Business / Markets

Chinese enterprises expect mild profits

(Xinhua) Updated: 2013-01-16 17:14

BEIJING - Chinese listed enterprises are expecting soft performances for last year despite a warming economy in recent months.

As of Tuesday, 1,045 A-share listed companies had released their performance forecasts for 2012.

Of the total, 960 companies said their combined net profits will likely range between 145.74 billion yuan ($23.23 billion), representing a 13.78-percent decline year-on-year, and 174.53 billion yuan, indicating a slight rebound of 3.24 percent, the China Securities Journal said in a Wednesday report.

The Shanghai Securities News reported a similar projection, saying 46.35 percent of 1,081 companies listed on two bourses forecast profit increases, while 41.73 percent expect profit drops or even losses.

In addition, some 160 companies reported profit growth over 50 percent, although these companies relied heavily on government subsidies and asset restructuring to maintain growth, the paper said.

In the first three quarters of 2012, the combined net profits of 2,493 listed companies slumped 2.07 percent year-on-year to 1.5 trillion yuan, weighed down by the country's lackluster economy.

Real estate companies, however, expect a profit surge for 2012. Eighteen firms said they expect profits to range from 10.37 billion yuan to 11.67 billion yuan, representing year-on-year growth of 27.99 percent and 44 percent, respectively.

Poly Real Estate Group, China's second-largest property developer, reported that its net profits increased 28.69 percent year-on-year to 8.41 billion yuan, shored up by rising sales resulting from government efforts to stabilize economic growth.

China Vanke Co, another leading property developer, saw its transaction volume surge 16.2 percent to 141.23 billion yuan in 2012.

However, machine manufacturers reported bleak performance, as the combined profits of 45 companies were forecast to hit between 3.83 billion yuan and 5.31 billion yuan, down 37.73 percent and 13.69 percent, respectively.

Likewise, China's photovoltaic companies also expect losses, with four solar cell producers predicting their losses to range from 150 million yuan to 280 million yuan in 2012.

Their losses stood at 117 million yuan in 2011, slashed by anti-dumping probes initiated by the United States and Europe.

However, the key Shanghai index, a major barometer of China's economic health, has experienced a sharp rise since last December due to an improved outlook for China's economic development in 2013.

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