China's next 100 global giants

12 Pages·2016·0.84 MB·English

HIGHLIGHTS
China’s
next 100
global giants
2016 edition
About ACCA
Two years on from the
first global giants report,
ACCA (the Association of Chartered Certified Accountants) is
this report identifies the
the global body for professional accountants. It offers
business-relevant, first-choice qualifications to people of next generation of 100
application, ability and ambition around the world who seek
a rewarding career in accountancy, finance and management. fastest-emerging Chinese
businesses that will be
ACCA supports its 188,000 members and 480,000 students
in 181 countries, helping them to develop successful careers competing globally over
in accounting and business, with the skills required by
the next three to five years.
employers. ACCA works through a network of 95 offices and
centres and more than 7,110 Approved Employers These businesses have
worldwide, who provide high standards of employee learning
established strong bases in
and development. Through its public interest remit, ACCA
promotes appropriate regulation of accounting and conducts China, are internationalising
relevant research to ensure accountancy continues to grow in
more rapidly and, perhaps
reputation and influence.
most importantly, continue
Founded in 1904, ACCA has consistently held unique core
to grow at rates that are far
values: opportunity, diversity, innovation, integrity and
accountability. It believes that accountants bring value to faster than either global
economies in all stages of development and seek to develop
capacity in the profession and encourage the adoption of growth or growth in China.
global standards. ACCA’s core values are aligned to the
China’s next global giants
needs of employers in all sectors and it ensures that, through
its range of qualifications, it prepares accountants for 2016 are bucking the trend
business. ACCA seeks to open up the profession to people
of a slowdown in economic
of all backgrounds and remove artificial barriers, innovating
its qualifications and delivery to meet the diverse needs of activity worldwide.
trainee professionals and their employers.
In June 2016 ACCA formed a strategic alliance with
Chartered Accountants Australia and New Zealand (CA ANZ).
The alliance represents the voice of 788,000 members and
future professional accountants around the world, who share
the commitment to uphold the highest ethical, professional
and technical standards.
More information is available at: www.accaglobal.com
FOR FURTHER INFORMATION CONTACT:
Faye Chua
Head of Business Insights, ACCA
[phone]
[email protected]
Faye Chua is ACCA’s head of business insights, leading
ACCA’s future research and its global research and insights
programme with a focus on the future directions of business
and the accountancy profession across a range of subjects
and disciplines. Faye has over 10 years of experience in
research across different sectors of the economy and has
© The Association of Chartered Certified Accountants
worked in North America, Asia-Pacific and Europe.
October 2016
Introduction 3
China’s economic health and performance, So what has happened since 2014?
This report is ACCA’s second whether tracked via the fortunes of the Chinese businesses have been busy. Firstly,
renminbi, GDP, export figures or, indeed, the they have increasingly focused on
ranking of emerging global
host of other economic indicators, is one of expanding overseas, not only through
businesses debuting from
the most eagerly anticipated and monitored exporting but increasingly through mergers
China that are expected to
of any country’s around the world. and acquisitions, strategic partnerships,
grow and contend with and establishing research and
established global players; the This report is ACCA’s second ranking of development and innovation centres
first such ranking was in 2014. emerging global businesses debuting from around the globe. Secondly, Chinese
China that are expected to grow and businesses in 2016 are even more
contend with established global players; international than they were in 2014.
the first such ranking was in 2014. This
ranking is unlike any other league tables, What is more impressive, however, is that
which rely on a small number of financial the annual growth rate of the 100
measures, mainly size, rather than on wider companies identified in this report
measures of performance and outstrips not only the nation’s GDP but also
competitiveness. This approach of ranking that of the global economy – and this
of China’s emerging global giants provides trajectory is expected to continue in future.
a fuller, deeper and more wide-ranging
analysis than other league tables of Faye Chua
Chinese businesses. Head of Business Insights, ACCA
About the report 4
Two years on, the 2016 report looks again The rationale for the approach can be
Two years on, the 2016 report at China’s emerging global businesses, summarised as follows.
