Chinese listed companies in coal, steel and nonferrous metals industries saw their losses widen in the third quarter of the year, with increasing receivables.
Some enterprises saw debt defaults and ratings companies issued early warnings to some due to their worsening financial status.
According to WIND, a financial information provider in China, by October 27, 20 coal companies listed on China's A-share market released their business result forecast for the third quarter of the year, of which 13 guided net losses and two saw a plunge in profits. Of the 34 listed steel companies, 27 disclosed their business result forecast for the third quarter of the year.
More than three fifths of the steel companies guide net losses. 12 listed nonferrous metal companies already released their business result forecast for the third quarter of the year and half guided a plunge in net profits during the period.
Under the circumstances, ratings companies adjusted ratings on some resource enterprises.
Specifically, in the coal industry, 54.55 percent of coal enterprises saw their ratings downgraded. 18.18 percent of steel companies and 13.64 percent of the nonferrous metal enterprises saw their ratings downgraded, according to the China Bond Rating Co., Ltd, a ratings company in China.
Some large coal enterprises are reducing the staff employees and cutting salaries due to falling coal prices and sluggish business performance, according to an industry watcher.
In the face of the predicament, under guidance of the government's policies to eliminate outdated capacities and adjust the industrial structure, those troubled enterprises are actively taking measures for business adjustment and transformation.
In the process of the transformation, the business predicament will likely ease, said a person working with the China Bond Rating.
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