2 Industry and geographical distribution of China’s top 500 companies
While analyzing the changes in the world economic map, it is also necessary for us to conduct an in-depth analysis of China’s shortlisted companies, especially when competing with other countries around the world. It is to find out the regular things in comparison with the top 500 companies in the United States.
1. From the perspective of industrial structure, China’s shortlisted companies are concentrated in traditional industries, while emerging industries are unsatisfactory.
From an industry perspective, among the 79 companies shortlisted this time, they are still mainly concentrated in the fields of electricity, banking, steel, energy, engineering construction, telecommunications, automobiles, etc., and are basically capital-intensive. and industries with high natural monopoly and administrative monopoly.
In contrast, the proportion of technical and innovative electronic and IT companies is still small, with only 4 companies in the electronics class and only 3 companies in the computer class. Among them, Taiwan There are two companies respectively, which further highlights the gap and shortcomings of technology and innovation companies in mainland my country.
If we analyze the previous 100 companies as an example, 11 companies from China are shortlisted. Except for one company each from Hong Kong and Taiwan, there are 9 companies from mainland my country, namely Sinopec, China Oil and gas, State Grid, Industrial and Commercial Bank of China, China Construction Bank, China Mobile Communications, Agricultural Bank of China, Bank of China, China State Construction Engineering Corporation. This makes the above features more obvious and prominent.
China, the United States and Japan are the top three countries in the world in terms of GDP, and are also the three countries with the largest number of Fortune 500 companies. The difference is that the United States and Japan are developed countries, while China is a developing country. Analyzing the industrial distribution of the Fortune 500 companies in China, the United States, and Japan will help Chinese companies discover gaps and promote further transformation and upgrading of Chinese companies and adjustment of industrial structure.
This time there are 29 American companies, 12 Japanese companies, and 11 Chinese companies, including one each from Taiwan and Hong Kong. Comparing the nine companies in mainland China with the Fortune 500 companies in the United States and Japan, it can be found that the 29 companies in the top 100 of the Fortune 500 in the United States include 5 healthcare companies, 4 oil refining companies, 4 banks, 2 financial companies, 2 retail companies, 2 automobile companies, 2 telecommunications companies, 2 food and drug companies, 1 household personal products company, 1 diversified company, 1 insurance company, 1 computer office equipment company , 1 information technology service company and 1 electronics company. The 12 companies ranking among the top 100 of the Fortune 500 include 4 electronic and electrical equipment companies, 3 automobile companies, 2 insurance companies, 1 postal service company, 1 telecommunications company, 1 oil refining company, and mainland Chinese companies. The nine companies ranked in the top 100 of the Fortune 500 include 4 banks, 2 oil refining companies, 1 power company, 1 telecommunications company, and 1 construction engineering company.
2. From a geographical point of view, China’s shortlisted companies are concentrated in the east, and no one is shortlisted in the west.
Among the 79 Chinese companies shortlisted for the Fortune Global 500 this time, the vast majority are headquartered in the more economically developed eastern provinces, especially Beijing. 44 of the 79 companies shortlisted this time are headquartered in Beijing, more than half of the shortlisted companies. The number of companies headquartered in central provinces is relatively small, while the number of companies headquartered in western provinces is almost zero. Except for Beijing, there are 6 companies headquartered in Taiwan and Shanghai each, 4 companies headquartered in Hong Kong and Guangdong, and 3 companies headquartered in Hebei. There are two companies in Zhejiang, Shandong and Hubei, and one in Tianjin, Jiangsu, Liaoning, Henan, Shanxi and Jilin.
It is worth mentioning that among the top 17 shortlisted companies, except for one each from Hong Kong and Taiwan, the remaining 15 are all headquartered in Beijing.
3. From the perspective of ownership distribution, Chinese companies in the world's top 500 have strong public ownership characteristics.
Most of my country's companies that have entered the world's top 500 are state-owned enterprises or state-controlled companies. In contrast, the top 500 companies in developed countries are mostly private companies and joint-stock companies, and most of them are in highly competitive industries.