re-visiting companies that were in the first
looks again at China’s emerging
top 100 ranking and identifying new 1. Size provides an indication of a
global businesses, re-visiting
entrants in this league table. These company’s scope to generate sufficient
companies that were in the
companies follow in the footsteps of large surpluses to invest in or to secure
first top 100 ranking and and now well-known Chinese businesses funding for continued growth, and of
identifying new entrants in such as Haier, Lenovo, and Alibaba, and whether it has sufficient scale to be able
this league table. less well-known, but still global, to compete from a position of strength
companies. These businesses have in domestic and international markets.
established strong bases in China, are
internationalising more rapidly and, 2. Growth over a considerable period,
perhaps most importantly, continue to five-year, demonstrates the ability of the
grow at rates that are far faster than both business to scale up and expand in a
global growth and growth among Chinese sustainable way.
companies in general. China’s next global
giants 2016 are bucking the trend of a 3. Domestic presence. The identified
slowdown in economic activity worldwide. companies are establishing a strong
domestic market presence before
THE APPROACH building markets overseas. The Chinese
market represents a platform for
In order to identify these businesses,
international expansion, following on
companies listed on domestic Chinese and
from success in the home market.
international stock exchanges were
considered. The companies were filtered
4. International presence. In the 2014
by size. Five-year growth rates were also
ranking, this was largely defined by
considered, in order to ensure that
export markets, and export sales were
businesses were growing sustainably over a
used as a key measure. Since then,
longer period. Maintaining high levels of
Chinese companies’ international
annual growth over time indicates that a
presence has expanded to include
business has a sound business model and
international acquisitions, partnerships
the capacity to cope with growth. The
and presences, particularly logistics
ranking also considers the market
hubs, and design and R&D centres.
positioning and performance of emerging
Chinese businesses, in terms of: domestic
5. Business model and strategy. Although
market presence in China; extent of activity
this was the most complex measure to
in international markets outside China; and
determine and assess, it was also the
business model and strategy.
most significant.
This report identifies the 100 fast-growing
Chinese businesses that are becoming
emerging global giants. Their growth and
overall competitiveness indicate that they
are likely to continue to expand. Over the
next few years, if they continue on their
current trajectories, many of these
businesses will become China’s next
generation of global corporations.
No futures work of this type can ever
expect to be definitive but it is hoped that
it will to provide a glimpse of the future of
Chinese businesses in the coming years.
For full report: xxxx
Diversification continues for 5
China’s next global giants
China in 2016 is even more international The geographical spread of businesses
China in 2016 is even more than it was in 2014, and this globalisation span across China, though major cities are
is being driven by leading businesses such well-represented, especially Beijing,
international than it was in 2014,
as the emerging global giants identified Shanghai, Shenzhen and Wuhan (Table 1
and this globalisation is being
in this report. and Figure 1). The top 100 companies were
driven by leading businesses
based in many different parts of China.
such as the emerging global Just over half of the 2016 ‘next global Many headquarters are in China’s major
giants identified in this report. giants’ are new entrants, indicating the cities or along the eastern coast, reflecting
dynamism of competition and business the extent of economic development in
emergence in China. Of the 2016 top 100 these parts of China. There appears,
emerging global giants, 46 were in the however, to be a shift southwards in the
2014 top 100 ranking. In other words, distribution of these emerging global
roughly half the 2016 global giants have giants. In the 2014 ranking, Shenzhen was
kept their place and just over half are new the headquarters for seven such
entrants into the ranking. Some notable companies. In the 2016 report, the number
companies dropped out of the 2016 there has risen to 11, and the number with
ranking. This indicates that even highly headquarters in Beijing has fallen, from 17
successful businesses face challenges in to 13. This reflects the growing economic
sustaining high-level to hyper-level growth significance of Shenzhen, which is closely
over a sustained period. connected to Hong Kong and to the world
economy.
