 Fewer Corporations: Better Performance |
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During the past year the large domestic corporations continued to deepen their reforms. These large groups have achieved further growth and their improved competency has been rewarded with significant advances in financial performance.
Compared with the previous year's figures, there are now actually 38 fewer large corporations. However total operating revenues were up 17.5 percent, asset values were up 11.3 percent and profits were up no less than 30.2 percent in the sector.
Rising stars among the large and extra-large corporations have maintained their momentum and are playing a significant role as powerhouses of the economy.
According to figures from the National Bureau of Statistics released at the "Third China Large Corporations Information Briefing", various reform measures have been progressively and effectively implemented in these domestic corporations during 2002.
Local authorities have reviewed and dealt with a number of holding companies and the like which were not properly established. Meanwhile, 52 new groups have been established including the China National Aviation Holding Company, China Travel Sky Holding Company, China Aviation Oil Holding Company, China Aviation Supplies Imp. & Exp. Group Corporation and the China Network Communication Group Corporation.
A study has shown that group corporations under direct central government administration, state pilot group corporations, group corporations listed as state key enterprises, group corporations under provincial and ministerial guidance and group corporations with over 500 million yuan revenue and year-end general asset value taken all together numbered 2,627 in 2002. They had operating revenues of some 7,712 billion yuan, year-end asset values of 14,254 billion yuan and profits of 418 billion yuan in 2002.
The corporations centered on western China are developing faster than ever before. By 2002, the western-based groups numbered only 325, down from 337 in 2001. They returned the 17.5 percent growth in operating revenue. Their year-end asset growth at 13.5 percent was 2.2 percentage points above the national average.
Worthy of mention is the role of the largest corporations with annual operating revenues over 5 billion yuan. Moving counter to the trend exhibited by their smaller counterparts, these "extra-large" giants actually increased in number from 179 in 2001 to 214 in 2002. Though still representing only about 8 percent of the total number they accounted for around 70 percent of operating revenue and year-end asset value together with more than 75 percent of sector profits.
The spectacular growth of the giants overshadowed even that of the "large" and "small corporations". In 2002 their total operating revenues grew by some 22.7 percent and year-end assets were up 15.7 percent. Both figures represent an out-performance of about 14 percentage points relative to the rest of the sector.
2002 was a year that saw China with 12 enterprises in the Fortune 500 list.
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