On August 10, "Fortune" announced the 2020 World Top 500 rankings. The number of companies on the list in Mainland China reached 124, surpassing the 121 in the United States for the first time in history. Wal-Mart became the world's largest company for the seventh consecutive year, Sinopec still ranked second, and State Grid rose to third. (Source: Public Securities News)
2020 Fortune Global 500 list of the top ten companies The latest global top 10 companies list
Fortune 500 revenue of 33 trillion US dollars hit a record high
The operating income of the Fortune 500 companies this year reached 33 trillion U.S. dollars, a record high, close to the combined GDP of China and the United States. The threshold (minimum sales revenue) to enter the rankings has also increased from 24.8 billion US dollars to 25.4 billion US dollars.
There are a total of 25 new and re-listed companies on the Fortune Global 500 list this year, of which 8 are newly listed Chinese companies. They are: Shanghai Construction Engineering, Shenzhen Investment Holdings, Shenghong, Shandong Iron and Steel, Shanghai Pharmaceuticals, Guangxi Investment, China Nuclear Industry and China Coal Energy.
In terms of ranking changes, the fastest rising this year is the Prudential Group, which jumped 292 places. It is worth mentioning that 6 of the top 10 companies that jumped the fastest in the rankings are insurance companies. The two fastest rising companies in China are also in the insurance industry, namely AIA (up 138 places) and Cathay Financial Holdings (81 places).
A total of 10 Chinese banks have entered the list this year, and the profits of these 10 banks accounted for 44% of the total profits of all mainland Chinese companies on the list. Compared with previous years, which accounted for more than 50%, the profit ratio of banks on the list this year has dropped significantly, but the ratio is still too high. Excessive bank profits will inevitably squeeze the profits of non-financial companies. If you don’t calculate bank profits, the average profit of 114 non-bank companies in mainland China is only nearly $2.2 billion. For comparison, the average profit of 113 US non-bank companies is as high as 6.3 billion US dollars, nearly three times that of mainland Chinese companies.
1. Mainland China + Hong Kong companies surpass the United States for the first time on the list
The most eye-catching feature of this year’s ranking is undoubtedly that mainland China + Hong Kong companies have achieved a historic leap. 124 companies have appeared on the Fortune Global 500 list (plus Taiwan companies, Chinese companies on the list have reached 133). For the first time, the number of companies from Mainland China + Hong Kong, China surpassed 121 companies in the United States, achieving a historic leap.
Compared with the previous year, the average sales revenue of the listed companies in 2020 will reach 66.9 billion U.S. dollars, an increase from the previous year’s 66.5 billion U.S. dollars; the average profit will reach 3.56 billion U.S. dollars, a slight increase over the previous year; sales revenue The rate reached 5.3%, the same as the previous year; the return on net assets was 9.8%, the same as the previous year.
Compared with the Fortune Global 500, the operating conditions of Chinese enterprises have reached the average level of global enterprises. The average sales revenue of the world's top 500 companies is 66.6 billion U.S. dollars, and the average sales revenue of China's listed companies is 66.9 billion U.S. dollars; the average net assets of the world's top 500 companies are 36.4 billion U.S. dollars, and the average net assets of Chinese companies are 36.44 billion U.S. dollars.
2. Among the top seven Internet companies in the world, China accounts for four
Apple has been ranked 11th in the past two years, and this year dropped one place to 12th. Apple once ranked first in the profit list the year before. Last year, it was surpassed by Saudi Aramco with an ultra-high profit of nearly $111 billion. This year, it was surpassed by Berkshire Hathaway and retired to third.
From an industry perspective, in the past two years, no technology company has entered the top 10 of the top 500 list, but this year Amazon rushed into the top 10 and ranked 9th.
In contrast, there are 7 Internet-related companies on the list this year, including Amazon, Alphabet, and Facebook in the United States, and JD.com, Alibaba Group, Tencent Holdings Co., Ltd. and Xiaomi Group from China. The rankings of these major Internet companies in China and the United States have improved compared with last year. Among them, the largest increase in ranking is Alibaba, which rose by 50 places.
3. Huawei entered the top 50 for the first time, and is the only telecom equipment vendor to rise
Despite various challenges, Huawei’s position in the Fortune 500 has risen from 61 last year to 49 this year, entering the top 50 for the first time, and the rate of increase is the same as the previous year.
Huawei is also the only telecommunications equipment supplier that has risen this year.
In 2010, Huawei was selected as one of the world's top 500 companies for the first time. It has been a full 10 years now, and revenue has also achieved rapid growth in recent years.
In the first half of this year, Huawei achieved sales revenue of 454 billion yuan, a year-on-year increase of 13.1%, and its net profit margin increased from 8.7% last year to 9.2%.