(Yicai Global) Nov. 1 -- The 40 companies listed on Shanghai's new Star Market for innovative science and technology firms bumped up their average profit over the first three quarters by 40 percent, according to the Shanghai Stock Exchange.

They earned a combined CNY8.6 billion (USD1.2 billion) from January through September, the bourse said in a statement yesterday. Operating income was up 14 percent at CNY69 billion.

The Star Market, which aims to help innovative sci-tech startups go public via preferential policies, opened for trading on July 22 this year with 25 companies' shares available to buy and sell.

Nearly 80 percent of the board's 40 listed firms grew profit faster during the first three quarters of this year than last, the bourse added, saying seven doubled their net profit and two swung into the black from a loss. Net profit at 10 of the firms slid due to a decline in customer orders and increased research expenses.

Piesat Information Technology and Raytron Technology led revenue growth, more than tripling and doubling their income on the year.

Excluding non-recurring gains or losses, the companies had a combined net profit of CNY7.7 billion, up 23 percent on the year, and a total operating cash flow of CNY4 billion. Around two thirds of the companies increased their cash flow and profitability, the SSE said.

Between them, the 40 firms spent an average 13 percent of their revenue on research and development, with eight surpassing the 20 percent mark. The biggest R&D spender as a proportion of income was ArcSoft Technology, pouring 35 percent of its sales total into research.

Editor: James Boynton