstream and downstream industrial chain, promote the overall progress of the industrial chain and inject more vitality into the economy.
“Manufacturing is the core sector of China’s economic structure and the backbone of accelerating the optimization and upgrading of industrial structure.” Zhao Xijun said that after the merger of the two boards, manufacturing companies play a more important role in Shenzhen Main Board companies and build the foundation for the development and growth of the main board.
In 2021, the net profit of 279 manufacturing companies in Shenzhen’s main board chemical industry, mechanical equipment, electronics, non-ferrous metals, medicine and biology increased by more than 50%. Among them, Boe Technology Group Co.Ltd(000725) achieved revenue of 219310 billion yuan, an increase of 61.79% year-on-year; The net profit was 25.831 billion yuan, a year-on-year increase of 412.96%.
“Manufacturing companies play a core role in stabilizing the Shenzhen main board market. Shenzhen main board manufacturing companies have strong market competitiveness, stable growth in revenue and net profit as a whole, and high dividend rate. They are the core force to stabilize the market.” Dong zhongyun said.
leading enterprises lead high-quality development
36 companies with market value exceeding 100 billion yuan
Since the merger, the quality of the leading sector has been more significant, leading the development of the leading sector.
The Shenzhen main board continued to support listed companies to make use of the capital market to become better and stronger, and promoted a large number of companies to grow into high-quality blue chip enterprises through deep cultivation of their main business, diversified development, accelerated transformation and integrated development.
According to the data, as of the end of March, there were 36 companies with a market value of more than 100 billion yuan on the Shenzhen main board, 131 leading enterprises in the industry and 47 leading enterprises in science and technology, occupying an important position in the global industrial chain of many industries such as construction machinery, laser equipment, panel, security equipment, intelligent voice, household appliances and green energy.
Yang growth said that the main board market of Shenzhen Stock Exchange undertakes the function of cultivating the listing of leading enterprises, continues to promote the independent control of Chinese industries and improve the comprehensive competitiveness of Chinese enterprises.
According to the disclosed operating data of 2021, Boe Technology Group Co.Ltd(000725) , Byd Company Limited(002594) , S.F.Holding Co.Ltd(002352) , Weichai Power Co.Ltd(000338) and other 20 companies have operating revenues of more than 100 billion yuan The net profits of 32 companies including Boe Technology Group Co.Ltd(000725) , Hangzhou Hikvision Digital Technology Co.Ltd(002415) , Cgn Power Co.Ltd(003816) , Citic Pacific Special Steel Group Co.Ltd(000708) and others exceeded 5 billion yuan.
There are 304 companies with a compound growth rate of net profit of more than 30% in recent three years.
Zhao Xijun believes that after the merger of the two boards, as a prominent representative of China’s microeconomic main body, leading enterprises in various industries of the Shenzhen main board take advantage of the capital market to become stronger and bigger, play a more prominent leading role in the high-quality development of the board, set a benchmark for other enterprises and play a leading role.
“The leading role of leading enterprises is more reflected in driving industrial transformation and upgrading and promoting high-quality economic development.” Dong zhongyun said that on the one hand, leading enterprises can become bigger and stronger with the help of the capital market through asset restructuring and refinancing, so as to help the transformation and upgrading of industrial structure; On the other hand, leading enterprises occupy a dominant position in the industrial chain, with strong profitability, fast performance growth and high R & D investment. Through their own rapid development, they drive China’s related industries to form a competitive advantage in the world.
Shenzhen main board achieved remarkable results in the reform of state-owned enterprises and achieved steady growth in performance
State owned enterprises are the benchmark force of the group of listed companies and the demonstration representative of leading high-quality economic development. Judging from the achievements of the past year, after the merger of the main board of Shenzhen Stock Exchange and the small and medium-sized board, the reform of state-owned enterprises on the main board of Shenzhen Stock Exchange has made steady progress, and the performance has achieved steady growth.
According to the data, as of March 31, there were 459 state-owned enterprises on the main board of Shenzhen Stock Exchange, accounting for 30.74%. Among them, 220 companies disclosed the annual report or performance express of 2021, with an average revenue of 19.014 billion yuan, a year-on-year increase of 28.56%, and an average net profit of 1.252 billion yuan, a year-on-year increase of 36.14%. 143 companies disclosed the performance forecast for 2021 and expected to realize a net profit of 501 million yuan to 617 million yuan, with a year-on-year increase of 66.52% to 105.13%.
