5/6/2021 Financial News: Hua Xia Bank’s Net Profit First Fell After Listing; Plastic Price Increases By More Than 20%

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1.Hua Xia Bank’s Net Profit Fell For The First Time After Listing, And Non-performing Assets Increased

In 2020, the fifth national bank of Communist China, Hua Xia Bank’s net profit attributable to shareholders of listed companies was 21.275 billion yuan, down 2.88% year-on-year. This was the first time that Hua Xia Bank’s annual net profit fell after its listing.  At the same time, Hua Xia Bank’s earnings per share have also fallen successively, with earnings per share for 2018-2020 of 1.56 yuan, 1.37 yuan and 1.2 yuan, respectively. In 2020, Hua Xia Bank’s non-performing loans increased by 3.739 billion yuan to 37.976 billion yuan.  It is worth noting that substandard loans and doubtful loans have increased by 19.47% and 21.27% year-on-year respectively. In the future, the scale of these two types of loans converted into non-performing loans may further increase.

2.Plastic Price Increases Are Transmitted To Downstream Industries, Coca-cola Raises Prices

Since 2021, Communist China’s commodity prices have continued to rise, including non-ferrous metals, plastics and other prices. Among them, the price of plastics has risen by 20% to 30%. The price of polyvinyl chloride (PVC) once reached a historical high in the past ten years. According to data from Communist China International Financial Securities, as of April 25, the price of PVC was 9,040 yuan/ton, an increase of 2.61% from the previous week. The increase in the price of plastic raw materials has also been transmitted to the downstream industrial chain. Coca-Cola CEO James Quincey said that he will increase beverage prices to cope with the pressure of rising commodity prices in 2022.

3.Promulgated The New Regulations On The Concentration Of Real Estate Loans, 6 Large And Medium-sized Banks Stepped On The Red Line

Communist China’s real estate loan system stipulates that the upper limit of the proportion of large CCP banks’ real estate loans is 40%, and the upper limit of the proportion of personal housing loans is 32.5%; the upper limit of the proportion of real estate loans for medium-sized banks is 27.5%, and the upper limit of the proportion of personal housing loans is 20%. However, among the 18 large and medium-sized banks listed on the A-share market, 6 banks had personal housing loans that have exceeded the regulatory red line, and 3 banks had real estate loans that have exceeded the regulatory limit. China Merchants Bank, Industrial Bank and Bank of Beijing are ‘quite close to the limit’.

4.Spring Airlines Suffered Losses For Two Consecutive Years

Spring Airlines’ 2020 financial report and the first quarter of 2021 performance report: In the first quarter of 2021, Spring Airlines’ operating income was 2.223 billion yuan, a year-on-year decrease of 6.75%, and its net profit was -285 million yuan, a year-on-year decrease of 57 million yuan.  The main reasons for the loss are as follows: First, the loss in 2020 comes from the investment in Spring Airlines Japan suffered the impact of the CCP virus. Japan has a net loss of 6.3 billion yen.  Secondly, in the first quarter of 2021, losses were caused by the CCP virus, with cases in Northeast, North China, and East China successively, which had a huge impact on Spring Airlines.

5.Well-known Pharmaceutical Company Harbin Pharmaceuticals Mass Layoffs

On the evening of April 2, Harbin Pharmaceuticals announced its 2020 financial report. The annual revenue was 10.79 billion yuan, a year-on-year decrease of 8.76%, and the net profit loss was 1.078 billion yuan, which plummeted by 2030.94% year-on-year. The loss value exceeded the total net profit of the past three years. According to reports, since last year, Harbin Pharmaceutical has terminated more than 2,000 labor relations, retired four to five hundred people, and more than 100 people are “waiting for work.”  However, during the period 2018-2020, the total amount of pre-tax remuneration received by Harbin Pharmaceuticals directors, supervisors and senior executives from the company has shown a significant growth trend.

6.Britain Set To Stockpile Metals For Electric Cars To Beat CCP Threat

Britain is exploring the creation of a national stockpile of so-called rare earth metals amid rising fears that country’ efforts to adopt electric cars are at risk from a CCP stranglehold on supplies. Officials at the Department for Business are discussing options to protect the United Kingdom’s access to vital materials including lithium and cobalt, the report added. Britain could build a national stockpile to avoid shortages, support attempts to create domestic sources such as potential lithium mines in Cornwall, or use its diplomatic network to secure supplies from abroad in partnership with private businesses, The Telegraph said citing government sources.

By 【Financial Team – 雪梨Cheli】
News Collection: 文罡
Proofreading: Tracy

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