The 500 largest private companies in China

chiny24.com 1 year ago

The China-wide Federation of manufacture and Trade (chin. 中华全国工商业联合会) for the 25th time published a list of the 500 largest private companies in China.

The list was based on 8961 companies with yearly revenues (2022) of RMB 500 million or more (about PLN 298,940 million).

In order to be among the 500 largest private companies, a minimum of 27,578 billion RMB (about PLN 16,426 billion) of gross had to be achieved in the past year.

The first 500 companies included 17 companies with revenues exceeding 300 billion RMB (about PLN 179.83 billion) and 8 with revenues over 500 billion RMB (about PLN 299.70 billion). JingDong Group Co., Ltd. (chin. 京东集团有限公司) achieved an income of over 1 trillion RMB (about PLN 599,26 billion) and for the second time in a row it turned out to be the largest private company in the country.

What else about the top 500 we learn from this ranking:

the full operating income of these companies in 2022 was 39.83 trillion RMB (approx. PLN 23.93 trillion, i.e. more than 4 times the GDP of Poland during this period), this represents an increase of 3.94% y/y;
the full assets of the 500th is 46.31 trillion RMB (approx. PLN 27.75 trillion), an increase of +11.21% y/y;
net profit after taxation amounted to 1.64 trillion RMB (approximately PLN 983.112 trillion), a decrease of 4.86% y/y; average net sales margin of 4.13%;
303 companies on the list represent the manufacturing sector (including the production of machinery and electrical equipment) and dominate online technologies, net services, e-commerce, non-ferrous metallic processing;
In 326 companies, more than 3% of employees are employees from R&D, in 8 companies it is more than 10%, Tencent Holdings Co., Ltd. (chin. 腾讯控股有限公司, WeChat owner) spends the most on R&D, in 2022 it was 61.41 billion RMB (about PLN 36.806 billion);
These 500 companies paid to the state budget in the last year 1.25 trillion RMB (approximately PLN 750 billion) for taxes, which represented 7.51% of all taxation revenues in the PRC. The largest contributors on this list were Zhejiang Geely Holding Group Co., Ltd. (chin. 浙江吉利控股集团有限公司), i.e. 47.36 billion RMB (approx. PLN 28.39 billion), Zhejiang RongSheng Holding Group Co., Ltd. (chin. 浙江荣盛控股集团有限公司) and Tencent Holdings Co., Ltd. (chin. 腾讯控股有限公司);
The 500 largest private companies employed a full of 10,972 100 employees, making up 1,50% of all home employees. The largest private employer in China was BYD Company Limited (chin. 比亚迪股份有限公司) employing 570 100 people, and the second was JingDong Group, employing 450,000 people;
The export value of these 500 private companies amounted to USD 276.36 billion (about PLN 1.21 trillion), which represents 7.69% of the full Chinese exports.
188 companies from this list invested abroad, a 20% decrease in the year;
the most many private companies on the list were those registered in GuangDong Province, followed by Zhejiang, Shanghai, Beijing and JiangSu Province;

The above figures clearly illustrate the importance of private companies in the Chinese economy. They are an crucial part of the economy, as specified they are besides subject to the turbulence presently facing China's economy.

For example, net profit after tax, net margin, return on net assets of private companies decreased compared to last year. Similarly, operational efficiency.

Private companies on the list of 500 National manufacture and Trade Federations have become more cautious in terms of mergers, acquisitions or global operations. They have clearly reduced their activities in this respect compared to erstwhile years. As with another companies operating in China, they are suffering from rising costs of natural materials and labour and mediocre home demand.

1o of the largest private companies on the list 500, 2023

By the way: I wonder if Polish companies can compete with 500 private Chinese companies? The largest Polish private company, Dino Polska Group, in 2022 achieved revenues of PLN 19.8 billion (c. 33.24 billion RMB), giving it 377th place on the list of the largest Chinese private entities.

This is not the case with the State-owned PKN Orlen. With gross for 2022, this fuel company would have ranked 10th on the list of the Chinan Federation of manufacture and Trade.

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