Top 500 Private Enterprises: Huawei's First Income Falls Fourth

On August 25th, the Ministry of Economic Affairs of the National Federation of Industry and Commerce released the analysis report of the top 500 private enterprises in 2016. The top five operating incomes of private enterprises in 2015 were Huawei, Suning, Shandong Weiqiao, Lenovo and Zhengwei. Among them, Lenovo fell from the first year of the previous year to the fourth, Huawei from the second year of last year to the first list in 2016.

The above research report also shows that private enterprises are now clearly differentiated. For example, emerging industries have strong profitability, and the net asset yield of the Internet and related services has reached 25.1%, but the traditional industry has poor earnings, and the coal mining and washing industry is only 0.13%.

In addition, private enterprises dominated the east, the number of short-listed enterprises increased, and the number of enterprises in the central and western regions decreased. In this year's list, there were 392 enterprises in the eastern region, an increase of 8 from the previous year, accounting for 78.40%, and the top three enterprises in Zhejiang, Jiangsu and Guangdong.

Wang Qinmin, vice chairman of the National Committee of the Chinese People's Political Consultative Conference and chairman of the National Federation of Industry and Commerce, pointed out in the release of the list that the current downward pressure on the economy continues to increase, and long-term and structural contradictions are intertwined, which brings great difficulties and challenges to the development of the private economy.

He said that for private enterprises, it is necessary to adhere to the path of innovation and development, continuously increase investment in research and development, and enhance the core competitiveness of enterprises; it is to integrate into the national development strategy, take the supply-side structural reform as an opportunity to accelerate transformation and upgrading, improve quality and efficiency. Towards the mid-to-high end.

According to a survey conducted by the National Federation of Industry and Commerce, the biggest problem affecting the development of the top 500 private enterprises is the increase in labor costs, accounting for 66.6%; followed by the heavy burden of taxes and fees.

In this regard, TCL Chairman Li Dongsheng pointed out that China's industrial manufacturing costs are becoming more and more obvious. The next step is to rely on products and technologies. This transformation means that the entire resource allocation of enterprises has undergone fundamental changes.

Second-generation finalists reduced

According to the report released on the same day, the top 500 private enterprises in 2016 entered the threshold of 10.175 billion yuan, breaking through the 10 billion yuan mark for the first time.

Among the top 500 private enterprises, the top 100 private service enterprises entered the threshold of 12.437 billion yuan, a net increase of 749 million yuan from the previous year's 11.688 billion yuan; the private enterprise manufacturing top 500 threshold was 4.52 billion yuan, compared with the previous year. The 4.667 billion yuan dropped by 147 million yuan, which is in line with the current development trend of manufacturing and service industries.

The data shows that the structure of the top 500 private enterprises is also changing. The number of enterprises enrolled in the top 500 private enterprises in the tertiary industry increased from 130 in the previous year to 137; while the number of enterprises in the secondary industry decreased, from 364 in the previous year to 357.

From the perspective of the top 500 private-sector enterprises, one-quarter of the top 20 are real estate. Considering that the threshold for private enterprises in the top 500 manufacturing industry in 2016 is 4.52 billion yuan, down from 4.667 billion yuan in the previous year, reflecting The economy has signs of detachment.

Tan Lin, the Minister of Economic Affairs of the National Federation of Industry and Commerce, pointed out that the top 500 private enterprises in 2016 have new characteristics, such as the top ten industries, showing a trend of adjustment from traditional industries to emerging industries. In addition, the gap in the profitability of the industry is wide.

The data show that in 2015, the construction industry, the ferrous metal smelting and rolling processing industry, the non-ferrous metal smelting and rolling processing industry, the wholesale industry, and the number of finalists in the retail industry all experienced different degrees of reduction, electronic computer, communication and other electronic equipment manufacturing. From the previous year's 11 to 18, and for the first time into the top ten industries.

The profitability of the top 500 private enterprises and modern service industries is generally strong. For example, the net assets return rate of the Internet and related service industries, business services, electronic computers, communications and other electronic equipment manufacturing in 2015 reached 25.13%. 23.10% and 18.88%.

