As of Tuesday evening, over 3000 A-share listed companies have released their third-quarter financial reports, with around 1800 companies experiencing a decline in net profit, particularly severe in the automotive and real estate industries.
According to a report by the Securities Times on Wednesday, data from Wind showed that as of 8:00 pm on October 28, over 3000 companies listed on the A-share market have completed the disclosure of their third-quarter reports, with more than 1200 companies seeing year-on-year growth in their net profits attributable to shareholders in the first three quarters. This implies that around 1800 companies are facing a decline in net profit, indicating that over half of the companies’ operations have worsened.
Based on the third-quarter financial reports released by automotive companies, most of them have experienced deteriorating operations and declining profits.
Guangzhou Automobile Group achieved a revenue of 66.272 billion yuan in the first three quarters, a 10.49% year-on-year decrease, with a net profit attributable to shareholders of the listed company at negative 4.312 billion yuan, a 3691.33% year-on-year decline, further widening the losses.
Great Wall Motors recorded a third-quarter revenue of 61.247 billion yuan, a 20.51% year-on-year increase, yet its net profit attributable to shareholders decreased by 31.23% to 2.298 billion yuan, with a quarter-on-quarter drop reaching 50%.
In addition, Beijing Electric Vehicle Co. reported a loss of 1.118 billion yuan in the third quarter, Zotye Automobile incurred a loss of 74.76 million yuan, and the automobile design service provider Arter’s net profit plummeted to negative 110 million yuan in the first three quarters, a dramatic drop of 12,246.62% year-on-year.
Jiangling Motors Corporation’s third-quarter operating income was 9.196 billion yuan, a 6.26% decrease year-on-year, with a net profit of 16.406 million yuan, a significant decline of 93.94% compared to the same period last year. The state-owned enterprise Chang’an Automobile performed relatively better, with a third-quarter net profit of 764 million yuan, a 2.13% year-on-year increase.
BYD released its third-quarter financial report on September 29 this year, showing simultaneous growth in revenue and net profit. However, concerns remain as the company’s cumulative sales volume in the first three quarters reached 3.26 million vehicles, but its September sales of 396,000 vehicles saw an unusual nearly 6 percentage point year-on-year decrease.
Hong Kong short-selling agency GMT Research published a report in January this year stating that if accounts receivable excluded due to sales or loans were reintegrated into the balance sheet and accounts payable exceeding 90 days were adjusted as liabilities, BYD’s net debt would be as high as 323 billion yuan as of June 2024, significantly more than the official figure of 27.7 billion yuan.
Furthermore, several real estate companies have also fallen into losses. According to the third-quarter financial reports, leading real estate developers Poly Real Estate suffered a loss of 782 million yuan, with a net profit decrease of 299.19% year-on-year; Rong’an Real Estate reported a loss of 101 million yuan; Bright Real Estate incurred a loss of 731 million yuan; and Xiamen Zhongjun Group recorded a loss of 1.773 billion yuan.