As of the end of January this year, more than 900 listed companies in China have issued industry forecasts for 2024, with over half of the companies expecting losses.
According to data service provider Wind on January 19, as of January 18, over 900 listed companies have already released performance forecasts for the year 2024. Just on January 18 alone, more than 400 companies announced their 2024 performance forecasts, accounting for nearly half of the total companies giving forecasts, in addition to some companies releasing interim reports for 2024.
Statistics of the companies that have issued performance forecasts show that only 22% are expecting positive results (increase or slight increase), while 54% are anticipating losses (ongoing losses or first-time losses) as of January 18, 9:00 PM.
Wind stated that the end of January is the peak time for the disclosure of annual performance forecasts, with only about a week left before the Chinese New Year. It is expected that in the coming days, many more companies will announce their performance forecasts.
Among the companies experiencing a decline in performance, there are quite a few with losses exceeding 1 billion yuan.
On the evening of January 17, Shoukai Corporation announced its performance forecast for 2024, predicting a net loss of approximately -9.5 billion to -7.5 billion yuan, indicating an expansion of the losses. The company stated that the main reason for the losses was the decrease in revenue from company operations and a decline in gross profit margin.
Tongwei Corporation released its performance forecast on the evening of January 17, indicating an expected net loss of approximately -7.5 billion to -7 billion yuan for 2024. When explaining the reasons for the losses, the company mentioned a significant decrease in market prices across various segments of the photovoltaic industry chain, even falling below the industry’s cash production costs.
On January 16, Longi Green Energy also issued a significant loss warning. It is expected to incur a net loss attributable to shareholders of the listed company between 8.2 billion and 8.8 billion yuan in 2024, resulting in losses compared to the same period last year.
The top five companies in terms of losses are Longi Green Energy with a loss of 8.2 billion yuan, Shoukai Corporation with a loss of 7.5 billion yuan, Tongwei Corporation with a loss of 7 billion yuan, Huaxia Happiness with a loss of 4 billion yuan, and Chongqing Iron and Steel with a loss of 3.253 billion yuan. The companies within the top 20 in terms of losses have all incurred losses exceeding 1 billion RMB.
Among the top 20 companies in terms of net profit in their interim reports, the first seven are all financial companies: China Merchants Bank, Industrial Bank, China CITIC Bank, Ping An Bank, CITIC Securities, China Merchants Securities, and Changsha Bank.
A Tencent user, 7pg6691, commented: “The situation is more severe than I imagined.”
A netizen named “Dust” believed: “With most companies facing losses in this situation, it’s quite normal.”
Another netizen named “Yuan” predicted: “Stocks will hit the lower limit on Monday.”