Report on the Three Major Rankings of Shareholder Value Creation for A-share Companies in 2024_EEO

The list of "2024 Top 99 Free Cash Flow Creativity of A-share Listed Companies" was released in Beijing on October 28th. At the same time, the "Top 50 Cash Value Added Creativity of A-share Listed Companies (CVA Top 50) Report" and the "Top 99 Economic Value Added Creativity of A-share Listed Companies (EVA Top 99) Report" aimed at revealing the shareholder value creation ability of Chinese listed companies were also released simultaneously.

FCF Top 99 Report

2024 Free Cash Flow Creativity (FCF Top 99) Report for A-share Listed Companies

Taking this opportunity, we also continue to call on the China Securities Regulatory Commission and the stock exchange to take measures to promote voluntary disclosure of information on free cash flow and cash value added creation by listed companies in their annual reports, and call on the Ministry of Finance to improve the presentation and disclosure of the cash flow statement (in September 2024, the International Accounting Standards Board also issued a statement deciding to include the cash flow statement and related matters in its research plan, initiating the revision of the cash flow statement). We suggest separately reporting cash and cash equivalents in the balance sheet, and improving the presentation and disclosure of information related to investment in corporate wealth management products.
Report on the Top 99 Economic Value Added Creativity (EVA) of A-share Listed Companies in 2024

It should be pointed out that economic value added is calculated based on the accrual basis, which may be similar to the net profit indicator of the accrual basis, but only a "paper wealth" created by the enterprise for shareholders. In the long run, if net profit and economic value added are not accompanied by the creation of "real gold and silver" free cash flow (FCF) and cash value added (CVA), then they are meaningless and may even become "drugs" that entrepreneurs unknowingly become addicted to. Therefore, in the long-term ultimate sense, enterprises must create cash value added in order to truly create shareholder value.
Report on the Top 50 CVA Creativity of Cash Value Added of A-share Listed Companies in 2024

Although free cash flow can tell us, in the long run, can a company "feed" itself and have surplus? However, it is still necessary to use cash value added based on free cash flow to tell us whether a company has created "real gold and silver" value for shareholders in the long run? In this regard, cash value added creativity is the ultimate characterization of a company's free cash flow creativity.
Free cash flow welcomes the first year of investment: Who is the strongest shareholder value creator in A-share companies

In the report, Xie Deren's research team called on the China Securities Regulatory Commission and exchanges to take measures to promote voluntary disclosure of information on free cash flow and cash value added creation by listed companies in their annual reports. They also called on the Ministry of Finance to improve the presentation and disclosure of cash flow statements, recommend separate reporting of cash and cash equivalents in the balance sheet, and improve the presentation and disclosure of investment related information on corporate wealth management products.

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