Translate to English: These private enterprises have fallen out of the top 100,
On September 11th, at the 2024 China Top 500 Enterprises Summit Forum, the China Enterprise Confederation and the China Entrepreneurs Association released the "China Top 500 Enterprises" list for the 23rd consecutive time. Upon reviewing the list, First Financial Daily reporters found that the top 100 private enterprises are concentrated in the fields of technology, energy, and automobiles. Relatively speaking, some technology-focused private enterprises have seen an increase in their rankings, and there are also new entrants into the top 100. However, the rankings and performance of private steel and energy companies have been declining.
After analyzing the "China Top 500 Enterprises" list for the past three years, First Financial Daily reporters discovered that private enterprises such as Zhengwei International Group Co., Ltd., Country Garden Holdings Co., Ltd., and Xiaomi Group, which were in the top 100 in 2022 or 2023, have fallen out of the top 100 in 2024.
E-commerce companies are increasingly making it to the list, indicating a more competitive industry.
The list shows that among technology-focused private enterprises, JD.com ranks the highest at 12th place, followed by Alibaba (21st), Huawei (30th), and Tencent (37th).
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JD.com ranks 12th in the 2024 "China Top 500 Enterprises," making it the number one among internet companies. In 2023 and 2022, JD.com was ranked 15th.
Traditional e-commerce is facing fierce competition. Zhang Yi, CEO of iMedia Research, believes that from an industry perspective, traditional e-commerce or shelf e-commerce lacks innovation, and companies are facing aging issues, with outdated thinking and a tendency to slack off among employees being common. Against this backdrop, new types of social e-commerce platforms such as Douyin, Kuaishou, Xiaohongshu, and even video accounts are continuously gaining momentum, significantly changing the way consumers access shopping information and the marketing strategies and channel construction of upstream manufacturers. This change is difficult for traditional e-commerce to meet with the existing shelf model. The decline of shelf e-commerce is evident, and the development of social e-commerce can be described as "irresistible."
From 2021 to 2024, Alibaba's rankings in the "China Top 500 Enterprises" were 19th, 20th, and 21st, respectively. Wind data shows that Alibaba's revenue from 2021 to 2024 was 853.06 billion yuan, 868.69 billion yuan, and 941.17 billion yuan, with revenue growth rates of 18.93%, 1.83%, and 8.34%, respectively.
In the last two quarters, through continuous investment in user experience, Alibaba has achieved double-digit growth and high single-digit growth in GMV for the past two quarters. How to maintain sustained growth momentum will become a long-term challenge for Alibaba.
Pan Helin, a renowned economist and member of the Expert Committee of the Ministry of Industry and Information Technology's Information and Communication Economy, stated that the e-commerce platform industry is one where scale effect is very obvious; without scale, there is no competitiveness. In the future, Alibaba can choose a multi-ecosystem approach to extend the Taobao e-commerce ecosystem outward, such as combining local services with e-commerce platform business. Behind Alibaba's "slowdown" and adjustments, e-commerce is moving towards more refined and comprehensive competition.
Tencent Holdings' ranking in the China Top 500 Enterprises list has fluctuated in the past three years, with rankings of 39th, 44th, and 37th in 2022, 2023, and 2024, respectively, corresponding to (the previous year's) revenue of 560.118 billion yuan, 554.552 billion yuan, and 609.015 billion yuan. Behind this, Tencent's annual revenue has been continuously growing since 2018 until a year-on-year decline in 2022.In the past year, Tencent's "ace business" domestic gaming business revenue has shown weakness. Regarding the future opportunities for Tencent, Ma Huateng mentioned the "hope of the whole factory" Video Account business, which is a short video that "combines its own characteristics and does familiar social networking," but there is still a need to supplement e-commerce knowledge, as e-commerce and advertising complement each other. In addition, mini-programs, mini-games, and search services have also been positioned by Ma Huateng as the "new buds" of WeChat in the future. In terms of gaming business, he described the overseas expansion of games as the company's greatest hope for internationalization.

However, new challenges faced by Tencent include how to deal with the decline in revenue from some old businesses such as game live streaming, and how to convert the investment in large models into profits. This year, the gradual establishment of the internet "demolition of walls" has become a foregone conclusion. Tencent's games have opened up live broadcasting on Douyin, and WeChat Pay has been integrated into Taobao. How to stand firm and seek growth in a more open competitive environment on the internet will be a new highlight of this year.
