Listed companies post rise in profits
By Chen Li |
May 4, 2011, Wednesday
|
Print Edition
Print Edition
CHINESE companies listed on the mainland's two stock markets saw combined net profits grow more than 37 percent year on year to nearly 1.7 trillion yuan (US$256.38 billion) in 2010.
The 2,176 companies listed in Shanghai and Shenzhen markets earned an overall net profits of 1.67 trillion yuan last year, a jump of 37.3 percent from 2009. Revenue jumped 34 percent to 17.54 trillion yuan in 2010.
Among the firms, 117 reported a loss last year, a 5.3 percent decrease from 2009. The remaining 2,059 firms all said they made profits last year.
Meanwhile, earnings reports for the first quarter showed the companies made a total of 479.5 billion yuan in the first three months, a jump of 24.1 percent from a year ago. However, excluding financial firms, overall net profit from January to March dropped to 219.76 billion yuan, a decrease of 10 percent from the fourth quarter of 2010.
Despite the strong profit numbers, concern mounted about inventory levels.
Earnings reports showed companies now have record high stockpiles in anticipation high inflation will continue for some time.
By the end of March, companies had stockpiles worth a combined 3.53 trillion yuan, with non-ferrous producers and developers holding the biggest inventory levels.
Record inventories could pose a risk as the companies may be stuck with even bigger stockpiles in the months ahead due to slower economic growth and falling commodity prices, said Chen Li, head of China Equity Strategy of UBS Securities Co.
The 2,176 companies listed in Shanghai and Shenzhen markets earned an overall net profits of 1.67 trillion yuan last year, a jump of 37.3 percent from 2009. Revenue jumped 34 percent to 17.54 trillion yuan in 2010.
Among the firms, 117 reported a loss last year, a 5.3 percent decrease from 2009. The remaining 2,059 firms all said they made profits last year.
Meanwhile, earnings reports for the first quarter showed the companies made a total of 479.5 billion yuan in the first three months, a jump of 24.1 percent from a year ago. However, excluding financial firms, overall net profit from January to March dropped to 219.76 billion yuan, a decrease of 10 percent from the fourth quarter of 2010.
Despite the strong profit numbers, concern mounted about inventory levels.
Earnings reports showed companies now have record high stockpiles in anticipation high inflation will continue for some time.
By the end of March, companies had stockpiles worth a combined 3.53 trillion yuan, with non-ferrous producers and developers holding the biggest inventory levels.
Record inventories could pose a risk as the companies may be stuck with even bigger stockpiles in the months ahead due to slower economic growth and falling commodity prices, said Chen Li, head of China Equity Strategy of UBS Securities Co.
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