A Chinese research institute, in cooperation with authorities in Beijing, has compiled a list of China’s top 100 tech and web companies by revenue. Looking only at the top 10, it’s full of familiar names from the world of social media, e-commerce, and gaming.
Before seeing the top 10 list, the institute’s white paper points out this eye-watering figure: China’s hundred hottest tech companies pulled in a total profit of 11.6 billion RMB – that’s US$1.868 billion – in 2011. That’s 26 percent higher than the industry average in the country.
- Tencent (HKG:0700) makes China’s biggest social network and is also top in social gaming. Plus, it makes WeChat, the world’s biggest messaging app. Oh, and it does e-commerce. And lots more.
- Netease (NASDAQ:NTES) must’ve had a good year to make it so high up the list – but then this list is about revenues, not a company’s market cap. Netease is primarily a web portal, but it also does online gaming (it runs World of Warcraft in the country), and also the Evernote-esque, Youdao Yunbiji service.
- Baidu (NASDAQ:BIDU) is the nation’s top search engine by a big margin, and also has a major ad platform and some social services too.
- Sohu (NASDAQ:SOHU) is another web portal, and is pushing its streaming video site pretty hard these days. It also runs the Sogou search engine which is sneaking up on Google’s market share.
- Shanda (NASDAQ:SNDA; FRA:RZP) here means Shanda Interactive, which makes the Kindle-like Bambook e-reader, and has lots of web services like an e-bookstore, cloud storage, and more. Its gaming subsidiary is separate.
- Alibaba is China’s biggest e-commerce company in every sector, running Tmall, Taobao, and Alibaba.com.
- Perfect World (NASDAQ:PWRD) is China’s fourth-biggest social gaming platform.
- Giant Interactive (NYSE:GA) is a tad smaller than perfect World in terms of gaming revenue, coming in sixth in that respect in the country. It runs games like Allods Online in the country.
- Besttone (SHA:600640) is a telecoms firm, and the only one in the top 10 that we’ve never looked at before.
- Sina (NASDAQ:SINA) is talked about a lot these days – and on this site – as it runs Sina Weibo, China’s hippest Twitter-like service. But Weibo is proving costly to run and hard to monetize – hence having China’s hottest social media site doesn’t equate to stellar revenue.
There are plenty more big names lower down on the list, such as Qihoo 360 (NYSE:QIHU) in eleventh, media outlet People’s Daily Online (SHA:603000) in 24th, and the kids social network Taomee (NYSE:TAOM) in 41st.
Of course, the list is open to debate because revenue is not always the best way to rate a company. Perhaps a more representative list could be formed by calculating every firm’s true valuation. If we did that, then Tencent would still be first, but Alibaba Group would be second as the recent Yahoo share buyback and fundraising effectively valued Alibaba at $40 billion.
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