2024 Taiwan’s Top 100 Group Corporations Performance

Preface

According to TEJ Group Observer's 2023 data, the total assets of Taiwan's top 100 business groups grew by 3%, a slower pace than previous years. However, the global economic downturn caused significant declines, with revenue dropping 7.9% and operating profit plummeting 25%. Traditional industry groups performed worst, with a 70% profit decline—their second consecutive year of losses. This article analyzes these trends, the composition of financial, technology, and traditional industry groups, and changes in the rankings of Taiwan's top 100 business groups.

Changes of Asset Scale

In 2023, the total asset and revenue scale of Taiwan's top 100 business groups continued to grow compared to 2022. As shown in Figure 1, the total asset scale reached NT$151 trillion (the currency is NT$ throughout the article), marking a 3% increase from 2022. In terms of the core industry of the business groups, financial groups still held the largest share of assets, accounting for as much as 72%. The remaining 30% was evenly split between technology and traditional industry groups.

Changes of Revenue

As shown in Figure 2, the total revenue of Taiwan's top 100 business groups in 2023 reached NT$34 trillion, representing an 8% decline. This drop was primarily attributed to high interest rates and inflation, the global economic slowdown, and the relatively high base period from the previous year. In terms of revenue composition, there was little change. Technology groups continued to account for 60% of the total revenue, while traditional industry and financial groups each maintained a share of approximately 20%.

Changes of Profitability

Regarding profitability (as detailed in Figure 3), as previously mentioned, Taiwan's business groups in 2023 were significantly impacted by high interest rates and inflation, leading to weakened end-user demand. Operating profit declined by 19% in 2022 and experienced a further sharp decline of 25% in 2023.

Ranking Changes and Key Cases

Several significant changes occurred in the rankings of the top 100 groups based on assets in 2023:

Uni-President Group: Its ranking rose 10 positions to 35th after acquiring the remaining 60% equity of Carrefour Taiwan, increasing its asset size by NT$60 billion. Additionally, its subsidiary 7-Eleven expanded operations in the Philippines, further boosting assets.

DBS Bank: Ranked 27th, up 9 positions, following the acquisition of Citibank Taiwan's retail banking division, which increased its assets by 40%.

Ting Hsin International Group: Its ranking fell 9 positions to 77th due to the merger of Taiwan Star Telecom with Taiwan Mobile under Fubon Group, reducing its operational control and asset scale.

Chang Chun Petrochemical Group: Ranked 91st, down 13 positions, due to a downturn in the petrochemical sector and substantial dividend payouts.

Quanta Group: Reduced production capacity in China and expanded to other regions to diversify its supply chain, leading to a decrease in asset size and a ranking drop of 6 positions to 41st.

Pegatron Group: Adjusted its supply chain to align with Apple by reducing production capacity in China, resulting in a smaller asset size and a ranking drop of 2 positions to 50th.

Yang Ming Marine Transport Group: Dropped 10 positions to 65th, due to a weakened shipping market.

Conclusion and Outlook

While 2023 presented considerable challenges, financial groups demonstrated resilience with improved profitability. Taiwan's technology groups, despite short-term setbacks, remain integral to the global semiconductor and AI supply chain, reinforcing their competitive edge in international markets. Through TEJ's comprehensive data solutions, further insights can be gained into the trajectories of Taiwan’s top 100 business groups, offering a clearer view of the nation's industrial and economic development.

Learn more about the detailed ranking of the top 100 groups in 2024, visit TEJ insights https://www.tejwin.com/en/insight/2024-taiwans-top-100-group-corporations/??