On January 28, China Fortune Land Development Co.Ltd(600340) ( China Fortune Land Development Co.Ltd(600340) , 600340. SH), which was caught in tight liquidity, released the annual performance forecast for 2021.
China Fortune Land Development Co.Ltd(600340) it is estimated that the net profit attributable to shareholders of Listed Companies in 2021 will be – 33.1 billion yuan to – 39.1 billion yuan, and the net profit excluding non recurring profits and losses attributable to shareholders of Listed Companies in 2021 will be – 31.8 billion yuan to – 32.8 billion yuan.
In 2020, China Fortune Land Development Co.Ltd(600340) the net profit attributable to shareholders of listed companies was 3.665 billion yuan; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 3.277 billion yuan.
China Fortune Land Development Co.Ltd(600340) said that due to the impact of multiple rounds of epidemics superimposed by the macroeconomic environment, industry environment and credit environment, the company’s liquidity has been tense since the fourth quarter of 2020. The company’s financial debt has not been repaid on schedule, and the financing business has almost stalled, which has a serious impact on the company’s operation, resulting in a sharp decline in the company’s performance.
The announcement said that in 2021, China Fortune Land Development Co.Ltd(600340) most of the principal and interest of the loan failed to be repaid on schedule. According to the relevant provisions of the original loan agreement, the loan interest and penalty interest were accrued for nearly 20 billion yuan (finally subject to the audit report). The capitalization rate of the superimposed interest decreased, resulting in an increase in the amount of interest included in the financial expenses, accounting for a high proportion of the overall loss. As of December 21, 2021, the company has failed to repay the debt principal and interest on schedule, totaling 107.805 billion yuan.
The relevant settlement of industrial new town project was suspended, and the check-out and sales pressure of real estate projects was highlighted
According to the announcement, China Fortune Land Development Co.Ltd(600340) accrues impairment losses for its industrial new town, real estate project sales and commercial real estate projects respectively.
Specifically, in terms of the business of industrial new town, China Fortune Land Development Co.Ltd(600340) the revenue from industrial development services recognized in 2021 decreased, and the impairment of accounts receivable and contract assets of industrial new town was accrued.
The announcement said that affected by China Fortune Land Development Co.Ltd(600340) liquidity risk, some entrusted regional governments were worried about the sustainable performance ability of the industrial new town in the later stage, and suspended the relevant settlement work of the industrial new town project. Therefore, if the government did not obtain the documents confirming the income, the company could not confirm the industrial development service income, resulting in a sharp decline in the industrial development service income; At the same time, the company comprehensively reduced the investment, the investment in industrial new town decreased sharply, and the progress of land consolidation and supporting facilities construction promised to enterprises in the park lagged behind, resulting in the delay of the actual landing investment progress of new enterprises in the park. The delayed landing investment progress of enterprises led to the impact on the commencement and production of subsequent industrial projects, and the settlement resources of industrial development service income decreased significantly; In addition, affected by the Chinese epidemic and other factors, the investment of enterprises entering the zone has slowed down, the enterprises that have landed have failed to start construction in time, and the investment and production of enterprises that have been put into operation have been slow recently. In addition, the enterprises themselves do not expand the investment scale temporarily due to the influence of the industrial environment, resulting in less resources for the settlement of industrial development service income, and the signing scale of new enterprises entering the zone also decreased significantly in 2021.
The collection of some entrusted regional governments was less than expected, and the aging of accounts receivable and contract assets increased, resulting in an increase in the provision for bad debts of accounts receivable and impairment losses of contract assets.
In terms of supporting residential business in the park, China Fortune Land Development Co.Ltd(600340) said that in 2021, due to the comprehensive influence of real estate sales price and cost, inventory falling price reserves will be accrued for real estate projects. The company said that due to the continuous impact of liquidity risk and the negative impact of multiple rounds of covid-19 epidemic, up to now, the implementation of the debt restructuring plan is still in the initial stage. The brand image of China Fortune Land Development Co.Ltd(600340) real estate business in the early stage is seriously damaged by liquidity risk, and the purchase confidence of customers is greatly impacted, resulting in prominent check-out and sales pressure and a significant decline in sales price expectation. The progress of some projects has been affected to a certain extent, and the construction period has been extended, resulting in an increase in the estimated construction cost, labor cost, interest and other related costs; At the same time, the rise in raw material prices has led to an increase in the estimated cost of real estate projects.