The representatives of the interviewed state-owned enterprises believed that thanks to the support of Shenzhen Stock Exchange and the optimization of policies and systems, Shenzhen state-owned enterprises improved the quality of assets through restructuring and spin off, refinanced with stocks, bonds and other financial instruments, stabilized the talent team through equity incentives, greatly promoted the reform process of state-owned enterprises and provided a strong guarantee for performance.
refinancing and restructuring effects appear
steady progress in the reform of state-owned enterprises
Since the merger of the two boards, the Shenzhen main board has better supported the relatively mature enterprise financing development and become better and stronger. The state-owned enterprises on the Shenzhen main board also make comprehensive use of capital market tools to steadily promote the reform of state-owned enterprises and lay a solid foundation for good performance.
Data show that since the merger of the two boards, a total of 45 refinancings of state-owned enterprises on the Shenzhen main board have been completed, with a financing amount of 117270 billion yuan. Since the merger, the Shenzhen main board state-owned enterprises have disclosed a total of 21 restructuring plans, implemented and completed 24, with a transaction amount of 194060 billion yuan. Some large state-owned enterprises continue to deepen reform with the help of the capital market.
“In 2021, the company implemented a major asset restructuring with a transaction amount of 98.142 billion yuan, making it the largest cement company in the world.” Xiao Jiaxiang, President of Xinjiang Tianshan Cement Co.Ltd(000877) said in an interview with the reporter of Securities Daily that the achievements of Xinjiang Tianshan Cement Co.Ltd(000877) are inseparable from making full use of the functions of the capital market in addition to firm development strategy, efficient implementation and good operation. The successful completion of this reorganization also benefited from the support of Shenzhen Stock Exchange and the optimization of a series of policies and systems.
China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) since its listing, the company has further deepened the reform of state-owned enterprises and led the reform direction of state-owned enterprises through major asset restructuring, issuance of REITs and other capital operations China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) board secretary Liu Ning told the reporter of Securities Daily that on the one hand, enterprises can carry out mixed ownership reform with the help of capital market, introduce appropriate strategic investors or implement employee stock ownership plan to further promote the improvement of modern enterprise management system and stimulate the vitality of enterprises; On the other hand, the capital market can explore high-quality asset targets for enterprises or provide channels for asset disposal. Combined with the financing function of the capital market, it can further realize the effective allocation of capital and resources and promote the rapid development of enterprises.
Huang Hualin, Secretary of Guangxi Liugong Machinery Co.Ltd(000528) board of directors, told reporters that the capital market has promoted the reform of enterprise system and incentive mechanism. The mixed reform of Guangxi Liugong Machinery Co.Ltd(000528) group and the overall listing of Guangxi Liugong Machinery Co.Ltd(000528) Co., Ltd. have further straightened out the equity relationship between the group and listed companies, significantly reduced related transactions and improved the development potential of the company. Taking advantage of the overall listing of Guangxi Liugong Machinery Co.Ltd(000528) Co., Ltd. Guangxi Liugong Machinery Co.Ltd(000528) group and seven strategic investors jointly built a new model of state-owned enterprise reform and development of “advantages of central and local state-owned enterprises + marketization mechanism + coordination of strategic partners”.
In the process of state-owned enterprise reform, the demand for talents is increasing. Since the merger, the state-owned enterprises on the main board of Shenzhen Stock Exchange have implemented 48 equity incentive and employee stock ownership plans, including 34 restricted stocks, 7 stock options and 7 employee stock ownership plans, involving a total of 886 million shares.
According to Huang Hualin, the company uses equity incentives and other tools to promote the common development of enterprises and employees. On March 31, 2022, the company disclosed the announcement on the achievement of unlocking conditions in the second unlocking period of the restricted stock incentive plan in 2018. In the second unlocking period, the company’s 1397 incentive objects can actually unlock a total of 2.9448 million restricted shares. In 2018, Guangxi Liugong Machinery Co.Ltd(000528) implemented the restricted stock incentive plan, granting 1718 incentive objects a total of 13296600 restricted shares. Guangxi Liugong Machinery Co.Ltd(000528) Co., Ltd. was listed as a whole, and employees took 3173224 million shares. The incentive intensity was greatly strengthened, which was conducive to maintaining the stability of the management team and core personnel and promoting the common development of the enterprise and employees.
