Guangdong firms boost R&D spending

Guangdong’s listed A-share companies raised their investment in R&D by nearly 20% last year, to more than RMB144.3 billion. In so doing, they increased their share of R&D spending by all listed A-share companies by four percentage points to 19.82%.

Telecom equipment maker ZTE, which was nearly bankrupted a year ago by US sanctions, ranks top among the province’s listed companies and 7th among all A-share companies, investing RMB10.9 billion in R&D last year. (Huawei Technologies is not publicly listed.) Others that invested more than RMB5 billion in R&D include Foshan’s Media Group, Shenzhen’s BYD, Zhuhai’s Gree Electric, and Huizhou’s TCL Corp.  As a percentage of income, IT companies invest the most, at an average of 11.3%.

Guangdong has 615 listed companies with a total market cap of RMB10.62 trillion, accounting for 18.22% of all A-share companies. They generated income of RMB1.61 trillion in Q1, up 12.41% from the previous quarter, with profits up 25.28% to RMB161.73 billion.

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