Shenzhen Tiandi A2022 Performance Forecast

2023, Shenzhen Tiandi Group issued a performance forecast for 2022.

According to the forecast, the net profit loss attributable to shareholders of listed companies was 190 million yuan to 230 million yuan, down 258.26% to 333.68% from the same period last year; Net profit loss after deduction of non-recurring profit and loss was RMB192 million to RMB232 million, representing a decrease of 196.54% to 258.32% as compared with the same period of last year.

In the report, Shenzhen Tiandi Group analyzed the reasons for this performance change:

1. The company's concrete industry was affected by the real estate policy, the industry competition was further intensified, and the gross profit margin of the industry declined significantly. During the reporting period, the company took the initiative to shrink sales orders, adding to the impact of the epidemic in Shenzhen in 2022. Sales revenue and profits declined significantly year on year.

2. During the reporting period, the income and profit of real estate business decreased compared with the same period last year, and the consolidated income and profit decreased.

3. During the reporting period, due to the principle of prudence, the Company made a separate provision for significant credit impairment losses for projects in the concrete industry that were expected to have a significant increase in credit risk, resulting in a significant decrease in operating profit.

4. During the reporting period, due to the principle of prudence, the company accrued expenses for litigation and arbitration matters, resulting in a decrease in operating profit.

5. During the reporting period, the subsidiaries of the company were unable to produce due to the expiration of the lease of production sites and faced relocation. The company made provision for impairment of production equipment, resulting in a decline in operating profit.