In comparison, Meituan's ranking has improved rapidly, ranking 99th in the "Top 500 Chinese Enterprises" in 2024, entering the top 100. The ranking was 126th in 2023 and 150th in 2022. However, the external environment faced by Meituan over the past three years can be described as the "disappearance of the comfort zone."
To cope with competition, Meituan has also taken many measures. For example, it has reduced some commission rates. Since the beginning of this year, Meituan has adjusted its organizational structure multiple times. On August 23, Wang Xing announced in an internal email that "the company's organization will continue to iterate." Amid changes in the external consumer environment, Meituan has also achieved business growth through low-price strategies.
The number of entrants in the communication industry has expanded, and the competition in the home appliance stock market has intensified.
It is worth noting that in the 2024 list of China's top 500 companies, the number of enterprises in the fields of communication equipment and computer manufacturing, semiconductor and panel manufacturing reached 31, including China Mobile (600941), Huawei, China Telecom, China Unicom, Lenovo, China Electronics Technology Group, Xiaomi, Datang, China Electronics Information Industry Group, BOE, TCL, Hengtong, ZTE, Inspur, Digital China (000034), Honor Terminal, Zhongtian Technology (600522), China Tower, Wingtech Technology (600745), Tongding, China Information Communication Technology Group, and H3C. Over the past five years, this field has added 18 companies.
Among the private enterprises listed in the communication equipment industry, Huawei ranks 30th in the top 500 list, second in the communication industry, with a revenue of 704.1 billion yuan. Over the past three years, the business environment faced by Huawei has experienced significant ups and downs, but in terms of ranking, there is no significant change. Huawei's ranking was 32nd in 2023, with a revenue of 642.3 billion yuan, and in 2022, it was 33rd, with a revenue of 630.6 billion yuan, and the overall revenue is still on the rise.
Official information from Huawei shows that the terminal revenue from the mobile phone business once fell from 483 billion yuan to 214.5 billion yuan within three years. In contrast, Apple's market share in China has gradually climbed to 17.3% last year, becoming the largest successor in Huawei's high-end market. However, from a sustainable development perspective, Huawei still faces challenges brought by a complex external environment. From the normalization of sanctions to normal operations, from survival to development, how Huawei builds a more resilient supply chain capability to ensure high-quality business continuity and product competitiveness is the core of future sustainable development.
In the 2024 list of China's top 500 companies, there are about 11 home appliance and panel companies. Their rankings, changes compared to the previous year, and 2023 revenues are as follows: Midea Group (73rd, up 8 places, 373.7 billion yuan), Haier Group (74th, up 5 places, 371.8 billion yuan), Gree Electric (133rd, up 10 places, 203.98 billion yuan), Hisense Group (135th, up 11 places, 202.2 billion yuan), BOE (154th, not on the list last year, 174.5 billion yuan), TCL Technology (155th, up 8 places, 174.4 billion yuan), Changhong Holdings (187th, down 9 places, 140.28 billion yuan), TCL Real Estate (214th, up 20 places, 120.3 billion yuan), AUX Group (286th, up 12 places, 86 billion yuan), Skyworth Group (351st, up 74 places, 69 billion yuan), and Sanhua Holdings (419th, up 22 places, 57.8 billion yuan).
The rankings of Midea Group, Haier Group, Gree Electric, Hisense Group, TCL Technology, TCL Real Estate, AUX Group, Skyworth Group, and Sanhua Holdings have all risen, mainly benefiting from two aspects: first, the survival of the fittest in the home appliance and panel industry, with increased industry concentration, and second, the expansion of diversification and internationalization. Changhong Holdings' ranking has declined. As the trend of the strong getting stronger in the home appliance industry becomes more apparent, Changhong's position in the color TV industry is not as glorious as in the past. Other leading companies have actively carried out equity incentives or mixed-ownership reform, stimulating the enthusiasm of employees. Changhong still needs to improve in this area.How to enhance the market share in China's home appliance market and even globally, increase the added value of products and the premium of self-owned brands, create a truly world-famous brand, and steadily promote diversification, is a must-answer question for the leading Chinese home appliance enterprises in the next step.