The ownership structure of the 69 companies in mainland China listed on the Fortune Global 500 determines that they are very different from other Fortune 500 companies. Except for 5 private companies, all the others are state-owned or State-controlled enterprises, 42 of which are directly under the central government under the supervision of the State-owned Assets Supervision and Administration Commission of the State Council. The operating models, management systems and mechanisms (leader appointment methods, talent training and selection mechanisms, allocation and incentive mechanisms, etc.), resource integration, and business methods of these enterprises all show Chinese characteristics that are different from those of the world's large enterprises. These enterprises are mainly divided into three categories. First, there are enterprises whose industry distribution has obvious monopoly, population and market dependence, and also has a certain degree of globalization. They are mainly monopolistic industries such as petroleum, electric power, and steel. Without exception, enterprises have a strong national background and have strong domestic resource advantages; followed by industries that are related to the national economy and people's livelihood and have a large consumer market, such as banking and insurance, oil refining and crude oil, electricity, telecommunications services, computer office equipment, automobiles etc., these enterprises have developed well due to the huge domestic market; there are also enterprises that reflect a certain degree of global characteristics, such as engineering and construction, shipping, steel smelting and other industries. These enterprises have adapted to economic globalization. Participating in international market competition and having international comparative advantages, it has developed rapidly.
3 New characteristics of China’s 79 shortlisted companies
The quantity and quality of China’s companies on the list have improved this year, and most of them have improved their scale and rankings. Not only does China rank second in the world with 79 companies on the list, but the rankings of most of the companies on the list are also rising, with 11 companies entering the top 100 and 3 companies entering the top 10.
The rankings of the three companies in the top 10, Sinopec, PetroChina and State Grid, have not changed, ranking 5th to 7th respectively, but their annual operating income has increased by approximately US$101.8 billion, US$112.1 billion and 32.85 billion respectively. Dollar.
1. With the addition of 13 new faces, energy companies are advancing strongly.
Although the threshold for inclusion in the Fortune Global 500 this year has increased by US$2.52 billion compared with last year, reaching US$22.006 billion, there are still 13 Chinese companies newly listed in the Fortune Global 500. They are: China Electric Power Construction Group; Tianjin Materials Group; China Huadian Group; Shandong Weiqiao Entrepreneurship Group; Shanxi Coal Transportation and Marketing Group; China Power Investment Group; Shandong Energy Group; Anshan Iron and Steel Group; Zhejiang Geely Holding Group; Greenland Holding Group; Xinxing Jihua Group; Kailuan Group; China Merchants Bank. In addition to the above 13 new companies on the list, there are three companies that have changed their reporting entities this year and are also considered new companies on the list.
2. The ranking is rising faster, and the banking industry is rising steadily.
China National Building Materials is undoubtedly the biggest winner among central enterprises. After joining the Fortune Global 500 for the first time last year, CNBM’s ranking this year has risen 120 places compared with last year. In addition, China National Aviation Oil and China Resources Group both rose 113 places. CNOOC rose from 162nd to 101st, and Wilmar International, the parent company of Arowana with China as its main market, rose to 223rd, an increase of 94 places from last year, ranking third in the world in the food production industry. Lenovo Group was selected for the third time, and with its revenue of US$29.6 billion in fiscal year 2011, it jumped to 370th place. Ping An Insurance improved from 328th to 242nd, both of which are also eye-catching.
The overall substantial improvement in the ranking of China’s banking industry is also worthy of note. Most banks in the banking industry have already entered the top 200, and it is even more difficult to get to the top. However, China's banking industry rankings still maintain a strong momentum of improvement. ICBC rose from 77th to 54th, making it the highest-ranking mainland Chinese company besides PetroChina, Sinopec and State Grid. China Construction Bank rose from 108th to 77th, Agricultural Bank of China rose from 127th to 84th, Bank of China rose from 132nd to 93rd, Bank of Communications rose from 398th to 326th, and China Merchants Bank also ranked among the world's 500 for the first time. Strong, ranked 498th.
3. The performance of private enterprises is extremely eye-catching.
Among private enterprises, Zhejiang Geely Holding Group entered the Fortune Global 500 for the first time, and its ranking jumped from 688th last year to 475th.
Other Chinese private companies on the list include Ping An Insurance (Group) Co., Ltd. of China (ranked 242nd), Jiangsu Shagang Group (ranked 346th), Huawei Investment Holdings Co., Ltd. (ranked 351st), and new entrants to the list this year. Shandong Weiqiao Entrepreneurship Group, as a well-known family business, has recently attracted attention due to the power generation incident.
4. China’s automobile industry is developing steadily. In this fully competitive market, Chinese companies have “blazed a bloody trail.”