In the traditional industries, the ROE of coal mining and washing, ferrous metal smelting and rolling processing, chemical fiber manufacturing, and non-metallic mineral products are only 0.13%, 4.65%, 5.48%, and 9.24%, respectively. It is significantly lower than the average return on assets of 13.32% of the top 500 enterprises.

According to the report, in 2015, a total of 375 companies have significantly accelerated their transformation, accounting for 75%, an increase of 4.8 percentage points over 2014.

"On the one hand, these enterprises intensively cultivate the main business, increase investment in innovation, increase the added value of products, break the 'iceberg' of the market, and achieve good performance; on the other hand, plan ahead, actively plan, layout emerging industries, cross the transformation of the 'volcano ', has produced new results." Tan Lin said.

Real estate and Internet companies are growing fast

An important feature of the top 500 private enterprises released this time is that enterprises in different industries have experienced great changes.

Huawei's operating revenue in 2015 was 395.09 billion yuan, a year-on-year increase of 37%. However, in 2015, Legend Holdings’ revenue was 309.826 billion yuan, an increase of only 7% year-on-year.

Some industry incomes have even declined. For example, Jiangsu Shagang Group's operating income in 2015 was 205.843 billion yuan, a decrease of about 40 billion yuan from the previous year; Midea Group's revenue was 139.347 billion yuan, a decrease of about 3 billion yuan over the previous year.

Some real estate companies have seen a significant increase in revenue. For example, in 2015, Country Garden Holdings, Evergrande Real Estate Group, Vanke Co., and Dalian Wanda received revenues of 113.223 billion yuan, 133.13 billion yuan, 1955.49 billion yuan, and 290.16 billion yuan, respectively, an increase of 20-500 billion yuan over the previous year. . This reflects the fact that the non-real economy is developing faster.

In addition, some Internet industry companies are growing fast. For example, Jingdong's revenue in 2015 was 181.287 billion yuan, a new increase of 150% over the 72.3 billion yuan in 2014.

The survey of the National Federation of Industry and Commerce found that the top 500 companies in 2016 faced problems such as high labor costs, heavy tax burdens, insufficient domestic market demand, difficult financing, and inadequate market order. Among them, labor costs have risen.

Some top 500 companies pointed out that whether to promote the growth of corporate income is fundamentally to achieve innovative development.

TCL Group's 2015 operating income was around 104.9 billion yuan, ranking 21st in the country. Li Dongsheng, chairman of the company, pointed out that the innovation drive has become a consensus. Doing fast-moving consumer goods requires technological innovation, and even more so for electronic products. In 2015, TCL's PCT (Patent Cooperation Agreement) international invention patent application volume was more than 1,400 pieces, a rapid increase from more than 7,300 pieces in 2014.

"We rely more on efficiency, speed, and cost control to quickly expand the market." He said at the press conference that the advantages of China's industrial manufacturing costs are becoming less and less obvious. In 2015, about half of TCL's revenue came from overseas, and the company's overseas income economy contributed a lot.

The Red Bean Group adopts a method of reducing physical factories and expanding the technology and consumer markets. Since 2007, we have abandoned the previous model of monopolizing production and management, and turned to focus on the two ends of the “smile” curve, focusing on technology research and development, and brand marketing. Achieved "large output and no increase in employment", mainly relying on output management, brand and other resources, outsourcing 80% of production, and implementing a strict outsourcing quality management mechanism.

Zhou Haijiang, vice chairman of the All-China Federation of Industry and Commerce and president of Hongdou Group, pointed out that many private enterprises are facing bottlenecks such as the reduction of labor dividends, shortage of natural resources, poor industrial competitiveness, and overcapacity, and must accelerate transformation and upgrading.

Zhou Haijiang pointed out that innovation does not necessarily make money, but as long as innovation can stay ahead for a period of time, it will certainly be profitable. Therefore, for the majority of private enterprises, innovation leading is the weapon of making money in the new normal, which is the core competitiveness of the entity.

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