As of January 29, 59 real estate enterprises in A-Shares have issued performance forecasts for 2021. Affected by factors such as changes in the market environment, among the above-mentioned real estate enterprises, 12 enterprises are expected to lose their net profit for the first time in 2021, and another 12 continue to lose money. Among them, China Fortune Land Development Co.Ltd(600340) , Sichuan Languang Development Co.Ltd(600466) net profits attributable to shareholders of listed companies all suffered losses of more than 10 billion yuan.
12 real estate enterprises lost money for the first time
According to data statistics, among the 59 real estate enterprises, 12 enterprises experienced net profit loss for the first time in 2021, namely Zhongtian Financial Group Company Limited(000540) , Myhome Real Estate Development Group Co.Ltd(000667) , Yango Group Co.Ltd(000671) , Shandong Xinneng Taishan Power Generation Co.Ltd(000720) , Casin Real Estate Development Group Co.Ltd(000838) , Shenzhen Worldunion Group Incorporated(002285) , Langold Real Estate Co.Ltd(002305) , Citychamp Dartong Co.Ltd(600067) , Sundy Land Investment Co.Ltd(600077) , China Fortune Land Development Co.Ltd(600340) , Sichuan Languang Development Co.Ltd(600466) , Huay Uan Property Co.Ltd(600743) .
Among these enterprises, Yango Group Co.Ltd(000671) , China Fortune Land Development Co.Ltd(600340) , Sichuan Languang Development Co.Ltd(600466) belong to the three with large losses. China Fortune Land Development Co.Ltd(600340) has the largest loss. It is expected that the net profit attributable to shareholders of Listed Companies in 2021 will be – 33.1 billion yuan to – 39.1 billion yuan, and the net profit attributable to shareholders of listed companies after deducting non recurring profits and losses will be – 31.8 billion yuan to – 32.8 billion yuan. In 2020, China Fortune Land Development Co.Ltd(600340) the above two indicators are 3.665 billion yuan and 3.277 billion yuan respectively.
Among the losses of more than 30 billion yuan, the provision of loan interest and penalty interest is nearly 20 billion yuan. China Fortune Land Development Co.Ltd(600340) explained that this was based on the relevant provisions of the original loan agreement and superimposed with the decrease of interest capitalization rate, resulting in an increase in the amount of interest included in financial expenses, accounting for a high proportion of the overall loss.
The loss of Sichuan Languang Development Co.Ltd(600466) exceeds 10 billion yuan. According to the announcement, the net profit attributable to the shareholders of the listed company is expected to be about -12.037 billion yuan in 2021. The main reason for the loss, Sichuan Languang Development Co.Ltd(600466) is attributed to three aspects: operating loss, impairment provision and asset disposal. Among them, the amount of operating loss is about 4.394 billion yuan, the amount of impairment loss is about 6.909 billion yuan, and the non recurring profit and loss caused by asset disposal is about – 733 million yuan.
According to the announcement, the net profit attributable to shareholders of listed companies is expected to be – 4.5 billion yuan to – 5.8 billion yuan in 2021, compared with about 5.283 billion yuan in the same period last year. Similarly, Yango Group Co.Ltd(000671) also made provision for inventory falling price, but did not disclose the specific amount.
After announcing huge losses, the three enterprises successively received inquiry letters or attention letters from the exchange. The provision for impairment accounts for a large proportion, which naturally becomes the focus of inquiry. Since the provision scale of asset impairment loss in Sichuan Languang Development Co.Ltd(600466) 2020 was only 166 million yuan, which increased significantly to 6.909 billion yuan in 2021, the Shanghai Stock Exchange asked Sichuan Languang Development Co.Ltd(600466) to supplement and list the specific amount of impairment provision for each item in the inventory, combined with the geographical distribution, development, sales progress, market supply and demand and other factors of the project, Explain the reason and rationality of withdrawing large amount impairment in the current period.
Among the 12 real estate enterprises, several have a large amount of losses. Myhome Real Estate Development Group Co.Ltd(000667) it is estimated that the net profit attributable to shareholders of listed companies will be – 2.5 billion yuan to – 3.6 billion yuan in 2021, Zhongtian Financial Group Company Limited(000540) it is estimated that the net profit attributable to shareholders of listed companies will be – 2.5 billion yuan to – 4 billion yuan in 2021, a decrease of 537.15% – 799.45% over the same period of last year. Similarly, they also received a letter of concern from the exchange.
Tahoe Group Co.Ltd(000732) unexpected profit
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However, among the enterprises with continued net profit losses, the Macrolink Culturaltainment Development Co.Ltd(000620) starting in Hunan is a large-scale real estate enterprise, and its debt crisis was exposed earlier than China Fortune Land Development Co.Ltd(600340) , Sichuan Languang Development Co.Ltd(600466) . According to the announcement, Macrolink Culturaltainment Development Co.Ltd(000620) it is estimated that the net profit attributable to shareholders of Listed Companies in 2021 will be – 2.94 billion yuan to – 3.72 billion yuan.
In addition to the above 24 loss making enterprises, there are also many enterprises whose net profit is pre reduced. Shenzhen Overseas Chinese Town Co.Ltd(000069) it is estimated that the net profit attributable to shareholders of Listed Companies in 2021 will be about 3.188 billion yuan – 4.132 billion yuan, about 12.685 billion yuan in the same period of last year, a year-on-year decrease of 67.42% – 74.86%. For the decline in net profit, Shenzhen Overseas Chinese Town Co.Ltd(000069) explained that it was affected by the fact that the profitability of the culture and tourism section was still difficult to recover to the pre epidemic level, the large decline in the gross profit margin of real estate carry over projects and the provision for impairment.
Beijing Capital Development Co.Ltd(600376) announced that the net profit attributable to shareholders of listed companies is expected to be 600 million yuan to 900 million yuan in 2021, a year-on-year decrease of 71% – 81%. The pre reduction is mainly due to the large decline in the profit margin of the main delivered profit settlement projects, the decline in the proportion of equity of the profit settlement projects, and the decrease in the profit generated by the delivery of cooperative projects compared with the previous year.
However, the net profits of some real estate enterprises have reversed losses or increased in advance. Among them, to the surprise of the outside world, Tahoe Group Co.Ltd(000732) which once had unsustainable capital turnover achieved profits against the trend. It is estimated that the net profit attributable to shareholders of Listed Companies in 2021 will be about 101 million yuan – 132 million yuan, compared with -4.999 billion yuan in the same period of last year.
As for the reasons for turning losses into profits, Tahoe Group Co.Ltd(000732) said that during the reporting period, the recognized sales revenue of the company’s real estate projects increased significantly compared with the same period of last year; The company strictly controlled all kinds of expenses and fixed costs, achieved some results in saving expenses, and the expenses decreased significantly during the period; Some cooperation projects are profitable, and the company has confirmed the corresponding investment income; The company made a lot of provision for inventory impairment in the same period of last year; The amount of the company’s non recurring profit and loss in 2021 is mainly the income generated by the change of the fair value of the investment real estate and the net impact after the loss is accrued for the legal litigation cases in the implementation stage.
