More Chinese listed companies forecast profit plunges or losses for the first quarter at weekend following downbeat predictions published previously last week, showing the persistent impact of the global financial crisis.

At least five listed companies will see net profits slump more than 50 percent year on year in the first three months of this year, while another six firms expect losses, according to company reports released on Saturday and Sunday.

Shandong Luxi Chemical said its net profit in the first quarter will plummet 60 to 80 percent year on year to around 21 million yuan (3 million U.S. dollars). It attributed the drop to falling product prices, inventories piled up last year and price hikes of raw materials such as coal.

Textile producer Veken Holding Group said losses in the first quarter will reach about 11 million yuan because of diminishing foreign orders, which take up more than 60 percent of the company´s operating revenues.

More than 70 listed firms published first-quarter business forecasts last week. About 27 percent of the total expected profit drops and 40 percent predicted losses.

Real estate companies bucked the downward trend, with Lvjing Real estate forecasting a net profit of 3.5 million yuan, compared with losses in the same period last year, because of rising house sales. Xinjiang Urban Construction said its net profit will soar more than 1,110 percent year on year.

The house sale growth came as prices of new and existing homes in 70 large and medium-sized Chinese cities saw consecutive year-on-year declines from December to February.

Liu Shijin, vice president of the Development Research Center of the State Council, warned Saturday company profit contractions will result in salary cuts and then dent consumption.

Thanks to government stimulus investment, China´s domestic demand is likely to rebound in the second and third quarter, but whether such a rebound will be sustained remains uncertain as a recovery will also rely on private investment, said Liu.

Source: Xinhua