MoonFox Analysis | Chinese A-share Companies' Global Revenue Journey: Expected to Reach US $1.4 Trillion

Rhea-AI Summary

Chinese A-share listed companies are experiencing significant global expansion, with nearly 70% having international presence by 2023. Global revenue reached CNY 4.05 trillion in H1 2024, projected to exceed CNY 8.5 trillion for the full year, representing 12.2% of total revenue. The top industries leading global expansion are Mechanical Equipment, Electronics, and Basic Chemicals, accounting for over 70% of companies with international operations. Notable performers include BYD in automotive with CNY 89.95 billion global revenue in H1 2024, and HIKVISION with CNY 14.18 billion. The analysis projects continued growth in global markets, particularly in the Middle East, North Africa, and Latin America.

Positive

• Global revenue reached CNY 4.05 trillion in H1 2024, showing consistent YoY growth
• Global revenue share increased to 12.2% of total revenue, up 0.5% from 2023
• Leading companies report 30-40% growth in global business revenue in 2023
• Strong industry concentration with over 70% of international operations in top 10 sectors

Negative

• None.

Insights

Market Research Analyst

The data reveals a significant transformation in Chinese A-share companies' global expansion, with global revenue projected to reach $1.4 trillion. Key findings show 12.17% of A-share companies' revenue now comes from international markets, up from 11.73% in 2023. The mechanical equipment, electronics and basic chemicals sectors lead this expansion, accounting for over 70% of companies with international operations.

This trend indicates a structural shift in China's economic landscape, with companies moving up the value chain in manufacturing and technology. Notable successes include BYD's expansion in Europe and Thailand and Wondershare's global software presence across 163 countries. The growth trajectory suggests strong potential for investors in sectors leveraging China's manufacturing expertise and technological capabilities.

However, investors should note potential headwinds including geopolitical tensions and international trade restrictions. The concentration in secondary industries also presents both opportunities and risks in terms of market diversification.

SHENZHEN, China, Nov. 4, 2024 /PRNewswire/ -- Since the Reform and Opening-up in China, global trade has been vital to China's economic growth. Data indicates that China's total import and export trade volume steadily increased, reaching CNY 42.8 trillion in 2023. In the first eight months of 2024, the total volume hit CNY 28.6 trillion. Given the historically high growth rates, China's total annual import and export volume is projected to approach CNY 45 trillion, potentially setting a new record.

For companies, global expansion has become a crucial strategic direction for accelerating growth and diversifying revenue streams after years of development. Survey data reveals that more than 60% of companies have plans for international expansion, a trend particularly evident among leading and publicly listed firms. Focusing on A-share listed companies, what is the scale of their global revenue? Which industries and products are performing exceptionally well in international markets?

I. Steady Growth in Global Revenue Share, Secondary Industry Contributing Major Revenue

By the end of 2023, nearly 70% of China's A-share listed companies had established a presence in global markets, totaling over 3,500 firms. International expansion has become a key focus for A-share listed companies, with revenue steadily increasing.

	A-share Listed Companies' Global Revenue and Proportion Statistics (2019-2024 H1)
	Global Revenue (CNY Trillion)	Percentage of Total Revenue (%)
2019	5.46	10.18 %
2020	5.8	10.39 %
2021	6.82	10.19 %
2022	8.16	11.35 %
2023	8.51	11.73 %
2024H1	4.05	12.17 %

Data Source: Wind, Choice Financial Terminal

Data Description: 2024 H1 data from Choice; Others from Wind public channels, for reference only

According to Choice data, global revenue for A-share listed companies reached CNY 4.05 trillion in the first half of 2024 and is projected to exceed CNY 8.5 trillion for the full yentire reflecting consistent YoY growth. This figure is expected to reach CNY 10 trillion by 2026. In terms of proportion, global revenue now constitutes 12.2% of total revenue for these companies, increased by 0.5% compared to 2023. Leading A-share companies are particularly aggressive in their international endeavors, with many reporting 30-40% growth in global business revenue in 2023, a trend expected to persist into 2024.

