At noon on August 2nd, Lei Jun suddenly posted a Weibo to thank the global rice noodles-the 2021 Fortune Global 500 list was released, and Xiaomi ranked 338th on the list for 3 consecutive years, up 84 places from last year, becoming the Internet The world‘s top 500 companies with the fastest progress among related companies.
Over the past year or so, the epidemic has put a huge test on the ranking of global companies. The operating income of the companies on the list has fallen by 5% year-on-year to approximately US$31.7 trillion. However, during this period, the number of companies on the list in China remained at the top for the second consecutive year, an increase of 11 from the previous year, reaching a total of 143.
In recent years, Internet companies’ subversion of traditional companies is obvious to all around the world. Except for Amazon, which entered the top three for the first time, and Apple, which was promoted to sixth place, this phenomenon can also be seen in the microcosm among these 143 Chinese companies, except for Xiaomi Group and Jingdong Group. The ranking has also increased from 102 to 59 in 2020, Alibaba has increased from 132 to 63, and Tencent Holdings has also increased from 65 to 197.
However, in terms of quantity, the Fortune Global 500 is still dominated by traditional industries, and one of them is particularly noteworthy. Although they are traditional enterprises, they have undergone or are undergoing a series of changes. Some are models of “mixed reform”, and some It is a leader in digital transformation, such as the National Grid, which has just been promoted to the world‘s second largest, such as China’s Baowu, which has risen to 72 from the top 100, and New Hope, which is on the list for the first time.
Since Fortune magazine first published the Fortune Global 500 list covering both industrial and service companies on August 7, 1995, it has been updated 27 times.
However, the year that has just passed is somewhat special. Affected by the new crown epidemic, the threshold for entering the rankings, that is, the minimum sales revenue, has fallen from US$25.4 billion in the previous year to US$24 billion. Corporate profits have also fallen sharply. All companies on the list have The total net profit of the company has seen the largest drop since 2009, a sharp drop of 20% year-on-year to US$1.6 trillion.
But despite this, the concentration effect of global wealth remains irreversible. The 500 strongest companies have achieved revenues of US$31.7 trillion, equivalent to one-third of global GDP.
Topping the list for eight consecutive years is Wal-Mart. This company with total assets of more than 250 billion U.S. dollars, relying on 2.3 million people to achieve a year of revenue of 559.151 billion U.S. dollars and a profit of 13.510 billion U.S. dollars. However, it is undeniable that under the impact of the epidemic, the world‘s largest company has also experienced a situation of increasing revenue but not profit, with a revenue growth rate of 6.7% and a net profit growth rate of -9.2%.
The ability to make money depends on technology, energy and finance. If calculated in terms of profit, Apple topped the list with a profit of 57.4 billion U.S. dollars, while Saudi Aramco and SoftBank Group ranked second and third respectively. If you look at profit margins alone, SoftBank Group and TSMC rank first and second respectively, with 83.7% and 38%, respectively. Tencent ranks fourth after Facebook with a profit margin of more than 33%.
This year, 10 Chinese banks entered the list. The profits of these 10 banks accounted for 41% of the total profits of all mainland Chinese companies on the list. However, compared with 44% last year, they are already giving way to many new types of companies. Among the 7 Internet-related companies on the list this year, China accounted for 4 seats, and the rankings have been significantly improved. They are JD.com, Alibaba, Tencent and Xiaomi. Although Huawei is not in the Internet industry, it has raised its ranking from 49th to 44th with a revenue of 129.184 billion U.S. dollars.
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The overall data also shows that under the impact of the epidemic, Chinese companies have maintained their stable development. This year, the 135 mainland Chinese (including Hong Kong) companies on the list achieved an average profit of about 3.54 billion U.S. dollars, higher than the average profit of 500 companies of 3.3 billion U.S. dollars. During the same period, the average profit of American companies fell to 5.1 billion U.S. dollars.