“The reform of state-owned enterprises needs transparency, standardization and marketization.” Tian Lihui, President of the Institute of financial development of Nankai University, told our reporter that high-quality information disclosure in the capital market can provide corporate governance standards and significantly improve the norms of governance, management and operation of state-owned enterprises. The capital market is constantly optimizing the allocation of resources, which also provides market-oriented space for the development of state-owned enterprises. With the help of the capital market, state-owned enterprises can integrate resources through mergers and acquisitions, so as to achieve high-quality development.
improve internal governance
fulfill social responsibility
After leveraging the capital market to become bigger and stronger, the Shenzhen main board state-owned enterprises also further strengthen internal governance, pay attention to investor relations and fulfill social responsibilities.
“Since the overall listing, the company has further improved the level of standardized governance, improved the system, organization and system of corporate governance, and improved the transparency of the company.” Citic Pacific Special Steel Group Co.Ltd(000708) Board Secretary Wang Haiyong told the reporter of Securities Daily that through timely and accurate information disclosure and multi-channel and multi-level communication with investors, Citic Pacific Special Steel Group Co.Ltd(000708) further improved the company’s capital market image and deepened investors’ understanding of the company.
Xiao Jiaxiang believes that in the face of the supply side reform of the cement industry and the trend of green and digital transformation, the company should not only rely on the power of the capital market for multi-channel financing and development, but also make good use of the capital market to standardize enterprise management, improve the level of corporate governance, actively repay shareholders, fulfill the commitment that the three-year dividend proportion is not less than 50% of the net profit attributable to the parent company, and further establish a good image of a listed company of central enterprises.
In addition to making use of capital market tools to become bigger and stronger, state-owned enterprises on the Shenzhen main board also play an important role in the rescue of private enterprises.
Since the merger, the state-owned companies have improved the company’s fundamentals through cash transfusion, credit support, high-quality asset injection, promoting industrial integration and other measures, helped private enterprises to bail out and realized the coordinated development of public and non-public economy. It is reported that since the merger of the two boards, among the 13 companies assisted by state-owned assets on the Shenzhen main board, according to the financial data disclosed at the end of March, five companies have achieved year-on-year growth in net profit in 2021, significantly improving their sustainable profitability.
“Most of the state-owned enterprises on the main board of Shenzhen Stock Exchange have excellent enterprise qualifications and business performance. The capital market provides a variety of financing channels and diversified financing tools. The mutual achievements of the two sides have enhanced the support of the capital market for the development of the real economy and provided a continuous driving force for China’s economic development.” GUI Haoming, chief market analyst of Shenwan Hongyuan Group Co.Ltd(000166) securities, told our reporter.
green and low-carbon leaders gather on Shenzhen main board to help achieve the goal of “double carbon”
After the merger of the main board of Shenzhen Stock Exchange and the small and medium-sized board, the green low-carbon industry company on the main board of Shenzhen Stock Exchange has developed rapidly and become a backbone force to promote the realization of the “double carbon” goal and practice the national strategy.
According to the data, as of March 31, there were 144 companies involved in the new energy vehicle industry, new energy industry and energy conservation and environmental protection industry on the Shenzhen main board, of which 62 have disclosed the annual report or performance express of 2021, with an average revenue of 17.45 billion yuan, a year-on-year increase of 18.34%, and an average net profit of 1.3 billion yuan, a year-on-year increase of 32.3%.
Through the interview with representative enterprises, it is found that since the merger of the two boards, the Shenzhen main board green low-carbon industry company has grown and achieved good results.
industry leaders continue to grow
net profit of 43 companies increased by more than 50%
Shenzhen main board company occupies an important position in green industrial chains such as lithium mineral resources, lithium battery chemical materials, new energy vehicles, new energy power equipment, new energy power generation, environmental protection and waste resource utilization.
