Net profit of 5,400 listed Chinese nonfinancial firms fell 2% to 2.54 trillion yuan in 2025, marking the third consecutive annual decline, Nikkei Asia reported Thursday.

Loss-making companies surged to 1,458, or 27% of the total, nearly 100 more than the previous record in 2024, according to the report. By comparison, only 2% of Tokyo's prime market-listed companies are unprofitable.

Real estate developer China Vanke's (HKG:2202, SHE:000002) net loss widened 80% to 88.5 billion yuan. Of 108 property developers, 59 posted losses, Nikkei Asia wrote.

Retailers also struggled as weak housing markets dampened consumer sentiment, according to the report.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)