Wednesday, September 2, 2015

The 15 Largest Chinese Companies Reporting in Yuan With the US SEC 2014 Total Audited Earnings Down 20% From 2013 and Also Down 20% From 2007 ..... China's Economic Prowess is Way Overstated ..... Chinese Reported Annual GDP Growth in the Past Seven Years Had To Be Substantially Inflated ..... The Only Reliable Economic Numbers in China Are Chinese Company Earnings Numbers Audited By the Prestigious Big 4 CPA Firms

From a review of the superb Google Finance Website and the US SEC Website, I found 15 Companies headquartered in China which filed their financial statements in the Chinese Yuan (RMB) with the US SEC and with Stock Market Capitalizations of more than US$4 bil.
 
The Chinese Yuan (RMB) is worth 16 cents US.

How have these 15 largest Chinese Companies filing their audited financial statements with the US SEC recovered from the 2008-9 worldwide financial meltdown?  Not well at all.  The Total Audited Earnings of these 15 Companies totaled RMB 238.866 bil for the most recent 2014, which was down 20% from the RMB 298.937 bil earned in 2007, the year before the world financial meltdown occurred.

So, what about more recently?  Also, not good.  These 15 very large Chinese Companies generated 2014 Total Audited Earnings which were also 20% below that earned in 2013.

Fourteen of these 15 Chinese Companies were audited by one or more of the very prestigious Big 4 CPA firms.  The other one was audited by Grant Thornton, a very large prestigious CPA firm.  And all 15 Chinese Companies used either US GAAP or IFRS GAAP for their financial statement reporting, both of which are the gold standards in financial reporting.  In other words, this Chinese reporting of key economic data is very reliable.

I excluded the 1 large Chinese Utility Company reporting with the US SEC.

Below here are the reported Audited Earnings (Losses) for each of  these 15 very large Chinese Companies for all years reported from 2007 through 2014, presented by Market Cap:
2014 2014 2013 2012 2011 2010 2009 2008 2007

Most Audited Audited Audited Audited Audited Audited Audited Audited
China Largest Companies City Recent Net Net Net Net Net Net Net Net
Filing With US Sec HQs FYE Profit Profit Profit Profit Profit Profit Profit Profit


RMB mils RMB mils RMB mils RMB mils RMB mils RMB mils RMB mils RMB mils











PetroChina Co Ltd Beijing  Dec14      119,028     142,274     130,620     145,959     150,792     106,559     126,802     155,337
Alibaba Group Holding Ltd Hangzhou Mar15       24,320       23,403         8,649         4,665         1,608           (503)         1,155            929
China Life Insurance Co Ltd Beijing  Dec14        32,514       25,008       11,272       18,491       33,811       33,036       19,274       39,060
China Petroleum & Chemical Corp Beijing  Dec14        46,466       66,132       63,879       73,225       71,782       63,129       31,180       56,150
Baidu Inc Beijing  Dec14        12,243       10,356       10,391         6,620         3,525         1,485         1,048            629
China Telecom Corporation Limited Beijing  Dec14        17,680       17,545       14,949       16,494       15,309       13,934            274       25,728
JD.Com Inc Beijing  Dec14         (4,996)             (50)        (1,729)        (1,284)           (412)           (103)

NetEase Inc Beijing  Dec14          4,796         4,445         3,587         3,223         2,232         1,837         1,597         1,264
China Eastern Airlines Corp Ltd Shanghai  Dec14          3,410         2,373         3,072         4,661         5,056            280      (15,269)            379
China Southern Airlines Co Ltd Guangzhou  Dec14          2,398         2,750         3,784         6,090         6,412            524        (4,789)         2,032
Aluminum Corp of China Limited Beijing  Dec14       (17,049)            544        (7,456)            990         1,323        (3,678)            169       12,123
Ctrip.com International Ltd Shanghai  Dec14               92            906            691         1,085         1,052            667            444            398
Sinopec Shanghai Petrochemical Co Shanghai  Dec14            (676)         2,066        (1,505)            987         2,794         1,653        (6,204)         1,680
Yanzhou Coal Mining Co Ltd Jining, Shandong  Dec14             487           (186)         6,034         8,793         9,306         4,133         6,480         3,228
Qunar Cayman Islands Ltd Beijing  Dec14         (1,847)           (187)             (91)             (46)               (4)













Total all 15

    238,866     297,379     246,147     289,953     304,586     222,953     162,161     298,937











Earnings % Decline:









….. 2014 Below 2013

-20%






….. 2014 Below 2007

-20%







I want to turn my attention now to the Chinese Companies filing with the SEC with Stock Market Caps below US$4 bil.  It'll take some time since it is just incredible how many of these that there are.
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