Approximately one-fourth of Chinese listed companies reported net losses in the first three quarters of 2025, the highest proportion recorded since 2002. According to a report by the Nikkei Asian Review on Thursday, November 27, after analyzing the financial statements of about 5,300 non-financial listed companies in mainland China, it was found that 24% of companies incurred losses from January to September this year, a 1% increase from the same period in 2024.
More than 30% of companies reported a year-on-year decrease in net profit, with only about 40% of companies achieving growth. Since the tightening of credit by the Chinese Communist government in 2020, the real estate industry has particularly struggled. Among 100 companies, 48 recorded net losses in the first three quarters of 2025, accumulating losses amounting to 64.7 billion yuan. Government data shows a 6% year-on-year decline in the sales area of newly constructed houses during the same period.
China’s real estate giant Vanke recorded the largest loss among all listed companies, totaling 28 billion yuan. Vanke announced on Wednesday, the 26th, that it has applied to delay the repayment of domestic bonds, leading to successive days of sharp declines in the real estate bond and stock market, raising concerns about China’s real estate market.
Industries related to real estate have also been severely affected, such as the construction industry, with over 30% of construction companies operating at a loss. Other industries have also suffered due to overcapacity, intensified competition, and erosion of profit margins.
The solar energy industry is a prime example, with leading companies like JinkoSolar suffering comprehensive losses. Although major manufacturers have planned to strengthen their energy storage business, new measures aimed at overcoming difficulties may intensify overcompetition in the future.
In the automotive industry, out of 21 passenger and commercial vehicle manufacturers in China, 6 reported losses in the first three quarters, resulting in a 10% year-on-year decrease in overall net profit. The state-owned enterprise Guangzhou Automobile Group suffered a loss of 4.3 billion yuan, while BYD’s profits decreased by 8%.
It is worth noting that due to government subsidies encouraging consumer upgrades, new car sales grew by 13%, reaching 24.36 million vehicles, but the prices of electric and other new energy vehicles have been consistently declining.
Of the approximately 5,300 surveyed companies, the total net profit increased by only 2%, with industries like semiconductors benefiting significantly from government support. However, overall, the total net profit has decreased by around 10% compared to its peak in 2022.
Despite the Chinese government’s increasing focus on high-tech industries, the negative wealth effects brought about by the downturn in the real estate market are impacting consumer-driven industries, resulting in soft consumer spending. The total profits of the commercial and retail industries decreased by 5%, while the profits in the food industry also declined by 5%.