Top 500 Chinese Private Enterprises Listed: Huawei ranks 5th, Hengli ranks 3rd, and Alibaba ranks 2nd. Who is the top ranked company?

Tech 2023-09-18 07:04:08 Source: Network

The development of the national economy has also provided a good environment for enterprises. Many enterprises have taken advantage of the east wind to quickly rise and occupy the market

The development of the national economy has also provided a good environment for enterprises. Many enterprises have taken advantage of the east wind to quickly rise and occupy the market. In this situation, market competition is becoming increasingly fierce, and strong enterprises continue to emerge, driving the development of the entire industry. The annual revenue of a company is a representative of its strength, and a successful company can achieve a continuous increase in revenue every year.

On a global scale, the strongest proof of a company's strength is the Fortune 500 list. It can be said that as long as a company can make it to the list, it means that their strength is on the global list and is admirable. On September 7th, the All China Federation of Industry and Commerce released the 2022 Top 500 Private Enterprises in China. The entry threshold for the top 500 private enterprises this time reached 26.367 billion yuan, with a total revenue of 38.32 trillion yuan.

Surprisingly, the top ranked private enterprise is not Huawei, Alibaba, or Tencent. This year's top ranked private enterprise is JD, with a total revenue of 950 billion yuan last year. Since then, China's largest private enterprise has emerged, surpassing Huawei, Alibaba, and Tencent. From the list, JD Group ranks first in the top 500 private enterprises for the first time, and for two consecutive years, it has ranked first in the top 100 private enterprises in the service industry. Hengli Group Co., Ltd. ranks first in the top 500 private enterprises in the manufacturing industry, and Country Garden Holdings Co., Ltd. ranks first in the total assets of the top 500 residential enterprises with a scale of 1.95 trillion yuan.

The top five companies with revenue exceeding 600 billion yuan are JD Group (951.592 billion yuan), Alibaba (China) Co., Ltd. (836.405 billion yuan), Hengli Group Co., Ltd. (732.345 billion yuan), Zhengwei International Group Co., Ltd. (722.754 billion yuan), and Huawei Investment Holding Co., Ltd. (636.807 billion yuan).

In the past 10 years, Sinopec, PetroChina, and CSCEC have consistently ranked among the top three state-owned enterprises. However, so far, no company has revenue exceeding 3 trillion yuan. From the list, the top ranked enterprises are mostly state-owned enterprises and local state-owned enterprises, often occupying a dominant market position in a certain industry.

China Ping An is a special enterprise, neither a state-owned enterprise nor a private enterprise, but a mixed ownership enterprise. In recent years, its revenue has exceeded 1 trillion yuan, firmly ranking fourth. After all, it is reasonable for state-owned enterprises to make a lot of money in China. Nowadays, large private enterprises have also achieved leapfrog development, with revenue far exceeding that of Huawei and Alibaba. The gap with several large state-owned enterprises such as Sinopec is also narrowing, and it is JD Group. So how did JD reach the top position as the number one private enterprise?

JD has become the largest private enterprise

JD Group is a company mainly engaged in e-commerce, which has competed with Taobao for many years, but now has embarked on a new path different from Taobao. Alibaba has built Taobao into a professional e-commerce platform, with its primary competitor being eBay. Through Jack Ma's operation, Alibaba successfully forced Taobao to exit the Chinese market. In the case of Taobao monopolizing e-commerce, a "hero" was killed halfway, and that is JD.

JD has developed very rapidly in recent years. In 2003, JD was only an offline physical enterprise with a very limited number of stores, mainly engaged in electronic product sales. However, this has also made Liu Qiangdong's life very good. However, with the outbreak of SARS, JD has fallen into a development dilemma and had to make decisions related to life and death.

Later, Liu Qiangdong thought of selling all his products online, and this idea was quickly put into action. Through this method, Liu Qiangdong sold a lot of goods and also found business opportunities. So in 2004, it closed its offline stores and fully transformed to online, which was the starting point of JD e-commerce, which was five years later than Alibaba.

JD.com is slower than Taobao because it has invested a large amount of resources in the construction of warehousing and logistics. The biggest advantage of e-commerce is that it is "light asset", and compared to physical stores, it has no rent or various taxes. This leads to cheaper online prices for goods under the same conditions. Taobao took the shortcut and developed into the current Alibaba Group with the help of millions of online store owners. However, JD.com is more focused, not eager to achieve success in the process of development, but taking steps step by step.

In the first few years of entering the e-commerce industry, JD's development was very difficult. Although it was also continuously growing, it did not receive much attention in the entire e-commerce industry. Especially in 2008, Liu Qiangdong faced a financial crisis again, with JD's sales of only 1.3 billion yuan and its valuation cut to $30 million.

Fortunately, JD overcame the difficulties. In 2012, JD and Suning launched a price war and became famous, successfully becoming a leading enterprise in China's e-commerce industry. However, in 2018, Liu Qiangdong was caught in the Mingzhou scandal, causing JD's stock price to plummet, and for a while, it fell into a low point of development. After team adjustments and business optimization, it unexpectedly rebounded rapidly and grew very quickly.

Up to now, Liu Qiangdong has four listed companies: JD, JD Logistics, JD Health, and Dada. However, in fact, JD Group still focuses on retail business. It is worth mentioning that JD Logistics has also become a big brother in the industry, generating hundreds of billions of revenue last year, and even taking over revenue from Deppon Express and TransExpress.

As of last year, JD's operating revenue had reached 950 billion yuan, surpassing most companies, while Huawei, Alibaba, and Tencent were also left behind. At the same time, JD has also established at least 15000 JD home appliance specialty stores, covering approximately 25000 townships, providing strong support for the smooth implementation of the policy of bringing home appliances to rural areas.

Especially in the past two years of the epidemic, JD's reputation has skyrocketed, and with its super large distribution and logistics system, it has made significant contributions to epidemic prevention and control in various regions. But surprisingly, Liu Qiangdong resigned as CEO this year and retired behind the scenes, while JD.com ushered in the era of Xu Lei. Relevant sources predict that JD's revenue may exceed the 1 trillion mark this year, which means that JD may become the first private enterprise in China to exceed the trillion mark in revenue.

epilogue

The JD company led by Liu Qiangdong is indeed very large, but the value of a company depends not only on its annual income, but also on how many job opportunities it has created for society and how much social value it has. With the business module of JD Logistics, Liu Qiangdong's JD company can create hundreds of thousands of job opportunities for the country every year. I believe that JD will continue to develop better in the future. So, what do you think of JD's development?

Source: Extraordinary Think Tank

Text: Youyi

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