Analysis of Profitability Trends on the Sci-Tech Innovation Board During the COVID-19 Pandemic

This paper analyzes data on the profitability of companies listed on the Sci-Tech Innovation Board during the COVID-19 pandemic. The findings demonstrate a significant decrease in profitability, with the net profit margin even becoming negative in 2020 when the pandemic was at its peak.

While the profitability of these companies has been relatively stable in the long-term, excluding the data from 2020, the study suggests that they are not adequately prepared to handle force majeure risks. To mitigate this vulnerability, companies on the Sci-Tech Innovation Board need to adjust their development strategies and enhance their risk coping abilities.

Additionally, the analysis reveals that the return on net assets index consistently exceeds the return on total assets index, suggesting suboptimal total input-output efficiency. Companies on the Sci-Tech Innovation Board should focus on revitalizing non-performing and idle assets to improve their profit potential.

In conclusion, this paper underscores the importance of adaptation to the challenges posed by the COVID-19 pandemic for companies on the Sci-Tech Innovation Board. By implementing effective risk management strategies and optimizing asset utilization, these companies can enhance their overall profitability and secure a more robust financial future.