SHANGHAI (Reuters – As the debt crisis at China Evergrande Group, and other property developers have debilitated their suppliers, a rising number of Chinese construction or decoration firms are writing off assets.

More disclosures of this nature are anticipated during the earnings season. It will put pressure on Chinese authorities that they do more to prevent the financial crisis from spreading to developers and to avoid job losses.

Guangzhou Holike Creative Home Co is the latest furniture manufacturer to report losses related to Evergrande. Evergrande has amassed over $300 billion of debt including $200 billion ($31.44 trillion) due to suppliers through commercial paper.

Holike stated in an exchange filing that it expected 2021 net profits to fall as high as 60% compared to a year ago. This was due to receivables from Evergrande, which are not likely to be collected.

Holike also stated that China’s slowing property market has affected the company it bought in 2020. This has resulted in impairment losses.

Beijing Jiayu Door and Window and Curtain Wall Co both raised concerns this week. They claimed that they lost up to 1.4 Billion Yuan due to Evergrande receivables.

Guangdong Pak Corp., which makes lighting fixtures, stated that 2021 earnings would see a drop of 85%-90% due to Evergrande related impairment losses. Shenzhen Wenke Landscape Co stated that it was in the red due to Evergrande defaults last year.

China’s listed companies will begin reporting their annual results in the next month. More disclosures are expected as many Chinese suppliers already disclosed debts to developers such Evergrande. Some companies have made provisions.

Recent data suggest that the situation will only get worse despite the fact that the government has taken some measures to reduce developers’ liquidity stress and help the economy cool down.

The names and shameful actions of units from Shimao Group Holdings (Kaisa Group Holdings), Kaisa Group Holdings (Greenland Group) were revealed in this month’s list of Chinese businesses “consistently behind” commercial paper payments.

The total number of these delinquent businesses increased 26% by December compared to December 2011, according the Shanghai Commercial Paper Exchange. [L1N2TS06Q]

Evergrande, the largest developer in debt in the world, seeks restructuring to reduce its obligations. This is because it cannot pay suppliers, creditors and investors for wealth management products.

Shanghai Trendzone Holdings Group is a company that specializes in residential decorations. It recently filed 333 lawsuits against Evergrande, its affiliates, and it was not clear what the results would be.

($1 = 6.3558 renminbi)

($1 = 6.3613 Chinese yuan renminbi)