RESEARCH and development (R&D) has increasingly become both the reason for and result of the growth noted among China’s listed companies, as they doubled down efforts on high tech and new energy.

Listed firms on China’s major bourses have unveiled financial reports for the first half of this year. On the main board of the Shanghai Stock Exchange, high-tech companies are witnessing rising R&D expenditure and rising performance.

With breakthroughs in core technologies, R&D spending by communications and power equipment companies increased 25% and 17%, respectively, and their net profit increased 9% and 13%.

“Listed companies are one of the most active and important components of the Chinese economy, and many are industry backbones,” said Zhao Xijun, a finance professor with Renmin University of China.

Among enterprises with high R&D intensity is CRRC Corp., whose development of the CR450 bullet train has achieved initial results. During a test June 28, the train operated at a speed of 453 km per hour.

The green energy sector has also seen steady growth. The growth rate of operating income and net profit of photovoltaic equipment companies reached 24% and 21%, respectively.

Photovoltaic power generation also increased significantly, with the power generated by China Three Gorges Renewables (Group) Co., China National Nuclear Power Co. and Shanghai Electric Power Co. totaling 15.5 billion kWh, a year-on-year increase of 20%.

New energy industries have registered remarkable export performances, with photovoltaic equipment and automobile companies achieving a 40% and 33% growth, respectively, in export-related revenue.

In the STAR Market, China’s Nasdaq-style sci-tech innovation board, the operating revenue of companies showed stable growth. Meanwhile, sci-tech oriented firms continued to bolster their R&D and innovation efforts, showing development potential and resilience.

During the first half, R&D investment of STAR Market companies hit 70.6 billion yuan (US$9.79 billion), surging 19% from a year ago.

There were 102 companies with R&D investment intensity above 30%. The total number of new invention patents of the companies exceeded 7,600.

In Shenzhen, high R&D investment of listed companies has supported innovation. For instance, China’s electric vehicle battery maker Contemporary Amperex Technology Co. (CATL) released a new lithium iron phosphate battery for fast-charging Aug. 16, which is capable of powering automobiles for 400 km on a charge of only 10 minutes.

BYD Co. said in its first- half financial report that technological innovation is the core driving force for high-quality business development. Relying on strong research and development, BYD will launch a series of world-leading, forward-looking and game-changing technologies while continuing to promote the application of existing technologies.

According to the Shenzhen bourse, seven companies, including CATL, BYD and Midea Group, have spent more than 5 billion yuan on R&D in the first six months of the year and 46 companies have spent more than 1 billion yuan. (Xinhua)