Research On The Growth And Profitability Of Listed Companies In GEM

With further advancing the global science and technology, and the rapid development of the domestic economy, some emerging enterprises also developed, which have the core of the technological innovation. As in the start-up period, the risk the companies face were constantly expanding. As the high-tech companies continued to develop, their investment and financing problems had gradually become the most important. In this context, China's GEM emerged,providing the companies which had a high growth a platform to solve the financing problems. As a pillar industry of China's national economy, the manufacturing sector is the leading sector of China's economic growth and the basis of economic restructuring. Advanced manufacturing has strong independent innovation capacity as a modern manufacturing industry. The development of GEM advanced manufacturing has an important strategic significance to China's manufacturing industry. So exploring our GEM advanced manufacturing companies is particularly important.This article aims to explore industry conditions and characteristics of the GEM advanced manufacturing, studies deeply its growth capacity and profitability and their internal relations yearly,in order to understand the reality of GEM advanced manufacturing and judge listed company's growth and profitability. This paper firstly summarizes the literature on growth and profitability. And on the basis of the literature, using of normative research and empirical research methods, then selecting the appropriate financial indicators, collecting and organizing financial data of 16 listed companies from 2010 to 2014 in the GEM advanced manufacturing. Then use factor analysis method to define the GEM manufacturing listed companies' growth and profitability ability, next, use correlation analysis and regression analysis to explore the interaction between the two variables yearly.The results show: Our advanced manufacturing GEM listed company's overall profitability and ability to grow are in the middle or lower level. Wherein revenue growth,current asset turnover, total asset turnover and sales expense ratio have greater impact on the ability to grow.Operating profit ratio, ROA, ROE and earnings per share have greater impact on the profitability. From the point of relationship, in the year of 2010, GEM advanced manufacturing's profitability index has a significant correlation with growth. Companies may improve their growth through the improved profitability indicators indirectly. By grouping 2014's advanced manufacturing, we can prove that profitability play an important role in promoting the growth in high-growth companies and middle-growth companies. The relationship between the company's growth and profitability is not significant in low-growth companies. At the same time it indicates that China's GEM advanced manufacturing lack innovative scientific research strength.