Figure 1: Headquarter locations of China’s next 100 global giants
Harbin (1)
Shandong
Liaocheng (1)
Changji Hui Autonomous Pr (1) Yantai (1)
Urumqi (1) Zibo City (1)
Jiangsu
Changshu (1)
Jiangyin (2)
Nanjing (4)
Nantong City (1)
Dalian City (1) Suzhou (4)
Wuxi (1)
Beijing (13) Yancheng (1)
Yangzhou City (1)
Xingtai City (1)
Lingwu (1)
Anhui
Hefei (1)
Xuancheng City (1)
Tianshui City (1) Xi’an (1)
Zhejiang
Baoji City (1) Cixi (1)
Dongyang (2)
Tibet
Hangzhou (5)
Huzhou City (1)
Yichang City (1) Wuhan (5) Shanghai (5) Jiaxing City (1)
Suining City (1) Ningbo (1)
Jingzhou City (1) Shangyu (1)
Chongqing (1) Jingdezhen (1) ShTaaoizxhinogu ((22))
Shangrao (1) Wenling City (1)
Zhuji (1)
Zhuzhou City (2)
Fujian
Fuzhou (2)
Longyan City (1)
Zhangping (1)
Zhangzhou (1)
Taiwan
Hong Kong Guangdong
Foshan (2)
Guangzhou (1)
Shantou City (2)
Shenzhen (11)
Zhongshan (1)
HIGHLIGHTS Diversification continues for China’s next global giants 6
China’s Next 100 Global Giants
2016 edition
Different sectors are represented in the top A common feature of almost all the top 100
These companies have
100, and the presence of services and businesses was a effective business model.
adapted to a less positive intangible products in the top of the ranking Overall, the businesses’ managers
economic environment points to an increasingly diverse economy demonstrated in-depth knowledge of the
and a move away from manufacturing and dynamics of their industries, as well as the
by developing counter-
production (see Figure 2). needs of their customers. Strategies were
cyclical business models
clear and coherent, and there was evidence
that have enabled them The computing and communication of strong management control of the
to grow very rapidly, equipment industry was the most businesses and their performance.
even though demand commonly represented sector in the top
100, with 21 of the top 100 in this category. These businesses’ future growth prospects
has softened.
appear strong. If they sustain their growth
Broadly, the top 100 firms can be rates, they will be competing against
characterised as relatively large businesses established giants both in China and in
measured by turnover, although there is other markets.
variation in both size and growth rates.
Six Chinese businesses, Eternal Asia, a
Among the top 100, growth rates vary supply chain and logistics management
between 12% and 64%: annual levels of company; Shanghai Fosun Pharmaceutical,
growth were measured over five years, pharmaceuticals and medical services
demonstrating sustained performance and company; Citrip, a travel company;
hyper-growth. This is especially impressive Changyuan, a company specialising in
given further cooling of the Chinese electric vehicles and smart technologies;
economy in recent years to a national GDP Home Inns, a leading budget hotel chain;
growth rate of around 6%. In other words, and Han’s Laser Technology, a company
the slowest growing of these companies focusing on advanced laser technology, are
was expanding at more than twice the showcased in the report with an outline of
national GDP growth rate and the fastest what makes them the next businesses to