The neglected traditional “dark horse”
But in addition to those star companies, there are many “dark horses” hidden among the 143 companies on the list.
For example, Guodian Power Grid, which surpassed Sinopec and rose to second place, achieved revenue of US$386.618 billion last year, with a total profit of US$5.580 billion and total assets of more than US$666 billion. Although the profit of State Grid has fallen by 30% compared with the previous year due to the impact of the epidemic, in 2020, the company’s mixed-use reform continued to accelerate, which will reduce the burden and improve efficiency of the next business development. It is the world‘s largest pumped storage professional. State Grid Xinyuan, a chemical operating company, just increased its capital and shares in September last year, and completed the capital opening in more than a year.
In addition, the State Grid Hunan Comprehensive Energy Company also completed the mixed reform in January this year. It took one and a half years to introduce the State Grid Comprehensive Energy Group and non-state-owned capital enterprises to establish a new modern governance system. Up to now, State Grid is still providing more opportunities for some high-quality large-scale private enterprises through the divestiture of the equipment manufacturing industry.
In terms of ranking changes, there are two other energy companies in China that have become the “most beautiful boys” on the list with “swift speed”-Jinneng Holding Group ranked 138th, a sharp jump of 325 places; Shandong Energy Group rose by 225 Name, ranked 70th.
The two are also models in the mixed reform of state-owned enterprises, and this ranking improvement is closely related to a series of reorganizations and mergers. Among them, Shandong Energy Group and Yankuang Group have achieved a joint reorganization, and Jinneng Holdings is from the reorganization and integration of a number of former Fortune 500 companies, including the former Datong Coal Group, Jinmei Group, Jinneng Group, and Lu’an Group. .
Previously, in order to speed up the mixed reform, Shandong Energy Group formulated a “three-year mixed reform work plan”, and strived to achieve more than 75% of the number of enterprises and assets in the mixed reform by 2021. According to the Shanxi Provincial State-owned Assets Supervision and Administration Commission of the State-owned Assets Supervision and Administration Commission of Shanxi Province, a number of state-owned enterprises involved in energy business, such as Lu’an Group, Datong Coal Group, Jinneng Group, and other state-owned enterprises involved in the mixed reform, are included in the mixed reform. Joint ventures, cooperation, etc.
In addition, traditional companies such as Shenghong Holding Group, China National Nuclear Corporation, Jiangxi Copper Group, Xiamen International Trade Holding Group and Xiamen Xiangyu Group have all risen by more than a hundred.
The Chinese companies on the list have many bright spots. For example, Sinopharm, a new crown vaccine that was included in the WHO emergency use list in May of this year, achieved revenue of 77.278 billion U.S. dollars last year, raising its ranking by 36 places. According to the list of the top 100 companies in China’s pharmaceutical industry in 2020 recently announced by the China Pharmaceutical Industry Information Center, Sinopharm’s ranking has risen from the third place in the previous year to the first.
Another pharmaceutical company on the list is Guangzhou Pharmaceutical Group, which became the world‘s first Fortune 500 company with traditional Chinese medicine as its main business. Data show that last year the company achieved revenue of 26.070 billion US dollars, ranking 468th.
Among the 45 companies that are newly listed and re-listed, 18 are Chinese companies, most of which are traditional manufacturing and energy companies, including China State Shipbuilding Corporation, Zhejiang Rongsheng Holding Group, Zhejiang Hengyi Group, and Weifang Diesel Power, Beijing Jianlong Heavy Industry Group, Zhejiang Transportation Investment Group, Yunnan Investment Holding Group, Wanzhou International, Zijin Mining Group, etc. Among them, Zhejiang Rongsheng Holdings is one of the leading private petrochemical companies in China, and the Brunei refining and chemical project under Zhejiang Hengyi Group is regarded as a model for Chinese private petrochemical companies to go overseas.
In addition, there is another company with extremely high exposure recently, which is a new hope that has been “tragically dropped” by the pig price.
