Different from the lively scene of brushing the screen of good performance in previous years, the performance forecast of real estate enterprises in 2021 can be described as “cold”. According to the statistics of Shanghai Securities News, as of February 10, 56 A-share real estate enterprises have disclosed the performance forecast of 2021. Among them, the net profit of only 24 companies increased year-on-year; 23 companies suffered losses, accounting for 41.07%, and 11 companies suffered losses of more than 1 billion yuan.
The reporter noted that the losses of the above real estate enterprises are mainly affected by the industry environment, the decline of sales, the reduction of completion, the increase of asset impairment provision and so on.
the main reason for the loss of inventory provision for falling price
Among the real estate enterprises that have disclosed the performance forecast, China Fortune Land Development Co.Ltd(600340) and Sichuan Languang Development Co.Ltd(600466) have an advance loss of more than 10 billion yuan.
China Fortune Land Development Co.Ltd(600340) the performance in 2021 is expected to turn from profit to loss, with an advance loss of 33.1 billion yuan to 39.1 billion yuan, and a net profit loss of 31.8 billion yuan to 32.8 billion yuan after deducting non profits.
China Fortune Land Development Co.Ltd(600340) said that due to the impact of multiple rounds of epidemics superimposed by the macroeconomic environment, industry environment and credit environment, the liquidity of the company has been tense since the fourth quarter of 2020, the financial debt has not been repaid on schedule, and the financing business has almost stagnated, which has a serious impact on the operation of the company, resulting in a sharp decline in the performance of the company.
The announcement showed that a loan interest and penalty interest of nearly 20 billion yuan increased the loss of China Fortune Land Development Co.Ltd(600340) . At the same time, the progress of some projects has been affected to a certain extent, and the construction period has been extended, resulting in an increase in the estimated construction cost, labor cost, interest and other related costs; Then superimposed on the rise in the price of raw materials, resulting in an increase in the estimated cost of real estate projects.
In this regard, the Shanghai Stock Exchange issued an inquiry letter asking China Fortune Land Development Co.Ltd(600340) to explain in detail the causes of advance losses one by one.
According to the announcement released on China Fortune Land Development Co.Ltd(600340) February 10, up to now, the financial debt in the debt restructuring plan has been signed, and the amount of debt restructuring has accumulated to 42.918 billion yuan, with a corresponding amount of debt interest reduction and penalty interest exemption of 2.869 billion yuan. The company believes that the implementation of the relevant arrangements of the debt restructuring plan will help to improve the company’s financial situation.
Sichuan Languang Development Co.Ltd(600466) the performance in 2021 is also from profit to loss. The company announced on the evening of January 28 that it is expected that the net profit loss attributable to the parent company in 2021 will be about 12.037 billion yuan, and the net profit loss attributable to the parent company after deducting non profits will be about 11.273 billion yuan. For the loss in advance, Sichuan Languang Development Co.Ltd(600466) attribute it to the provision for asset impairment, operating loss and asset disposal.
Sichuan Languang Development Co.Ltd(600466) said that the company had a large operating loss in 2021 compared with the previous year, and the expected loss was about 4.394 billion yuan. Among them, the recognition of real estate business income decreased by about 18.842 billion yuan compared with the previous year, with a year-on-year decrease of 47.37%. According to the latest announcement of the company, as of February 9, 2022, the total amount of principal and interest of its outstanding debts due and payable amounted to 29.855 billion yuan.
In addition, Yango Group Co.Ltd(000671) , Tianjin Realty Development (Group) Co.Ltd(600322) , Myhome Real Estate Development Group Co.Ltd(000667) and other A-share listed real estate enterprises all had a performance loss in advance of more than 1 billion yuan last year. Many real estate enterprises attributed the loss in advance to the provision for falling prices of inventories.
Taking Yango Group Co.Ltd(000671) as an example, the company expects a significant loss of net profit of 4.5 billion yuan to 5.8 billion yuan in 2021. “The company’s provision for large inventory falling price and the decline in the settlement scale of real estate business” are the main reasons for the sharp decline in its performance. Accordingly, the Shenzhen Stock Exchange issued a letter of concern, requiring the company to explain the main reasons, compliance and rationality of the large amount of inventory falling price reserves.
