Over the past five years, China's high-end manufacturing sector has demonstrated robust growth in asset scale and revenue levels, according to a report released by the China Association for Public Companies (CAPCO). The sector is currently undergoing a transition from rapid expansion to high-quality development.
By the end of 2024, the number of listed high-end manufacturing companies increased to 2,503 from 1,661 in 2020, reflecting a compound annual growth rate (CAGR) of 10.80%—outpacing the 6.52% growth rate of the broader A-share market. The total market capitalization of these firms reached ¥32.47 trillion.
**Strong Asset Expansion and Resilience** Total assets of high-end manufacturing listed companies grew to ¥27.24 trillion by 2024, accounting for 6.07% of the A-share market. This represents a 6.13% year-on-year increase and a 68.79% surge since 2020, with a CAGR of 13.98%, significantly higher than the 9.40% growth rate of the overall A-share market.
Revenue expanded from ¥9.36 trillion in 2020 to ¥15.41 trillion in 2024, growing at a CAGR of 13.27%, well above GDP growth. Net profit also saw a CAGR of 12.28%, indicating strong profitability and sector resilience.
**Increased Tax Contributions and Employment** In 2024, high-end manufacturing firms contributed ¥253.9 billion in taxes, with a five-year CAGR of 10.85%. Employment reached 10.35 million, growing at 9.00% annually, highlighting the sector's role in job creation and talent absorption.
**Rising R&D Investment and Technological Upgrades** R&D spending as a percentage of revenue rose from 5.06% in 2020 to 6.06% in 2024, with total R&D expenditure hitting ¥934.1 billion—an 18.51% CAGR. The number of R&D personnel surged from 1.17 million to 1.85 million, growing at 12.07% annually.
**Expanding Global Footprint** Overseas revenue climbed from ¥2.09 trillion in 2020 to ¥4.31 trillion in 2024, a 19.81% CAGR, outpacing the 12.41% growth of overall A-share overseas income. High-end manufacturing now accounts for 41.96% of total A-share overseas revenue, up from 32.53% in 2020.
**Enhanced Shareholder Returns and Market Value Management** High-end manufacturing firms prioritized shareholder returns, with total dividends reaching ¥362.95 billion in 2024, up ¥60.3 billion year-on-year. The payout ratio rose to 52.59% from 37.91% in 2023. Stock buybacks totaled ¥83.93 billion, led by the power equipment sector (¥19.25 billion).
**Strategic Focus on Innovation and Industrial Upgrading** The sector is now pivoting toward next-generation productivity drivers, aligning with China's 15th Five-Year Plan goals. Key initiatives include advancing emerging industries like low-altitude economy, quantum tech, and biomanufacturing, while strengthening supply chain resilience in critical areas such as semiconductors and advanced medical equipment.
With continued policy support and technological advancements, China's high-end manufacturing sector is poised to play a pivotal role in global industrial leadership, underpinning long-term economic growth and modernization efforts.