Rise in Ranking of Private Car Companies
In the 2024 China Top 500 Enterprises list, private enterprises in the automotive sector such as BYD, Geely, and CATL are among the top 100, with all three companies experiencing a significant rise in ranking. Specifically, BYD is ranked 39th, while Geely and CATL are ranked 53rd and 67th, respectively. The previous year, these three private enterprises were ranked 65th, 68th, and 85th. Xinjiang Guanghui and Great Wall Motors also rank in the top 200, with improved positions compared to the previous year.
Looking at the private enterprises in the automotive sector that made it to the top 500, most have seen an increase in their rankings. Particularly, enterprises related to the new energy field have developed rapidly. Companies like BYD and CATL are not only leading enterprises in the domestic market but also hold significant positions globally. Since 2022, BYD has become the domestic sales champion with annual sales exceeding 3 million vehicles, and CATL ranks first in the global power battery market.
At present, China has become the world's largest new energy vehicle market, and related component enterprises have developed rapidly accordingly. Whether it is the advantage of the industrial chain or the three core elements of motors, electric controls, and batteries, China has a clear advantage. Private enterprises involved in automotive electronics software business, batteries, such as Joyson Electronics, Luxshare Precision, and GCL, are also among the top 500.
Ye Shengji, the Chief Engineer of the China Association of Automobile Manufacturers, previously stated that currently, China's new energy intelligent connected vehicles have formed a certain development advantage globally. Automotive supply chain enterprises have seized a rare historical development opportunity and have built a Chinese-style automotive industry chain supply chain system. However, it is also necessary to clearly recognize that China still has a long way to go to become a true automotive powerhouse, with much work to be done. The market competitiveness of domestic component enterprises still has a gap compared to international giants, and the shortcomings and weaknesses should not be overlooked.
The rapid development of overseas business by leading private enterprises has also driven a significant increase in revenue and profits. Especially in the first half of 2024, the automotive market saw a price war, and the industry's profits were under overall pressure. However, private enterprises represented by BYD, Geely Automobile, and Great Wall Motors achieved growth in all three indicators: sales volume, operating income, and net profit. Among them, BYD surpassed SAIC Group to become the top player among A-share automobile companies. BYD's operating income in the first half of the year exceeded 300 billion yuan, becoming the number one, and its net profit also exceeded 13.6 billion yuan.
Xu Haidong, the Deputy Chief Engineer of the China Association of Automobile Manufacturers, told reporters that the Chinese automotive market has developed well under the socialist market economic system. Since the reform and opening up, central enterprises and state-owned enterprises have developed rapidly, and private enterprises like BYD, Geely, and Great Wall have grown quickly, while new force enterprises and joint ventures have also developed well. With the development of intelligent connected vehicles, many supply chain private enterprises have seized market opportunities. "In the past, automotive enterprises were mainly focused on processing, reducing costs through scaled production. Now, a strong industrial system has been formed. The development process of private enterprises has been relatively difficult. In the past, private enterprises were at the bottom of the smile curve, but now they are continuously extending, gradually forming a brand through design innovation. Private enterprises need to continuously innovate and enhance the added value of products in their development, which is also the requirement of new quality productive forces." Xu Haidong stated.
Decline in Ranking of Private Steel Enterprises and Profit Slump of Chemical Enterprises
In the 2024 China Top 500 Enterprises list, a total of 47 steel (ferrous metallurgy) industry companies made the list. Among the top 100 enterprises, there are four pure steel enterprises, namely China Baowu Steel Group Co., Ltd., Hesteel Group Co., Ltd., Ansteel Group Co., Ltd., and Jiangsu Shagang Group Co., Ltd. (hereinafter referred to as "Shagang Group"), ranked 11th, 66th, 94th, and 98th, respectively. Among them, only Shagang Group is a private steel enterprise, while the others are all central enterprises or local state-owned steel groups.From 2022 to 2024, the ranking of Shagang Group in the list of China's top 500 enterprises has been declining year by year, with the 2022 ranking at 87th, the 2023 ranking at 93rd, and the 2024 ranking at 98th. The operating income of Shagang Group also shows a downward trend year by year: the operating income in 2022 was 303.6 billion, in 2023 it was 287.8 billion, and in 2024 it was 277.8 billion.
