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Smaller Chinese firms report rising profits for 2016

Xinhua | Updated: 2017-04-10 11:28

BEIJING - China's small and medium-sized enterprises reported growing net profits for 2016, despite slowing growth in the world's second largest economy.

Average net profits of 1,598 SMEs listed on the National Equities Exchange and Quotations (NEEQ) system reached 21.05 million yuan ($3.05 million) last year, up 26.29 percent year on year.

The SMEs, which delivered their annual reports at the end of March, posted an average annual business revenue of 212 million yuan in 2016, an increase of 25 percent, according to NEEQ.

Total assets of each company averaged 464 million yuan at the end of 2016, expanding 23.9 percent year on year.

SMEs ramped up their spending on research and development, which climbed 8.25 percent year on year in 2016 to 11.58 billion yuan, with strategic emerging industries investing a total 4.03 billion yuan, surging 58.59 percent year on year.

NEEQ, also known as the "New Third Board," was launched in Beijing in late 2012 to supplement the main Shanghai and Shenzhen bourses. It is seen as an easy financing channel for small businesses with low costs and simple listing procedures.

By the end of 2016, NEEQ listed 10,163 companies.

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