However, despite the continuous decline in pork prices in the past six months, thanks to the good market last year, the new hope of raising pigs and selling feed has given Sichuan Chengdu a “long face”. As the first local Fortune 500 company in the world, New Hope Holding Group has The operating income of 31.6057 billion U.S. dollars ranks 390th on the list. This is the first time that New Hope has made the list, and it is also the only Chinese company listed in the “food production” category. “Fortune” mentioned in the introduction: This Chinese private company, which was founded in 1982 and started in the aquaculture and feed industries, has been involved in modern agriculture, food, real estate, chemical and other diversified fields.
Which cities have more “bull enterprises”
Another interesting phenomenon is that every time the ranking of wealth is concerned, all places have to be “compared”. This time, Shanghai Guangshen once again lost to Beijing.
According to the city of headquarters, 60 of China’s 143 companies on the list are located in Beijing, Shanghai and Shenzhen each have eight, while Guangzhou has only five. They are Guangzhou Construction, Guangzhou Pharmaceutical Group, Guangzhou Automobile Group, China Southern Power Grid, Cedar Holdings, and Cedar Holdings is the only Guangzhou private company on the list, and it has been on the list for 4 consecutive years, ranking 359th with a revenue of 33.8 billion U.S. dollars this year.
For Cedar Holdings, the most heard in the capital market in recent years is its Cedar Trust. The predecessor of Cedar Trust was Zhongjiang Trust under the “Tomorrow Department”. Although Zhongjiang Trust was already “scarred” when it took over, and a large number of overdue products brought great financial pressure to Cedar, the latest data shows that since April 2019, Cedar has successfully resolved and paid over 100 historical overdue projects. 100 million yuan, benefiting more than 3,000 investors.
Just recently, there has been constant news in the market about the acquisition of Cedar Trust by a certain local state-owned asset in Guangdong. Although there is no public progress, a person familiar with the matter disclosed that Cedar Holdings and Guangzhou State-owned Assets have been “interacting” frequently-relying on industrial resource advantages. , Cedar Holdings has accelerated its deployment in urban operations and promoted multiple urban renewal projects in Guangzhou, trying to promote local industrial upgrading and high-quality urban development through industry injection.
Prior to this, Cedar Holdings had obtained large dividends through low-cost land acquisition in the process of taking root in Guangzhou to carry out urban renewal service projects. It is reported that the urban renewal model of Cedar Holdings is guided by industrial investment, and has already won several old renovation projects such as Huangpu Hetangxia Village, Nangang Village, Jinkeng Village, and Zengcheng Cao Village. Among them, the largest area of He Tangxia project is about 128.39 hectares (approximately 1920 acres), including 2,743,600 square meters of reconstruction area (villagers residences and collective properties) and 1.85 million square meters of financing area (owned by the company). Has entered the demolition stage.
In addition, according to public information, Cedar Holdings is also a private company with the most comprehensive international network of China’s bulk commodities. It owns overseas subsidiaries such as British steel trading giant Stemcor and Singapore’s well-known petrochemical supply chain company Integra. According to industry insiders, in the extreme commodity market during the epidemic, such companies have greater significance in ensuring the smooth flow of raw materials imports and trade for domestic companies, and at the same time they can win greater profit margins for themselves.
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Another important layout direction of Cedar Holdings is new chemical materials. According to data, its listed company Qixiang Tengda has joined Cedar Holdings in the four years since its revenue has increased by 320% and net profit has increased by 94%.
If the acquisition of Cedar Trust by state-owned assets in a certain place in Guangdong progresses smoothly, it may be another good story of “two-way mixed reform” between state-owned assets and private enterprises. Prior to this, the participation of Jiangsu state-owned assets in Suning Tesco’s mixed reform was also a typical case. On this year’s top 500 list, Suning was once again shortlisted with an operating income of 36.565 billion U.S. dollars, and still ranked first among Chinese companies in the professional retail list, ranking 328th overall.
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