In the past three years, both revenue and profits in the domestic steel industry have been on a downward trend year by year. The reporter combed through the profit data of the domestic steel industry over the years and found that the profits of domestic steel mills reached a historical high in 2021, and then began to decline year by year. In 2022, the profitability of steel mills took a sharp turn for the worse, becoming the lowest level of industry profitability in recent decades. In 2023, the profits of most steel enterprises continued to decline on the basis of 2022, which is behind the continuous decline in steel prices. This year, the demand for steel materials in the market continues to decline significantly, prices have fallen sharply, and the loss area continues to expand.
"In the current domestic steel industry, most steel mills are still in homogenized competition. In the past, it was the homogenization of construction steel materials, and now even plate materials are about to become a red sea," Ge Xin, deputy director of the Langge Steel Research Center, pointed out to the reporter. The enterprises that can make money now are mainly steel mills that can produce high value-added products, such as Baosteel, Valin Steel and some special steel enterprises. For steel mills like Shagang, the competition is becoming more and more fierce.
The performance pressure of chemical energy enterprises is not small. According to the statistics of the first financial reporter, this year, a total of 17 private enterprises in the traditional energy and chemical field were on the list, which was 4 less than last year, and 1 more than the same period in 2022.
Among the above 17 companies, the proportion of private chemical enterprises remains above 60%. Among them, Hengyi Group Co., Ltd., Zhejiang Rongsheng Holding Group Co., Ltd., Sheng Hong Holding Group Co., Ltd., Zhejiang Hengyi Group Co., Ltd. and other four major private refining and chemical enterprises have been at the forefront of private enterprises in the traditional energy and chemical industry in recent two years, and their rankings are gradually moving up. Taking Hengyi Group as an example, the company's ranking has gradually risen from 64th in 2022 to 37th in 2023 and 26th in 2024.
However, in terms of performance, the operating income and net profit of the listed private chemical enterprises have shown a downward trend in the past three years. Although there was a rebound in revenue and profit in 2024, it is still lower than the average level of 2022.
In recent years, due to the decline in energy costs such as crude oil and natural gas, as well as the decline in prices of the vast majority of petrochemical products, coupled with the market's expectation that China's oil demand is about to peak, the domestic petrochemical industry as a whole is in a situation of increasing production and sales but not increasing profits. Sun Weishan, vice chairman of the China Petroleum and Chemical Industry Federation (referred to as "Petrochemical Federation"), introduced at the 2024 Petrochemical Industry Development Conference that in 2021, the industry's prices and benefits reached the best level in history, stimulating the enthusiasm for capacity expansion, and a large number of projects such as ethylene, propylene, PX, PTA, acetic acid, etc. were built in a rush. With huge investments in bulk basic raw materials and mid-to-low-end chemicals, the concentration of capacity was released, and some products experienced a phase of supply and demand imbalance. Affected by this, the total operating income of China's petroleum and chemical industry in 2023 decreased by 1.1% year-on-year to 15.95 trillion yuan, and the total profit decreased by 20.7% year-on-year to 873.36 billion yuan.
Affected by the decline in coal prices in recent years, more and more private coal enterprises have fallen out of the top 500 list. In terms of quantity, the number of private coal enterprises on the list has decreased from 4 in 2022, 5 in 2023 to 2 in 2024, and the operating income and profits of the above enterprises have also shown a downward trend.
"The proportion of coal private enterprises in the top 500 enterprises is gradually shrinking, and the decline in revenue and profit is synchronized with the changes in the supply and demand pattern of the domestic and international coal market," Tian Lihui, Dean of the Institute of Financial Development at Nankai University, explained that the domestic coal consumption is affected by the overall supply and demand, the dual carbon goal and other factors, and the coal price is under pressure to fall overall. At the same time, the coal industry is facing strict environmental protection policies and the challenge of energy structure transformation, which may lead to a decline in the performance of coal private enterprises.
Tian Lihui suggested that technological innovation, market diversification, digital transformation, and green development should be taken as important paths to promote the further development of private enterprises. Private chemical enterprises also need to accelerate the green and digital transformation, improve resource utilization efficiency, reduce environmental pollution, and reduce costs and improve efficiency through digital means. Promote the integration of the industrial chain of private enterprises such as chemical industry, improve the concentration of the industry through mergers and reorganizations, and enhance the market competitiveness of enterprises. At the same time, guide private enterprises to strengthen market research and risk management, reasonably adjust production plans and inventory strategies to cope with the fluctuations in raw material prices and market demand changes.