In addition to the resource industries and some monopolistic companies such as large state-owned banks entering the world's highest palace of wealth, the steady development of China's automobile industry this year is also a highlight.
As a representative of "Made in Shanghai", China's largest listed automobile company SAIC Motor is still on the 2012 Fortune Global 500 list. This year, SAIC ranked 130th on the Fortune Global 500 list with operating income of US$67.2548 billion and profit of US$3.1279 billion. Shanghai Automobile leads the top five Chinese automobile companies on the list, and most of them have climbed to varying degrees. Geely Automobile's entry into the list for the first time has attracted great attention from the market.
In addition, it is worth noting that the metal industry has become the industry with the most Chinese companies on the list, with Chinese companies accounting for half of the 18 companies in the world. Compared with technology-intensive and innovative companies from Japan and the United States such as pharmaceuticals, software, and computers, they are indeed “big but not strong.”
5. The enterprise forms a new development model and improves its management level.
Among the companies that have entered the Fortune 500, most of them attract attention through different models. It also represents the upward development trend and strong breakthrough in the management level of a certain industry in China. The turnover of China National Building Materials Group has increased from 2 billion yuan to 200 billion yuan in 10 years. It is indeed not easy to achieve such results in a traditional overcapacity industry. This is mainly due to the market-oriented development and operation model of China National Building Materials Group. Song Zhiping, chairman of China National Building Materials Group, summarized it as a "state-owned enterprise and municipal enterprise".
Shenhua Group moved up 64 places among the Fortune 500 companies last year and moved up 59 places this year. As China's largest coal company, its operation model is the integrated operation of "coal, electricity, roads, ports, and oil", forming a huge industrial chain and is widely known as the "Shenhua Model".
6. The company is large but has low profits. The improvement in ranking has not stopped the declining stock price.
On the day the Fortune 500 list was announced, the Shanghai Composite Index fell by 2.37% due to the impact of CPI data, and some leading companies fell more fiercely than the broader market. PetroChina and Sinopec fell 2.74% and 4.61% respectively, and ICBC's stock price fell 2.81%. The most bizarre thing is that China Merchants Bank, which was on the list for the first time, topped the investor selling list with capital outflows of more than 400 million yuan throughout the day.
In fact, the stock price performance of China's Fortune 500 companies has not been sluggish for a day. Since PetroChina went public in 2007, its ranking in the Fortune 500 has improved from 24th to 6th today. However, its stock price has dropped from 48 yuan to less than 10 yuan, and it has been called one of the most "cheating" stocks by investors. The collective performance of bank stocks is also disappointing. The share prices of China Construction Engineering Corporation are all below 5 yuan, and the overall valuation has reached a record low.
4 The growth of the top 500 companies against the trend highlights the development trend of the world economy
Although the world economy is still in crisis, the Fortune Global 500 still performed well this year, with total revenue reaching 295,000 billion, an increase of 13% over the previous year, and total profits reached US$1.6 trillion, an increase of 7% over the previous year. The entry threshold was also increased by US$2.5 billion to US$22 billion, highlighting the new trend of world economic development. .
1. The world economy is in a downturn, and the top 500 companies are growing against the trend.
Since the outbreak of the international financial crisis, the economic situation has been sluggish, but strong companies seem not to be affected much. The world's 500 largest companies have experienced strong growth for the second consecutive year, and their development trends have once again deviated from the trends of the international financial crisis.
The operating income of the top 500 companies in 2009 was US$23.1 trillion, a decrease of 8.3% from 2008. But the downturn of the Fortune 500 companies did not last long. Just one year later, the operating income of the top 500 companies on the 2010 list has increased by 12.7% compared with 2009, and their profits have increased significantly by 59.0%.
The list released this year shows that the operating income of the top 500 companies reached US$29.4 trillion, a year-on-year increase of 13.3%, and the profits were US$1.63 trillion, a year-on-year increase of 6.7%.
2. Traditional industries are shrinking and new technology industries are constantly developing.
From a vertical perspective, the distribution ratio of the Fortune 500 in various industries has undergone significant changes since the 1990s. On the one hand, the number of companies in traditional industries such as oil refining, construction and building materials, chemicals, and industrial and agricultural equipment manufacturing has significantly decreased; on the other hand, the number of companies in the medical and health industry, information industry, and financial securities industry has grown rapidly, and their average rankings have also continued to improve.
