Gvitech Technologies Co. Ltd., a leading 3D GIS solution provider in China, leads the top 100 non-listed Chinese companies with the highest business growth potential, according to a list of China's best up-and-coming companies released by the ForbesChina.com Wednesday.
Gvitech Technologies is followed by Beijing Leader & Harvest Electric Technologies, a manufacturer of medium voltage variable frequency drives, and Hangzhou Sunrise Technology, a leading provider of energy meters and power meters.
This is the eighth year for ForbesChina to compile the list of its kind, but for the first time, the listed and unlisted companies are ranked respectively. ForbesChina surveyed more than 10,000 small and medium-sized Chinese enterprises with sales between 5 million yuan (US$ 793,651) and 1 billion yuan (US$ 0.16 billion) in 2010. All the businesses have their main business operations on the Chinese mainland.
The rankings are based on these companies' financial statistics from 2008 to 2010 in the following categories: growth index (sales growth rate and profit growth rate), return on investment (return on total assets ratio and return on net assets ratio), net profit margin, sales revenue, net profit, and 2011 operation status.
In 2010, the publicly traded companies, on average, reported 0.95 billion yuan (US$ 0.15 billion) in total assets, 0.48 billion yuan (US$ 0.08 billion) in sales revenue, and 0.1 billion yuan(US$ 0.02 billion) in net profits, winning over their unlisted peers who only raked in 0.24 billion yuan(US$ 0.04 billion), 0.21 bilion yuan(US$ 0.03 billion), and 36,900,000 yuan(US$5,860,000), respectively.
However, the unlisted companies did a better performance in terms of growth capabilities. From 2008 to 2010, the average compound annual growth rate of sales and net profits (median growth rate) is 55.42 percent and 97.85 percent, respectively, higher than the listed ones by 12.08 points and 36.82 points.
More than half of the top 100 listed companies come from Guangdong, Jiangsu and Beijing, while 70 percent of the top 100 unlisted elites are located in Guangdong, Beijing and Shanghai. Guangdong, Beijing and Shanghai have been home to the greatest number of the best up-and-coming companies for three consecutive years, pointing to the current layout of regional economic development.
The Technology, Media and Telecoms (TMT) sector cemented its dominance in the list again, generating about 20 percent of the publicly listed and unlisted elites respectively. It's followed by sectors including biomedicine, new materials, energy conservation and environmental protection, electrical equipment, and culture and education. Together, these sectors occupy nearly half spots on the lists.
About 10 enterprises engaged in digital TV businesses edged into this year's list, as China is beefing up its support for cultural industry and promoting tri-networks integration (integration of telecom, radio and TV, and the Internet).
Innovation is the driving force for businesses' growth. Compared with their foreign counterparts who excel in technological innovation, Chinese enterprises are skilled at landing on success through application innovation.
Following are the top 20 non-listed Chinese SMEs with the highest growth potential in 2012:
Shanghai Information System Engineering Co., Ltd.
Shanghai Information System Engineering Co., Ltd. [File Photo]
Main Focus: Information security services
Average Compound Annual Growth Rate of Sales (2008-2010): 73.2%
Average Compound Annual Growth Rate of Net Profits (2008-2010): 105.3%
2010 Sales Revenue: 103.41 mln yuan
2010 Net Profits: 13.44 mln yuan