Shanghai Jahwa faces huge loss in fourth quarter

What former chairman Ge Wenyao predicted two months ago has been proven entirely correct, after Jahwa released a dismal 2016 earnings forecast on Wednesday.

The leading domestic consumer brand Shanghai Jahwa United Co Ltd is expected to see its net profits plummet 90 percent to 226 million yuan ($32 million) in 2016, according to the announcement. The fourth quarter reported a net loss of 207 million yuan, which is the biggest loss since the company went public in 2001.

Ge, Jahwa's former chairman who was in office for over 20 years until 2013, predicted on his personal Weibo account in late November that it was highly possible the company would report a net loss up to 200 million yuan in the fourth quarter.