Annuals published by the 38 companies listed on
China's SME (small and medium-sized enterprises) board of the
Shenzhen Stock Exchange established one year ago have all reported
good achievements except the other one whose annuals will not be
published until Wednesday.
Among the all 39 listed enterprises, 37 saw their business
income in 2004 growing at an average rate of 26 percent with 15 of
them boasting a growth rate of over thirty percent.
Great profits have begun to be produced from funds collected
after going public. Professionals predict that with more profits
being produced, a higher growth of the SME board is expected in
2005.
However, soaring prices of raw materials such as oil, coal and
electricity power and strained transportation have had some impact
on the profits of these enterprises, said Zhang Yage with the
Securities Department of the Xinhecheng Company, a listed company
of the SME board.
Over half of the SMEs listed on the board saw their profits
damaged by the soaring prices of raw materials. As for the net
profits, despite the high business income growth of 26 percent, all
39 enterprises only have a growth rate of 12 percent in 2005. And
only nine of the 39 have their net profits growing more rapidly
than their business income growth.
Resulting from the good market achievements, the 38 enterprises
having their annuals published announced a dividends sum of 814
million yuan (US$98.3 million), covering 8.8 percent of all funds
they have collected through being listed, which is 9.274 billion
yuan (US$1.12 billion).
Such good returns have promoted a soaring trend in the SME
board.
Professionals said the future development of the SME board may
be polarized, as some enterprises in a mature industry may have a
comparatively limited growth margin while others, in an industry of
wide development space, may continue their strong growth trend.
(Xinhua News Agency April 24, 2005)