growing at 10 times national growth rates. watch out for in the coming years.
Figure 2: Industry sectors represented by China’s next 100 global giants
Transport equipment 1
Paper & print 1
Business services 2 Computers & communications equipment 21
Food & Beverage 2
Furniture & wood 2
Hotels, restaurants & personal 2
Instruments 2
Retail 2
Rubber & plastics 2
Transport & logistics 2
Wholesale 2
Automobiles 3
Education, healthcare & entertainment 3 Chemicals 12
Textiles & clothing 3
Pharmaceutical 6
Electronics 10
Internet & information 7
Metal & non-metal products 7 Equipment & Machinery 8
HIGHLIGHTS Diversification continues for China’s next global giants 7
China’s Next 100 Global Giants
2016 edition
Table 1: China’s next 100 global giants
2016 Change Company name Score Revenue Revenue Domestic Internat’l Business Sector Location
Rank from (mil. RMB) growth dominance presence model &
2014 (2010-14) strategy
1 1 Huapont Life Sciences Co. 222 4,867 63.4% 3 3 3 Chemicals & allied Chongqing
2 5 Hongfa Technology Co. 205 4,063 58.5% 3 3 3 Electronics Wuhan
3 2 Hangzhou Hikvision Digital Technology Co. 134 17,233 38.5% 3 2 3 Compt. & comm. eq. Hangzhou
4 new Zhejiang Unifull Industrial Fiber Co. 130 2,479 37.0% 3 3 3 Chemicals & allied Huzhou
4 new Sanan Optoelectronics Co. 130 4,580 41.0% 3 2 3 Compt. & comm. eq. Jingzhou
6 -5 Jiangsu Hengtong Photoelectric Stock Co. 121 10,444 34.7% 3 2 3 Electronics Suzhou
7 63 Shunfeng Intl Clean Energy 116 35,408 39.5% 3 2 2 Compt. & comm. eq. Wuxi
8 -5 Zhejiang Dahua Technology Co. 115 7,332 40.5% 2 2 3 Compt. & comm. eq. Hangzhou
8 new Bitauto Holdings 115 2,442 40.5% 3 1 3 Internet & information Beijing
10 new Suzhou Dongshan Precision Manufacturing Co. 113 3,524 35.8% 3 2 3 Metal & non-metal Suzhou
11 4 China Xd Plastics Co 107 6,844 37.6% 2 2 3 Chemicals & allied Harbin
12 1 Shenzhen Desay Battery Technology Co. 102 6,390 38.3% 2 3 2 Electronics Shenzhen
13 new 21vianet Group Inc 100 2,857 39.8% 2 1 3 Internet & information Beijing
14 7 Eternal Asia Supply Chain Management 97 22,098 30.9% 3 1 3 Business services Shenzhen
15 new Suzhou Jinfu New Material Co. 95 2,653 30.1% 2 3 3 Compt. & comm. eq. Suzhou
16 new Nanjing Xinjiekou Department Store Co. 90 7,825 38.5% 1 3 2 Retail Nanjing
17 -5 Ningxia Zhongyin Cashmere Co.Ltd. 87 3,104 24.8% 3 3 3 Textile & apparel Lingwu
17 new Tal Education Group 87 2,674 30.7% 3 1 3 Ed. & entert’n Beijing
19 new Accelink Technologies Co. 83 2,433 26.1% 3 2 3 Compt. & comm. eq. Wuhan
20 34 Shanghai Fosun Pharmaceutical Co. 83 12,026 23.7% 3 2 3 Pharmaceutical Shanghai
21 41 Ningbo Huaxiang Electronic Co. 82 8,713 26.0% 2 3 3 Automobiles Ningbo
21 new Shenzhen Tat Fook Technology Co. 82 2,451 27.4% 3 3 2 Compt. & comm. eq. Shenzhen
21 new Wolong Electric Group Co. 82 6,893 23.3% 3 3 3 Electronics Shangyu
24 -17 Zhejiang Wanfeng Auto Wheel Co. 80 5,535 22.9% 3 3 3 Automobiles Shaoxing
24 new Eging Photovoltaic Technology Co. 80 3,249 34.4% 2 2 2 Electronics Cixi
26 new Skyworth Digital Co. 77 3,502 21.9% 3 3 3 Compt. & comm. eq. Suining
