Revaluation of Chongqing-listed companies: automotive and environmental sectors lift the upside, while pharmaceuticals and traditional industries face growing divergence

As a key western industrial hub and a national central city, Chongqing’s listed companies exhibit a manufacturing-oriented industrial structure: automobiles and auto parts form its industrial calling card; machinery, instruments, and power equipment underpin its industrial base; environmental protection, utilities, and transportation ensure urban operations; and pharmaceuticals, food, and consumer brands provide diversified supplementary roles.

Unlike cities dominated by financial and internet firms, Chongqing’s capital market is more deeply rooted in real-economy industries. It hosts automotive supply chain enterprises such as Changan Automobile, Seres, China Automotive Engineering Research Institute, and Loncin General; equipment manufacturers like Sichuan Instruments, Zongshen Power, and Shenchi Electromechanical; environmental and public service platforms including Sanfeng Environment, CPI Hydro & Power, and Chongqing Water; as well as pharmaceutical companies such as Zhifei Biological, Taiji Group, Chongqing Pharmaceutical Holdings, and Shanwaishan.

This structure—combining automotive manufacturing, industrial equipment, urban services, and pharmaceutical/consumer sectors—results in a clearly stratified ESG-V rating profile for Chongqing: the automotive and environmental segments lead the pack, a large cohort occupies the middle tier, pharmaceutical and biotech firms are most densely represented yet internally divergent, and certain traditional manufacturing and highly sensitive sectors continue to face pressures related to governance, compliance, and value realization.

Recently, JY Fund Rating released ESG-V ratings for Chongqing-listed companies. Unlike conventional ESG assessments that primarily focus on environmental, social, and governance responsibilities, the ESG-V framework adds a 'Value Realization' (V) dimension alongside Environment (E), Society (S), and Governance (G), integrating corporate responsibility fulfillment, governance capability, earnings quality, risk management, and capital returns into a unified evaluation system.

In other words, the ESG-V rating does not merely assess whether a company fulfills its responsibilities; it also examines whether the company can translate responsible governance into long-term value. For a city like Chongqing—with a strong heavy-industrial base, coexistence of state-owned investment platforms and private manufacturers, and distinctive automotive and pharmaceutical sectors—this framework more clearly reveals which companies have already established a closed loop between responsible governance and value creation, and which remain focused only on industrial scale, sectoral hype, or regional advantages.

Methodologically, JYJX’s ESG-V rating integrates multi-source information including public disclosures, financial data, regulatory penalties, media sentiment, and industry-specific characteristics, further enhanced by satellite remote sensing data and AI-powered interpretation capabilities. For ESG-sensitive sectors such as automotive manufacturing, basic chemicals, steel, building materials, power equipment, environmental protection, and transportation, the rating system leverages high-resolution satellite imagery from series like Gaofen, Sentinel, and VIIRS to assist in identifying indicators such as air emissions, water pollution, solid waste disposal sites, carbon intensity, energy consumption intensity, ecological conservation efforts, and compliance with land-use regulations. These findings are then cross-validated against environmental impact assessment disclosures, administrative penalties, and annual report filings.

Among the 66 Chongqing-based companies in this sample, the overall ESG-V ratings exhibit a structure characterized by 'distinctive leaders, a dominant middle tier, and concentrated pressure at the bottom.' There is one AAA-rated company, three AA-rated companies, and eight A-rated companies, totaling 12 firms (approximately 18.2%) rated A or higher. Companies rated BBB, BB, or B account for 41 firms (about 62.1%), while those rated CCC or below number 13 (roughly 19.7%).

This distribution indicates that listed companies in Chongqing have already established a foundation for responsibility-driven value creation, though the density of high-rated firms still has room for improvement. The city’s rating ceiling is primarily lifted by a few companies in digital content, automotive technology, and environmental governance. Most firms cluster within the BBB-to-B range, reflecting Chongqing’s robust industrial base—but also highlighting that the transition from stable operations to high-quality value realization remains an ongoing challenge.

In this round of ratings, Giant Interactive Group is the only Chongqing-based company awarded an AAA rating. Three Gorges Environment, China Automotive Engineering Research Institute (CAERI), and China Power Investment Hydropower received AA ratings. These four leading firms span media, environmental services, and the automotive sector, demonstrating that Chongqing’s rating strengths do not stem solely from traditional heavy industry but are supported jointly by digital content, technical services, and urban green governance.

Giant Interactive Group’s AAA rating reflects how digital content companies—despite their relatively light environmental footprint—must still establish a stable closed loop among content responsibility, user rights protection, data governance, operational quality, and value realization. CAERI represents technical service and testing capabilities within the automotive industry, while Three Gorges Environment and China Power Investment Hydropower showcase Chongqing’s long-standing expertise in environmental management, green infrastructure, and public utilities.

Notably, although Chongqing has relatively few top-tier firms, their sectoral focus is clear: companies achieving AA ratings or higher typically possess more than just scale or regulatory licenses—they have already built a more complete transmission mechanism linking professional capabilities, governance standards, responsibility fulfillment, and business outcomes.

