What new changes are revealed?, Top 500 Private Enterprises
On September 12th, the All China Federation of Industry and Commerce released the 2023 Top 500 Private Enterprises in China and the "2023 Top 500 Private Enterprises in China Research and Analysis Report".
What information is worth paying attention to in the list and what new changes are revealed in the development of the private economy?
JD, Alibaba, and Hengli rank in the top three
Huawei did not participate in the evaluation
This year is the 25th consecutive survey of large-scale private enterprises organized by the All China Federation of Industry and Commerce, with a total of 8961 enterprises with annual revenue of over 500 million yuan participating. The 2023 ranking is based on the operating revenue of enterprises in 2022.
The report shows that the entry threshold for the top 500 private enterprises this year reached 27.578 billion yuan, an increase of 1.211 billion yuan from the previous year. 17 Fortune 500 companies have a revenue exceeding 300 billion yuan, of which 8 companies have a revenue exceeding 500 billion yuan. 28 private enterprises from the Fortune Global 500 have been shortlisted.
🔹 Screenshot of research and analysis report
The top three companies are JD Group, Alibaba Co., Ltd., and Hengli Group Co., Ltd., with operating revenues of 1046.236 billion yuan, 864.539 billion yuan, and 611.757 billion yuan in 2022, respectively. Among them, JD Group has been ranked first on the Top 500 Private Enterprises list for two consecutive years and first on the Top 100 Private Enterprises in the Service Industry list for three consecutive years; Hengli Group Co., Ltd. has ranked first among the top 500 private manufacturing enterprises for two consecutive years.
This year, Huawei Investment Holding Co., Ltd. did not participate in the selection. According to Huawei's annual report, Huawei's revenue in 2022 was 642.3 billion yuan.
More emphasis on technological innovation capabilities
What highlights of the development of private enterprises are revealed in the list?
——An increase in the number of shortlisted manufacturing enterprises in the upstream and midstream
![What new changes are revealed?, Top 500 Private Enterprises](https://a5qu.com/upload/images/170ebc3f3bb467103ce3ac99ae9e1b31.jpg)
Liang Jing, a senior researcher at the Bank of China Research Institute, analyzed the industry distribution through the China News Service. From the perspective of the significant increase in commodity prices, rapid development of new technologies, and rapid development of exports, the number of relevant upstream and midstream manufacturing enterprises shortlisted has increased.
For example, the black metal smelting and rolling processing industry continued to rank first, with an increase of three shortlisted enterprises compared to the previous year. The number of shortlisted enterprises in industries such as non-ferrous metal smelting and rolling processing, chemical raw material and chemical product manufacturing, computer communication, electrical machinery and equipment manufacturing also increased.
——Private enterprises attach greater importance to enhancing their technological innovation capabilities
The number of companies with R&D personnel accounting for over 10%, 3% -10%, and 1% -3% of the Fortune 500 companies increased by 17, 21, and 17 respectively compared to the previous year. The number of companies with R&D investment intensity greater than 10%, 3% -10%, and 1% -3% also increased by 2, 4, and 12 respectively compared to the previous year.
The report shows that Tencent Holdings Limited ranks first with a research and development investment of 61.401 billion yuan. Among the top 500 private enterprises, 414 of them rely mainly on independent research and development for their key technologies, while 432 of them complete the transformation of scientific and technological achievements through self financing. More than 90% of the Fortune 500 companies implement or plan to implement digital transformation at different levels, and nearly 90% of companies adopt various measures to implement green and low-carbon development. The number of valid patents in the top 500 private enterprises decreased by 3.86% compared to the previous year, with a domestic increase of 8.42% in the number of valid patents; The number of effective trademark registrations in China increased by 3.90% compared to the previous year, while the number of international trademark registrations in Madrid increased by 55.40%.
Liang Jing analyzed that private enterprises attach greater importance to enhancing their technological innovation capabilities. On the one hand, the domestic economy has entered a new stage of development, and the consumer demand of residents is constantly changing and upgrading. The increasing demand for personalization, diversification, and upgrading requires the supply side to improve its adaptability to effective demand, requiring enterprises to better meet the changes in demand through innovation in technology, products, services, and other aspects.
On the other hand, the external environment is becoming more complex and ever-changing, and the world political and economic landscape is undergoing profound changes. In order to better respond to the challenges brought about by this, enterprises need to continuously strengthen their independent innovation capabilities and continuously enhance their competitiveness. In addition, private enterprises are an important component of the national economy, and their high-quality development is also a necessary part of China's high-quality economic development. In recent years, the government has also been continuously providing a favorable policy environment for private enterprises to promote technological innovation, transformation and upgrading.
Confidence in the development of private enterprises
Further improvement is needed
While the number of Fortune 500 manufacturing companies is increasing and private enterprises are paying more attention to technological innovation capabilities, the development of the private economy is also facing certain pressures.
🔹 Screenshot of research and analysis report
The report shows that the total operating revenue of the top 500 private enterprises is 39.83 trillion yuan, an increase of 3.94%. The total assets reached 46.31 trillion yuan, an increase of 11.21%. After tax net profit was 1.64 trillion yuan, a decrease of 4.86%. The sales net profit margin, asset net profit margin, and return on equity of the top 500 private enterprises were 4.13%, 3.67%, and 10.81%, respectively. The per capita operating income and net profit were 3.6304 million yuan and 149800 yuan, respectively, and the total asset turnover rate was 88.86%.
![What new changes are revealed?, Top 500 Private Enterprises](https://a5qu.com/upload/images/b9a63f4450576a4caccd94604bfd1696.jpg)
Liang Jing analyzed that overall, the operating situation of private enterprises is consistent with the overall macro situation. In 2022, the Chinese economy was greatly affected by multiple unexpected factors such as the epidemic, both domestically and internationally. The triple pressure on the economy increased, and the operating efficiency of enterprises faced some pressure. The growth rate of the operating income of the Fortune 500 companies slowed down, and the net profit after tax and sales net profit margin showed varying degrees of decline. But at the same time, the government has introduced a series of supportive policies to help businesses overcome difficulties. The overall scale of the Fortune 500 companies has grown steadily, especially with a significant increase in assets compared to the previous year, with a year-on-year increase of 11.21% in total assets.
Wang Jun, Chief Economist of Huatai Asset Management Co., Ltd., told China News Service that the growth rate of private enterprise operating income has slowed down, and the net profit after tax, sales net profit margin, and total tax payment have decreased, indicating that the difficult situation of private enterprise operation has not been fundamentally improved. Private enterprises still need greater policy support, including market access and investment in major projects.
Since the beginning of this year, China has introduced a series of measures to increase support for the private economy. This includes issuing a notice on implementing several recent measures to promote the development of the private economy, supporting private enterprises with 28 measures, and establishing a private enterprise development bureau.