Baosteel Tops the List of Domestic Manufacturing Sector

On August 30th, China Enterprise Confederation and China Enterprise Directors Association jointly published the updated ranking of Top 500 Chinese Enterprises. Boasting the operating revenue of RMB 227.716 billion yuan , Baosteel Group Corporation ranked 12th among Top 500 Chinese Enterprises and first among Top 500 Chinese Manufacturing Enterprises.

In 2007, Baosteel ranked 10th among the Best 200 Chinese Enterprises in Terms of Profit and 15th among the Best 200 Chinese Enterprises in Terms of Tax Paid. It is also the fourth time for Baosteel to top the list since the appraisal of Top 500 Chinese Manufacturing Enterprises was initiated in 2005.

Wang Zhongyu, former vice chairman of the National Committee of CPPCC and president of China Enterprise Confederation and China Enterprise Directors Association, Wang Jinxiang, vice chairman of NDRC, Huang Shuhe, vice chairman of SASAC and other leaders attended The 2008 Top 500 Chinese Enterprises Issuance and the Large Chinese Enterprises Summit. Xu Lejiang, chairman of Baosteel Group made the keynote speech in the summit.

The main criterion for the appraisal of Top 500 Chinese Enterprises is operating revenue. In recent years, this threshold has been rising continuously. This year, it is RMB 9.31 billion yuan, which is RMB 2.1 billion yuan more than last year; the threshold of Top 500 Chinese Manufacturing Enterprises is raised from RMB 2.

98 billion yuan last year to RMB 4.39 billion yuan this year. In light of the appraisal results, the total operating revenues of Top 500 Chinese Enterprises and Top 500 Chinese Manufacturing Enterprises rise by 20% and 32.8% respectively from last year. This year, the first 3 places of Top 500 Chinese Enterprises are China Petrochemical Corporation, State Grid Corporation of China and China National Petroleum Corporation, while the second and third place of Top 500 Chinese Manufacturing Enterprises are China FAW Group Corporation and Hong Fu Jin Precision Industry (Shenzhen) Co. Ltd.

In the summit, Xu Lejiang as the first keynote speaker, focusing on the theme of large enterprises during transformation: new challenge and new development, made a speech titled cultivating leading-type business groups with international competitiveness. In the speech, Xu points out that with the takeoff of Chinese economy, Chinese enterprises have become a force that can not be ignored in the international economic arena. However, in many fields, China is still lack of industrial integrators. Therefore, it is imperative to cultivate large leading-type business groups with international competitiveness. Xu thinks that Chinese enterprises must make full use of late start advantage and take on a new road of less pollution and faster development. In order to become the industrial leader, Chinese enterprises should not only benchmark with international first-class enterprises in terms of scale, technology and product mix, but also take on the features of global first class enterprises in such softwares as corporate governance, managerial system and corporate culture. Xu further emphasizes that to be the integrator of industrial resources, enterprises need the encouragement and support from the government. The leading enterprises should be encouraged by the government to restructure the industry and expand the scale so as to improve the industrial concentration ratio. In the mean time, the enterprises should be encouraged to enhance the capabilities of independent technology innovation and to establish and perfect social responsibility system.