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A-Share Companies in Zhejiang Perform Well in Q1
2018-05-09 18:54:43

Recently MeiDu Energy Corporation has released its Q1 report in 2018. So far, except TodayTech which was just listed in April, 421 of the 422 A-share companies in Zhejiang have released their Q1 earning report.

Judging from their overall performance, those companies have all handed in an impressive report: growing in both revenue and net profit. 335 companies (about 80%) saw year-on-year growth in revenue, 390 companies (92.64%) achieved positive growth in net profit, of which 271 (64%) saw year-on-year growth. Leading companies like Wuchan Zhongda and CHiNT Electric have all witnessed tremendous increase.

Behind the double increase in revenue and net profit is the continuous practice of supply-side reform and high-quality development of Zhejiang Province. The “Phoenix Operation” initiated last year has also added impetus for the company growth.

Digital economy is becoming a key impetus for high-quality development. At the Economic Working Conference held by the Provincial Party Committee in December 2017, digital economy was definitely set as “Number One Program” for development. For the A-share companies in Zhejiang, digital economy is taking an increasingly large proportion, and is becoming a leading force for the high-quality development of Zhejiang economy.

High-quality development cannot be achieved without transforming and upgrading traditional industry. Promoting the transformation of traditional industry is a key measurement for Zhejiang to consolidate and expand its traditional advantages, speed up the transition from the old impetus to the new, and push the industrial structure to mid-and-high end. With the deepening of the transformation, some traditional manufacturers begin to show the upgrading effects gradually.

The remarkable performance of the A-share companies could not be achieved without the support of the macro policy environment. Last year, the province started a “Phoenix Operation” to promote the mergers and acquisitions of listed companies and to upgrade their performance. Judging from the Q1 report, acquisition and reorganization is a key reason behind the great growth of quite a number of companies. Zhejiang Transportation Technology, reorganized from Jiangshan Chemical Engineering, saw a year-on-year growth of profit by 223.11% in Q1, and Ningbo Donly saw an increase of profit by 11 times, which was largely due to its acquisition of Shenzhen Everich Supply Chain.

According to the statistics from the Provincial Financial Office, in the first quarter, the 54 domestic listed companies had 67 M & A transactions (buyer mode) with a total sum of 12.9 billion yuan, ranking the second in the number of transactions and the sixth in the sum of transactions in China, contributing a lot to the continuous high-quality development of Zhejiang economy.

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