Cgn Power Co.Ltd(003816) is the largest nuclear power developer and operator in China. By the end of 2021, the company managed 25 nuclear power units in operation and 7 nuclear power units under construction, accounting for 53.01% and 41.01% of the total installed capacity of nuclear power in operation and under construction, respectively, and 49.71% of the total installed capacity of nuclear power in China Cgn Power Co.Ltd(003816) chief financial officer and Secretary of the board of directors Yin engang told the reporter of Securities Daily that in the process of energy structure transformation, nuclear energy will play an important role, the nuclear power industry is in an important period of strategic opportunities for development, and China National Nuclear Power Co.Ltd(601985) development space and market prospects are broad.
“In order to lead the company’s future development, the board of directors of the company has approved the company’s medium and long-term development strategy of nuclear energy industry and the 14th five year plan 。 By 2035, the company’s key performance indicators such as nuclear power safety operation, engineering construction and operating efficiency will reach an excellent level. At the same time, the company will appropriately expand nuclear heating, steam supply and other services to improve the comprehensive benefits of comprehensive utilization of nuclear energy. In addition, we will appropriately explore the investment of supporting energy storage projects related to nuclear power. ” Yin engang disclosed to reporters.
Data show that among the 144 companies mentioned above, 43 companies increased their net profit by more than 50% in 2021. Among them, Ganfeng Lithium Co.Ltd(002460) achieved a revenue of 11.162 billion yuan, a year-on-year increase of 102.07%; The net profit was 5.175 billion yuan, a year-on-year increase of 405.03%. The waste recycling leader Gem Co.Ltd(002340) achieved a net profit of more than 866 million yuan, a year-on-year increase of more than 110%.
“2021 is a year of rapid development of the new energy industry. The company pays close attention to basic management and all work has reached a new level.” Referring to the next work, Ganfeng Lithium Co.Ltd(002460) Board Secretary ouyangming told the reporter of Securities Daily that first, develop lower cost resources. This requires low-cost access to resources, low-cost project development and low-cost production and operation. Secondly, improve the rate of resource autonomy. The company should have a more stable supply of raw materials, ensure downstream supply, and build a long-term and stable partnership with downstream enterprises. In addition, strengthen marketing management. The company’s production and pricing rhythms can be fully analyzed to cope with market changes.
investment and financing help enterprises expand their scale
strengthen financial support
In the process of boosting green low-carbon industry companies from start-up, growth and even development into industry leaders, the investment and financing services of Shenzhen stock market have played a key supporting role.
In recent years, Ganfeng Lithium Co.Ltd(002460) used the “a + H” share platform to raise funds for the company for capacity expansion, upstream lithium resource acquisition and development, technology research and development, ESG work through the issuance of convertible corporate bonds, additional H shares and other financing projects. Combined with its own development status and market demand, the company continues to plough deeply in the lithium industry, helps the development of new energy industry through the vertical extension of industrial chain, gives full play to the important role of new energy industry in optimizing energy structure, and helps the country build a green and low-carbon circular economy system with its own practical actions.
It is reported that since the recycling “first share” Gem Co.Ltd(002340) landed on the Shenzhen Stock Exchange in 2010, it has successively implemented five private placement since the IPO project, raising a total capital of more than 10 billion yuan, fully invested in waste recycling business, innovation platform, transformation and upgrading, and promoted the development of the company in terms of the breadth and depth of waste recycling business, industrial layout space, innovation, transformation and upgrading.
Gem Co.Ltd(002340) Chairman Xu Kaihua told the reporter of Securities Daily, “with the raised funds, the company has built the world’s leading electronic waste green recycling and treatment base, power battery green recycling and treatment base, scrapped vehicle recycling and treatment base and the world’s leading waste plastic recycling base.”
Yin engang said, Cgn Power Co.Ltd(003816) as a company focusing on nuclear power generation, it is a large capital intensive utility enterprise. The sustainable development of the company needs the long-term support of the capital market and investors. Therefore, it has always maintained its awe and respect for the capital market and investors.
Chen Li, chief economist of Chuancai securities and director of the Research Institute, told the Securities Daily that on the one hand, we should continue to steadily promote the reform of the registration system, improve listing efficiency and help more enterprises listing and financing; On the other hand, continue to optimize refinancing and strengthen financial support for enterprises. Enterprises can integrate the resources of upstream and downstream enterprises through direct financing, reorganization and M & A, realize the optimal allocation of resources, and finally form a scale effect, reduce enterprise costs and realize the high-quality development of enterprises.
