Chunghwa makes top-10 list in magazine's survey

China National Petroleum Corp (中國石油天然氣) topped all enterprises in the Greater China area as the highest profit-generating company with NT$196.1 billion in after-tax earnings last year, according to the Chinese-language Business Weekly (商業週刊) yesterday.

Chunghwa Telecom Co (中華電信), however, was the only Taiwanese firm that made into the magazine's top 10 with after-tax earnings of NT$37.3 billion last year -- along with three Chinese and six Hong Kong conglomerates.

"Ever since its privatization, Chunghwa Telecom Co has been making a good showing," said Terry Cheng (程天縱), president of Texas Instruments (Asia) at the presentation yesterday.

Cheng also praised Hong Kong companies, saying "the international city's strategically important position has helped it to develop [its economy]."

With all three Chinese companies listed in the top 10 being state-owned, Taiwan's Vice Minister of Economic Affairs Yiin Chii-ming (尹啟銘) knocked the monopolies, saying its not hard to generate huge profits when your market is protected by the government.

But post-WTO challenges will arise soon to change the economical landscape, he warned.

"In five years, these companies may have to face severe competition after China opens up its market in accordance with WTO agreements," Yiin said

"And we may then see a completely different list of companies," the official said.

According to the magazine's report, of 1,000 companies in the Greater China area, 457 companies or 45.7 percent are from China, while 323 companies or 33.3 percent are from Taiwan and 210 are from Hong Kong.

"Hong Kong companies will continue to gain strength since they are the most internationalized and closest to the China market," Yiin said.

In terms of yearly revenue, Taiwan's Chunghwa Telecom and Hon Hai Precision Industries Co (鴻海精密) are ranked as the No. 7 and No. 8 companies, respectively, with the highest revenue last year. Taiwan Semiconductor Manufacturing Co (台積電), Quanta Computer Inc (廣達電腦) and Nan Ya Plastic Corp (南亞塑膠) occupy the 11th, 15th and 20th spots, respectively.

"Hon Hai's success lies in the leadership style of chairman Terry Kuo (郭台銘), who once told me that while their clients are first-tier, their management and staff may be second- and third-tier," Cheng said at yesterday's presentation.

In order to build up international competitiveness, Yiin urged Taiwanese companies to focus on their core competence before extending into other business fields.