China's SMEs show stable performance in H1

The overall economic performance of small and medium-sized enterprises (SMEs) in China was stable in the first half of this year, with key economic indicators showing growth, according to the latest data from the Ministry of Industry and Information Technology.

In the first six months, the added value of SMEs above the designated size rose by 8 percent year on year. Notably, "little giant" SMEs that use specialized and sophisticated technologies to produce novel and unique products, saw an 8.6 percent increase year on year. Over 80 percent of newly listed A-share companies are also in this category.

Industrial enterprises above designated size are those with annual revenue from principal business reaching over 20 million yuan.

In terms of sales, 19 of the 31 major manufacturing sectors saw profit growth for SMEs. The computer, communication electronics, and electrical machinery sectors experienced significant increases.

Meanwhile, SMEs continued to show strong export performance. In June, the SME export index reached 52.1 percent, indicating expansion for 15 consecutive months.

"In the first half of the year, the quality and efficiency of SMEs improved steadily, with 'little giant' SMEs that use specialized and sophisticated technologies to produce novel and unique products experiencing significant growth. By enhancing the integration of technological and industrial innovations, these specialized firms actively engaged in the industrial chain, focusing on key technologies and contributing to strengthening, supplementing, and extending the supply chain while targeting niche markets. This has effectively supported the stable operation of the industrial economy," said Weng Qiwen, director of the China Center for Promotion of SME Development of the Ministry of Industry and Information Technology.

Furthermore, the innovation capabilities of SMEs have been steadily improving. In the first half of the year, the research and development expenses of "little giant" SMEs above the designated size using specialized and sophisticated technologies to produce novel and unique products accounted for 5.3 percent of their operating income, which was 3.1 percentage points higher than the average for all industrial enterprises above the designated size.