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Tech Fast 50 China marks its 10th anniversary
Winners record three-year average revenue growth of 1,076%
Date: 30 October 2014
The 2014 Deloitte Technology Fast 50 China Program concluded successfully at today’s award ceremony with the presence of more than 300 guests, including senior executives from fast growing companies, government officials, private equity investors, legal and accounting professionals and journalists. The fast growing nature of winning companies was fully reflected by their strong three-year revenue growth rate of 1,076 percent, more than double from that of last year. The top five winners – Xi'an Telison New Materials Co., Ltd., Beijing BOE Display Technology Co., Ltd., Chengdu Nibirutech Co., Ltd., HSTYLE and Bossun – achieved a three-year accumulated average revenue growth rate of over 6,250%.
2014 marks the 10th anniversary of the Deloitte Technology Fast 50 China Program. It also represents the further expansion of the Program within China. In alliance with Beijing, Xi'an, Chengdu, Wuhan, Dalian and Shenzhen, Deloitte has organized the Deloitte China Fast 20 regional program in these 6 cities. The results of top 20 fast growing companies have been announced in the first five cities, and the winners for the Deloitte Shenzhen Fast 20 Program, jointly organized with Shenzhen General Chamber of Commerce (SGCC) and Shenzhen Small and Medium Enterprises Public Service Mall (SMEmall), was also announced today with Shenzhen World inside Network Technology Co., Ltd., Shenzhen China Communication Technology Co., Ltd. and Shenzhen Unifortune Supply Chain Service Co., Ltd. as the top three winners. These three companies posted an average three-year revenue growth of 912%.
"Deloitte Technology Fast 50 China Program is a reputable award program for fast growing companies in the industry with the objective to identify industry standouts seeking continuous innovation and business excellence in China. We also hope to identify the rising stars in the technology industry in different regions in China through the Deloitte China Fast 20 Program at city level,” said the SGCC leadership.
Deloitte also announced the voting result of Deloitte – China Renaissance Rising Stars 2014 on the same day at the event in Shenzhen. Winning companies included UCloud, DJI, Beijing Xiaoju Technology Co., Ltd ( Didi Taxi), Shanghai Rajax Network & Technology Co., Ltd., Bytedance, Koudai.com, Beijing Rong Century Information Technology Co., Ltd., Tujia Online Information Technology Co., Ltd., Youxinpai (Beijing) Information Technology Co., Ltd. and Changba.
In terms of industry distribution, 36 percent of the winners of Deloitte Technology Fast 50 China 2014 are software/system integration companies, indicating that software/hardware integration service remains as the strongest sector in terms of market demand. Another 10 percent belongs to the Internet sector with only a few emerging companies , suggesting that the market has been monopolized by industry giants and it is not easy for start-ups to become the game changers and leaders in the Internet sector. Companies from biotech/pharmaceutical, new energy and clean technology sectors accounted for 6% of the Top 50 companies. The fastest growing company belongs to the new energy sector, reflecting the increasing effort paid by Chinese companies to develop this sector.
"During the selection process, Deloitte also discovered the many challenges faced by fast growing companies, mainly related to valuation for innovation, organization structuring, talent management, financing management, risk management, and tax management,” said Po Hou, National Technology, Media and Telecommunications Industry Leader, Deloitte China.
This year, along with the Technology Fast 50 selection Deloitte also conducted a survey and interviewed the CEOs of the winning companies. During the analysis, Deloitte compared the difference in strategic development and internal control management among companies in different cities, including Beijing, Xi'an, Chengdu, Wuhan, Dalian and Shenzhen. According to survey findings, respondents generally believed that continuous innovation and technology research and development were the magic formula to drive robust business growth by maintaining their competitiveness in the market. Looking forward, a vast majority of the CEOs interviewed were positive about the prospect of China’s economy and the industry sectors their companies belong to. They were also fully confident that the energy conservation and clean technology sectors would buck the broader market downtrend and achieve business growth.
"While placing their strategic focus on research and development enhancement, companies should pay attention to the establishment of a market-driven system for research and development. In addition, they should also adopt an integrated approach for brand building, technology development and product research. Brand building and enhancement is a long-term task for a company. Fast growing companies must assess their investment in products, technology, talent, marketing and branding, and define their long-term market goals, and gradually develop their brand assets. When it comes to innovation strategies, companies must grasp the cutting-edge technologies and create stronger barriers against imitation," added Hou.
Deloitte Technology Fast 50 Program was originated in Silicon Valley, the US in 1995, and later launched in China in 2005. Being run simultaneously in dozens of countries, the Program is now considered as a benchmark for fast-growing technology companies across the globe. Fast-growing standouts in the technology industry in China are carefully selected and given the recognition based on the objective, fair and authoritative principles. All along, the Program has successfully established a global platform to help participating companies to enhance their brand influence and the level of internationalization. By helping these companies to connect with domestic and foreign capital markets, the Program has also helped them to improve their competitiveness. Previous award winning companies include many world-class industry leaders, such as Alibaba, Baidu, NetEase, Tencent and JD.com.
There are stringent entry requirements for the Deloitte Technology Fast 50 China Program. To be eligible, companies must have a business operation of at least three years and with their headquarters or major operations in Mainland China, Hong Kong and Macau. They must also have revenues of at least RMB2,000,000 in the first of the three years being analyzed. Industry sectors covered include internet/new media, semiconductor/instrumentation, biotech/pharmaceutical, software, e-commerce, clean technology/new energy and education.