(Yicai Global) July 18 -- Forty-five percent of the more than 1,700 firms listed in the Chinese mainland that have released financial updates expect to have had better earnings in the first half.

Some 771 companies expect to have performed better in the six months ended June 30, compared with a year earlier, according to Yicai Global’s calculations. Some 590, or 35 percent, predict a loss, while 345, or 20 percent, expect a decline.

Businesses in tourism, hospitality, and catering, especially scenic spot operators and exhibition service providers, made a significant recovery after Covid-19 restrictions in China were eased. Meanwhile, firms in the aviation and real estate industries continued to lose money.

China Quanjude Group, a restaurant chain renowned for its Peking Duck, forecast a first-half net profit of CNY26 million to CNY28.5 million (USD3.6 million to USD4 million) after being in the red for three consecutive years.

Though travel picked up sharply in the six months, airlines continued to rack up losses because of a slower-than-expected resumption of international flights, a sharp depreciation of the Chinese yuan, high volatility in oil prices, and other factors.

The country’s largest carriers -- Air China, China Eastern Airlines, and China Southern Airlines -- all said they anticipate losses of between CNY2.5 billion to CNY6.9 billion (USD248.7 million to CNY962 million) for the January to June period. Hainan Airlines, China Airlines, and Shenzhen Airport also forecast losses.

But smaller private carriers Juneyao Airlines and Spring Airlines, as well as the operators of Shanghai Airport and Baiyun Airport, achieved a turnaround in the first quarter. Xiamen Airport also said its performance likely improved.

Financial institutions other than banks expect an uptick too. Only two of the 33 that released financial updates said they expect their first-half earnings to halve declined.

Among the 68 listed real estate companies that issued first-half reports, over 60 percent will be in the black, with eight expecting to lose more than CNY1 billion.

Fifty-eight percent of the 53 listed agriculture, forestry, animal husbandry, and fishery firms said they would report losses. Leading pig breeders New Hope Liuhe, Muyuan Foods, and Zhengbang Technology expect the highest losses in the industry, although they narrowed sharply.

The big drop in steel prices caused that industry's profitability to fall. Among the 24 listed steel makers that gave first-half updates, 54 percent expect to lose money, and only four will likely achieve growth. The first-half net loss at Maanshan Iron and Steel will probably reach around CNY2.2 billion, the most among steel producers.

Editors: Tang Shihua, Futura Costaglione