Country Garden Holdings Profit Warning: Expected Loss in 2022!

On March 13, the Country Garden Holdings issued a profit warning announcement.

The announcement shows that the core net profit for the year ending December 31, 2021 is about 26.9 billion yuan, compared with the profit attributable to shareholders of about 26.8 billion yuan. For the year ended December 31, 2022 (excluding the effects of changes in fair value and net exchange gains and losses), the core net profit attributable to shareholders of the Company is between RMB1 billion and RMB3 billion, and the loss attributable to shareholders is between RMB5.5 billion and RMB7.5 billion. According to the

Announcement, the main reasons for the loss recorded were:

(1) the decrease in gross profit margin of the real estate business as a result of the carry-over of certain projects with low gross profit during the period;

(2) the increase in the provision for impairment of property projects; and

(3) the expected net exchange loss due to foreign exchange fluctuations.

However, the board of directors of Country Garden Holdings believes that most of the factors affecting the above earnings are non-cash in nature.

Country Garden Holdings said that financing was cut off, sales were weak, and the epidemic was repeated. Last year, the real estate industry suffered extreme cold, housing enterprises thunderstorm, "survival challenge" became the key word of the year. In this context, Country Garden Holdings have delivered nearly 700000 apartments throughout the year, ranking first in the industry, and there has been no default or delayed payment of principal and interest, maintaining a good credit record. The board of directors of

Country Garden Holdings said that despite the severe challenges facing the industry in 2022, the company is still doing its best to ensure delivery. In the case of weak sales market, the Group maintained a sound financial level and operational status around the core management objectives of available cash, and expressed its confidence in the development of the Country Garden Holdings Group by continuing to follow the path of high-quality development.

According to statistics, as of March 8, 43 of the 75 listed real estate companies that have issued performance forecasts have lost money in advance, with the highest loss exceeding 20 billion yuan.