As the real estate industry moves towards the “spring of hope”, the “breaking the situation” measure of Yango Group Co.Ltd(000671) (hereinafter referred to as ” Yango Group Co.Ltd(000671) “, 000671. SZ) has attracted the attention of the industry.
On January 28, 2022, Yango Group Co.Ltd(000671) released the performance forecast for 2021. It predicted that the net profit attributable to the shareholders of the listed company would be a loss of 450 million ~ 580 million yuan in 2021, Yango Group Co.Ltd(000671) said that the change in its performance was due to the provision of corresponding inventory falling price reserves and other reasons.
Yango Group Co.Ltd(000671) said in the above announcement that in 2021, the policy regulation of the real estate industry was upgraded, the market demand fell rapidly, and the overall sales of the industry fell seriously. According to Kerui data, the cumulative performance growth of the top 100 real estate enterprises continued to slow down in 2021. As of the end of December of that year, the cumulative sales trading amount was 3.5% lower than that in 2020, “The sales growth of large-scale real estate enterprises rarely shows negative growth”.
In this case, Yango Group Co.Ltd(000671) was also affected, which said, “in order to further promote sales collection, price reduction measures are taken.” Yango Group Co.Ltd(000671) also believes that the frequent occurrence of credit risk events in the industry, the successive downgrades of domestic and foreign institutions, the impact on financing and sales, and the cautious attitude towards the market sales price expectation in 2022.
However, Yango Group Co.Ltd(000671) believes that “the management of the company shall withdraw the corresponding inventory falling price reserves based on the principle of prudence according to the current situation”, but “if the market situation improves in the future, the inventory falling price reserves can be reversed according to the accounting standards”.
As we all know, the net profit of real estate enterprises is closely related to the completion of projects, Yango Group Co.Ltd(000671) also said in the announcement that affected by the market and its own liquidity, it “reduced the number of completed projects in 2021, resulting in a decrease in operating profit and a decrease in the settlement scale of real estate business”.
“The provision for impairment will help to concentrate more advantageous resources to deal with the new market situation and solve the current crisis.” Yango Group Co.Ltd(000671) said that with the disposal of assets, the optimization of debt structure, the decline of leverage and the stripping of inefficient assets, it is expected that the operation will be more stable in the future.
In the view of industry insiders, Yango Group Co.Ltd(000671) is true. Compared with the “lying flat” attitude of some real estate enterprises, it “shows a strong desire for survival”.
Public information shows that from November 2021, in the face of short-term liquidity difficulties, Yango Group Co.Ltd(000671) launched various “self rescue” measures at the first time, including completing the extension of multiple debts, offsetting debts with self-held assets, flattening and upgrading the organizational structure, voluntarily reducing the remuneration of senior executives, assisting the controlling shareholders in lifting the performance gambling agreement, and resolving the short-term liquidity crisis. At present, the total amount of Yango Group Co.Ltd(000671) deferred debt is about 7.3 billion yuan.
The latest information shows that on January 24, 2022, Yango Group Co.Ltd(000671) “21 Yangcheng 01” extension plan was voted on in the afternoon of that day. It is reported that the “21 Yangcheng 01” extension plan is to extend the original planned interest payment date to January 22, 2023.
In addition, quality, quantity and delivery are the top priority of many real estate enterprises at present. As of 2021, Yango Group Co.Ltd(000671) said that it had delivered more than 200000 houses nationwide, “its resilience and self-healing ability in times of difficulty have been widely recognized by the market”.
For example, Yango Group Co.Ltd(000671) Hangzhou Yuejiang mansion in Zhejiang Province is the first project delivered by green smart home, “with a high satisfaction of 95.1%. In addition, Hefei yuelanfu project is Yango Group Co.Ltd(000671) “the first delivery project in Anhui, with a satisfaction of 91.3%”.
The relevant person in charge of Yango Group Co.Ltd(000671) said that at present, under the main tone of the policy of “housing without speculation”, the real estate industry is making a smooth transition from “dark time” to “spring of hope”, and there is still a broad market space for real estate.
Shengang Securities Research Report also believes that the five-year LPR interest rate was lowered in January, adding to the traditional sales “xiaoyangchun” of the real estate industry after the festival. At that time, we can more clearly observe the future trend of the sales market. It is expected that there will be a clear rebound in the commercial housing market in the first quarter.
“Running an enterprise has not experienced wind and rain. Every adjustment and reflection is a process of active change and self-change.” Yango Group Co.Ltd(000671) said that when the policy “warm wind” blows frequently, under the leadership of the new management team, “with the spirit of ‘pulling nails’, relying on the original assets, market position and industry influence, it will return to its original intention and achieve quality development.”
