Profits of 40 firms seem 'not satisfying'
By Feng Jianmin |
July 14, 2011, Thursday
|
Print Edition
Print Edition
The Chinese mainland's top 500 companies posted a 38 percent annual rise in revenue in 2010, but profitability for the largest entities seemed to fall short after taking into account their size, Fortune China said yesterday.
The Fortune China 500 list showed that China Petroleum and Chemical Corp remained on the top of the list with revenue of 1.9 trillion yuan (US$294 billion) and net profit of 70.7 billion yuan. PetroChina Co and China Mobile took second and third spots.
The total revenue of the top 500 companies amounted to 18.9 trillion yuan, a 38 percent rise from 2009. Their net profits grew an annual 48 percent last year. Their revenue accounted for 47 percent of China's gross domestic product in 2010.
Ten of the top 100 firms are privately-run. Lenovo Group, a PC maker which earned 143 billion yuan last year, was the largest non state-owned company and listed at No. 22.
"State-owned companies are still taking core positions in China's economy," said Zheng Zhengwei, a business director with ECC China, the list's data provider. "But the largest companies are more obsessed with size than profitability."
The most profitable company on the list is the Industrial and Commercial Bank of China with 165 billion yuan in net earnings. It is followed by PetroChina and China Construction Bank.
Zheng said earnings of the 40 most profitable firms accounted for 71 percent of the total profits on the list, while the return on equity, which measures profitability, was 19 percent for these entities.
"Their profits are not satisfying after taking into consideration their dependence on natural resources and monopolistic positions in their sectors," he said.
The Fortune China 500 list showed that China Petroleum and Chemical Corp remained on the top of the list with revenue of 1.9 trillion yuan (US$294 billion) and net profit of 70.7 billion yuan. PetroChina Co and China Mobile took second and third spots.
The total revenue of the top 500 companies amounted to 18.9 trillion yuan, a 38 percent rise from 2009. Their net profits grew an annual 48 percent last year. Their revenue accounted for 47 percent of China's gross domestic product in 2010.
Ten of the top 100 firms are privately-run. Lenovo Group, a PC maker which earned 143 billion yuan last year, was the largest non state-owned company and listed at No. 22.
"State-owned companies are still taking core positions in China's economy," said Zheng Zhengwei, a business director with ECC China, the list's data provider. "But the largest companies are more obsessed with size than profitability."
The most profitable company on the list is the Industrial and Commercial Bank of China with 165 billion yuan in net earnings. It is followed by PetroChina and China Construction Bank.
Zheng said earnings of the 40 most profitable firms accounted for 71 percent of the total profits on the list, while the return on equity, which measures profitability, was 19 percent for these entities.
"Their profits are not satisfying after taking into consideration their dependence on natural resources and monopolistic positions in their sectors," he said.
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