In recent times, Chinese A-share listed companies have successively released their 2025 performance reports, with over a dozen companies recording their first losses since going public, including some companies that have been listed for over 20 years. Additionally, there are companies that shifted from expected profits to losses.
According to a report by “Caijing” on April 22, Hebang Biology recorded its first loss since its listing in 2012, with a net loss of 536 million yuan, turning from profit to loss. The company stated that the loss was due to a significant decline in profits caused by a simultaneous decrease in product volume and price.
Apart from Hebang Biology, more than ten companies such as Wantai Biology, Yuyuan Stock, Runong Water-saving, Hesheng Silicon, Jianlang Hardware, and Xinnowey also reported their first losses since going public. Among them, Yuyuan Stock posted its first annual loss in nearly 34 years, with a loss of nearly 4.9 billion yuan in 2025. Yuyuan Stock attributed the decline in performance to factors like the downturn in the macro economy leading to structural adjustments in the consumer industry, resulting in a decrease in revenue for certain business sectors.
Furthermore, some companies that experienced their first losses had estimated profits in their annual reports but showed a significant downward revision in their official annual reports, resulting in losses instead of profits. For instance, the listed company Runong Water-saving previously anticipated profits, but the annual report released in April indicated a net loss of 16.7695 million yuan and 18.2449 million yuan in 2025 for net profit and deducted net profit, respectively.
The reasons behind these company losses are primarily attributed to the unfavorable economic environment, leading to a decline in revenue for industries like pig farming. In addition, companies decreased profits due to the provision of substantial asset reserves and were impacted by industry adjustments, such as a significant decline in the photovoltaic industry, leading to lower profit margins. Moreover, some companies are in a transitional phase, affecting profits due to acquisition consolidation and other factors.
Regarding the losses in performance by listed companies, Tian Lihui, the director of the Financial Development Research Institute of Nankai University, mentioned that due to the macroeconomic transformation and industry restructuring, the overall profit growth of A-share companies may face challenges. Tian stated, “Traditional industries are still in an adjustment period, for example, enterprises in industries like real estate, and photovoltaics are under pressure.”
Professor Liu Junhai from the Law School of Renmin University of China advised investors that the reasons for the losses of listed companies are diverse. Besides market factors, special attention also needs to be paid to the company’s own operational risks.