26 3 Huayi Brothers Media Corporation 77 2,389 24.2% 3 2 3 Ed. & entert’n Dongyang
28 new Dalian Huarui Heavy Industry Group Co. 75 8,239 32.1% 2 2 2 Eq. & machinery Dalian
28 new Soufun Hldgs 75 4,331 26.6% 3 1 3 Internet & information Beijing
28 58 Alpha Group 75 2,430 23.6% 3 2 3 Paper, print & staples Shantou
31 new Ever-Glory Intl Group Inc 74 2,835 27.6% 2 3 2 Textile & apparel Nanjing
32 -6 Ctrip.Com Intl 71 7,297 22.3% 3 2 3 Transp’t & logistics Shanghai
33 23 Haining China Leather Market Co. 70 2,439 22.0% 3 2 3 Business services Jiaxing
33 new Apeloa Pharmaceutical Co. 70 4,233 29.8% 2 2 2 Pharmaceutical Dongyang
35 new Zhuzhou Times New Materials Technology Co. 67 6,008 21.0% 3 2 3 Rubber & plastics Zhuzhou
35 -18 Shenzhen Zowee Tech. Co. 67 3,587 33.3% 1 2 2 Compt. & comm. eq. Shenzhen
37 -31 Hosa International 66 7,497 26.5% 2 1 3 Textile & apparel Wanchai
38 new Shenzhen Deren Electronic Co. 65 2,635 23.1% 2 2 3 Compt. & comm. eq. Shenzhen
39 56 Xinjiang Zhongtai Chemical Co. 65 11,177 25.4% 2 2 2 Chemicals & allied Urumqi
40 new Suzhou Victory Precision Manufacture Co. 64 3,256 21.3% 3 3 2 Compt. & comm. eq. Suzhou
41 new Tianshui Huatian Technology Co. 63 3,305 27.2% 1 3 2 Compt. & comm. eq. Tianshui
41 -5 Beijing Tongrentang Co. 63 9,686 22.1% 3 1 3 Pharmaceutical Beijing
43 new Cpt Technology Co. 61 7,018 26.2% 1 3 2 Compt. & comm. eq. Fuzhou
43 new Yantai Jereh Oilfield Services Group Co. 61 4,461 40.4% 1 2 1 Eq. & machinery Yantai
43 new Cofco Tunhe Co. 61 8,939 30.4% 1 2 2 Food & beverages Changji
46 -29 Xi’an Longi Silicon Materials Co. 60 3,680 17.2% 3 3 3 Metal & non-metal Xi’an
47 new Jiangsu Huifeng Agrochemical Co. 59 2,429 29.3% 1 2 2 Chemicals & allied Yancheng
47 new Fujian Furi Electronics Co. 59 3,511 20.9% 2 2 3 Wholesale Fuzhou
47 33 Holitech Technology Co. 59 3,053 23.7% 1 2 3 Compt. & comm. eq. Zibo
50 -25 Jiangxi Black Cat Carbon Black Co. 58 6,168 18.4% 3 2 3 Chemicals & allied Jingdezhen
50 new Jiangsu Yangnong Chemical Co. 58 2,820 16.6% 3 3 3 Chemicals & allied Yangzhou
HIGHLIGHTS Diversification continues for China’s next global giants 8
China’s Next 100 Global Giants
2016 edition
2016 Change Company name Score Revenue Revenue Domestic Internat’l Business Sector Location
Rank from (mil. RMB) growth dominance presence model &
2014 (2010-14) strategy
52 new Leo Group Co. 56 2,874 21.1% 2 3 2 Internet & information Wenling
53 new Zhejiang Huahai Pharmaceutical Co. 55 2,585 20.8% 2 3 2 Pharmaceutical Taizhou
54 new Shenzhen Laibao Hi-Tech Co. 54 2,343 19.1% 2 2 3 Compt. & comm. eq. Shenzhen
55 -24 Changyuan Group 53 3,349 18.8% 3 1 3 Compt. & comm. eq. Shenzhen
55 -17 China Lodging Group 53 4,931 26.4% 2 1 2 Hotels Shanghai
57 -18 Fiberhome Telecommunication Technologies 53 10,721 15.3% 3 2 3 Compt. & comm. eq. Wuhan
Co.
58 -22 Hollysys Automation Tech 52 3,213 22.4% 2 2 2 Instruments and other Beijing
58 new Tianma Microelectronics Co. 52 9,322 19.6% 2 3 2 Compt. & comm. eq. Shenzhen
60 -51 Anhui Zhongding Sealing Parts Co. 51 5,040 16.9% 3 3 2 Rubber & plastics Xuancheng
60 -9 Jiangsu Changjiang Electronics Technology 51 6,428 14.6% 3 3 3 Compt. & comm. eq. Jiangyin
Co.
