On May 31, the Top 100 enterprises in the electronic information industry fixed their final ranks in 2006. Ordered in terms of operating revenues in 2005, Legend Holdings and Haier Group Corporation ranked the first two with their operating revenues of over RMB10 million yuan; as far as net profits are concerned, Huawei Technologies Co., Ltd. occupied the top position with its net profits of RMB5.15 billion yuan.

It is the 20th ordering for the top hundred electronic enterprises since 1987. As for the achievements made by electronic enterprises, Wang Xudong, Minister of Information Industry, said frankly: "Such achievements are hard-won." He believed that the Top 100 electronic enterprises had already shouldered the responsibility for the development of China's electronic information industry after two decades of development and growth, thus becoming the backbone strength of the development of the industry.

Top 100 enterprises becoming the main force of the industry

In fact, the Top 100 enterprises, which only account for less than 2 percent of the total IT enterprises, have become the main force for the production and sales of major electronic products in China.

Statistics show that the operating revenues of the Top 100 enterprises this year have added up to RMB964.3 billion yuan, up 18.2 percent year on year, representing 25.1 percent of the total industry; the profits that the Top 100 enterprises have realized amount to RMB24.8 billion yuan, accounting for 19.0 percent of the total, and taxes turned in by such enterprises amount to RMB28.9 billion yuan, accounting for 66.4 percent of the total for the industry. As far as classified products are concerned, the sales volume of color TV sets of the Top 100 enterprises reached 67.08 million sets in 2005, representing 81.0 percent of the total industry; that of program control switches reached 34.04 million sets, representing 49.1 percent of the total; that of computers reached 16.65 million sets, representing 20.6 percent of the total; that of refrigerators reached 13.12 million sets, representing 40 percent of the total; and that of air conditioners reached 27.626 million sets, representing 41 percent of the total. Meanwhile, the Top 100 electronic enterprises have accelerated the formation of their brand advantages in the process of natural selection through brand strategy, making the market shares of major electronic information products consistently converge to famous brands.  

According to the data released by the National Bureau of Statistics, the market shares of electronic products like electrographs, color TV sets and refrigerators seized by the top 10 brands in terms of sales volume have exceeded 80 percent; and those of the top 10 electrograph brands have exceeded 90 percent.

In addition, along with the rapid development in the domestic market, the top 100 enterprises this year have also made outstanding achievements in their diversification and internationalization. Data show that many of on-the-list enterprises this year, which were also listed last time, have generally benefited from the implementation of their respective development strategies for diversification and internationalization. The top 100 electronic enterprises this year have realized an export delivery value of RMB245.8 billion yuan, up 33 percent when compared with that of last term; and overseas incomes of nearly one third of those enterprises have occupied more than a half of their total incomes.

Remarkable buildup in terms of innovation ability

Along with the rapid growth in terms of market shares and incomes, domestic IT enterprises with the top 100 enterprises as the leaders have greatly strengthened their input in technology R&D and standard development.

As shown by the data released by the Ministry of Information Industry, there are 93,600 R&D personnel in the top 100 enterprises this year, accounting for 9.6 percent of the total staff; outlays invested in R&D amounted to RMB35.6 billion yuan, representing 3.7 percent of the total operating revenues, remarkably higher than the industry's average level of 2.1 percent. Huawei invested RMB4.75 billion yuan in R&D in 2005, accounting for 10.1 percent of its operating revenues; the proportion of R&D expenses in operating revenues of more than ten out of the top 100 enterprises with ZTE, Alcatel Shanghai Bell, Guangzhou Radio Group, Shanghai Huahong International, Neusoft, Sichuan Jiuzhou included has already surpassed 6 percent, basically geared to the level of international hi-tech enterprises.

While increasing inputs in R&D continually, China's IT enterprises have also taken an active part in the development of international standards. Huawei, for example, has joined 70 international standard organizations and assumed a post of the vice president in 5 organizations.

Under the guidance of industrial policies, the relations between standard and market, between standards and the government, between the government and enterprises have become harmonious gradually. Domestic IT enterprises, represented by the top 100 enterprises, have begun to develop independent technological standards jointly so as to solidify their independent intellectual property rights while strengthening the close combination between standard development and industrialization to accelerate the industrial development.

Evident optimization of the industrial structure

With the development of China's IT industry, analyzed from adjustments to the economic structure of the top 100 electronic enterprises in the past two decades, China's IT industrial structure has been optimized evidently and is being driven forward orderly.

The optimization is mainly represented in such aspects as industrial layout, structural adjustments and regional distribution. Firstly, the industrial layout has been adjusted rathionally. With the top 100 enterprises as the core, the construction of state level electronic information industry bases and parks is being expedited. There has preliminarily shaped up a set of industrial growing belts with obvious aggregation and radiation effects, relatively complete industrial chains and strong motivating forces. Secondly, product structure has been under constant adjustment. Over 90 percent of the top 100 enterprises at the very beginning were engaged in color TV sets and spare parts manufacturing, such a fact reflected the then situation that China's electronic industry was "vitally dependent on color TV sets"; up to 1996, the product structure of the top 100 enterprises had been adjusted to a diversified structure with the synchronic development of communications, computers, display components of a new type, home appliances; among the twentieth top 100 enterprises, more than three fourths were engaged in the R&D and production of integrate circuits, software, computers, communication products, system integration, display components of a new type, and new types of components. Thirdly, the irrational regional structure has been somehow ameliorated. Although the top 100 enterprises are mainly concentrated in the eastern part, quite a lot of operating revenues of those enterprises are from the middle and western parts. The top 100 enterprises have become the leading force to realize the terraced regional transfer in the electronic information industry.

Editor: Yan