On the evening of January 28, Yango Group Co.Ltd(000671) announced that the net loss in 2021 is expected to reach 4.5 billion yuan to 5.8 billion yuan. In addition, the company predicts that the future sales situation is not optimistic.
As soon as the announcement was made, many investors were not calm: the company remained profitable in the first three quarters of 2021. Why did it lose so much in the whole year
Image Source: company announcement
performance fell sharply and turned profit into loss
According to the announcement, Yango Group Co.Ltd(000671) the net loss attributable to the shareholders of the listed company is expected to be 4.5 billion yuan – 5.8 billion yuan in 2021; The net loss attributable to shareholders of listed companies after deducting non recurring profits and losses is 7.3 billion yuan – 8.6 billion yuan; The loss per share was 1.15 yuan -1.47 yuan. In contrast, the company’s performance report in 2020 is still very beautiful. In 2020, Yango Group Co.Ltd(000671) achieved an operating revenue of 82.728 billion yuan, a year-on-year increase of 35.51%; The net profit attributable to shareholders of listed companies was 5.283 billion yuan, a year-on-year increase of 31.42%.
In 2021, the real estate market continues to adjust, and real estate enterprises are generally facing pressure. In fact, the annual loss has been within the market expectation, but some investors said they didn’t expect to lose so much at once! The first three quarters of 2021 Yango Group Co.Ltd(000671) remained profitable. Why did the whole year lose so much at once?
Revenue in the first three quarters of 2023 was 675.9 billion yuan, up 41.3% year-on-year; The net profit was 2.913 billion yuan, a year-on-year increase of 6.23%. In fact, since the third quarter, the company’s performance has deteriorated sharply, with operating revenue and net profit falling by 18.24% and 11.57% respectively, and a loss of 1.752 billion yuan after deduction.
large performance loss caused by multiple factors
Yango Group Co.Ltd(000671) explained in the announcement that the company accrued inventory falling price reserves based on the principle of prudence. 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. In order to further promote sales collection, the company took price reduction measures.
Meanwhile, in 2021, many credit risk events occurred in the real estate industry, domestic and foreign rating agencies successively lowered the company’s rating, and the company’s refinancing was blocked. The liquidity of payment collection is greatly limited, and the liquidity pressure is obvious. The confidence of customers has been greatly reduced, and the passenger flow has decreased significantly, which has a great impact on the company’s sales, and the future sales situation is not optimistic. In addition, the company also said that due to the impact of the market and the company’s liquidity, the number of completed projects of the company in 2021 decreased, resulting in a decrease in operating profit.
For the reason why the after tax non recurring profit and loss attributable to the shareholders of the listed company was large in the reporting period, Yango Group Co.Ltd(000671) said that this was mainly due to the non recurring profit and loss of RMB 2.5 billion attributable to the shareholders of the listed company when the company exchanged the equity strategy of Shanghai sunshine Zhibo life Service Group Co., Ltd. for the shares of everything cloud Space Technology Service Co., Ltd.
The announcement also said that the management of the company accrued the corresponding inventory falling price reserves based on the principle of prudence according to the current situation. If the market situation improves in the future, the inventory falling price reserves can be reversed according to the accounting standards.
cautious about sales price expectations
Recently, Yango Group Co.Ltd(000671) has encountered a series of events, such as the resignation of senior executives, the reduction of insurance funds and the downgrade of the main credit rating.
For the future prospects, Yango Group Co.Ltd(000671) said that the real estate market will remain stable in 2022, and is cautious about the volume and price expectations of sales. According to the statistics of China Index Research Institute, Yango Group Co.Ltd(000671) achieved sales of 183.81 billion yuan in 2021, a year-on-year decrease of 15.9%.
In the view of insiders, compared with the sales problem, liquidity is an urgent problem to be solved at present Yango Group Co.Ltd(000671) . According to the data, by the end of September 2021, the total interest bearing debt of the company was 89.148 billion yuan and the short-term interest bearing debt was 28.307 billion yuan.
On January 28, Yango Group Co.Ltd(000671) closed down slightly by 0.69% to 2.88 yuan / share, with a turnover of 188 million yuan and the latest market value of 11.924 billion yuan.
