Qingdao Mingzhu Steel Structure Co.,Ltd. were awarded the "Little Giant " & hidden champions enterprise by Ministry of Industry and Information Technology of China.
按照工信部的定义， 专精特新企业是指“专业化、精细化、特色化、新颖化”的中小企业 （specialized and sophisticated enterprises that produce new and unique products）。
"Little giants" typically specialize in niche sectors, command high market shares and boast strong innovative capacity.
These "little giants" are similar to "hidden champions", a term coined by German author Hermann Simon to describe the small, highly specialized world market leaders in Germany.
This year's Government Work Report states that China will work to nurture specialized and sophisticated enterprises that produce new and unique products, and provide them with more support in terms of funding, personnel, and development of business incubation platforms.
China aims to nurture 1 million innovative SMEs, 100,000 specialized and sophisticated enterprises that produce new and unique products, and 10,000 "little giants" from 2021 to 2025, amid an ambitious plan to trigger the vitality of SMEs in its sprawling industrial economy.
They must see a minimum 5 percent year-on-year average growth rate of its main business income or net profit in the past two years. And its asset-liability ratio is not higher than 70 percent.
More importantly, they must have two valid invention patents or other similar proofs of its innovation capabilities. They also need to maintain a certain level of research and development spending.
Xu Xiaolan, vice-minister of industry and information technology, said "If you randomly look into an industrial chain in China, you'll find countless dynamic small players involved. China's industrial chains have withstood the challenges of the COVID-19 pandemic largely due to the depth and breadth of its small-and medium-sized enterprises industries.”
Li Chao, chief economist at Zheshang Securities, said “The little giant companies, which are able to fill certain weak niches in the country, will help improve the industrial and supply chains, and enable China to become a manufacturing powerhouse.”
"The country's latest move to support little giant companies will help them achieve technological breakthroughs, innovations and upgrades, and boost their core competitiveness in the face of increasing global competition," Li said.