E-commerce website JD.com has debuted as the first Chinese internet firm on the Fortune 500 list. Surprisingly, China's top three Internet companies, Tencent, Alibaba and Baidu, failed to make it to the list; proof that the list favors revenue over the company's actual value.  In fact, a company's business model may have a significant effect on its revenue generation and in the valuation of its true worth.

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It is easy to believe that Tencent and Alibaba are China's largest Internet firms considering the value of their share prices: $220 billion and $210 billion, respectively. JD, however, is only $30 billion. Still, JD notched the 366th spot on Fortune's list, making it the first-ever Chinese Internet player on the list, thanks to its $29 billion revenue last year. Forbes' Doug Young noted that Fortune may have had its shortcomings due to its heavy reliance on revenue.

In fact, JD's 2015 revenue surpassed Alibaba's and Tencent's. The latter generates its revenue from games and other social network services. Both Alibaba and Tencent earned roughly $15.8 billion based on their annual financial reports, while Baidu earned roughly $10.3 billion. Their earnings were not enough to make to the cut-off point to enter this year Fortune 500 list. To enter the list, a company's revenue should be at least $20 billion.

JD's inclusion and Alibaba and Tencent's exclusion from the list has raised questions about the significance of being included in the Fortune 500 list. Many believe that the list favors only capital-rich companies that market high-end products, such as real estate, energy, and hardware, as well as service-oriented companies, Forbes noted.  

Chinese firms ranking above JD.com include telecom giant Huawei, whose 2015 revenue of $63 billion enabled it to land the 129th spot, followed by Lenovo, which earned $45 billion and was rated as the 202nd largest firm.

TagsJD.com, Alibaba, Fortune 500