Another example is Tianjin Realty Development (Group) Co.Ltd(600322) with an estimated loss of about 1.65 billion yuan. The impact of the amount to be withdrawn in 2021 on the net profit is about 1.6 billion yuan.
small and medium-sized real estate enterprises carry out “self rescue” through multiple channels
In contrast, another part of A-share small and medium-sized real estate enterprises are expected to achieve gratifying results by selling “family property” and asset restructuring.
The net profit of the year is expected to reach rmb1.048 billion, an increase of rmb1.0298 billion to rmb1.022 billion on a year-on-year basis. For the reasons for the substantial increase in performance, the company explained two major matters, namely, the sale of Chongqing Rongfeng equity and the completion of the major asset restructuring of Weiyu medical in October 2021.
It is noteworthy that the net profit of Rongfeng Holding Group Co.Ltd(000668) in the fourth quarter of last year increased by 200 million yuan to 300 million yuan, but the net profit loss expanded after deduction. In this regard, the Shenzhen Stock Exchange issued a concern letter asking the company to explain the main reasons for the expansion of net profit loss after deduction in the fourth quarter of 2021 and the rationality of the deviation between the change of net profit after deduction and the change of operating revenue.
Also, there is Vantone Neo Development Group Co.Ltd(600246) to achieve pre profit by selling assets. Vantone Neo Development Group Co.Ltd(600246) announced that due to the transfer of assets held by it during the reporting period, the net profit in 2021 is expected to increase by 120 million yuan to 180 million yuan year-on-year, with a year-on-year increase of 236% to 354%; The net profit after deduction of non-profit increased by 58 million yuan to 110 million yuan year-on-year, with a year-on-year increase of 395% to 749%.
The “gorgeous turn” of Neoglory Prosperity Inc(002147) benefits from debt restructuring. The latest performance forecast of the company shows that it is expected to achieve an operating revenue of 1.68 billion yuan to 1.78 billion yuan in 2021, a net profit of 650 million yuan to 780 million yuan, and a loss of 1.002 billion yuan to 1.132 billion yuan after deducting non recurring profits and losses. It is expected that the net assets and net profit at the end of the period will change from negative to positive year-on-year.
For the reasons for the good performance, Neoglory Prosperity Inc(002147) explained that in 2021, the company reached a debt restructuring agreement with some creditors such as Nanjing xipuyuan Business Consulting Management Co., Ltd., resulting in a debt restructuring income of 1.049 billion yuan. The Shenzhen Stock Exchange issued a letter of concern, asking the company to further explain whether there is significant uncertainty in the discharge of relevant liabilities and obligations.
policy to maintain stability or reduce the pressure on real estate enterprises
Since 2016, the growth rate of the real estate industry has continued to slow down. Since the second half of 2021, it has cooled significantly, and the pressure on real estate enterprises to sell and collect money has increased. According to Zhu Yiming, enterprise research director of Kerui Research Center, the expected market bottom has not really come yet, and it is still difficult to be optimistic about the real estate market in the short term. With the increase of capital pressure, the investment and expansion momentum of real estate enterprises also decreases accordingly.
According to the monitoring of China Index Research Institute, in January 2022, the total financing of real estate enterprises was 79.22 billion yuan, a year-on-year decrease of 70.3%, a month-on-month decrease of 16.6%, and the financing scale in a single month decreased year-on-year for 11 consecutive months. From 2019 to 2021, the total financing of real estate enterprises in the same period was 282.33 billion yuan, 224.67 billion yuan and 266.46 billion yuan respectively.
At the same time, in January 2022, the sales of real estate enterprises decreased significantly. The sales of the top 100 real estate enterprises decreased by 23.1% year-on-year, and the number of real estate enterprises with sales of more than 10 billion yuan decreased by 14 compared with the same period last year. According to the research report, it is expected that under the condition of maintaining policy stability, the sales of real estate enterprises will rise slightly in February 2022, but the sales will still face great pressure.
“In the first half of 2022, the improvement of market sales, financing and other conditions is limited, and the pressure on real estate enterprises is still large. However, in the second half of 2022, with the implementation of local policies and the recovery of the market, the pressure on real estate enterprises may be significantly improved.” Liu Shui, the research director of the enterprise business department of China Index Research Institute, analyzed and believed that.
