The Chinese Yuan (RMB) is worth 16 cents US.
When I include Alibaba Group Holding Ltd, which has a March fiscal year end, these 15 very large Chinese Companies registered Total Audited Earnings in annual 2014 which were down 20% from annual 2013 and also down 20% from annual 2007 before the worldwide financial meltdown hit.
So how did these 14 large Chinese Companies do in the most recent first half of 2015? Total GAAP Earnings were down 13%, but down dramatically more in real economic terms. Let me explain.
One of them ..... China Life Insurance ..... registered a massive profit increase of more than RMB 13 bil in the first half of 2015 over the first half of 2014. However, this was more than all due to RMB 50 bil of higher Pretax Realized Gains from Sales of Equity Securities and Recognized Fair Value Gains from Equity Securities in 2015 over 2014. These RMB 50 bil of Equity Securities Gains even exceeded Total Pretax Income of RMD 41 bil. Thus absent these RMB 50 bil of Equity Securities Gains, China Life Insurance would have recorded a Pretax Loss of RMB 9 bil in the first half of 2015 as compared with a Pretax Income of RMB 23 bil in the first half of 2014.
Alibaba Group Holding generated a very healthy profit increase of more than RMB 18 bil in the June 2015 Quarter over the June 2014 Quarter. However, nearly all of that profit increase came from a nearly RMB 25 bil Pretax Gain from Deconsolidating Alibaba Pictures.
Below here are the reported Earnings (Losses) for each of these 14 very large Chinese Companies for the first half of 2015 and 2014, presented by Market Cap:
|China Largest Companies||Most||Net||Net|
|Filing With US SEC in RMBs||City||Recent||Profit||Profit|
|With December Year Ends||HQs||FYE||(Loss)||(Loss)|
|RMB mils||RMB mils|
|PetroChina Co Ltd||Beijing||Dec14||28,591||74,055|
|China Life Insurance Co Ltd||Beijing||Dec14||31,734||18,554|
|China Petroleum & Chemical Corp||Beijing||Dec14||31,608||33,851|
|China Telecom Corporation Limited||Beijing||Dec14||11,008||11,474|
|China Eastern Airlines Corp Ltd||Shanghai||Dec14||3,857||44|
|China Southern Airlines Co Ltd||Guangzhou||Dec14||4,095||(814)|
|Aluminum Corp of China Limited||Beijing||Dec14||205||(4,246)|
|Ctrip.com International Ltd||Shanghai||Dec14||(84)||200|
|Sinopec Shanghai Petrochemical Co||Shanghai||Dec14||1,748||(162)|
|Yanzhou Coal Mining Co Ltd||Jining, Shandong||Dec14||2||371|
|Qunar Cayman Islands Ltd||Beijing||Dec14||(1,519)||(606)|
|Total all 14||118,091||136,433|
|Earnings % Decline:|
|….. 1st Half 2015 Below 1st Half 2014||-13%|