(Yicai Global) July 19 -- More than 60 percent of the 67 real estate developers listed in the Chinese mainland that have released first-half earnings updates said they were likely to have been in the red.

Forty-two expect to have lost a combined CNY25.7 billion (USD3.6 billion) in the six months ended June 30, with eight losing over CNY1 billion (USD138.7 million) each, according to data from Choice, a financial data platform under East Money.

A total of 113 property developers are listed on the Shanghai and Shenzhen stock exchanges.

China’s real estate sector has not recovered as expected, and the earnings predictions show growing pressure, according to the National Bureau of Statistics.

Over a third of the 42 developers expect to have sunk into the red for the first time, with Overseas Chinese Town anticipating the biggest loss. The Shenzhen-based firm said its net loss likely widened 1,238 percent to 1,712 percent to between CNY1.2 billion and CNY1.7 billion (USD166.5 million and USD235.8 million) from a year ago.

Of the 25 builders that expect to have turned a profit, Shanghai Industrial Development, Shenzhen New Nanshan Holding Group, and five others likely achieved a turnaround. Their success was not only due to higher sales revenue but also because of the contribution of other business segments or non-operating income.

Beijing North Star returned to profit thanks to the rising occupancy rate of its conference, exhibition, and hotel business. Shanghai Industrial had a profit because it sold equity in units that brought in investment income and received substantial compensation from a lawsuit.

Nine builders that released earnings updates have received a risk warning, of which five face the risk of being delisted from the stock market. Of them, only ST Digital Source expects to have achieved a first-half profit, up 76 percent to 129 percent to between CNY40 million and CNY52 million from a year ago.

Editor: Futura Costaglione