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5. Analysis of the growth rate of industries represented in the Top 500 Companies of China in 2010

Average revenue: Compared with the year 2009, the average revenue of most of industries represented in the Top 500 Companies of China in 2010 has increased to some extent. All together, 16 industries saw a negative growth, 12 more than the previous year. There are only two industries whose average revenue growth rate was more than 50 percent. The industry of electromechanical and electronic products trade had the highest growth rate of 52.7 percent, followed by the property development and operation, and home decoration, renovation and management service industry with 51 percent. 79.7 percent of industries kept an average revenue growth rate of less than 20 percent. Among the 16 industries with negative growth, 4 had a growth rate of less than -10 percent, including minerals and energy trade, chemical products & pharmaceutical trade, water transport as well as manufacturing of elevators and transport and storage equipment. For more details, please refer to Table 1-11.

Table 1-11. Average revenue growth rate of industries represented in the Top 500 Companies of China in 2010

Average profit: Among all industries represented in the Top 500 Companies of China, 62 had a positive profit growth rate in 2010, accounting for 83.8 percent of the total, while most of the industries saw a negative growth rate in 2009. 27 percent of industries had an average profit growth rate of more than 50 percent in 2010 while only 24 percent of the industries had a growth rate of more than 20 percent in 2009. Through 2010, most of the industries represented in China’s big companies had improved their profitability. Ranked first was the comprehensive insurance industry with 520.19 percent profit growth, followed by the property insurance industry with 430.86 percent. Another 8 industries saw an average profit growth rate of more than 100 percent, i.e., petrochemical products, coking and other fuel processing, manufacturing of telecom equipment and other electronic equipment and components, chemical fiber manufacturing, manufacturing of electronic office equipment and video equipment, general trade, wholesale and retail, other financial services, retail business and life insurance. 12 industries saw a negative profit growth rate, among which 5 gained less than -20 percent profit growth, i.e., ferrous metal smelting and pressing, manufacturing of elevators and transport and storage equipment, logistics, storage, transportation and distribution services, metal trade, processing, distribution, wholesale and retail as well as water transport. For more details, please refer to Table 1-12.

Table 1-12. Average profit growth of industries represented in the Top 500 Companies of China in 2010

Average assets: Compared with the previous year, 75 industries represented in the Top 500 Companies of China in 2010 gained asset growth to some extent. None saw negative growth. 73 percent of industries had an average asset growth rate in the scope of 10~30 percent. There are two industries whose average asset growth rate exceeded 50 percent, i.e., trade of electromechanical and electronic products, with 100.3 percent asset growth; and the industry of electrical appliances wholesale and retail with 65.8 percent. For more details, please refer to Table 1-13.

Table 1-13. Average asset growth rate of industries represented in the Top 500 Companies of China in 2010

 

6. A gap of benefits and efficiency exists between industries.

From the point of view of benefits, among the industries represented in the Top 500 Companies of China in 2010, 5 saw an average profit margin of more than 10 percent, and 5 had an average return on assets of more than 10 percent. From the point of view of efficiency, there are 4 industries whose asset turnover surpassed 300 times/year. Compared with the previous year, all of these indicators dropped in 2010.

Profit margin: In terms of average profit margins for the industries represented in the Top 500 Companies of China in 2010, the top five are banking (24.16 percent), port services (16.08 percent), alcoholic beverage manufacturing (12.48 percent), post and telecommunication (11.58 percent) as well as property development and operation, home decoration, renovation and management (10.89 percent). Only the railway transport and supporting services industry (-0.98 percent) saw a negative profit margin. For more details, please refer to Table 1-14.

Return on assets: According to the rankings of the average returns on assets for the industries represented in the Top 500 Companies of China in 2010, seven of the top 10 industries belong to the manufacturing industry and the other three are service industries. Among the seven manufacturing industries, ranked first was the manufacturing industry of agricultural and forestry machinery, equipment and components (18.74 percent), followed by meat products processing (11.29 percent), alcoholic beverage manufacturing (10.87 percent) and motorcycles and motorcycle parts manufacturing (9.69 percent). The three services industries are electrical appliances wholesale and retail (13.71 percent), auto and moto trade, maintenance and rental services (10.68 percent) and chain supermarkets (9.28 percent). Only the railway transport and supporting services industry (-0.3 percent) saw a negative return on assets. For more details, please refer to Table 1-14.

