[The Epoch Times, February 15, 2022](The Epoch Times reporter Liu Yi comprehensive report) The mainland listed real estate companies have gradually announced their 2021 performance forecasts. Among the 62 real estate companies that have released performance, over 60% of the net profit has declined. 28 companies pre-loss. Judging from the currently released estimates, in 2021, the loss of the A-share real estate sector is likely to hit a historical record.
According to a report by Securities Daily on February 15, as of February 14, 62 of the 126 real estate companies listed on the mainland have released their 2021 performance forecasts. Data from data service provider Wind Information shows that 62 real estate companies are in the Super League. 60% of the net profit declined. Among the 28 pre-loss companies, 11 lost more than 1 billion yuan (RMB, the same below).
The total loss of these 28 pre-loss real estate-related companies last year is expected to be between 79.1 billion and 95 billion yuan. “Securities Daily” said that this is an unimaginable scale of loss in the A-share real estate sector in the past, or it will set a historical record.
Among them, the biggest loss is China Fortune Land Development. On the evening of January 28, China Fortune Land Development announced that it expects a loss of 33.1 billion to 39.1 billion yuan in 2021. The company made a profit of 3.665 billion yuan in the same period in 2020. CFLD explained that since the fourth quarter of 2020, the company’s liquidity has been tense in stages, and financial debts have not been repaid as scheduled, and the financing business has almost stagnated, which has had a serious impact on the company’s operations and led to a substantial decline in the company’s performance.
The loss of Blu-ray Development also exceeds 10 billion yuan. Its announcement on January 29 stated that it is expected to achieve a net profit of -12.037 billion yuan attributable to shareholders of listed companies in 2021. The main reason is that the debt is overdue and the funds are tight.
Song Yanqing, president of RAND Consulting, analyzed the reasons for the loss of real estate companies to the Securities Daily, saying: “In order to speed up the collection of sales, the price cut and the sale, the provision of asset impairment, the rising financial cost, and the failure of the delivery project to be carried forward as planned, etc. Multiple factors are an important reason for the decline in profits and even losses of real estate-related companies.”
Guan Rongxue, an analyst at Zhuge Housing Data Research Center, believes that the loss of performance of real estate-related companies in 2021 is mainly due to the following reasons. First, due to the impact of the downward pressure on the market in the second half of 2021, real estate sales are lower than expected. At the same time, in order to speed up sales and fund collection, Real estate companies often take price cuts, resulting in a decline in the gross profit of real estate sales, and the net realizable value is lower than the cost, resulting in losses. Second, due to overdue debt and tight funds, the project delivery process has been hindered, and the delivery and disposal of projects have not been completed as scheduled. , and then affect the income of the real estate business; third, the increase in the financial cost of some enterprises has also increased the loss margin to a certain extent; fourth, based on the principle of prudence, the corresponding inventory depreciation reserves are made.
Song Yanqing believes that in 2022, the scale of due debts of real estate enterprises will be high, and the market pattern of difficult financing, difficult cash backflow from sales, and difficult asset transfer has not changed. It is expected that there will be uncertainties in the recovery of the sales market in the second half of the year. will take longer.
Liu Shui, research director of the Enterprise Division of the Middle Finger Research Institute, also believes that since the second half of 2021, real estate sales have declined sharply. Although the policy has improved marginally, the market has not yet recovered significantly and is still undergoing deep adjustment.
Data show that in January 2022, the mainland property market continued the decline since 2021. According to statistics from the China Index Research Institute, in January 2022, the sales of TOP100 real estate companies decreased by 23.1% year-on-year, of which the number of real estate companies with sales exceeding 10 billion yuan decreased by 14 compared with the same period last year, and the number of real estate companies exceeding 5 billion yuan decreased by 31 compared with the same period last year.
The monitoring data released by the China Index Research Institute on February 9 also showed that in January 2022, the total financing of real estate enterprises was 79.22 billion yuan, a year-on-year decrease of 70.3% and a month-on-month decrease of 16.6%. The monthly financing scale decreased for 11 consecutive months.
Financing has declined and sales have declined. Zheng Junying, co-head of Fitch Ratings Greater China Real Estate Ratings, said on January 18 that the outlook for China’s real estate industry in 2022 is deteriorating. Liquidity pressure and the consequent drop in market confidence will exacerbate the contraction in annual real estate sales. This year, contracted sales will drop by 10% to 15% year-on-year, while the average price will drop by 5%. More defaults could be triggered due to lack of investor confidence.
Responsible editor: Li Muen#