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Markets· Fintech

Total profits of listed firms on STAR Market reached USD 1.2 bln in first three quarters

CKN
minutes 2019/11/01 09:54:21
6,672
STAR Market, Technology, SSE

Nov 01, 2019 (China Knowledge) - In an official announcement by the SSE, the average profits of the 40 companies listed on Shanghai’s STAR Market increased by 40% over the first three quarters of this year. From Jan to Sep, the total profits of the 40 companies amounted to RMB 8.6 bln (USD 1.2 bln), with operating income up 14%.

The STAR Market was set up by SSE, with the aim of showcasing China’s most promising tech companies and adopting a similar goal as NASDAQ in the U.S. The board was open for trading on July 22 this year, with investors being able to buy and sell the shares of 25 listed companies.

Among the 40 companies, Piesat Information Technology and Raytron Technology experienced the greatest growth in their revenue. Piesat tripled its revenue YoY, while Raytron also managed to more than double its revenue YoY.

Around 80% of the 40 firms experienced an increase in the growth of profits in the first three quarters of this year. Two-thirds of the companies also managed to increase their cash flow and profitability, with seven companies in total doubling their profits YoY.

These positive performances of the companies will no doubt instilled added confidence in investors. SSE also revealed that the listed companies spent around 13% of revenue on research and development of their products and services. With R&D being a core focus for the listed companies, their profitability is expected to grow in the next few years.

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