On January 28, Jiangsu Zhongnan Construction Group Co.Ltd(000961) (hereinafter referred to as ” Jiangsu Zhongnan Construction Group Co.Ltd(000961) “) issued an announcement on the expected decline of performance in 2021 on the Shenzhen Stock Exchange, saying that Jiangsu Zhongnan Construction Group Co.Ltd(000961) expects the net profit attributable to shareholders to decline by about 70% – 90% year-on-year in 2021, corresponding to 708-2.123 billion yuan. The company achieved a net profit attributable to shareholders of 7.078 billion yuan in the same period of 2020.
For the reasons for performance changes, Jiangsu Zhongnan Construction Group Co.Ltd(000961) explained that due to policy regulation, market adjustment, epidemic and other reasons, the company increased the de inventory of existing houses in the fourth quarter of 2021, and these resources for current sales and current revenue recognition reduced the company’s profit. At the same time, affected by the spread of industrial risks, the company’s expense rate increases, and it is expected to increase the risk reserves of various receivables.
Previously, on January 5, Jiangsu Zhongnan Construction Group Co.Ltd(000961) issued a sales performance announcement. In 2021, the cumulative contract sales amount of Jiangsu Zhongnan Construction Group Co.Ltd(000961) was 19.37 billion yuan, a year-on-year decrease of 11.8%; The sales area was 14.686 million square meters, a year-on-year decrease of 12.9%.