3. The "leader" in the development of information technology, biotechnology is advancing by leaps and bounds.
Among the world's top 500 companies, the turnover of the communications industry, electronic and electrical equipment, computer and office equipment industry, computer services and software industry, network communications industry, publishing and printing industry directly related to the information industry There is new growth every year, showing the strong vitality of the development of the information industry. Although various information industry companies entered the top 500 relatively late, their rankings have risen at an impressive rate and speed.
Biotechnology brings huge returns to enterprises. Humanity's concern for the quality of life has also brought new growth opportunities to the world economy. The biotechnology industry has become another economic growth hotspot after the information industry.
4. The banking industry is developing rapidly and profits are growing at an unprecedented rate.
Since the 1990s, the banking industry has developed extremely rapidly. Among the top 50 companies in the Fortune Global 500, there was not even a single bank in 1995. Today, the banking industry is booming and developing strongly. This shows that the formation of global economic integration and corporate mergers and acquisitions boom has greatly promoted the flow of funds on a global scale and promoted the development of the banking industry.
5. From the perspective of profit sources, the core competitiveness of an enterprise is extremely important.
It is not difficult to see from the development of the Fortune Global 500 that the key to the long-lasting prosperity and continuous development of a large number of economic giants on the world economic stage lies in the core formed in their long-term competition. Competitiveness, with the help of the above-mentioned operating data of the top 500 companies, summarizes the important factors that constitute their core competitiveness, which are basically reflected in the following aspects:
Continuous technological innovation has become the core of the competitiveness of modern enterprises. . The Fortune 500 own 90% of the world's production technology and 75% of its technology trade. Electronics, telecommunications, computers, and medical pharmaceuticals, which have the greatest development potential among the top 500, are all modern high-tech intensive industries. Especially after the 1990s, the technological revolution has made companies that mainly focus on high-tech product research and development enter the top 500 at a rapid pace. It's obviously accelerating. In recent years, the number of Japanese companies in the world's top 500 has dropped significantly. An important reason is that it lags behind Europe and the United States in basic research and technology development, which has led to a decline in the competitiveness of companies and a shrinking of scale.
Brand effect is a symbol of core competitiveness. In traditional fields (such as food, industrial and agricultural equipment, automobiles and other industries), more than 80% of the world's top 500 companies have a business history of more than 50 years, and nearly a quarter are "century-old companies". Coca-Cola and Pepsi-Cola have a market share of 60% in China and nearly 100% popularity. They are in a clear advantageous position in the market competition with their peers. Among the top 500 companies, brands such as McDonald's and Pepsi-Cola in the catering service industry, Ford and Honda in the automobile manufacturing industry, and Hitachi and Panasonic in the electronic and electrical industry are all household names in countries around the world.
Service and marketing are the main support points for corporate profit growth. More than 90% of the world's top 500 companies have branches and good marketing service systems throughout the global market. Procter & Gamble of the United States occupies nearly 25% of the global cleaning products market with its unique supply chain incentives and global distribution system. Its efficient brand agency model has become one of the important sources of its good performance.
6. Concentrate resources and quickly create economies of scale.
The top 500 companies in traditional fields such as steel smelting, petrochemicals, automobile manufacturing, banking, and food basically concentrate their corporate resources on a certain field, implement specialized and large-scale operations, and gradually Form its own economies of scale in cost, technology, marketing, etc. in this field to differentiate itself from its peers. Shandong Energy Group, Henan Coal, and Shanxi Coal, among the newly entered Fortune 500 companies in China, have all used the slogan of entering the Fortune Global 500 from the beginning, and their scale has expanded rapidly.
7. Strong cross-border operations indicate global economic recovery.
The reason why the top 500 companies are able to stand out in the global economic downturn is largely due to the fact that most of the top 500 companies are already multinational companies and they transcend the boundaries of space and geography. restrictions, deploy the market on a global scale, and effectively avoid the risks of operating in one country or place. In addition, the large-scale operations of multinational enterprises are also conducive to the integration and use of their production factors, allowing them to maximize the utilization and allocation of global resources in a downturn in the economic environment.
Facts show that the first growth of Fortune 500 companies often means that the global economy gradually begins to recover. With the Global 500 companies showing strong development momentum for two consecutive years, we seem to have more confidence and expectations in the continued sluggish global economy.