1. Earnings growth of China's top 500 manufacturers

China's top 500 manufacturing companies earned a combined 524.453 billion yuan in 2010 (498 companies reported their profits in 2010), an increase of 26.46 percent from the 414.714 billion yuan earned by 493 companies last year. Thirteen companies reported a loss, 10 less than last year. Despite the global financial crisis, the top 500 manufacturing companies saw their business grow in 2010 as a whole. Moreover, combined profits reported by the top 500 manufacturing companies accounted for 30.2 percent of China's top 500 companies total profits, on par with last year.

Revenues per capita rose 1 percent to 1.24 million yuan from last year's 1.23 million yuan, but the growth rate was far less than last year's 16.04 percent. Profits per capita rose 25 percent to 500,000 yuan. The average return on revenues was 3.97 percent, up 0.75 percent from last year. The average return on assets was 3.84 percent, up 0.24 percent from last year.

Generally, the earnings and profits of China's top 500 manufacturing companies in 2010 were better than we expected, because they took effective measure to cushion the losses from the crisis, leaving them roughly unscathed by the economic turmoil.

2. Profits

A total of 485 companies, or 97 percent of China's top 500 manufacturing companies, increased their profits in 2010, versus 470 last year. Thirteen companies, or 2.6 percent of the top 500 manufacturing companies, posted a loss in 2010. Two companies, or 0.4 percent, didn't report their profits in 2010.

The number of China's top 500 manufacturing companies which realized a profit of more than 1 billion yuan was 123, 16 more than last year. The combined profits of those companies were 407.209 billion yuan, accounting for 77.64 percent of the combined profits of the 500 manufacturing companies, up 2.64 percent from a year ago, contributing the most to China's manufacturing. Sinopec, Huawei Technologies Co., and First Auto Works held the top three positions by profits with combined profits of 73.449 billion yuan, accounting for 14 percent of China's top 500 manufacturing companies' total profits, 3.45 percent higher than 2009. Profits were more highly concentrated in the heavyweights this year.

The number of China's top 500 manufacturing companies whose profit per capita exceeded 500,000 yuan was 7, versus 10 last year. Two companies made a profit per person of more than 1 million yuan, namely Tianjin Tiens Group at 1.152 and West Pacific Petrochemical Company Dalian at 1.0334. Tiens Group’s has ranked in the top five by profits per capital for four years running.

The number of China's top 500 manufacturing companies whose per capita revenues were more than 10 million yuan was nine, the same as the previous year. The West Pacific Petrochemical Company Dalian led the list at 270.939 billion yuan, followed by Jiangsu Jinhui Group, Fujian Refining and Petrochemical Company, Huhai Group and Tiens Group at 25,751,300 yuan, 12,694,100 yuan, 11,727,200 yuan, and 11,268,800 yuan. Dalian West Pacific Petrochemical Company gained the top slot for the second consecutive year.

The operating margin of China's top 500 manufacturing companies averaged 3.97 percent, 0.75 percent higher than the previous year's 3.22 percent. Qinghai Salt Lake Industrial Group topped other companies for the second consecutive year with its averaged operating margin at 43.54 percent. Ranked second to fifth were China Kweichou Moutai Distillery Co. Ltd., Hebei Yongyang Iron & Steel, Jiangsu Yangzijiang Shipbuiding and Jiangsu New Century Shipbuilding at 36.83 percent, 35.61 percent, 26.08 percent, 23.86 percent. Kweichow Moutai Distillery Co., Ltd has been in the top five for three years in a row.

Return on equity of China's top 500 manufacturing companies was 3.84 percent on average. Hebei Yongyang Iron & Steel has the highest return on equity, 147.12 percent, followed by Hangzhou Wahaha Group, Qingdao Hanhe Group, Jiangsu Huapeng Group and Tengen Group with 30.08 percent, 28.11 percent, 27.80 percent, 26.08 percent respectively.

Reversing a negative profit growth of 23.32 percent in 2010, the top 500 manufacturers' profits grew at an average of 27.84 percent. Tangshan Sanyou Group was the most profitable company on the list with profit growth of 2,287.33 percent. The second to fifth positions were secured by Shanghai Automobile Industrial Corporation, Panzhihua Gangcheng Group, Hebei Yongyang Steel and Jiangsu Daming Metal Products Co. with 1889.89, 1688.01, 1440.90 and 1221.51 percent profit growth. Despite a gloomy economy in 2009, 90 of the top 500 manufacturers doubled their profits, versus 30 last year. Some companies were hit hard during the financial crisis, leading to a wider gap between profit-making and loss-making companies.

3. Asset usage and profitability

Asset turnover of China's top 500 manufacturers dropped to 0.97 from 1.12 a year ago. Shandong Liuhe Group's asset turnover was 7.38, the highest among the 500 companies. The second to fifth positions were Hangzhou Fuchunjiang Smelting, Tengen Group, Fuhai Group and Shandong Jinchen Petrochemical Co., Ltd. which put their asset turnover at 7.36, 6.67, 5.97 and 5.81 percent respectively. The number of companies whose asset turnover was over 2 was 102, compared with 122 the previous year.

Return-on-equity (ROE) is a comprehensive financial ratio that measures a company's profitability. China's top 500 manufacturing companies' average ROE was 10.66 percent in 2010, 0.84 percent more than last year. Hebei Yongyang Iron & Steel offered a 457.74 percent ROE, the highest rate among the 500 companies. The second to fifth places were Jiangsu New Century Shipping Yard at 182.2 percent, Jiangsu Xicheng Sanlian Group at 153.84 percent, Shandong Dahai Group at 133.80 percent, Tangshan Changcheng Iron & Steel Group Songting Iron & Steel Co., Ltd. at 110.64 percent. Five more companies’ ROE broke 100 percent, one more than a year ago.

The capital maintenance and appreciation ratio was 115.95 percent on average, 3.36 percent higher than the previous year. Chongqing Sokon Motor Group led the ranking at 544.96 percent, followed by Bailong Orient Co. Ltd., Chongli Steel Co. Ltd., Jiangsu CH Rongsheng and BOE Technology Group Co. Ltd. at 346.37, 331.98, 302.91 and 298.99 percent respectively.

Summary	Report on Top 500 Manufacturers of China in 2010
Chapter I.	Scale and Distribution Features
Chapter III.	Industrial Structure and Distribution
Chapter IV.	Regional Distribution
Chapter V.	Ownership Distribution
Chapter VI.	R&D Expenditure
Chapter VII.	Major Problems