Income threshold of top 500 private enterprises and new economic enterprises

On August 22, the All-China Federation of Industry and Commerce released a list of the top 500 private enterprises in China in 2019. Compared with last year, 85 companies have entered the list. In addition, 20 private enterprises are among the top 500 in the world, an increase of 3 over the previous year.

Through the list, a "portrait" of China's top 500 private enterprises is presented.

It should be noted that this list is based on the survey of large-scale private enterprises on the National Federation of Industry and Commerce, and is ranked in descending order according to the total revenue of the previous year. Huang Rong, vice-chairman of the All-China Federation of Industry and Commerce, issued the report, summarizing the new climate of the top 500 private enterprises in China in 2019: the entry threshold continues to rise; the super-large enterprises continue to grow; the profit level has improved; the social contribution continues to increase; the industrial structure continues to optimize; the pace of going out has been accelerated, and the total export volume has been relatively high. Great growth.

In 2018, the top 500 private enterprises focused on industry and major industries, insisted on independent innovation, enhanced core competitiveness, strengthened quality brand building, actively participated in major national strategies, played a good role in the "three major battles" to promote high-quality development of enterprises.

In addition, through the analysis, there are still some noteworthy problems, such as the decline of the profitability of enterprises, financing costs, raw material costs, tax and fee burdens are still the three most influential costs of the top 500 private enterprises. The list shows that Huawei Investment Holding Co., Ltd. ranks first, with business income exceeding 700 billion yuan, reaching 71.102 billion yuan. This is the fourth consecutive year that Huawei has won the championship. By contrast, when Huawei topped the list in early 2016, Huawei's business revenue doubled and grew strongly. Followed by Haihang Group Co., Ltd. and Suning Holding Group, with business income of 618.293 billion yuan and 602.456 billion yuan, respectively. It is worth noting that in 2019, China's top 500 private enterprises reached a new high threshold: the lowest revenue reached 18.586 billion yuan. This entry threshold increased by 2.902 billion yuan compared with the previous year. According to the list, super-large enterprises continue to grow. In 2018, the business income of 12 enterprises exceeded 300 billion yuan, an increase of 3 over the previous year. At the same time, the list shows that private enterprises are becoming more and more "wealthy": 76 enterprises with total assets exceeding 100 billion yuan in 2018, an increase of 15 over the previous year. Among them, Hengda Group Co., Ltd. ranks first in the total assets of the top 500 private enterprises with a scale of 1.88 trillion yuan.

"It is the inevitable law of economic development that the entry threshold of the top 500 private enterprises is raised and the super-large enterprises continue to grow." Teng Tai, president of Wanbo New Economic Research Institute and chairman of Wanbo Brothers Asset Management Co., Ltd., said in an interview with Securities Daily that this aspect is conducive to the improvement of industrial concentration, reflecting the improvement of enterprise strength and international competitiveness. At the same time, attention should be paid to preventing the formation of monopoly at home and to protecting it. The survival space of small and medium-sized enterprises and start-ups should be maintained at the micro level. How many years does it take for an enterprise to grow into the top 500? According to the data of Tian Eye Check, the registration time of the listed companies was concentrated in 1992-2011, of which 41 were registered in 2003.

From the point of view of geographical distribution, Zhejiang Province has the largest number of enterprises on the list, with 92, followed by Jiangsu, Shandong and Guangdong Province, with 83, 61 and 60 respectively. The number of listed enterprises in the above four provinces reached 296, accounting for 59.2%. In the first half of 2019, the GDP of these provinces also ranked the top four in the country, accounting for 41% of the total GDP, of which the GDP of Guangdong, Jiangsu, Shandong and Zhejiang provinces accounted for 12.3%, 11.8%, 10.2% and 6.9% respectively. The roughly matching of the number of private enterprises on the list with the GDP scale of each province shows that private enterprises are an indispensable engine for the economic growth of each province. Wu Chaoming, deputy dean of the Institute of Finance and Credit International Economics and chief economist of Fortune Securities, told Securities Daily. At the same time, he said that besides matching the GDP rankings of the provinces, the proportion of loan balances from financial institutions in the above-mentioned provinces also ranked among the top four in the country, accounting for 10.7%, 8.6%, 5.7% and 7.8% respectively at the end of 2018, with a total proportion of 32.8%, reflecting the financial institutions'credit support to the real economy and economic growth in general.

Through the list, the reporter of Securities Daily noticed that 337 enterprises in the secondary industry have been listed and continue to occupy the dominant position. Among them, 295 manufacturing enterprises were listed, 7 more than the previous year. There are 157 listed enterprises in the tertiary industry, five less than the previous year. Asset size and operating income account for 60% and 40% of the top 500 enterprises respectively. Their proportion has increased compared with the previous year. The role of the tertiary industry in stimulating economic growth has been further enhanced. The top ten industries of the top 500 private enterprises include 312 enterprises, 4 less than the previous year. The ferrous metal smelting and calendering industry, comprehensive industry, real estate industry and construction industry rank the top four.

In response, Teng Tai told Securities Daily that, in terms of industrial situation, black mining, real estate and construction enterprises account for a high proportion, while new economic enterprises account for a small proportion. This reflects the characteristics of the current and past economic structure, as well as the aging of China's economic supply structure. It's still more serious.