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6 Special Report on the State of Business in South China

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

100% Other

80% In between 3 to 5 years

Within 2 years
60%

This year
40%

Already pro table

20% Profitable and significantly exceeding
budget expectations (7%)
0%
2016 2015 2014

Q: If your company is already profitable, Pro table Profitable but
to what extent? and meeting not meeting
budget budget
This year almost 93 percent of participating companies re- expectations expectations
ported that they were already profitable or would be within the (50%) (43%)
next two years.
2016
Continuing a trend observed since 2012, however, we find
fewer and fewer companies are profitable and meeting budget Profitable and significantly exceeding
expectations. Since the historic high for this measure in 2012, budget expectations (4%)
this year we have seen the proportion of participants in this cat-
egory fall to 50 percent. Pro table Profitable but
and meeting not meeting
Interestingly, the percentage of the participating companies budget budget
reporting profitable and significantly exceeding budget expecta- expectations expectations
tions this year almost doubled, rose to 7.4 percent. (49%) (47%)

2015

Profitable and significantly exceeding
budget expectations (6%)

Pro table Profitable but
and meeting not meeting
budget budget
expectations expectations
(51%) (43%)

2014

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