Analysis on Business and Competition of International Contractors in China, Japan and Korea

Japanese and Korean foreign contracting engineering enterprises are important participants in the international engineering market. In recent years, the market competition between Chinese enterprises and Japanese and Korean enterprises has become more intense, and project cooperation has become increasingly frequent. Now select ENR International Contractors Top 250, corporate public financial reports and other data, Japan's Kajima, Dalin Group, Korea Hyundai Engineering, Samsung Engineering and other enterprises of the business situation and China's ten backbone enterprises related indicators for comparative analysis as follows:
1. ENR250 China and Japan and South Korea on the list of enterprises business comparative analysis

1, China's number of enterprises on the list is superior, Japan and South Korea enterprises ranked high. According to the latest results released in 2014, a total of 27 companies from Japan and South Korea were on the list, of which 14 were Japanese companies, a decrease of 1 from the previous year, and 13 were South Korean companies, a decrease of 2 from the previous year, accounting for 5.6 and respectively. 5.2%; my country has 62 companies on the list, a substantial increase of 7 compared with the previous year, accounting for 24.8%. However, from the ranking point of view, there are 10 Japanese and Korean enterprises in the top 50 of the ENR250 list, including 3 in Japan and 7 in South Korea, while only 7 enterprises in China have entered the top 50, and most of them are in the middle and back of the list.

2. The business scale of the Chinese Legion has grown steadily, and there is still a gap between the business scale of a single enterprise and that of Japanese and Korean enterprises. From the list, Japanese companies achieved overseas operating income of US $22.244 billion, and South Korean companies achieved overseas operating income of US $42.416 billion, an increase of 5.84 and 2.48 respectively, accounting for 4.09 and 7.8 of the overseas operating income of all listed companies; Japan and South Korea The average overseas operating income of a single company was US $1.589 billion and US $3.263 billion, respectively, a year-on-year increase of 13.42 and 18.27 respectively. The 62 companies on the list in my country achieved a total overseas operating income of US $79.013 billion, a year-on-year increase of 17.82 percent, accounting for 14.53 percent of the overseas operating income of all listed companies; the average overseas operating income of a single company was US $1.197 billion. It can be seen that with the acceleration of the pace of "going out" of Chinese enterprises, the business scale of the Chinese Legion continues to grow steadily, and the international market income has increased year by year, but if we look at the scale of Chinese enterprises from a single enterprise, the scale of operation of Chinese enterprises is still very limited. overseas business income is obviously lower than the level of Japanese and Korean enterprises.

3. The internationalization level of Chinese enterprises needs to be improved. According to data released by the 2014 ENR250 list, the internationalization rate of Japanese companies is 23.14 percent, that of South Korean companies is 48.98 percent, and that of Chinese companies is only 13.91 percent. Although the internationalization rate of China's listed enterprises has increased year by year in the past two years, and the huge domestic business scale of Chinese enterprises has diluted the proportion of overseas performance to a certain extent. Further increasing the proportion of international income and expanding the scale of overseas business will eventually become an unavoidable challenge for Chinese enterprises to grow into multinational contracting engineering enterprises.

4, China, Japan and South Korea enterprise business areas have their own characteristics. According to the data provided by the ENR250 list, Japanese companies outshine others in the field of equipment manufacturing, occupying 4 of the top 10 seats in this field; Korean companies have achieved good performance in many fields such as oil, power, and industrial construction; Chinese companies have performed well in the fields of power, water conservancy construction, and transportation. Although the companies of the three countries have their own business expertise, the business level of Japanese and Korean companies in the intensive and high-tech fields is more prominent, and the number of leading companies in the professional field is more than that of my country. In the next step, Chinese enterprises should pay more attention to the cultivation of professional ability, continue to maintain their own advantages and gradually extend to technology-intensive business.

5. The market distribution of enterprises in the three countries intersects each other, with the Middle East and Asia and Africa becoming the main battlefields of the three countries. The layout of Japanese enterprises in each continent is relatively balanced. With the decline of their market share in the Middle East, Asia and North America have become their main markets; Korean enterprises take the Middle East as their "base" and rely on geographical advantages to occupy part of the Asian market. In recent years, the market share in Africa has increased year by year; Chinese enterprises take Asia and Africa as their main markets, and it has steadily occupied more than 40% of the market share in Africa and continues to grow, and its market share in the Middle East, Latin America and Europe is also growing. It is not difficult to see that with the continuous improvement of the strength of Chinese enterprises, the Middle East and Asian and African markets will become the main "positions" for my country to compete with Japan and South Korea in the next step. How to continue to maintain the market advantage of Chinese enterprises in Asia and Africa and gradually improve The ability to operate in the Middle East has become a key issue for Chinese enterprises.

Comparative Analysis of Business and Financial Situation of 2. Key Japanese and Korean Enterprises and Chinese Backbone Enterprises

We analyzed the key financial indicators based on the 2013 financial statements published by four companies, namely, Kajima Group, Dalin Group, Modern Engineering Construction Co., Ltd. and Samsung Engineering Co., Ltd., and compared them with the relevant data of China's large leading enterprises:

1, Japan and South Korea enterprise business and financial situation.

In 2013, the asset scale of Japanese and Korean enterprises rose steadily, and operating income rose and fell. South Korea's Samsung Engineering Co., Ltd. had assets of $5.336 billion billion, up 4.49 per cent from a year earlier, but operating income was only $8.825 billion billion, down 14.28 per cent from a year earlier, corporate assets and liabilities were 84.72 per cent and operating margins were 7.23 per cent. South Korea's Hyundai Engineering Construction Co., Ltd.'s assets rose sharply to $13.961 billion billion, up 15.58 per cent from a year earlier; operating income of $13.208 billion billion, up 4.6 per cent from a year earlier; corporate assets and liabilities 64.68 per cent, and operating profit margin 4.09 per cent. Japan's Kajima Construction Co., Ltd. had assets of US $14.316 billion billion, up 8.6 percent year-on-year; operating income was US $12.17 billion billion, up 2.44 percent year-on-year; corporate assets and liabilities were 79.65 percent, and operating profit margin was 1.36 percent. Japan's Dalin Group had assets of US $17.611 billion, up 2.32 per cent year-on-year; operating income was US $15.4 billion, up 16.26 per cent year-on-year; corporate assets and liabilities were 74.97 per cent and operating profit margin was 0.91 per cent.

From the business situation, the business of Korean enterprises is mainly concentrated in petrochemical processing, civil engineering and environmental transformation, housing construction and energy development; its main market is distributed in the Gulf region and CIS countries, and some of its business involves the United States, South America and Europe. Due to the limitations of the information collected, the business situation of Japanese companies cannot be analyzed here.

Figure 3 Business Share of Modern Engineering Construction Co., Ltd. in Various Fields in 2013

2. Comparison of several enterprises with Chinese enterprises

Compared with China's leading enterprises, the asset-liability ratio of four Japanese and Korean enterprises is obviously low, and the operating profit margin of Korean enterprises is higher than that of Chinese enterprises and the operating profit margin of Japanese enterprises is the lowest. From the perspective of business areas, Korean companies clearly focus on engineering business in the petrochemical field, and overseas markets are mostly concentrated in countries with rich energy mineral reserves such as oil-producing countries; while Chinese companies are more good at infrastructure construction such as housing construction and road and bridge construction. For construction projects, overseas markets are concentrated in countries and regions with weak infrastructure such as Asia and Africa.

Table 3 Financial and business situation of sample enterprises in China, Japan and South Korea.