On April 18, Risesun Real Estate Development Co.Ltd(002146) ( Risesun Real Estate Development Co.Ltd(002146) . SZ) issued an announcement to significantly reduce the performance forecast data of 2021.
Previously, on January 29, Risesun Real Estate Development Co.Ltd(002146) disclosed the performance forecast for 2021. It is estimated that the net profit attributable to the shareholders of the listed company last year was 100 million yuan – 150 million yuan, and the net profit after deducting non recurring profits and losses was 52.988 million yuan – 102098 million yuan.
After correction, Risesun Real Estate Development Co.Ltd(002146) expects the net loss attributable to shareholders of listed companies to be 4.5 billion to 6 billion yuan in 2021, and the net loss after deducting non recurring profits and losses to be 4.331 billion to 5.831 billion yuan.
Risesun Real Estate Development Co.Ltd(002146) said that when the company made a performance forecast in early 2022, it mainly calculated the net realizable value of each project according to the future market reference selling price based on the trend of the real estate market where the project was located at that time and the situation that the epidemic situation in the project location tended to be stable, and made a provision for inventory falling price.
At that time, the company said that the net profit attributable to the shareholders of the listed company in 2021 was lower than that in the previous year, which was affected by factors such as continuous regulation of industrial policies, asset impairment and covid-19 epidemic. In addition, the delivery area of the company’s development projects in 2021 decreased, and the gross profit margin of the development projects carried forward in the year also decreased.
However, with the actual development of the market situation and epidemic prevention situation, Rongsheng made prudent judgment on some accounting estimates and made amendments to the performance forecast after full communication with the accounting firm.
One of the reasons for the correction is that since February 2022, although local house purchase policies have been relaxed, consumers’ willingness to buy houses has remained low, sales have fallen significantly, and the overall real estate market has continued its downward trend.
On the other hand, since February this year, the covid-19 epidemic in China has further spread, and the prevention and control situation of covid-19 epidemic in many places has intensified, especially in the market around Beijing and Hebei, Risesun Real Estate Development Co.Ltd(002146) the project sales environment has been seriously affected.
It is reported that Rongsheng has conducted pre communication with Dahua Certified Public Accountants (special general partnership), an annual audit accounting firm, on the revision of this performance forecast. There are no major differences between the two sides, and the specific data shall be subject to the final audit results.
As a real estate enterprise with heavy positions in the northern market, Risesun Real Estate Development Co.Ltd(002146) once worked with China Fortune Land Development Co.Ltd(600340) and was regarded as the representative of real estate enterprises around Beijing. In many third and fourth tier cities in Hebei, the projects of these two real estate enterprises often “live next to each other”. In the past 2021, Risesun Real Estate Development Co.Ltd(002146) accumulated the contracted amount of 134558 billion yuan, achieving 103.5% of the annual sales target.
As of the third quarter of last year, Risesun Real Estate Development Co.Ltd(002146) three red lines have been successfully “turned green”, with a cash short debt ratio of 1.05, an asset liability ratio of 69.49% and a net debt ratio of 58.89% after excluding advances received.
Nevertheless, affected by the development environment of the real estate market, Risesun Real Estate Development Co.Ltd(002146) also made an exchange offer for two US dollar bonds. At the end of last year, Risesun Real Estate Development Co.Ltd(002146) announced in the Singapore stock exchange that it would make an exchange offer for two bonds with a total amount of US $780 million due in January and April 2022, and solicited the consent of qualified holders to propose exemptions and amendments to improve the financial situation and stability.
According to the latest announcement of the Singapore Stock Exchange, Risesun Real Estate Development Co.Ltd(002146) 780 billion US dollars of bonds have been extended, and the extended delivery of all US dollars of bonds has been completed on March 17. So far, all the old bills have been recovered, and the new bills are expected to be listed on the Singapore Stock Exchange on March 18, 2022.
