Exploring the Profit Models and Capabilities of Chinese Construction Companies

Abstract

Over the past decade or so, Chinas construction enterprises have demonstrated dynamic development. In terms of key economic
data, the total output value of Chinas construction industry climbed from 6203.68 billion yuan in 2008 to 248, 443.03 billion yuan in 2019,
with an average annual increment of 13.4% at comparable prices. At the same time, the operating income of construction industry enterprises
also rose sharply from 607, 364.4 billion yuan in 2008 to 232, 616.24 billion yuan in 2019, with an average annual increase of 13.0%. And the
total profit of construction industry enterprises also performed well, increasing from 220.184 billion yuan in 2008 to 827.955 billion yuan in
2019, with an average annual increment of 12.8%. These figures visually show that Chinas construction enterprises have been in a remarkable
"high-speed" development stage in the past decade or so.
??Against this backdrop, a common view seems to be that Chinese construction companies are particularly profitable. However, is this really the case? In order to reveal the true state of profitability among Chinese construction companies, a large amount of data was reviewed to
provide valuable reference for the sustainable and healthy development of the industry.