On May 28, the Information Release Conference for China's Top 100 Machinery Enterprises and Top 30 Automotive Enterprises, together with a review of ten years of development, was held in Beijing. A total of 21 enterprises received the Outstanding Contribution Award.

Wang Ruixiang, President of the China Machinery Industry Federation, said at the conference that the information release event for China's Top 100 Machinery Enterprises and Top 30 Automotive Enterprises has been held for ten consecutive sessions since 2004. Over the past decade, under the guidance of the Party's principles and policies, China's machinery and automotive industries have actively responded to the challenges of the financial crisis, accelerated the pace of adjustment and revitalization, shifted from high-speed to medium-speed development, and entered a critical period of accelerating transformation and upgrading.

At the same time, along with the industry's innovative development, a number of machinery and automotive enterprises have adapted to the ever-changing tide of the market economy, won impressive results through hard work, developed healthily amid complex and volatile international market competition, and grown into leaders in the industry.

Backbone Force

Wang Ruixiang said that although the Top 100 Machinery and Top 30 Automotive enterprises account for a relatively small share of the number of enterprises and employees in the industry, their share of main business revenue and total profits is significantly larger.

According to statistics from the China Machinery Industry Federation, the main business revenue of the machinery industry (excluding automobiles) grew from 2.29 trillion yuan in 2004 to 14.08 trillion yuan in 2013. Among this, the main business revenue of the Top 100 Machinery enterprises remained above 11% for the entire decade, reaching a peak of 18.67%. In 2013, the combined main business revenue of the Top 100 Machinery enterprises was 1,592.9 billion yuan, up 3.5% from the previous session, 3.73 times that of the first session, with an average annual growth rate of 15.73%. The main business revenue of the automotive industry grew from 1.09 trillion yuan in 2004 to 6.35 trillion yuan. Among this, the main business revenue of the Top 30 Automotive enterprises remained above 50%, reaching a peak of 58.4%.

Over the past decade, whether during the golden period of industry development, in difficult times of responding to the financial crisis, or in the critical stage of transformation and upgrading, some enterprises have contributed to stabilizing growth and safeguarding the overall situation with solid performance of steady and relatively rapid growth, becoming an important driving force leading the industry forward.

For example, the enterprises selected for the Outstanding Contribution Award, including Sinomach, XCMG, Zoomlion, Sany, TBEA, Tianjin Sulishi Cable, TZ, Lingong, Daqo Group, CITIC Heavy Industries, Shenyang Blower Works, as well as SAIC, BAIC, Wanxiang, Great Wall Motor, Shaanxi Automobile, and Geely among the Top 30 Automotive enterprises, all achieved main business revenue growth of more than five times over the decade, with average annual growth rates far above the industry average.

Wang Ruixiang said that analysis shows a common feature of these enterprises is that they possess both the attributes of being large and strong. Data show that in 2013, the top ten Top 100 Machinery enterprises all reached main business revenue of more than 30 billion yuan; their combined main business revenue accounted for 52.16% of the Top 100 enterprises, and their combined total profits accounted for 42.37%. In 2013, the top ten Top 30 Automotive enterprises all had operating revenue of more than 50 billion yuan, with eight exceeding 100 billion yuan; the top ten accounted for 89.16% of operating revenue and 91.86% of total profits.

In recent years, although the growth rate of large machinery and automotive enterprises has declined amid a tightening economic environment and markedly slower demand growth, this is more the result of enterprises actively responding to market changes and accelerating structural adjustment. Under such circumstances, a number of advantageous enterprises have still maintained moderate or even relatively rapid growth, which to some extent reflects the strong adaptability and endogenous development potential of these large machinery and automotive enterprises in a complex environment.

In addition, over the past decade, the output of most products in the machinery and automotive industries has risen to the front ranks of the world. A large number of large-scale high-end equipment and products related to national economic construction and national defense security—such as supercritical and ultra-supercritical thermal power units, extra-large hydropower units, nuclear power equipment, and megawatt-class wind power equipment in power generation equipment; 500–1000 kV extra-high and ultra-high voltage AC/DC transmission and transformation equipment; large metallurgical and mining equipment; petrochemical equipment; large construction machinery; agricultural machinery; and large castings and forgings—are mostly produced and manufactured by these leading enterprises.