the transfer contract of Guangzhou baietan landmark project was terminated
In addition, since 2021, the real estate industry has been suddenly cold and the epidemic situation has been repeated. The landscape of various real estate formats, especially shops and office buildings, has decreased significantly. In addition, the price of bulk commodities fluctuates sharply, and the impact of liquidity risk is superimposed. There are obvious signs of impairment of various items of commercial real estate. The company conducts impairment test on various assets according to the principle of prudence, At the same time, an independent third-party evaluation organization was hired to conduct a preliminary evaluation and withdraw the impairment loss; Some real estate development projects of the company are unable to pay the balance of the land price of the acquired projects on time, resulting in relevant overdue interest, and it is expected that individual projects will not be able to recover the deposit due to the termination of the land use right transfer contract, increasing losses.
On the same day, China Fortune Land Development Co.Ltd(600340) announced that it had recently received the notice of Guangzhou Municipal Bureau of planning and natural resources on terminating the land transfer contract and its change agreement. The contract deposit of baietan project paid by huayuwan (Guangzhou) Real Estate Development Co., Ltd. and yusuiwan (Guangzhou) Real Estate Development Co., Ltd. is expected to be uncollectible.
In June 2020, Guangzhou Huayu Bay and Guangzhou yusui Bay acquired the xinlongsha plot west of the Pearl River tunnel mouth and south of the Pearl River in Liwan District, Guangzhou, Guangdong Province (hereinafter referred to as the “white goose pond project”) at a transaction price of 6.839 billion yuan through public bidding, and signed the transfer contract of state-owned construction land use right and its change agreement with Guangzhou Municipal Bureau of planning and natural resources. According to the above agreement, the company has paid the first phase of land transfer price of 3.419.5 billion yuan, and has not paid the second phase of land transfer price of 3.419.5 billion yuan so far.
The notice of Guangzhou Municipal Bureau of planning and natural resources on rescinding the land transfer contract and its change agreement issued by Guangzhou Municipal Bureau of planning and natural resources states that Guangzhou Municipal Bureau of planning and natural resources and Guangzhou huayuwan and Guangzhou yusui Bay have rescinded the contract for the transfer of state-owned construction land use right and its change agreement, The contract deposit of 1.367.8 billion yuan collected by Guangzhou Municipal Bureau of planning and natural resources will not be refunded. In addition to the deposit, the paid land transfer fee of 2.051.7 billion yuan can be refunded to Guangzhou Huayu Bay and Guangzhou yusui Bay.
On June 19, 2020, China Fortune Land Development Co.Ltd(600340) Guangzhou Huayu Bay and Guangzhou yusui Bay under the South headquarters won six plots of xinlongsha project of baietan riverside headquarters economic belt in Liwan District, Guangzhou at the base price of 6.839 billion yuan, with a total area of 65750 square meters and a total construction area of 448984 square meters. The equivalent floor price of the project is about 18662 yuan / square meter (deducting the area of 82513 square meters of resettlement housing).
According to the transfer announcement, the six plots of land of the project include two commercial and residential lands, three commercial lands and one residential land. It is necessary to build super class A office buildings, commercial streets and high-end boutique hotels with a construction area of no less than 20000 square meters. It is required to own commercial, hotel and office construction area of no less than 248400 square meters, and shall not be sold or transferred within 15 years, The hotel operation company shall be registered in Liwan District; And introduce world-class advantageous enterprises with financial, scientific and technological, commercial and other attributes. Among them, af020108 plot needs to be equipped with resettlement houses; Plot af020114, covering an area of 12193 square meters, is planned to build a 300 meter high landmark building.
Guangzhou white goose pond project is located in the West Wing of the central urban area of Guangzhou. In March 2020, the optimization of urban design in Guangzhou was publicized. The area clearly aims at world-class central business districts such as New York, Chicago and Tokyo, and makes every effort to build a CBD in the West Wing of the central urban area of Guangzhou.
As of January 28, China Fortune Land Development Co.Ltd(600340) closed at 3.29 yuan, up 1.23%, with a total market value of 12.876 billion yuan.
