On January 28, Jiangsu Zhongnan Construction Group Co.Ltd(000961) released the performance forecast for 2021. It is estimated that the net profit attributable to shareholders in 2021 will be about 708 million yuan – 2.123 billion yuan. It is reported that the company achieved a net profit attributable to shareholders of 7.078 billion yuan in the same period of 2020.
For the reasons for the change of performance, Jiangsu Zhongnan Construction Group Co.Ltd(000961) explained in the announcement that due to policy regulation, market adjustment and epidemic situation, the company increased the de inventory of existing houses in the fourth quarter of 2021, and these resources of current sales and current revenue recognition reduced the company’s profit. At the same time, affected by the spread of industrial risks, the company’s expense rate increases, and it is expected to increase the risk reserves of various receivables.
