(Yicai Global) Nov. 2 -- Profits at companies listed on Shanghai’s Nasdaq-like Star Market jumped an average of more than 60 percent in the first nine months from a year earlier, while their outlays on research and development soared.

New energy firms led the earnings gains, according to data the Shanghai Stock Exchange released yesterday. R&D spending climbed close to the level for all of last year, the figures showed.

All 351 companies, bar one -- chipmaker Semiconductor Manufacturing International Corporation -- had reported earnings for the first three quarters of the year as of Oct. 31. Combined net profits jumped 64 percent to CNY63 billion (USD9.8 billion) on a 45 percent gain in total revenues to CNY484 billion (USD75.7 billion).

Profit more than doubled at 80 companies. Beijing-based diagnostics firm Hotgen Biotech topped the list, as its net profit skyrockted nearly 300 times to CNY1.5 billion (USD234.3 million) from CNY5.1 million (USD796,600) in the same period last year.

New energy firms’ profits soared 163 percent from last year thanks to China’s green development strategy to achieve its carbon peak and neutrality goals. Photovoltaic company Daqo New Energy’s profit gained eight times to CNY4.5 billion.

Excluding those that were unprofitable when they went public, 18 Star Market-listed companies lost money in the nine-month period. The decline was mainly due to the unstable pandemic situation overseas, rising raw material prices, fiercer competition, and more spending on R&D or marketing, the SSE said.

The companies spent a total of CNY37.7 billion on R&D in the first three quarters, up 40 percent annually and close to last year’s total of CNY38.5 billion.

Integrated circuits, pharmaceuticals and software were the leading sectors in terms of R&D outlays as a percentage of revenue. The R&D input at 52 companies -- including Kingsoft Office Software, which is controlled by Lei Jun, founder of Chinese smartphone giant Xiaomi -- accounted for more than 20 percent of total revenue.

Editor: Tom Litting