At the same time, most of the industry's investment in scientific and technological innovation, breakthroughs in key common core technologies, leadership of major scientific and technological research projects, and R&D of large high-end scientific and technological products are undertaken and completed by the Top 100 and Top 30 enterprises. Moreover, in various honors and awards each year, such as national and industry science and technology progress awards and successive national industrial awards, Top 100 Machinery or Top 30 Automotive enterprises are always among the recipients.

A Long Way to Go

Wang Ruixiang emphasized that honors belong to the past. The enterprises receiving the Outstanding Contribution Award are all pacesetters in their respective industries and play a leading and demonstrative role in the healthy development of the industry, and therefore bear heavier pressure and responsibility.

He said that China's machinery and automotive industries are currently in the critical stage of transformation and upgrading. Development among regions, industries, and enterprises remains unbalanced. Compared with advanced international levels, there is still an obvious gap in the development of Chinese industry enterprises. The task of achieving the transition from large to strong remains quite arduous, and the goal of making progress while maintaining stability should not be taken lightly.

Therefore, stabilizing growth remains the primary task of economic development. "The Top 100 and Top 30 enterprises are the weather vanes of the industry's economic development, and their production, operations, and profitability directly affect the development trend of the entire industry. We hope enterprises will assess the situation, overcome difficulties, and with the courage and wisdom of deepening reform, solve problems in development, ease pressures such as economic downturn and rising costs, and continue to play a driving role in promoting the steady and sustained progress of the industry's economy."

Wang Ruixiang said that this year has entered the countdown to the implementation of the 12th Five-Year Plan, and the industry's task goals of stabilizing growth, striving for high-end development, consolidating foundations, strengthening management, and improving quality, efficiency, and upgrading have reached a critical juncture of climbing over the hurdle.

He hopes that participating enterprises, in accordance with the work requirements of ensuring implementation, innovation, and practical results, will continue to leverage their advantages in economic and technological foundations and their character and style of being good at planning and acting. They should take the lead in aiming at the high end, focusing on the foundation, actively eliminating backward capacity, developing advanced green manufacturing, and improving technology, process levels, and product quality and performance. At the same time, they should actively promote enterprise mergers and reorganizations and strategic restructuring, effectively integrate resources from both markets, and be pioneers in promoting the optimization of industrial organizational structure and the improvement of open-capacity levels. They should take the lead in developing a circular economy and modern manufacturing services, extend industrial chains, increase economic added value, and set an example in promoting the optimization and upgrading of traditional industries.

"The fundamental way to solve the chronic problem of China's machinery and automotive industries being large but not strong and to achieve the goal of becoming a strong nation lies in innovation, and the key is to rely on the power of science and technology." Wang Ruixiang said that the Top 100 Machinery and Top 30 Automotive enterprises have unique advantages in scientific and technological innovation resources and have achieved fruitful results in promoting the improvement of enterprises' independent innovation capabilities and industry scientific and technological progress. He hopes they will continue to increase investment in scientific and technological innovation, adhere to combining the introduction of capital, talent, and technology, leverage their advantages and potential, and actively act in developing emerging industries, high-end equipment manufacturing, and import substitution.

"By vigorously promoting the deep integration of 'industrialization and informatization' and scientific and technological innovation, improving capabilities in design, processes, manufacturing, and management, and striving to achieve major breakthroughs in advantageous fields and in common and key technologies, they should play the role of the main force in promoting the transformation from Made in China to Created in China, from Chinese speed to Chinese quality, and from Chinese products to Chinese brands."

Related link: List of enterprises receiving the Outstanding Contribution Award for Ten Years of Development in the Machinery and Automotive Industries

China National Machinery Industry Corporation, Weichai Holding Group Co., Ltd., Xuzhou Construction Machinery Group Co., Ltd., Shanghai Electric (Group) Corporation, Zoomlion Heavy Industry Science & Technology Co., Ltd., Sany Group Co., Ltd., China Dongfang Electric Group Co., Ltd., Xinjiang TBEA Group Co., Ltd., Chint Group Co., Ltd., Xuji Group Co., Ltd., CITIC Heavy Industries Co., Ltd., Shenyang Blower Works Group Corporation, Haitian Plastics Machinery Group Co., Ltd., Wafangdian Bearing Group Corporation, Shaanxi Blower (Group) Co., Ltd., SAIC Motor Corporation Limited, China FAW Group Corporation, Dongfeng Motor Corporation, Beijing Automotive Group Co., Ltd., China Changan Automobile Group Co., Ltd., Zhejiang Geely Holding Group Co., Ltd.