Zhongguancun Reports Growth with 2-Billion-Yuan Revenue2016-08-11 14:35:04Share:
The Zhongguancun (Z-Park) listed companies association held a press conference on August 3 to publish the 2016 Z-Park listed companies competitiveness report, with the president of the Association and CEO of Sinovac Biotech, Yin Weidong; the director of the administrative committee of Zhongguancun Haidian Science Park, Guo Hong; its deputy director, Wang Rufang; professor of Guanghua School of Management, Peking University, Dong Xiaoying and many other officials and experts on hand.
The association formed a research group to analyze annual report data of Z-Park listed companies in 2012. Its competitiveness reports have become a tool to measure operating conditions of these companies over the past five years. This year, the association has invited more experts to work on the report to describe Z-Park listed companies' potential.
According to the 2016 report, which collected the 2015 annual data of listed companies, the total revenue of Z-Park listed companies rose 28 percent to 2.34 trillion yuan, the total gross profit 33 percent to 469.4 billion yuan and the total net profit 18 percent to 90.2 billion yuan. Eighty-four percent, or 201, of the listed companies, 159 of which are listed on domestic markets and 42 of which are on overseas exchanges, made profits totaling 120.6 billion yuan.
Although the pace of China’s economic growth slowed down in 2015, Z-Park has seen a rapid rise of its listed companies' revenue much faster than the average 2.6 percent increase in Chinese A-share firms, which shows great potential for Z-Park high-tech companies.
changes in net profit of Z-Park listed companies from 2011 to 2015
In a new part of the report on research and development, data show these companies have spent 82.1 billion yuan for research work with an average R&D intensity of 3.5 percent, in 2015.
The report also points out that 67 Z-Park companies have an intensity of more than 10 percent, which is beyond the average figure of ten global leading high-tech enterprises, specifically Apple, Google, Cisco, Facebook, Intel, HP, NVIDIA, Oracle, eBay and Huawei; this means Z-Park has caught up with the advanced business world in high-tech research.
The R&D spending levels of Z-Park listed companies in 2015 (top 20)
Z-Park also follows the country's instructions to protect companies in IT service, equipment manufacturing, modern services and mobile Internet. The park has 35 listed Internet companies with a total worth of 1.4113 trillion yuan. Together they can help establish an "Internet+" ecosystem, in which new companies share experiences with each other for better development.
The numbers and proportional wealth of Internet and non-Internet listed companies in Z-Park
As of the end of 2015, the total value of Z-Park listed companies had reached 4.8175 trillion yuan, nearly twice as much as Beijing's GDP in 2015, up 54 percent over the previous year. The domestic listed companies contributed 3.3 trillion yuan, up 80 percent, around 68 percent of the total, and the overseas listed ones accounted for 1.5 trillion yuan, 32 percent, up 17 percent.
The total change in value of Z-Park listed companies from 2011 to 2015
The report goes on to show Z-Park's performance in capital markets.
The P/E (price/earnings) ratio of Z-Park companies amounts to 53.41, with domestically listed companies having a ratio of 62.71, those listed in the US having one of 66.27, and those listed in Hong Kong or elsewhere having one of 19.19.
The P/B (price/book) ratio amounts to 4.25: 4.96 for the domestic listed companies, 4.83 for companies listed in the US and 1.68 for companies listed in Hong Kong or other places.
The P/ S (price/sales) ratio amounts to 2.06: 2.92 for domestic listed companies, 3.19 for companies listed in the US, and 0.46 for companies listed in Hong Kong or other places.
The data show that the P/E, P/B and P/S ratio all increased in 2015. The domestic listed companies have caught up with the companies listed in the US, which means that the domestic capital market has improved to the level of the US market.
Overall, Z-Park has seen huge economic advancement, despite the severe economy environment in 2015. The increase in revenue, profit, research costs, investment and capital figures shows that Z-Park has become a new high-tech and innovative center in the region and is significantly motivating Chinese economic growth.
The report suggests that investors have patience and confidence in new industries and that the government’s policies regarding capital market management and supervision are giving support and protection to listed companies.
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