More than half of firms see profits drop in 2012 (2)

Taiyuan Heavy Industry Co forecast an annual loss of 350 million yuan due to low demand and rising costs.

Manufacturing companies that produce electronic components, raw chemical materials and chemical products are suffering the greatest losses, according to the announcements firms have issued.

"The external market affected our business a lot in 2012," said Zhu Weiying, deputy general manager of Galaxy Semiconductor Co, a transistor and diode manufacturer.

She said annual revenue in 2012 was about 600 million yuan, almost the same as the previous year, which was "below expectation".

"The PMI figure in December showed that small and medium-sized enterprises have led the rebound in the manufacturing sector, not SOEs or big companies," Shanghai Securities' analysts Wang Weili and Ying Nanshu wrote in a report.

The manufacturing market has reached its bottom and begun to rebound. Since the rebound is realized mainly through the market force, rather than government-led investment, the recovery may be different from the past, the report said.

xieyu@chinadaily.com.cn

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