Top 10 Industries by Number of A-share Listed Companies with Global Business (2024 H1)
Industry	Number of Companies
Mechanical Equipment	396
Electronics	345
Basic Chemicals	294
Power Equipment	253
Pharmaceuticals & Biotechnology	247
Automotive	210
Computing	141
Light Manufacturing	111
Home Appliances	84

Data Source: Cninfo.com.cn, public channels

From an industry perspective, companies pursuing global expansion typically exhibit high industry concentration. Over 2,100 A-share listed companies with international operations are concentrated in the top 10 industries, accounting for over 70%. Mechanical Equipment, Electronics, and Basic Chemicals lead the pack, reflecting China's strong industrial competitiveness in these sectors as a manufacturing and industrial powerhouse.

In the machinery equipment sector, intelligent processing and manufacturing are key themes, with frequent references to robots, precision equipment, new energy, and photovoltaics. At the corporate level, SANY Group, XCMG, and CRRC are the top three for global revenue, each generating hundreds of billions in the first half of the year, primarily in producing and selling large-scale machinery for earthmoving and lifting operations.

In the electronics industry, semiconductors, terms such as semiconductors, chips, and modules are commonly referenced. Leading companies include Luxshare, BOE-A, and Goertek. Overall, the electronics sector shows higher revenue levels, with Luxshare's global revenue nearing CNY 100 billion in the first half of the year, accounting for nearly 90% of its total revenue. Notably, Transsion Holdings ranked fourth in this period with a global revenue of CNY 34.5 billion, targeting the African mobile phone market with virtually all revenue from abroad.

In other sectors, such as basic chemicals, industry leaders like Wanhua Chemical, ADAMA, and Yuntianhua primarily focus on producing materials such as polyurethane, propylene, and phosphorus chemicals, with global revenue ranging from CNY 0.1 to 40 billion in the first half-year. CATL continues to expand international markets in power equipment, focusing on energy storage batteries. Jinko Solar and JA Solar focus on solar photovoltaic products, with global revenue exceeding 50% of total revenue. In pharmaceuticals and biotechnology, BeiGene develops commercialized innovative drugs, while Mindray and Fosun Pharma focus on medical device R&D. China's pharmaceutical industry has made significant strides in transitioning from a raw material-driven model to a technology-driven approach, establishing a notable influence in international markets.

Overall, A-share listed companies pursuing global expansion concentrate primarily on the secondary industry. As an industrial powerhouse, China has accumulated rich production and manufacturing experience in this sector, with many technologies at world-leading levels. Conversely, while the automotive and internet sectors rank moderately in the number of companies, many high-quality industry leaders are accelerating their international expansion, resulting in steadily increasing revenues. While the automotive and internet sectors rank moderately in terms of the number of companies, many high-quality industry leaders are accelerating their international expansion, resulting in steadily increasing revenues.

II. Automotive and Computing Sectors Accelerate Global Expansion, Leading Enterprises Emerge to Shape Global Influence 

In 2023, China's automotive exports reached 5.22 million units, marking a YoY growth exceeding 57%. From January to September 2024, exports have already reached 4.312 million units, with annual projections expected to surpass 2023 levels. Capitalizing on its manufacturing capacity and technological advantages, China has maintained the world's highest automotive production and sales for 15 consecutive years. The rapid growth of new energy vehicles (NEVs) has enabled many domestic brands to enter North American and European markets.

BYD Global Global App Rankings Overview - September 2024
Item	Data
Countries Covered	18
Population Covered	258 million
Major Population Countries/Regions	1
Developed Countries/Regions	6

Data Source: MoonFox iApp;

Data Cycle: September 2024

The statistical results only contain application client data, excluding ecological UV data such as web pages, applets and Quick App

Among automotive companies expanding globally, BYD ranks at the top. In the first half of 2024, BYD's global revenue reached CNY 89.95 billion, accounting for 30% of total revenue. According to MoonFox data, as of September 2024, BYD's global app--App-BYD-- has covered 18 countries and regions, reaching over 258 million users. On the one hand, BYD is deepening its European presence, targeting markets like Germany with mid-to-high-end models, projecting sales of 120,000 NEVs in Germany by 2026. On the other hand, BYD is ramping up efforts in Thailand, where its factory was completed on July 4, with an annual production capacity of approximately 150,000 units. Overall, BYD will accelerate its global market expansion, while companies like Weichai Power and Great Wall Motor are also speeding up their international presence, focusing on upstream industrial development.

