Huawei heads rank­ing of China’s pri­vate firms

Tech­nol­ogy re­search en­hances growth mo­men­tum: an­a­lysts

Global Times US Edition - - BIZ UPDATE - By Zhang Hong­pei

Chi­nese telecom­mu­ni­ca­tions gi­ant Huawei has ranked No.1 on a list of China’s 500 largest pri­vate en­ter­prises for the fourth con­sec­u­tive year, de­spite a crack­down on the com­pany by the US.

In the lat­est rank­ing of the 500 largest pri­vate en­ter­prises in China, which was un­veiled at the 2019 China Top 500 Pri­vate En­ter­prises Sum­mit held in Xin­ing, cap­i­tal of North­west China’s Qing­hai Prov­ince on Thurs­day, Huawei was No.1 with rev­enues of 721.2 bil­lion yuan ($102 bil­lion) last year.

HNA Group was se­cond and Sun­ing Hold­ings Group was third.

Huawei over­took Len­ovo for the first time in 2016 when it re­ported rev­enues of 395 bil­lion yuan. In the past four years, Huawei’s rev­enues have in­creased by around 100 bil­lion yuan an­nu­ally. Ac­cord­ing to its rank­ing in 2018, it gen­er­ated more than 600 bil­lion yuan in rev­enues.

Huawei has been the tar­get of a crack­down by the US govern­ment, which has used its na­tional power amid the es­ca­lat­ing China-us trade war, ex­perts said.

The pri­vately held com­pany, with lead­ing tech­nol­ogy in 5G net­works, was added to the US En­tity List in May this year.

Huawei is scheduled to launch its ar­ti­fi­cial in­tel­li­gence As­cend 910 chip on Fri­day, a fur­ther move to re­al­ize its chip strat­egy. The new chipset can go head-to-head with those pro­duced by US com­pa­nies such as Qual­comm and Nvidia, an­a­lysts said.

Huawei also ranked first on an­other list that showed the top 500 pri­vate en­ter­prises fo­cused on the man­u­fac­tur­ing sec­tor.

The thresh­old for en­ter­ing this year’s top 500 list is much higher. Pri­vate com­pa­nies must have rev­enues of at least 18.59 bil­lion yuan to get on the list, up nearly 3 bil­lion yuan from 2018.

The Thurs­day list in­cluded 20 pri­vate com­pa­nies that are also in­cluded in the For­tune 500 Global, com­pared with 17 last year, ac­cord­ing to the re­port.

In 2018, the top 500 com­pa­nies had rev­enues of 28.5 tril­lion yuan, up 16.44 per­cent year-on-year, and net prof­its reached 1.29 tril­lion yuan, up 13.87 per­cent on a yearly ba­sis, said Huang Rong, vice chair­man of the All-china Fed­er­a­tion of In­dus­try and Com­merce, when de­liv­er­ing the re­port. The agency is the host of the sum­mit.

“The top 500 com­pa­nies ex­pe­ri­enced slight de­clines in their prof­itabil­ity and op­er­a­tional ef­fi­ciency. The net profit mar­gin de­clined by 0.1 per­cent­age point and return on eq­uity was down 1.31 per­cent­age point, com­pared with the pre­vi­ous rates,” said Huang.

“We should feel in­spired. De­spite ex­ter­nal pres­sure from the trade war and in­ter­nal down­ward eco­nomic pres­sure, Chi­nese pri­vate com­pa­nies, es­pe­cially the in­dus­try lead­ers, de­liv­ered a good re­port,” Liu Dingding, a Bei­jing-based in­dus­try an­a­lyst, told the Global Times on Thurs­day.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.