ACCA (the Association of
Chartered Certified Accountants) has identified the 100 fastest-growing Chinese
businesses emerging as global corporations – based on analyses of historical
performance and their potential for future growth.
Together with the Shenzhen Finance Institute, ACCA has conducted
in-depth research of nearly 3,000 private enterprises listed in China and
overseas.
The research stems from 11 specially designed diverse indicators, with
five of these measuring the companies’ historical performance and six
predicting their future growth. These factors include the company’s size,
growth, profitability, innovativeness, level of internationalisation, and media
coverage.
Sajjeed Aslam, head of ACCA Pakistan says: ‘ACCA has been monitoring
China’s rising corporates and businesses, with an original report in 2014,
followed by further analysis in 2016. What’s clear across all reports is the
aspiration to go global, with many Chinese firms already doing so. This most
recent report indicates that many of these businesses will become China’s next
generation of global corporations over the next few years if they continue on
their current trajectories. Businesses in Pakistan need to learn from these
examples of accelerated business growth and should explore opportunities to
build partnerships with them to jumpstart their own global expansion.’
Key findings include:
Internet: More high-tech enterprises have evolved into the leaders of China’s
future economic growth. Among the Top 100 companies, 42 companies are engaged
in the computer and internet-related sectors. Since the 2016 ranking, the
number of internet enterprises has increased by 50%.
Diversity: China’s future giants represent a fairly diverse range of industries.
Those listed overseas tend to be involved in the internet, software development
and other related sectors. The seven companies which are listed on the Hong
Kong Stock Exchange (HKEX) are in the manufacturing, medicine and internet
sectors.
Highest performers: The companies with the best overall rankings had better scores than
other companies for corporate scale, growth, cash flow, overseas strategy and
media coverage.
Common features: Despite not being widely-known internationally, the top-ranked
enterprises have had a relatively rapid growth and support innovative
development with a long-term vision and international strategy, enjoying
positive media coverage and having a strong focus on R&D.
The report also profiles three companies as case studies:
1) Sunway Communication started out as a supplier of mobile device
antennas in 2006 and is now a big player among global suppliers, with its focus
on maintaining an technological edge, achieving organic growth, pursuit of
long-term goals and grasping the best moment to become involved in the new
technologies.
2) AutohomeInc began life as a traditional media company in 2005 and
is undergoing a successful evolution into the world’s most-visited car website.
Even with the decline in growth and fierce competition in China’s current
automobile market, Autohome was able to outperform its benchmark and recorded a
39% year-on-year growth in net profit.
3) Aier Eye Hospital is a leader in ophthalmology with significant
growth, offering various types of diagnosis and treatment, surgery and
optometry services, with a network spread across mainland China, Hong Kong SAR
of China, Europe and the US. The chain has treated almost 6 million patients in
over 560,000 surgeries. Among all the companies ranked earnings Aier Eye
Hospital achieved the highest scores in earnings quality and cash flow among
all the companies ranked.
To increase understanding of the impact of China’s Belt and Road
Initiative, ACCA is actively collaborating with a range of strategic partners,
working together to explore and define the opportunities and challenges facing
countries and businesses along the routes, with special focus on the
China-Pakistan Economic Corridor (CPEC).
ACCA publishes a wide range of Belt and Road focused research and insights
to support its members who are already working and supporting BRI projects.
The full report is online at
https://www.accaglobal.com/gb/en/professional-insights/global-economics/Chinas-Next-100-Global-Giants-2018.html