While the number of computing sector companies expanding globally is slightly lower than other leading industries, numerous software and digital enterprises are accelerating global deployment amid the internet wave. Although this analysis excludes Chinese concept stocks listed on Hong Kong and U.S. exchanges (such as Tencent and NetEase), many segment leaders deserve attention. HIKVISION, IEIT SYSTEMS, and Ninestar rank as the top 3 in global revenue. HIKVISION's global revenue reached CNY 14.18 billion, accounting for 34% of total revenue. The global market is crucial for HIKVISION, as domestic profit growth faces limitations due to intense competition in the specialized security and IoT sectors. However, many international market segments still need to be developed. Despite challenges such as potential "global sanctions," the HIKVISION brand continues strengthening its global influence, with rising demand emerging in Latin America and the Middle East.

Additionally, many software and information service companies in the computing sector rapidly expand globally, with Wondershare among the top performers. In the same period, Wondershare's global revenue reached CNY 640 million, exceeding 90% of total revenue. Adopting a "global operations" philosophy, Wondershare has established subsidiaries in regions such as North America, Japan, and Singapore, reflecting proactive international outreach.

Wondershare's MobileTrans App Global Rankings Overview - September 2024
Item	Data
Countries Covered	163
Population Covered	5.312 billion
Major Population Countries/Regions	22
Developed Countries/Regions	32

Data Source: MoonFox iApp;

Data Cycle: September 2024

The statistical results only contain application client data, excluding ecological UV data such as web pages, applets, and Quick App.

Wondershare offers a range of creative software tools across various industries, including the editing tool Filmora, video editing software Capterra, and office software PDFelement. Its app portfolio includes MobileClean, Dr.Fone Link, and MobileTrans, with MobileTrans covering over 160 countries; significant download contributions come from India, the U.S., and Mexico.

Finally, light manufacturing features companies like Huatai Group, KUKA Houseware, and SONGMICS HOME in other sectors involved in paper production and home furnishing. In the home appliance sector, leading brands such as Midea Group, Haier Smart Home, and Hisense generate global revenues in the tens of billions, accounting for about 50% of their total income. Focusing on new energy lithium batteries, copper products, and rare metals, the non-ferrous metals sector sees companies like CMOC Group and Huayou Cobalt showing strong intentions for global expansion.

In conclusion, A-share listed companies are experiencing a significant acceleration in global expansion, with multiple industries thriving and leading enterprises emerging. Looking ahead, industry transformation may lead to shifts in which sectors dominate global expansion, particularly in telecommunications and media, which are expected to see more companies exporting technology, services, and IP content. A-share companies are anticipated to further penetrate global markets, especially in the Middle East, North Africa, and Latin America, enhancing performance and initiating secondary growth trajectories.

About us: Aurora Mobile (NASDAQ: JG) established in 2011, is a leading customer engagement and marketing technology service provider in China. Its business includes notification services, marketing growth, development tools, and data products. As its sub-brand, MoonFox Data is a leading expert in data insights and analysis services across all scenarios, aiming to help companies gain market insights and empower precise decision-making.

Aurora Mobile-MoonFox Data consistently monitors industry development and regularly tracks corporate performance. The following is our research report on industry hotspots:

• "Luckin Coffee has successfully secured a dominant position in the market through rapid expansion and a broadening customer base";
• "Xiaomi Cars were Finally Released, and How About the Group's Confidence?";
• "How WeChat Channels Burdens of Tencent's Hopes for the Future Amidst Rapid Commercialization";

If you need a copy of the report, feel free to contact one of us.

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FAQ

What is the projected global revenue for Chinese A-share companies by 2026?

Chinese A-share companies' global revenue is expected to reach CNY 10 trillion by 2026.

What percentage of Chinese A-share companies had global operations by end of 2023?

Nearly 70% of China's A-share listed companies (over 3,500 firms) had established a presence in global markets by the end of 2023.

Which are the top 3 industries for Chinese A-share companies' global expansion?

The top three industries are Mechanical Equipment (396 companies), Electronics (345 companies), and Basic Chemicals (294 companies).

What was BYD's global revenue in the first half of 2024?

BYD's global revenue reached CNY 89.95 billion in the first half of 2024, accounting for 30% of its total revenue.