Securities code: 603017 securities abbreviation: Arts Group Co.Ltd(603017) Announcement No.: 2022-010 Arts Group Co.Ltd(603017)
Announcement of annual 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.
1、 Performance forecast of the current period
(I) performance forecast period
January 1, 2021 to December 31, 2021
(II) performance forecast
1. According to the preliminary calculation of the financial department, it is expected that the company will realize the net profit attributable to the shareholders of the listed company in 2021, and there will be a loss compared with the same period of the previous year, and the net profit attributable to the shareholders of the listed company will be – 340 million yuan to – 40 million 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 – 360 million yuan to – 420 million yuan.
3. This performance forecast is only the preliminary accounting of the company’s financial department and has not been audited by the audit institution.
2、 Performance in the same period of last year
(I) net profit attributable to shareholders of listed companies: 218212200 yuan
Net profit attributable to shareholders of listed companies after deducting non recurring profits and losses: 193917100 yuan
(II) earnings per share: 0.79 yuan
3、 Main reasons for performance loss in advance in the current period
During the reporting period, affected by the capital liquidity risk of Evergrande group, the company made individual provision for impairment of commercial bills and receivables of Evergrande group, resulting in a significant increase in the company’s credit impairment loss in the current period compared with the same period of last year.
Affected by customer risk events and the overall regulation and control of real estate, in accordance with the principle of prudence, it is proposed to withdraw a total of 421 million yuan to 481 million yuan for the goodwill of Zhongheng Zhuo Chuang and huazao design during the reporting period.
4、 Risk tips
1. Accrued goodwill impairment risk
At present, the book value of the company’s goodwill is 647483400 yuan. After the provision for goodwill impairment is made this time, the book value of goodwill is about 166483400 yuan ~ 226483400 yuan. The company’s proposed provision for goodwill impairment has not been confirmed by the asset evaluation institution and audited by the accounting firm. The final data shall be subject to the evaluation report and the data approved by the accounting firm. The approved data will affect the accuracy of the company’s performance forecast.
2. This performance forecast is calculated by the company based on the current risk situation of Evergrande. If Evergrande’s debt repayment changes before the disclosure of the 2021 annual report, the accuracy of this performance forecast will be affected.
The company has made pre communication with the annual audit accountant on matters related to the performance forecast, and there is no difference between the two sides.
5、 Other explanatory matters
1. Since this year, the performance of the real estate design business mainly undertaken by Zhongheng Zhuo Chuang and huazao design has declined due to the increased regulation of real estate and the decline of real estate investment. Excluding the impact of the reporting period on the proposed provision for impairment of the goodwill of Zhongheng Zhuo Chuang and huazao design, the company is expected to realize a net profit of about 81 million yuan attributable to the shareholders of the listed company in 2021. After deducting the influence of dividend factors, the operating revenue and net profit of the company’s other main business segments except Zhongheng Zhuo Chuang and huazao design achieved positive growth in 2021. Facing the unfavorable situation of real estate design business, the company gives full play to its professional advantages in public buildings, modern industrial plants, green buildings and so on, and continues to strengthen market development in an all-round way. In 2021, the newly signed design contract amount of the group headquarters with public buildings and high-end industries as the main business direction was 1.230 billion yuan, an increase of 353 million yuan year-on-year, an increase of 40.26%, which effectively filled the long-term adverse impact of the decline of contract amount caused by the decline of real estate design projects on the whole group.
2. 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.
Arts Group Co.Ltd(603017) board of directors January 29, 2022
