China's unicorn enterprises have recorded strong development momentum, and are set to serve as an important force in the country's economic upgrade, according to a report issued by consulting firm PwC. The report showed that about 62 percent of the surveyed unicorns predict their revenues will increase by 30 percent or higher this year.

The report, titled Chinese Unicorn CEO Survey 2023, was issued on Monday at the ongoing 2023 China International Fair for Trade in Services in Beijing. According to the report, China's unicorn enterprises, which refer to start-ups with a valuation of at least $1 billion, have maintained strong competitive advantage while bolstering overall economic recovery this year. And they expect steady expansion in revenues and are optimistic on the market prospect.

The recent measures on promoting the development of private economy and expanding consumption will further stimulate the confidence and vitality of unicorn enterprises, Liang Weijian, PwC's partner in charge of China's market, was quoted as saying in the report. 

China's unicorn enterprises are now mostly concentrated in five industrial lines including company service, high-end manufacturing and hardware, e-commerce, medicine and health, as well as transportation and auto-making, the report noted. 

Among them, high-end manufacturing and hardware sector has seen the fastest growth segment in recent years, accounting for 17 percent of the total in 2023, up 13 percent compared with 2020.

The report also found that overseas expansion of unicorn enterprises is expected to accelerate this year, and 67 percent of unicorns said they plan to maintain or ramp up overseas expansion. The ratio stood at 41 percent in 2020.

With regard to destinations of overseas expansion, 36 percent of the surveyed enterprises choose Asia Pacific, followed by North America at 32 percent. Other hotspot markets include members of Regional Comprehensive Economic Partnership as well as countries and regions along the Belt and Road Initiative (BRI).

Homegrown research and development (R&D) also reached a new high among Chinese unicorn enterprises this year, with 39 percent of surveyed firms saying that R&D expenditure is set to surpass 40 percent of overall cost this year, according to the report. 

A total of 82 of surveyed unicorns said they opt to promote the application of emerging technologies through homegrown R&D effort, compared with 23 percent in 2018, the report said, adding that unicorn enterprises "will play a bigger role" in generating new economic drivers and strengthening China's new competitive advantage.

The report is based on survey of CEOS from 88 unicorn enterprises, which are from 12 industries. And over 10 companies participate in face-to-face in-depth interviews.