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5 Special Report on the State of Business in South China

Q: When does your company expect to be pro table in China?

100% Other

80% In between 3 to 5 years

Within 2 years
60%

This year
40%

Already pro table

20%

0% 2014 2013 Profitable and significantly exceeding
2015 budget expectations (4%)

Q: If your company is already pro t- Pro table Profitable but
able, to what extent? and meeting not meeting
budget budget
is year fully 94.4 percent of participating companies re- expectations expectations
ported that they were already pro table or would be within (49%) (47%)
the next two years. is is among the strongest majorities in
the study’s history. 2015

Continuing a trend observed since 2012, however, we nd Profitable and significantly exceeding
that fewer and fewer companies are pro table and meeting budget expectations (6%)
or exceeding budget expectations. Since the historic high for
this measure in 2012, each year we have seen the proportion Pro table Profitable but
of participants in this category fall to a historic low of 53.1 and meeting not meeting
percent this year. budget budget
expectations expectations
(51%) (43%)

2014

Profitable and significantly exceeding
budget expectations (4%)

Pro table Profitable but
and meeting not meeting
budget budget
expectations expectations
(56%) (40%)

2013

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