Nearly a quarter of companies listed on the Chinese mainland that have released preliminary reports have forecast losses for 2008.

A total of 564 listed companies, accounting for about half of all companies listed on the Chinese mainland, had released preliminary reports as of Monday, and 128 of them predicted losses.

Most of them said the global financial collapse and declining demand were to blame for losses, according to the Shanghai Securities News.

Among the 128 companies, 20 were from the petrochemical industry. The machinery-equipment sector and the power industry were also among the losers.

Sichuan Jinlu Group Co, a polyvinyl chloride resin manufacturer, predicted losses between 55 million yuan (US$8 million) and 65 million yuan last year.

"The snowstorm in southern China and the devastating Sichuan earthquake destroyed the company's major material supply base, so some of our plants could not work at full capacity," the company said.

The financial turmoil dampened demand for polyvinyl chloride resin from the third quarter, which cut prices from 8,600 yuan a ton to 5,050 yuan, the statement said.

Gu Yongping, an analyst, expected the net income of more than 80 percent of listed companies had declined in the fourth quarter of last year and the first quarter of 2009, and 30 percent of listed companies would report losses.

Firms listed on the Chinese mainland publish their annual earnings reports from January to April.

(Shanghai Daily January 7, 2009)