The automotive sector is Chongqing’s most distinctive industrial cluster. Within this sample, nine companies operate in the automotive industry. Among them, CAERI received an AA rating; Seres, Sulian, and Loncin Holdings entered the A tier, bringing the total number of A-rated or higher automotive firms to four. Changan Automobile and Qin’an Mechatronics are rated BBB, while Landai Technology, Shenchi Electromechanical, and Qianli Technology fall into the BB category. Notably, no automotive company in the sample was rated CCC or below.

This structure indicates that Chongqing’s automotive industry chain not only possesses vehicle manufacturing scale but has also developed multi-layered support capabilities, including testing services, powertrain systems, automotive tubing, components, and motorcycle manufacturing. For automotive companies, ESG-V performance increasingly hinges on whether product safety, supply chain management, low-carbon manufacturing, R&D investment, customer responsibility, and capital returns can operate in synergy.

OEMs such as Seres and Changan Automobile bear the dual pressures of industrial scale and technological transformation, while China Automotive Technology & Research Center (CATARC) embodies the value of technical standards, testing and certification, and industry services. Component suppliers like Suilian Shares and Qin’an Shares must balance client concentration, quality control, and supply chain resilience. The Chongqing automotive sector as a whole shows no evident tail-end outliers, making it the most stable industrial highlight in this rating cycle.

Chongqing’s environmental protection sector includes three rated entities: Sanfeng Environment and CPI Hydroelectricity fall within the AA rating category, while Chongqing Water falls in the BBB category. Although the environmental sector has a limited number of samples, its high concentration of top-tier ratings is a key contributor to Chongqing’s overall rating ceiling.

The public utilities sector comprises four companies: Fuling Electric Power, Chongqing Gas, and Three Gorges Water Conservancy are rated BBB, while Solar Energy is rated BB. Despite their strong public-service orientation, environmental and utility firms do not automatically receive high ESG-V scores merely due to their ‘green’ industry label or operational stability; project execution, governance transparency, capital efficiency, service accountability, and long-term returns must also be closely evaluated.

The high ratings of Sanfeng Environment and CPI Hydroelectricity demonstrate that urban governance needs can translate into long-term value—but only if enterprises themselves possess sound governance, stable operations, and effective value realization capabilities. For Chongqing, platforms in environmental protection, water services, energy, and public utilities serve not only as foundational infrastructure for city operations but also as critical enablers of the green transformation of this traditional industrial city.

Pharmaceuticals and biotechnology represent the largest sector by sample size in Chongqing, with 14 listed companies. However, only Shanwai Mountain has achieved an A rating. Xishan Tech, Boteng Pharma, Huasen Pharmaceuticals, and CYPC Holdings are rated BB, while Fu’an Pharma, Taiji Group, Zhengchuan Shares, and PKU Healthcare fall in the B category.

At the lower end of the rating spectrum, Zhifei Biological is rated CCC, while ZhiXiang GeneTech and Lummy Pharma are rated CC, and Sansheng Shares holds a D rating. Four out of the 14 pharmaceutical firms are rated CCC or below, indicating that although Chongqing’s pharmaceutical industry features dense representation across vaccines, innovative drugs, medical devices, pharmaceutical distribution, and traditional Chinese medicine, there is significant divergence in corporate responsibility governance and value realization capabilities.

ESG-V performance among pharmaceutical firms depends not only on R&D investment and market potential but more critically on product safety, clinical and R&D compliance, quality control, patient rights, channel governance, commercial credibility, and earnings sustainability. Popular therapeutic areas or technological buzzwords cannot substitute for verifiable governance mechanisms. The key challenge for Chongqing’s pharmaceutical sector in the next phase is to convert its industrial foundation into consistent, responsible value-creation capacity.

The machinery and equipment sector includes four sample companies: Chuan Yi Shares entered the A tier, Yu Xin Electronics and Zongshen Power are in the BBB tier, and Weima Agricultural Machinery is in the B tier. These companies cover industrial instrumentation, General Dynamics, engines, and agricultural machinery, reflecting Chongqing’s traditional manufacturing trajectory toward technological and specialized upgrading.

The food and beverage sector comprises three companies: Fuling Zhacai entered the A tier, Youyou Foods is rated BBB, and Chongqing Brewery is rated BB. In the beauty and personal care sector, Dengkang Oral Care entered the A tier, while Baiya Co., Ltd. is rated BB. Chongqing Department Store stands as the representative of the commercial retail segment with an A rating.

These consumer companies benefit from regional brand recognition, established distribution channels, and stable consumption scenarios. However, brand awareness does not automatically translate into ESG-V advantages. Product responsibility, supply chain management, distributor systems, food safety, consumer rights protection, and cash flow quality all directly affect whether a brand can be converted into long-term value.

