The 500 biggest manufacturing companies in China’s southern manufacturing hub, Guangdong province, have collectively seen a 286.5 billion yuan reduction in net profits for the year to date – a 21.9 percent fall compared to the previous year.
The profit plunge came in spite of a 1.2 percent rise in collective revenue to 5.2 trillion yuan. The figures were published in a report released at the recent 2023 Top 500 Guangdong Manufacturing Enterprises Summit.
Despite lifting zero-Covid restrictions and reopening for business at the start of the year, the world’s second-largest economy has not experienced the rapid bounceback that it was hoping for. Third quarter growth slowed to 4.9 percent from the 6.3 percent registered in the second quarter.
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As well, the country has been faced with low consumption, a troubled real-estate industry and an ageing population. Earlier this year, the Macau Economic Association warned that China’s economic ills could have a knock-on effect on the SAR’s economy, which is heavily reliant on mainland tourists.
The companies featured on Guangdong’s Top 500 list come from 24 different industries. Huawei, Foxconn, BYD, Midea, and metals and cables producer Amer International make up the leading five.
Shenzhen is home to the most companies on the list, being the base of 133 of them. In second place is Foshan, with a total of 70 firms, closely followed by Guangzhou with 68.
