The China Enterprise Confederation and the China Entrepreneurs Association issued a report on the development of top 500 Chinese companies: In 2014, the total revenue of the top 500 Chinese enterprises reached 56.68 trillion yuan, an increase of 13.31% over the previous year; the threshold for entry into the list rose to 22.86 billion yuan. Each one is called a "giant." The other side of these proud data is the unsatisfactory profitability of manufacturing companies.

 Top 500 Manufacturing Industry Profits Continue to Decline

The report shows that the top 500 Chinese enterprises have a profit margin of 4.24% and an asset profit rate of 1.36%, both of which have declined for three consecutive years. Of these, 118 companies had a return on equity of less than or equal to 303%. They were even worse than the one-year fixed deposit rate of commercial banks, and 41 companies had a negative return on their net assets.

The “2008-2014 China Manufacturing Top 500 Research Report” released at the same time shows that in 2014, the profit margin of China's top 500 manufacturing enterprises was only 2.7%, far lower than the world’s manufacturing profit margins. This is the top 500 manufacturing industries. The profit rate has declined for the third consecutive year and is the lowest level since 2009. Among them, there are only 23 companies with a profit rate of more than 10%, 259 with a profit rate of less than 2%, an increase of 108 from 2009, and 187 with a profit rate of between 2% and 10%; The rate was between 10% and 20% for 19, which was a decrease of 10 compared to 2009; only 4 were for profit margins above 20%.

Concomitantly, the overall debt ratio of the top 500 manufacturing industries climbed. The report shows that in the past three years, the top 500 manufacturing-equity ratios of the manufacturing industry have been increasing. In 2014, the overall debt ratio reached a high level of 69.43%.

 Bank's net profit is more than double that of manufacturing companies

The list of top 500 Chinese companies announced this time also shows that the huge "profit gap" in banking and manufacturing is more prominent than ever.

In 2014, there were 260 manufacturing enterprises among the Top 500 Chinese Enterprises, with a total operating income of 23 trillion yuan, and a total net profit of 462.3 billion yuan. There were 17 banks with a total operating income of 5.52 trillion yuan, and a total net profit of 1.23 trillion yuan. Yuan; 17 banks have more than double the net profit of 260 manufacturing companies.

At the same time, the total operating revenue of 260 manufacturing enterprises accounted for 40.6% of the top 500, while the net profit accounted for only 19.3%; the total operating revenue of the five banks in the workers' and peasants' associations accounted for 5.9% of the top 500, and the net profit accounted for 35.7%. Finalist manufacturing company. This is the fifth time that the profits of the Big Five have exceeded the manufacturing sector, and the “profit gap” between the two has become wider. On the one hand, there are fewer and fewer companies in the manufacturing sector; on the other hand, the five largest banks average The net asset profit rate was 19%, far exceeding the average ROE of 8.8% for 260 manufacturing companies.

 Manufacturing Transformation and Upgrading Need Policy Support

“The top 500 profitability and operating efficiency of China's manufacturing enterprises have been fluctuating in recent years.” According to Yang Du, a professor at the Business School of Renmin University of China, the top 500 manufacturing industries are suffering from “overcapacity” and “excessive competition”. There are five major industry dilemmas such as "not working properly," "rising costs," and "abandoning efficiency in pursuit of integration."

Experts pointed out that China's large enterprises are more widely distributed in industries such as ferrous metallurgy, construction, general non-ferrous metallurgy, and rolling and processing industries, which have significant characteristics of traditional heavy chemical industries. The low-level industrial structure features prominent characteristics, further constraining the company's profitability and sustainability. development of.

Li Jianming, deputy chairman of the China Enterprise Confederation, believes that the endowment conditions for resource factors that support economic growth have undergone fundamental changes. Large enterprises should establish development plans that are compatible with the new normal, and avoid further increase in inventory due to the pursuit of excessive growth rates. Overcapacity pressure.

Some experts who participated in the forum stated that China is in the critical period of accelerated transformation and upgrading of the manufacturing industry. It faces the “two-way squeeze” of technology and market blockade from developed countries and the international transfer of developing countries at lower production costs. The development needs to formulate an overall strategic plan from the national level and improve the policy support system.