"In the latest issue of Fortune Magazine's Rich List for 2005, the Hua Xia Daqian Group was ranked tenth in the world's top 500, down one position from last year. Jia Yapeng still maintains the title of the world's second richest man and the richest man in China! " This was a report published in the media, but it could no longer arouse much excitement among the people of Hua Xia.
Because as the report said, this result was even worse than last year's.
In 2003, the Daqian Group was ranked tenth in the world's top 500, and Boss Jia had been the world's second richest man for almost four years. The people of Hua Xia had long been accustomed to the Daqian Group and Boss Jia's wealth.
They even criticized the Daqian Group for not doing well this year, so much so that it dropped one position from last year.
However, they still remembered that when the Daqian Group first became the tenth in the world's top 500, the whole of Hua Xia was jubilant. All kinds of media articles were blown up, and the people of Hua Xia all had a strong sense of national pride. At that time, Boss Jia had almost reached the peak of his life for more than ten years.
However, the Daqian Group seemed to have stagnated recently. For three consecutive years, it was stuck in the tenth and ninth position, and it was difficult for it to go further and become one of the top five companies in the world.
In this regard, many people published articles in the media, saying that the Daqian Group was not trying to make progress.
However, there were also people who empathized with the Daqian Group, saying that the Daqian Group had tried its best, and the reason why the Daqian Group could not go further was that there was a problem with the system. Then, they began to use the old tricks known to the public.
Anyway, no matter what it was, the public could get you into the system.
The people had their own ideas and opinions, but in the eyes of the Daqian Group's senior management, this was very ridiculous.
Because according to the Fortune Magazine's list of the world's top 500 companies, the number one company in the world was Wal-Mart, with a total revenue of 287.9 billion US dollars.
Of course, the executives in the hall did not know whether the data was accurate or not, but the Daqian Group knew its own data. The total revenue of the Daqian Group in 2005 had reached 368.2 billion USD, surpassing the total revenue of Wal-Mart by nearly 80 billion USD.
Of course, this data was not released to the public. In fact, since 2000, the Daqian company had stopped announcing its total revenue at the annual meeting. It was too easy for its competitors to plot against it. However, it still shared 10% of the total profit with all its employees.
Some people might think that Daqian's figures were too exaggerated. A total revenue of 368.2 billion USD was simply a fantasy. After all, before 2000, Daqian's total annual revenue was only about 60 to 70 billion USD. When did it reach 368.2 billion USD?
This was because the present was different from the past. The Daqian was no longer the Daqian of 2000 years ago.
First of all, many people had always thought that there was a problem with the calculation method of the Fortune 500. Many people said that the Fortune 500 should not be calculated according to the total revenue, but according to the total profit.
This was because calculating according to the total revenue was unfair to many companies.
For example, 51 Search, the company with the highest market value in the US stock market, had an annual revenue of only 98.7 billion USD, which was not even half of Wal-Mart's. Logically speaking, Wal-Mart should be ranked first.
However, the world's number one Wal-Mart was ranked fourth.
The reason for this change was mainly because of the profit. Wal-Mart's revenue was high, but its annual profit was only about 10 billion USD.
However, Google's profit had reached 28 billion USD, which was more than twice of Wal-Mart's. For shareholders, profit was the most favorable structural point to support the stock price.
After all, there were a large number of companies in the world with annual revenue of hundreds of billions, but in turn, they were losing tens of billions every year. It was impossible to expect these companies to explode in the stock market.
So, why was there such a situation where the revenue was high, but the profit was thin?
It was mainly because of the restrictions of the industry.
Wal-Mart was in the retail industry. It was a large scale and sold a variety of products. It was normal for its annual revenue to exceed 200 billion USD because customers needed to buy so many things.
However, the retail industry was famous for its low profit margin. Even if Wal-Mart had come up with all kinds of ways to increase its profits, it could not stop a series of huge fixed costs such as employee expenses and store expenses. In the end, the profits were thin.
Logically speaking, Wal-Mart being able to make profits was already a great thing. Many large companies in China had high annual revenue and losses. They relied on the financial industry to survive. Once they left the financial industry and bank loans, they would immediately die.
Wal-Mart's stores were so big all over the world, but it was still profitable. Wal-Mart's managers were too awesome!
On the contrary, Google's operating costs were much lower. Currently, Google's main costs were the server, programmer, and some research and development expenses. Other than that, there was nothing else.
Google had almost no stores, channels, transportation, and other physical expenses like traditional industries. It would be strange if the profits were low.
However, because of this, Google's current profits were mainly from advertising, membership fees, and so on. But these expenses were at most a few hundred USD per person per year. The annual revenue would not be high.
On the contrary, a person would spend at least a few thousand USD per year on the superstore. Wal-Mart's revenue would naturally go up.
Similarly, there were other companies that were also in the top ten of the world's top 500.
These top ten companies were Wal-Mart, BP, and General Motors. ExxonMobil, Royal Shell, Daimler Chrysler, Toyota, Ford, Total, and Daqian Group.
Other than Wal-Mart and Daqian, all of them were oil companies or automobile companies. Together, they formed the entire automobile industry.
The reason why there was such a concentration of industries was naturally because of the revenue.
Even in the United States, a car cost about 30,000 USD on average. The annual car sales in the United States were about 18 million. This added up to a total revenue of 560 billion USD.
Globally, this figure was five times higher, reaching 2.8 trillion USD. It was only natural that such an industry could produce one of the top ten companies in the world.
After all, as long as they casually sold five to six million cars worldwide, they could get a total annual revenue of more than 200 billion USD. After all, the unit price of a car was very expensive. You could not expect a Google membership account to sell for 30,000 USD!
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