(Yicai) Sept. 20 -- China’s biggest 500 manufacturing enterprises posted an increase in revenue last year from the year before while their decline in profit slowed, as these industrial behemoths continue to make headway despite a challenging economic landscape, according to the latest data.

Revenue at China’s top 500 manufacturing enterprises climbed 2 percent in 2023 from the year before to CNY52 trillion (USD7.4 trillion), according to data published by the China Enterprise Confederation and the China Enterprise Directors Association today.

Net profit tumbled 6 percent to CNY1.2 trillion (USD170.4 billion). This is a narrowing of 8 percentage points from the previous year. It is the second year in a row that profitability has declined.

China’s top 500 fared considerably better than the manufacturing companies in the Fortune Global 500, which reported a 13 percent dive in net profit and 4 percent slump in revenue over the period.

Oil major Sinopec headed the list with revenue of CNY3 trillion (USD425.8 billion), followed by Baowu Steel Group, the world’s largest steel company, with earnings of CNY1.1 trillion. Chemical giant Sinochem Holdings ranked third with CNY1 trillion.

New energy vehicle manufacturer BYD entered the top 10 for the first time, jumping nine places from last year’s ranking. The Shenzhen-based company’s revenue surged 42 percent year on year to CNY602.3 billion (USD85.3 billion).

Metals giant China Minmetals Corporation, petrochemical firm Hengli Group, car makers SAIC Motor and FAW Group as well as tech behemoth Huawei Investment Holding and conglomerate Zhejiang Rongsheng Holding Group also made the top 10.

The top 500 continued to spend heavily in innovation as a driving force of their growth. Investment in research and development jumped 13 percent year on year to CNY1.2 trillion (USD170 billion) while R&D expenditure accounted for 2.37 percent of revenue, an advance of 0.04 percentage point.

These big manufacturers also expanded their global footprint, with the value of their overseas assets soaring 6 percent to CNY7.3 trillion (USD1 trillion). The number of employees abroad surged 14 percent to 1.14 million. But overseas operating income dipped 1 percent to CNY7.1 trillion.

Seventy-five percent of China’s top 500 manufacturers were private companies. This was an increase of 12 from the previous year to 374. And just over half of the 125 companies with an annual revenue of more than CNY100 billion (USD14.1 billion), at 69, were privately owned.

Editor: Kim Taylor