Genova Biotech is a unicorn company based in Qingdao, Shandong province. [Photo/qingdaonews.com]

In 2018, Shandong had five unicorn companies, according to the Shandong provincial department of industry and information technology.

Bloomage Biotech, Ririshun Logistics, Weidong Cloud Education, Juhaokan Technology Co, and Genova Biotech were the companies designated as unicorns.

A unicorn refers to a technology start-up that has been established for less than 10 years but has a valuation of more than $1 billion and has not been listed on the stock market.

Cutting-edge technology is an indispensable part of a unicorn, said an official from the Shandong provincial department of industry and information technology. The five companies focus on the latest technology, such as biomedicine, the internet of things, smart equipment, and online education. Their rapid development has benefited from years of technical research and achievements.

Through platform transformation, large enterprises breed "unicorns," which is a prominent feature in the province. Among the five enterprises, Ririshun Logistics and Juhaokan Technology Co are incubated by Haier Group and Hisense Group respectively.

Shandong's favorable policies, sound business environment, and incentive plans for innovations and entrepreneurship have contributed greatly to the emergence of unicorn companies.

The province will launch more specific policies and plans to foster more unicorn companies in the future.