Securities code: 601727 securities abbreviation: Shanghai Electric Group Company Limited(601727) No.: pro 2022-007 Shanghai Electric Group Company Limited(601727)
Announcement of performance loss in 2021
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Important content tips:
The company expects the net profit attributable to shareholders of Listed Companies in 2021 to be – 8.9 billion yuan to – 10.3 billion yuan.
The main reasons for the company’s performance loss in advance are as follows: 1. Relevant losses are accrued for the risk events of Shanghai Electric Group Company Limited(601727) Communication Technology Co., Ltd; 2. The operation cost of overseas projects has increased; 3. The price fluctuation of raw materials leads to the rise of costs; 4. Major losses of some associated enterprises accounted by equity method of the company; 5. Withdraw credit impairment losses on assets related to Evergrande group held by some subordinate enterprises; 6. Provision for goodwill impairment of some subsidiaries. After deducting non recurring profits and losses, the company expects the net profit attributable to shareholders of Listed Companies in 2021 to be – 10.9 billion yuan to – 12.3 billion yuan.
1、 Performance forecast of the current period
(I) performance forecast period
From January 1, 2021 to December 31, 2021.
(II) performance forecast
1. 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, and the net profit attributable to the shareholders of the listed company in 2021 is expected to be – 8.9 billion yuan to – 10.3 billion yuan.
2. It is estimated that the company’s net profit after deducting non recurring profits and losses attributable to shareholders of Listed Companies in 2021 will be – 10.9 billion yuan to – 12.3 billion yuan.
(III) this performance forecast has not been audited by an accounting firm.
2、 Performance in the same period of last year
(I) the company’s net profit attributable to the shareholders of the listed company in 2020 was RMB 3.758 billion, and the net profit attributable to the shareholders of the listed company after deducting non recurring profits and losses was RMB 1.042 billion.
(II) the basic earnings per share is RMB 0.25/share.
3、 Main reasons for performance loss in advance in the current period
1. Relevant losses are accrued for the risk events of Shanghai Electric Group Company Limited(601727) Communication Technology Co., Ltd
In 2021, due to the risk events of the company’s holding subsidiary Shanghai Electric Group Company Limited(601727) Communication Technology Co., Ltd. (hereinafter referred to as “communication company”), the company accrued large impairment losses on its accounts receivable and inventory. By the end of September 2021, the communication company had confirmed the asset impairment loss of RMB 7.367 billion, and the company level had confirmed the net profit loss attributable to the shareholders of the listed company of RMB 6.574 billion for the risk matters of the communication company. The company will update the expected credit impairment loss model according to the latest progress to confirm the asset impairment loss of the communication company. It is estimated that the impact of the communication company’s risk matters on the company’s net profit attributable to the shareholders of the listed company in 2021 will be – 8 billion yuan to – 8.3 billion yuan.
2. Rising operating costs of overseas projects
In 2021, with the further escalation of covid-19 epidemic worldwide, the company’s overseas engineering project investment increased significantly and the project progress was lower than expected. At the same time, affected by the change of exchange rate and the rise of raw material prices, the above matters led to a significant increase in the cost of the company’s overseas engineering projects. Among them, the Dubai photovoltaic photovoltaic thermal power plant project with the largest installed capacity in the world (hereinafter referred to as “Dubai project”) undertaken by the company, on the one hand, due to the continuous development of tower and trough photothermal power generation technology adopted by Dubai project, on the other hand, the company has insufficient estimation of the project construction environment, and is affected by exchange rate changes Under the influence of covid-19 epidemic and recent commodity price rise and other factors, the impact of Dubai project related losses on the company’s net profit attributable to shareholders of Listed Companies in 2021 is expected to be – 2.8 billion yuan to – 3.4 billion yuan.
3. The price fluctuation of raw materials leads to the rise of costs
In 2021, due to the rising price of bulk raw materials, the procurement cost of the company’s main business increased, and due to the long order cycle of energy equipment undertaken by the company, the sharp fluctuation of raw material price had a great negative impact on the profit level of the company’s main business.
4. Some associates accounted by equity method of the company have significant losses
In 2021, some associated enterprises accounted by equity method of the company had significant losses. The impact on the company’s net profit attributable to shareholders of Listed Companies in 2021 is expected to be – 1.1 billion yuan to – 1.5 billion yuan.
5. Credit impairment losses are accrued for assets related to Evergrande group held by some subordinate enterprises
As Evergrande group and its member enterprises (hereinafter referred to as “Evergrande group”) have serious difficulties in operation at present, and the subsidiaries of the company mainly engaged in elevator, power transmission and distribution engineering and other businesses have overdue the receivables related to Evergrande group, the company has made a special analysis and evaluation on the receivables of Evergrande group, and it is considered that there are obvious signs of impairment, so it is necessary to make a single impairment provision, The impact on the company’s net profit attributable to shareholders of Listed Companies in 2021 is expected to be – 600 million yuan to – 900 million yuan.
6. Provision for goodwill impairment of some subsidiaries
For businesses such as hazardous waste treatment and aviation manufacturing that have undergone great changes in the business environment in 2021, the company will accrue impairment on the goodwill of relevant subsidiaries based on the impairment test results, and the company has hired an asset appraiser to carry out the assessment. The impact on the company’s net profit attributable to shareholders of Listed Companies in 2021 is expected to be – 500 million yuan to – 700 million yuan.
4、 Risk tips
This performance forecast is the preliminary accounting conducted by the company’s financial department based on its own professional judgment, which has not been audited by certified public accountants. According to the current analysis and judgment of the company’s management on the company’s operation, the company has no major uncertain factors affecting the accuracy of the performance forecast. 5、 Other explanatory matters
The above forecast data are only preliminary accounting data. The accurate financial data shall be subject to the audited annual report of 2021 officially disclosed by the company. Please pay attention to the investment risks. It is hereby announced.
Board of directors January 28, 2002
