Securities code: 600466 securities abbreviation: Sichuan Languang Development Co.Ltd(600466) Announcement No.: Lin 2022-006 bond Code: 136700 (16 Blu ray 01) bond Code: 162696 (19 Blu ray 08) bond Code: 163788 (20 Blu ray 04) bond Code: 155484 (19 Blu ray 02) bond Code: 155163 (19 Blu ray 01) Bond Code: 162505 (19 Blu ray 07) bond Code: 155592 (19 Blu ray 04) bond Code: 163275 (20 Blu ray 02) Sichuan Languang Development Co.Ltd(600466)
Annual performance forecast for 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:
1. It is estimated that the net profit attributable to the shareholders of the listed company in 2021 will be about -12.037 billion yuan.
2. It is estimated that the net profit attributable to shareholders of listed companies after deducting non recurring profits and losses in 2021 will be about -11.273 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 financial department, the 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 (legally disclosed data), and the net profit attributable to the shareholders of the listed company is about -12.037 billion yuan.
2. The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was about -11.273 billion yuan. (III) this performance forecast is the preliminary calculation of the company and has not been audited by certified public accountants.
2、 Performance in the same period of last year
(I) net profit attributable to shareholders of the listed company: 330.23509 million yuan; Net profit attributable to shareholders of listed companies after deducting non recurring profits and losses: 2997400700 yuan.
(II) earnings per share: 0.9967 yuan.
3、 Main reasons for performance loss in advance in the current period
The main reasons for the performance loss in the current period are operating loss, impairment provision and asset disposal.
(I) impact of operating losses:
During the reporting period, due to the superimposed impact of the industry environment and financing environment, the refinancing in the open market was blocked, and the liquidity was tense at different stages. Due to the debt repayment run of some financial institutions, some debts of the company were overdue and defaulted, which had a great impact on the operation of the company. According to the internal control policies and procedures of the company’s financial report, based on the financial statements preliminarily prepared by the entities included in the company’s consolidated financial statements, the company’s financial department preliminarily consolidated and calculated that the company had a large operating loss in 2021 compared with the previous year, and the estimated loss was about 4.394 billion yuan. The main reasons for the loss are as follows:
(1) Due to overdue debts and shortage of funds, the construction progress of the projects planned to be delivered this year has been affected to varying degrees. The projects originally planned to complete the performance obligations of house sales and included in the settlement in this period failed to complete the delivery according to the original plan in this period. Despite the efforts of the company and all parties, the recognition of real estate business income decreased by about 18.842 billion yuan compared with the previous year, a year-on-year decrease of 47.37%.
(2) Due to the adverse changes expected in the relevant market of the industry in 2021, especially in the second half of the year, the sales price of real estate has declined, and in addition to the company’s debt problem, the company has difficulties in real estate sales in the second half of 2021. In order to maintain the timely delivery of relevant projects of the company as much as possible, obtain development funds, and exchange liquidity consideration for solving the debt problem, the company reduced the price and sold and eliminated part of the stock real estate, resulting in a decline in sales gross profit or even loss. At the same time, it also leads to increased pressure on the inventory falling price of the company’s real estate stock projects.
(3) In order to resolve the debt crisis, the company has sold the pharmaceutical sector and the modern service sector. The reduction of the above two businesses reduced the operating revenue of the current period by about 1.956 billion yuan compared with the same period last year. The gross profit contribution of the corresponding part was further reduced compared with the previous year, and the overall gross profit margin decreased.
(4) Due to the tight liquidity of the company in the current period, some new borrowings are mainly used to pay the due debts and are not directly used for project development and construction. According to the consistent accounting policies of the company, the relevant expenses of these borrowings not used for development and construction are included in the current profit and loss. At the same time, the tight liquidity caused the abnormal shutdown of some projects of the company, According to the accounting standards, the interest expense that no longer meets the capitalization is included in the current profit and loss, which jointly leads to the rise of the company’s financial expenses in the current period.
(II) impact of impairment provision
Based on the balance sheet date of 2021 and the current real estate market situation, combined with the impact of the company’s current liquidity risk on future real estate sales, the company has accrued an impairment loss of about 6.909 billion yuan, mainly for inventory falling price reserves.
(III) impact of non recurring profit and loss
Non operating profit and loss mainly refers to the disposal of subordinate property management companies and some real estate projects by the company in response to the liquidity crisis. Due to the loss of selling real estate projects to ensure the delivery and repay due liabilities during the reporting period, the cumulative non recurring profit and loss is about -733 million yuan.
4、 Risk tips
This performance forecast is the result of accounting conducted by the company’s financial department based on the company’s internal control policies and procedures related to financial statements and preliminary accounting estimates. The company involves a relatively complex business structure subject. In order to safeguard the interests of all shareholders from the fundamentals of the company to the greatest extent, the primary task faced by the management of the company is to ensure the delivery of real estate projects and ensure the stability of the company and related parties. Therefore, the company needs to perform further internal control procedures for financial reporting when preparing financial reports and determining accounting estimates, In addition, the impact of national macro policies and changes in the market conditions of the real estate industry on market expectations may also lead the company to make appropriate adjustments to relevant accounting estimates during the preparation of the annual report. In addition, there are many disputes and unsettled lawsuits caused by the liquidity crisis in the current period, which also adds some uncertainty to the performance forecast of the company this year.
The company has made preliminary communication with the annual audit accountant on the above uncertain factors. The current performance forecast is only the preliminary judgment of the company’s management and financial department, and has not been audited by the annual audit certified public accountant. The operating results fed back in the final financial report may be different from the performance forecast. In case of great difference in the follow-up, the company will make an announcement in time in accordance with relevant regulations.
5、 Other explanatory matters
The above forecast data are only preliminary accounting data. The specific and accurate financial data are subject to the audited annual report of 2021 officially disclosed by the company. Please pay attention to the investment risks.
It is hereby announced.
Sichuan Languang Development Co.Ltd(600466)
Board of directors
January 29, 2022