Among Chongqing’s 66 sample companies, 27 are centrally administered or local state-owned enterprises (SOEs), of which six achieved an A rating or higher, representing approximately 22.2%; four were rated CCC or lower, accounting for about 14.8%. Among the 39 non-SOEs, six also reached an A rating or higher (roughly 15.4%), while nine fell into the CCC or lower category (approximately 23.1%).

This divergence indicates that Chongqing’s state-owned listed companies have established a robust foundation in public accountability, governance stability, and operational continuity. State-backed enterprises such as Sanyi Environment, China Automotive Technology & Research Center, CPI Hydropower, Fuling Zhacai, Chuan Yi Shares, and Dengkang Oral Care achieved A-tier ratings or above. Banks, securities firms, water utilities, gas distributors, power providers, and urban infrastructure platforms are primarily clustered in mid-tier ratings.

Private enterprises contributed high-rated samples such as Giant Interactive Group, Seres Group, Su Lian Shares, Shan Wai Shan, Loncin Holdings, and Chongqing Department Store, demonstrating growth flexibility in digital economy, automotive transformation, and consumer services. However, private firms also account for a relatively larger share of low-rated companies, indicating that scale expansion, technology investment, and market opportunities must go hand-in-hand with sound governance, risk control, and sustainable returns.

At the bottom of the ratings spectrum, Chongqing has six CCC-rated companies, five CC-rated, one C-rated, and one D-rated—totaling 13 firms, or 19.7% of the entire sample. These underperforming companies are primarily concentrated in pharmaceuticals and biotechnology, transportation, basic chemicals, nonferrous metals, agriculture and fisheries, electrical equipment, construction and decoration, steel, building materials, and telecommunications sectors.

Among them, Zhifei Biological, Zhixiang GeneTech, Lummy Pharmaceutical, and Sansheng Shares represent key tail-end samples in the pharmaceutical sector; Sanyangma, Yuxiajiang A, Xin Yuan Intelligent Manufacturing, Tianyu Biological, Wanli Shares, Chongqing Construction Engineering, Chongqing Iron & Steel, Sifang New Materials, and Meilixin reflect varying pressures across logistics, chemicals, materials, agriculture, batteries, construction, steel, and communications equipment manufacturing sectors, respectively.

The challenges these companies face are not identical: pharmaceutical firms emphasize product liability and R&D compliance more heavily, while steel, chemical, and building materials companies simultaneously grapple with energy consumption, emissions, workplace safety, and cyclical volatility. Construction and transportation enterprises, meanwhile, must focus on order quality, payment collection, leverage, and asset efficiency. The value of ESG-V ratings lies precisely in unifying diverse industry-specific risks under the overarching assessment of whether responsibility can be translated into sustainable value.

Of the 66 sample companies in Chongqing, 42 disclosed ESG-related information while 24 did not. Among disclosing companies, nine achieved a rating of A or higher, representing approximately 21.4%; among non-disclosing companies, three reached A or above, accounting for 12.5%. High-rated companies are thus more prevalent within the disclosure group.

However, disclosure does not automatically preclude low ratings. Among disclosing companies, nine still fell into the CCC or lower category, while four non-disclosing companies were similarly rated CCC or below. This outcome indicates that ESG reporting serves merely as an entry point to governance transparency—the ultimate determinant of ratings remains whether disclosed content can be substantiated by operational performance, compliance records, and external data.

For Chongqing’s numerous manufacturing, pharmaceutical, and public service enterprises, the next phase must move beyond merely asking 'whether a report exists' toward establishing a comprehensive mechanism spanning responsibility identification, indicator management, risk control, and value realization—ensuring that information disclosure genuinely reflects governance capability and operational quality.

Overall, ESG-V ratings of Chongqing-listed companies exhibit distinct characteristics of an industrial city: the automotive supply chain demonstrates the most stable high-rating advantage, environmental protection and technical services elevate the rating ceiling, state-owned capital platforms and public utilities anchor the baseline, while pharmaceuticals, biotech, equipment manufacturing, and consumer brands provide industrial depth.

Chongqing’s strengths lie in its solid foundation in real-economy industries, a complete automotive supply chain, and relatively strong urban governance and industrial support capabilities. Its challenges include a still-limited number of high-rated companies, significant disparities within the pharmaceutical sector, and a portion of traditional industrial and small-to-midsize manufacturers remaining in the tail-end segment. The key going forward is not to add more industrial labels, but to drive more BBB- and BB-rated companies into the A and AA ranges.

For investors, this rating is not merely a responsibility assessment—it is also a structural map for observing Chongqing’s industrial transformation and the long-term competitiveness of its listed companies. Those who can truly integrate manufacturing capability, urban functionality, governance responsibility, and capital returns will be best positioned to convert regional industrial advantages into enduring capital market value.

Moving from a traditional industrial hub toward synergy between responsibility and value, the next phase for Chongqing’s capital market must address not just which companies are larger or in hotter sectors, but which ones can translate their industrial capabilities into sustainable, verifiable, and realizable long-term value.

ESG-V Ratings Ranking of Chongqing-Listed Companies

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