Chinese companies listed on China’s stock markets – either the Shanghai stock exchange or the Shenzhen stock exchange – are required to report their profits and losses from 2021 by the end of January. Thus, many companies with big losses submitted their information on January 28, the last trading day in January.
Suning.com Co had the largest loss, around 43.3 billion yuan (US $6.8 billion), more than the company’s market cap of 36.4 billion yuan. The company was on the Fortune 500 list in August 2021 and ranked number one among the Chinese retail companies.
The second largest loss was from China Fortune Land Development, a real estate developer, with an estimated loss of 33.1 to 39.1 billion yuan. Caixin reported that, by January 29, out of the 66 real estate companies which published their 2021 performance information, 30 reported a loss.
After the real estate companies, pig farming companies are the next group with the largest losses. Jiangxi Zhengbang Tech, ranked around 370 in Fortune’s China’s Top 500 companies. It estimated a 19 billion yuan loss for 2020.
Airlines are the next losing group. Air China estimated it had a 14.5 to 17 billion yuan loss, followed by China Southern Airlines and China Eastern Airlines. Each reported around a 12 billion yuan loss.
The electric utility companies are the next group due to the coal price increase in China. Shanghai Electric, Datang International Power Generation Company, Oceanwide Holdings, and Huaneng Power International all reported losses of over 10 billion yuan.
Source: Epoch Times, February 4, 2022