Evergrande World Ranking jumped to 138 to catch up with a Fortune 500 company every 3 days

The Fortune Global 500 is regarded as the most authoritative list of the strength, scale and international influence of large companies in the world

It is also the cornerstone of top companies in the world. On July 22nd, the latest ranking of the Fortune Global 500 was released. Evergrande Group jumped to 138 on the list with a revenue of US$70.48 billion. Since the first list in 2016, Evergrande has jumped from 496 to 138 in three years, surpassing one of the world’s top 500 players every three days. It is a dark horse in the world’s top 500 camp. Great speed."

More and more economists believe that if enterprises want long-term development, they must put strategic management at an important position. The strategic vision of entrepreneurs is the key to determining whether enterprises can win in the increasingly fierce market competition.

To understand the development logic of Evergrande, we must mention the strategic decision of Chairman Xu Jiayin. In recent years, Hengda has made great efforts to implement strategic transformation. The development model has changed from the original “scale” to “scale + efficiency”, and it is required to focus on the quality of growth while maintaining moderate growth. These impressive rankings and figures undoubtedly confirm that high-quality development has become a catalyst for Evergrande’s performance to continue to rise sharply under high base.

Forward-looking strategy driven

Thanks to the strategic transformation, Evergrande has handed over a high-quality “answer." In 2018, Evergrande achieved revenue of RMB 466.2 billion, a year-on-year increase of 49.9%; core net profit of RMB 78.32 billion, a year-on-year increase of 93.3%. With such good performance, Evergrande has once again made great strides in the ranking of the world’s top 500.

In addition to scale growth, improving profitability is a common topic in the world economy and an important indicator of whether the world’s 500 companies are “puffy”. The world’s top 500 list continues to announce the company’s profit indicators, which is used as the yardstick. Evergrande’s performance is even more dazzling: the profit reached 5.65 billion US dollars, ranking 107th in the world’s top 500 list, reflecting Evergrande Excellent quality of growth.

In fact, from 1996 to now, Evergrande’s seven strategic decisions have been fully tested by time and market. Evergrande has grown from “silent nameless" to “world’s top 100″ in just 20 years, which is its strategic decision-making prospect. The best proof of sex, science and correctness.

Sword refers to the new overlord of new energy vehicles worldwide

In fact, among the world’s top 500 companies, diversified companies account for the majority. Looking at the old world top 500 companies such as GM, South Korea’s Samsung, and Germany’s Siemens, all adopt a diversified development strategy to promote overall high-speed growth and consolidate leading position. Evergrande is no exception, and it has been actively exploring diversity since 9 years ago.

At the same time, Evergrande’s diversified layout has set the pace of economic development in Mainland China. At present, Evergrande has formed an industrial structure based on people’s livelihood real estate, cultural tourism and healthy health, and the new energy automobile industry as the leading industrial structure. The profit growth point, new energy vehicles, especially the top priority of the diversified layout.

As for why this track was chosen, Xu Jiayin once said that Evergrande must be a very large industry in terms of industry choice. In addition to trillions of industries such as cultural travel and health, the automobile industry is also a trillion-dollar scale. The volume is matched, and the goal of becoming the world’s largest and most powerful new energy vehicle group in 3 to 5 years is put forward.

Evergrande explained that the new energy automobile industry will reach a market scale of several trillion yuan or even several trillion yuan in the next five to ten years, and it is a world-wide industry. Mainland China is currently the largest market for new energy vehicle production and sales. It is estimated that by 2025, the sales volume of new energy vehicles in China will exceed 6 million, accounting for more than 20% of the sales volume of mainland vehicles, and it is expected to reach 17.5 million in 2030. 50%, the market potential is very huge.

At the same time, the promotion of environmental protection and energy conservation has become the world trend. The zero-emission property of the new energy automobile industry also determines that the industry is in line with the world trend and Evergrande’s corporate philosophy of emphasizing social responsibility. It can be said that regardless of the market or social responsibility to consider, the layout of new energy vehicles is a sure choice for Evergrande. Evergrande has set a new energy vehicle with a forward-looking vision and has taken the lead in cross-border development. According to Evergrande’s vision, its future products “core technology must be world-leading and product quality must be world-class."

The cutting-edge industrial chain in the field of Evergrande’s new energy vehicles has become one of the biggest advantages of Evergrande. The advanced nature of the core technologies of the industry chain will be reflected in the new 100% Evergrande model launched next year. In June of this year, before the arrival of Evergrande, the National Solar 93 model, which was independently developed by NEVS, was mass-produced. It has already unveiled the mature vehicle manufacturing capability of Evergrande. In addition, Evergrande’s production bases for heavy investment in Guangzhou and Shenyang will also be put into production one after another. Evergrande has already prepared for mass production for the new car. Now that the mass production of the Guoneng 93 is off the assembly line, it marks that Evergrande has mature vehicle manufacturing capabilities, and the new model of “Hengda made” is expected to be available next year.

Top 100 is just a new starting point

The 138th place in the top 500 list, Evergrande’s ambition is not limited to this. As early as the beginning of 2018, Evergrande put forward the goal of the world’s top 100. In fact, Evergrande’s goal is only one step away, and Evergrande’s good performance data has already locked in excess of its turnover in advance. After the top 100, what is the next goal of Evergrande? We still don’t know yet. But what is certain is that Evergrande is not pursuing the infinite expansion of numbers. This can be seen from the transformation of its “scale + benefit” development model.

At the same time, Evergrande combines the development of enterprises with social responsibilities and continuously increases the investment of charitable charities. Over the past 23 years, it has accumulated tax revenues of over RMB 230 billion and charitable donations of over RMB 13.6 billion, with a focus on environmental protection. New energy vehicle industry. It can be seen that Evergrande, standing on the new starting point of the world’s top 100, has exceeded its own development.

This goal is not far off. Due to the pre-sale system in the real estate industry in mainland China, sales are usually converted into operating income in the following year. Based on sales of more than 550 billion yuan in 2018, Evergrande will once again jump in the world’s top 500 rankings next year.

With the continuous growth of Evergrande’s new industry, with the goal of becoming the world’s largest and most powerful new energy vehicle group in 3 to 5 years, Evergrande will continue on the world’s top 500 list. Stride forward. Fortune Global 500 has become a benchmark for all walks of life to understand the world’s large enterprises. On the list of the world’s top 500, China’s private enterprises are increasing, witnessing the rapid development of China’s economy and the rise of private enterprises.

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