Author: Zhang Huimin
In the first half of the year when both real estate sales and financing did not improve significantly, the performance of real estate companies was hardly optimistic. Yicai conducted statistics on 125 real estate companies in the wind data real estate index. As of July 19, a total of 77 real estate companies announced their performance forecasts or performance bulletins.
Among the 77 real estate enterprises that have announced their performance forecasts, 42 real estate enterprises are expected to lose their net profit attributable to listed companies, and the number of loss-making real estate enterprises exceeds half; 35 real estate enterprises are in a state of profit, of which 23 real estate enterprises are expected to make profits, but However, the performance declined year-on-year, and only 12 real estate companies are expected to make profits and grow year-on-year.
Real estate companies that are expected to earn more than 1 billion yuan include China Merchants Shekou, Financial Street, Youngor, and Poly Development.
Poly Development made the largest profit. The net profit attributable to listed companies in the first half of the year was 10.721 billion yuan, a year-on-year increase of 4.1%.
Because the financial data of real estate companies reflects the sales settlement of previous periods, the contracted amount can better reflect the current sales of real estate companies. The data announced by Poly Development shows that in the first half of this year, Poly Development achieved a contracted amount of 210.221 billion yuan. A year-on-year decrease of 26.29%.
Although China Merchants Shekou's profit amount ranks high, it has fallen sharply year-on-year.
In the first half of this year, China Merchants Shekou's net profit attributable to listed companies is expected to be 1.5-2.1 billion yuan, down 50.6%-64.71% from last year's 4.25 billion yuan.
Regarding the reasons for the changes in performance, China Merchants Shekou said that during the reporting period, the area of the company's real estate projects that were completed, delivered and carried over increased year-on-year, but affected by the downturn in the market, the gross profit margin of the real estate business carried forward decreased year-on-year, and the gross profit carried forward decreased year-on-year; in addition, Investment income from the transfer of subsidiaries by the company decreased year-on-year.
In the same period of last year, the Shekou Industrial Park REIT (fund code "SZ.180101") with the company's Wanrong Building and Wanhai Building as the underlying assets was listed, generating an after-tax income of 1.458 billion yuan.
Financial Street, Youngor's profit growth rate is larger.
In the first half of the year, the attributable net profit of Financial Street was 1.09-1.27 billion yuan, an increase of 80%-110% year-on-year; Youngor's attributable net profit was 3.13 billion yuan, a year-on-year increase of 90%.
For the sharp increase in profits, Financial Street said that it was mainly because the operating income of the development and sales business increased compared with the same period last year. In addition, the increase in the fair value of hotel sales and investment properties also contributed to the increase in net profit.
Youngor said that due to the impact of cyclical factors in the real estate business, the net profit base attributable to the real estate business in the same period last year was relatively small.
Among the loss-making real estate companies, Sunshine City, Blu-ray Development, Jinke Co., Ltd., Rongsheng Development, Zhongnan Construction, Shoukai Co., Ltd., ST Taihe, and Zhongtian Financial all have estimated losses of more than 1 billion yuan.
The announcement of the loss-making housing company shows that the reasons for the loss are mainly related to factors such as the reduction of carry-over projects, the reduction of the gross profit rate of carry-over projects, price reduction promotions, and impairment provisions.
Blu-ray Development has the highest estimated loss, with a loss of 4.6 billion yuan.
It is worth noting that this is not the first time that Blu-ray Development has lost money. In the same period last year, Blu-ray Development’s net profit loss attributable to shareholders of listed companies was also relatively large, amounting to 4.72 billion yuan.
Regarding the reasons for the loss in the first half of this year, Blu-ray Development explained that, in terms of operation, due to the previous real estate policy regulation and the company’s debt risk, the gross profit from sales of projects that completed the performance obligations of house sales and included in the settlement in this period was low; in order to maintain the company’s continuous operation, To ensure project delivery, various operating expenses continue to occur; due to the impact of the abnormal shutdown of some of the company's projects, according to accounting standards, interest expenses that no longer meet capitalization are included in the current profit and loss, and the expensed interest expenses in the current period are relatively large; the company's US dollar Bonds incurred an exchange loss of approximately RMB 250 million due to the impact of the decline in the exchange rate of RMB against the US dollar.
Affected by the above factors, Blu-ray Development is expected to have an operating loss of about 1.9 billion yuan in the first half of 2022.
In terms of impairment provision, policies to support the development of the real estate industry have been introduced one after another this year, but it will take some time for the policies to be implemented and transmitted to the market, and the company's operating environment and financing environment have not been substantially improved.
Based on the current real estate market environment and increased capital liquidity risks, customers’ expectations for house purchases have decreased, combined with the market conditions in the cities where the company’s projects are located, and the company’s debt defaults and other risks, Blu-ray Development has provided an impairment loss of about 2.9 billion yuan. Mainly for the inventory depreciation reserves.
Sunshine City's estimated loss amount is second only to Blu-ray Development. It lost its first loss in the first half of this year, and the amount of loss ranges from 3.5 billion to 4.5 billion yuan.
Regarding the reasons for the loss, Sunshine City said that the operating performance of the reporting period fell significantly compared with the same period in 2021, mainly due to the superimposed epidemic situation and other factors in the first half of 2022, and the overall industry sales fell severely. At the same time, the industry credit risk events occurred frequently, and customer confidence The company suffered further setbacks, the passenger flow dropped sharply, and the market did not appear to stabilize and reverse as expected. In order to further promote the sales collection, the company planned to take price reduction measures, and the corresponding inventory price reduction reserves increased compared with the same period of the previous year; affected by the market and the company's liquidity, The company's lower number of projects meeting settlement conditions in the first half of 2022 resulted in lower operating profit.
In addition, the after-tax non-recurring profit and loss attributable to shareholders of the listed company was relatively large during the reporting period, mainly due to the disposal of real estate projects. The company completed the disposal of some projects in the first half of the year, and the pre-tax disposal premium was included in the current profit and loss.