In 2017, the income tax expenses of Zhongguancun listed companies was 56.3 billion yuan. Due to the increase in profitability of existing enterprises and income tax brought by newly-listed companies, the total income tax grew by 41% compared with the same period of the previous year.

As the profitability of the industrial sector continued to improve, it gradually replaced the information technology industry as the sector with the most income tax liability. In 2017, its payable income tax amounted to 17.2 billion yuan (31%).

The changes in the distribution of income tax also reflect the transformation of the economic structure of listed companies in Zhongguancun.

Changes in income tax of Zhongguancun listed companies from 2013 to 2017 [Figure provided to chinadaily.com.cn]

In addition, the research team conducted a follow-up study on the operation of listed companies in Zhongguancun in the first half of 2018.

As of June 30, 2018, the total operating income of 226 domestic listed companies in Zhongguancun reached 106.5 billion yuan, a year-on-year increase of 10%; their gross profits reached 2002 billion yuan, an increase of 13%; net profits reached 58.7 billion yuan, an increase of 13%.

Two hundred and seventeen listed companies disclosed R&D expenses totaling 31.9 billion yuan, up 17% from the same period of the previous year, with R&D intensity of 3.12%; income tax expenses of these 226 enterprises amounted to 14.6 billion yuan, up 6% from the same period of the previous year.

The research data of Zhongguancun listed companies for seven consecutive years and their operating performance in the first half of 2018 indicate that the fundamentals of Zhongguancun listed companies continued to improve. They have the strength to promote the development of strategic emerging industries and provide the core driving force for future economic growth.

It is recommended that investors maintain full confidence in the development of Zhongguancun's strategic emerging industries. Under the new normal of China's economic development, these companies register a stable performance with a good momentum for growth, which is the proof of the strength and great development potential of strategic emerging industries.

About Zhongguancun Listed Companies Association

The Zhongguancun Listed Company Association is a national 4A-level association organized and established by a number of Zhongguancun listed companies. One of the Beijing municipal federations of industry and commerce, it was officially registered and established by the Beijing Municipal Civil Affairs Bureau on August 16, 2012.

The association undertakes special research every year to conduct a follow-up study on the operations of Zhongguancun listed companies, analyze their competitiveness and the problems they face, and compile the annual "Zhongguancun Listed Companies Competitiveness Report".