Asset turnover: According to the rankings of asset turnover for the industries represented in the Top 500 Companies of China in 2010, the top 12 had an asset turnover of more than twice a year. Nine of the twelve are service industries, i.e., electrical appliances wholesale and retail (551.37 times/year), computer & microelectronics services covering software, program and circuit design as well as computer applications and network engineering (395.42 times/year), auto and moto trade, maintenance and rental services (374.52 times/year), chain supermarkets (290.06 times/year), wholesale and retail of production materials (280.6 times/year), retail business (242.29 times/year), general trade, wholesale and retail (212.45 times/year), international cooperation on technical intelligence, human resources and labor services and other foreign economic cooperation services (209.68 times/year), trade of light industrial products including textile, clothing, recreational & sports products, tobacco, wine, arts & crafts and jewelry (208.27 times/year). The other three are manufacturing industries, i.e., manufacturing of agricultural and forestry machinery, equipment and components (491.89 times/year), agricultural and sideline product processing (224.8 times/year) and meat products processing (202.36 times/year). For more details, please refer to Table 1-14.

Table 1-14. Profit margin and asset turnover of industries represented in the Top 500 Companies of China in 2010

 

7. The railway transport industry still suffered heavy losses while the aviation and electricity industries turned better.

Among the 75 industries represented in the Top 500 Companies of China in 2010, only the railway transport and supporting services industry suffered losses. The aviation and electricity production industries, despite heavy losses during the previous year, gained big profits in 2010.

In the railway transport and supporting service industry, there are 16 companies on the Top 500 list, among which 12 reported losses in different degrees. Their total losses amounted to 17,766.38 million yuan, relatively better than 19,331.21 million yuan losses by these 12 companies during the previous year. Harbin Railway Bureau suffered the most serious losses at 6,603.79 million yuan, followed by Beijing Railway Bureau at 2,269.09 million yuan. Six railway companies profited to different degrees, including Taiyuan Railway Bureau, Guangzhou Railway (Group) Corporation, Zhengzhou Railway Bureau, Wuhan Railway Bureau, Nanning Railway Bureau and Lanzhou Railway Bureau.

Although the ferrous metal smelting and pressing industry made profits as a whole, some of its companies still suffered losses. These all belong to companies in the steel industry, including Pangang Group Company Ltd, Benxi Iron & Steel (Group) Co. Ltd, Baotou Iron & Steel Group Co. Ltd and Tonghua Iron & Steel Group Co. Ltd. Pangang Group Company Ltd suffered the heaviest losses at 2,003.31 million yuan.

In the air transport and related services industry, there are 4 companies on the Top 500 list, among which China Eastern Airlines did not submit data. China's other three major airlines gained total profits of 6,578.03 million yuan. Air China made the highest profit of 4,945.78 million yuan. However, all four companies suffered losses totaling 14,570.44 million yuan in the previous year.

In the electricity production industry, there are 11 companies on the Top 500 list, which all earned profits totaling 24,218.94 million yuan overall. China Huaneng Group made the highest profits at 5,041.46 million yuan. However, during the previous year, the top five companies in this industry suffered serious losses and the overall losses of the industry totaled 24,176.80 million yuan.

8. The Chinese commercial banking industry still made profits, but its growth slowed.

In the commercial banking industry, there are 12 banks on the Top 500 list, whose profits account for 30.17 percent of the list's total. In 2009, 13 banks were listed. This year, the Industrial Bank, Shenzhen Development Bank and Evergrowing Bank were replaced by Shanghai Pudong Development Bank and Chongqing Rural Commercial Bank. Among this year's 12 banks, Chongqing Rural Commercial Bank had the highest profit margins at 97.97 percent, followed by China Minsheng Banking at 53.51 percent. Eight banks had a profit margin within the scope of 0-30 percent, and the other two banks saw a negative profit margin, i.e., China Merchants Bank (-12.94 percent) and the Bank of China (-12.61 percent). However, the industry's profitability dropped compared with the previous year, when seven banks had profit margins of more than 30 percent. This indicates that due to the global financial crisis, many companies faced management problems or even went bankrupt. The crisis made indirect impacts on Chinese banks throughout the year. 

Summary	Report on Top 500 Companies of China in 2010
Chapter I.	Generation and Features
Chapter II.	Scale Features
Chapter III.	Performance Features
Chapter V.	Regional Distribution
Chapter VI.	Ownership Distribution
Chapter VII.	R&D Expenditure
Chapter VIII.	Ranking Changes on Top 500 List
Chapter IX.	Other Features
Chapter X.	Progress and Achievements of Large Companies
Chapter XI.	Major Problems of Large Companies

 

 

 

 

 

 

 

  

 

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