62 new Merry Garden Holdings 50 4,321 27.1% 1 3 1 Furniture & related Zhangping
62 -33 Shenzhen Mtc Co. 50 7,108 21.3% 1 3 2 Compt. & comm. eq. Shenzhen
62 new New Oriental Ed & Tech 50 7,683 17.6% 3 1 3 Ed. & entert’n Beijing
65 new Zhejiang Narada Power Source Co. 49 3,786 26.5% 2 2 1 Electronics Hangzhou
66 new Grinm Advanced Materials Co. 48 2,423 23.8% 1 2 2 Metal & non-metal Beijing
67 -52 Whirlpool China Co. 47 5,505 14.9% 3 2 3 Electronics Hefei
68 new Keda Clean Energy Co. 46 4,466 19.7% 3 1 2 Eq. & machinery Foshan
68 4 Zhongshan Broad-Ocean Motor Co. 46 4,443 17.4% 2 3 2 Electronics Zhongshan
70 -44 Lianhe Chemical Technology Co. 45 3,990 16.8% 2 3 2 Chemicals & allied Taizhou
70 new Jiangsu Zhongtian Technologies Co. 45 8,641 17.0% 3 2 2 Electronics Nantong
72 new Zhejiang Sanhua Co. 44 5,824 14.8% 3 3 2 Eq. & machinery Shaoxing
72 -14 China National Complete Plant Import 44 2,538 24.0% 1 3 1 Wholesale Beijing
72 -25 Homeinns Hotel Group 44 6,229 18.9% 3 1 2 Hotels Shanghai
75 -29 Sina Corp 43 4,734 13.7% 3 2 3 Internet & information Shanghai
75 new Zhejiang Supor Co. 43 9,535 12.2% 3 3 3 Metal & non-metal Hangzhou
77 new Humanwell Healthcare Co. 42 7,052 28.3% 2 1 1 Pharmaceutical Wuhan
77 -46 Qinchuan Machine Tool & Tool Group Co. 42 3,501 15.6% 3 2 2 Eq. & machinery Baoji
77 -34 Han’s Laser Technology Industry Group Co. 42 5,566 13.4% 3 2 3 Eq. & machinery Shenzhen
77 -5 Hubei Angel Yeast Co. 42 3,654 13.3% 3 2 3 Food & beverages Yichang
77 new Jinkosolar Holding Co 42 9,910 14.1% 3 3 2 Compt. & comm. eq. Shangrao
77 -21 Kingold Jewelry Inc 42 6,825 16.7% 2 1 3 Instruments and other Wuhan
77 new Bolina Holding Co 42 5,334 17.9% 2 2 2 Metal & non-metal Zhangzhou
84 -64 Zhejiang Dun’an Artificial Environment Co. 40 6,601 14.1% 3 1 3 Eq. & machinery Zhuji
85 new Zhongtong Bus & Holding Co. 39 3,612 13.9% 2 2 3 Automobiles Liaocheng
85 new Zhe Jiang Xinan Chemical Industrial Co. 39 7,716 14.8% 3 2 2 Chemicals & allied Hangzhou
87 new Longxing Chemical Industry Co. 38 2,438 13.4% 2 2 3 Chemicals & allied Xingtai
87 new Guangdong Vanward New Electric Co. 38 3,978 14.4% 3 2 2 Electronics Foshan
89 7 Sohu.Com Inc 37 10,310 22.7% 2 1 1 Internet & information Beijing
90 new Yihua Lifestyle Technology Co. 37 4,427 16.0% 1 3 2 Furniture & related Shantou
90 -18 Changyou.Com 37 4,654 18.6% 2 1 2 Internet & information Beijing
92 new Changshu Fengfan Power Equipment Co. 36 2,354 15.6% 2 2 2 Metal & non-metal Changshu
92 new Wuxi Baichuan Chemical Industry Co. 36 2,905 15.3% 2 2 2 Chemicals & allied Jiangyin
94 -32 E-Commerce Ch Dangdang* 35 7,903 29.8% 1 1 1 Retail Beijing
95 new Shenzhen Salubris Pharmaceuticals Co. 34 2,883 20.5% 1 1 2 Pharmaceutical Shenzhen
96 new Fujian Longking Co. 33 6,027 16.4% 2 1 2 Eq. & machinery Longyan
97 new Nanjing Redsun Co. 32 6,812 13.9% 2 2 2 Chemicals & allied Nanjing
97 new Avic Aero-Engine Controls Co. 32 2,576 13.6% 3 1 2 Other Transp’t eq. Zhuzhou
97 -64 Sinoma Science & Technology Co. 32 4,424 13.9% 3 1 2 Metal & non-metal Nanjing
97 new Cosco Shipping Co. 32 7,663 14.7% 3 2 1 Transp’t & logistics Guangzhou
HIGHLIGHTS Diversification continues for China’s next global giants 9
China’s Next 100 Global Giants
2016 edition