The severe drought affecting southwestern provinces since last fall not only poses a threat to local people's lives, but also the operation of a number of listed companies.

Shanghai Securities News conducted a survey of listed companies located in the drought-ridden areas and found the impact differed between organizations.

Non-ferrous metal and chemical industries have so far been unaffected. Managers of these industries said recycled and underground water helped secure the water supply, but they worried a continuation of the drought would cause companies to face electricity shortages, as nearly 50 percent of electricity in the region is hydropower.

Power suppliers have been put under pressure since last August due to water shortages. Guizhou Qianyuan Power Co. Ltd. told Shanghai Securities News that since August 2009, upstream hydropower in some plants abated nearly 60 percent, leading to a substantial drop in power generation in January and February.

Xiang Chuan, Secretary of the Board of New Hope Group, an agricultural company, said food prices have been on the rise due to the drought, leading to cost hikes for the company.