English

By Yin Lei

Financial statements available from over 1,000 A-share companies reveal that 60 percent of them expect to see profits in 2018, said a report of China Securities Journal on Monday.

Statistics from the Chinese financial data provider Wind showed that 1,222 A-share companies, accounting for one-third of all public companies in China, had unveiled previews of their 2018 financial statements as of Dec. 9. Of these companies, 784 reported higher earnings or sustained profits.

Specifically, 557 A-share companies foresaw a rise in their profits, 162 forecast sustained earnings and 65 were on track to turn their losses into gains.

Wind’s data revealed that 610 companies expected a minimum of 100 million yuan (14.53 million U.S. dollars) as net profits attributable to their shareholders, of which 78 each reported net profits of at least one billion yuan (145.21 million U.S. dollars).

Hangzhou Hikvision Digital Technology Co., Ltd., a leading provider of innovative security products and solutions, and Bank of Ningbo, based in eastern China, both reported estimated net profits of over 10 billion yuan (1.45 billion U.S. dollars).

In terms of growth in profit margin, 619 A-share companies reported a year-on-year rise of over 20 percent and 171 expected a 100-percent increase. Five public firms anticipated a ten-fold jump in their earnings in 2018.

China’s public companies experienced changes in their 2018 performances mainly due to shifts in the circumstances of their specific fields of business, including the real estate, film and chemical engineering sectors.

Greattown Holdings Ltd. a real estate developer based in eastern China’s Fujian Province, suffered losses in its securities investments amid the deleveraging of China’s financial sector and fluctuations at the capital market in 2018.

Beingmate Baby & Child Food Co., Ltd., a food manufacturer in eastern China’s Fujian Province which suffered losses in 2017, said in its financial statement preview that it might generate profits for its shareholders ranging from 28 million yuan (4.06 million U.S. dollars) to 78 million yuan (11.32 million U.S. dollars).

Beingmate attributed this upturn to its new business strategies as well as China’s more stringent administrative methods on milk powder production that took effect in January 2018.