On January 28, Huay Uan Property Co.Ltd(600743) announced that according to the preliminary calculation of the company’s financial department, the company’s net profit attributable to the shareholders of the listed company in 2021 is expected to be a loss compared with the same period of the previous year, and the net profit attributable to the shareholders of the listed company is about – 480 million yuan to – 690 million yuan.
Meanwhile, it is estimated that the net profit attributable to the shareholders of the listed company after deducting non recurring profits and losses in 2021 will be about – 570 million yuan to – 790 million yuan.
For the main reasons for the pre loss of performance in 2021, Huay Uan Property Co.Ltd(600743) said in the announcement that first, due to the superposition of factors such as the continuous continuation of covid-19 epidemic, the continuous tightening of real estate macro-control policies and financing environment, and the continuous decline of market conditions, Huay Uan Property Co.Ltd(600743) developed some residential and commercial projects with lower sales prices than expected. In order to adapt to market changes and speed up sales and cash withdrawal, Huay Uan Property Co.Ltd(600743) according to the market environment, product structure, sales nodes and sales cycle of the region where the projects are located, it is expected to adjust the selling prices of some projects so that the net realizable value is lower than the cost. Therefore, it is proposed to make an impairment provision of about 1350 million yuan to 1620 million yuan, and the impact on the net profit attributable to the shareholders of the listed company is about – 1040 million yuan to – 1260 million yuan.
Second, in recent years, the long-term mechanism of real estate regulation has been gradually formed. The real estate market has continued to decline, and the gross profit margin of the industry as a whole has decreased. Although the settlement income has increased significantly this year, the proportion of low gross profit items in settlement projects has increased, resulting in a decrease in gross profit margin compared with the same period last year.
