On the evening of March 25, Shimao Group (00813.HK) announced that, according to the group’s preliminary unaudited comprehensive management accounts for the year ended December 31, 2021, the group expects the profit attributable to shareholders and the core attributable to shareholders in 2021. Profits will fall by 62% and 57% year-on-year, respectively.
As for the reason for the decline, Shimao Group stated that it was mainly due to the severe environmental impact of the real estate industry in the second half of 2021, the sales revenue recorded by the company in 2021 decreased and Gross profit margin decreased, provision for expected credit losses such as inventory impairment and receivables increased, fierce market competition and increased difficulty in sales led to an increase in sales and marketing costs, and a loss on disposal of project equity. caused by factors.
Shimao Group emphasized that the company is still confirming the company’s 2021 results.
In addition, Shimao Group also announced that PricewaterhouseCoopers (namely PricewaterhouseCoopers) has resigned as the company’s auditor, effective from March 24, 2022 effective from today.
Regarding the reasons for PricewaterhouseCoopers’ resignation, Shimao Group stated in the announcement that PricewaterhouseCoopers said in its resignation letter that its Request for information on certain trust loan arrangements involving joint ventures and associates of Shimao Group; the company has reviewed the arrangement; and due to restrictions arising from the COVID-19 pandemic, the company cannot complete the review and provide all of the arrangements by March 24, 2022 Information requested by Robinham. Therefore, Price cannot identify additional audit work or commit to a clear timetable for completion of the audit.
Meanwhile, Shimao Group announced that the company has decided to appoint Zhonghui Anda Certified Public Accountants Co., Ltd. as the company’s new auditor.
On the evening of March 21, Shimao Group and Shimao Service (00873.HK) announced separately that the publication of the audited annual results for 2021 is expected to be delayed send.
As for the reason for the delay in releasing the results, both companies stated that the audit procedures were affected by the following circumstances: First, certain management and employees of the group were involved in the latest wave of Arranged for quarantine amid the COVID-19 outbreak; second, delays in obtaining certain external confirmations from third parties for audit work.
According to Shimao Group’s previously disclosed data, as of December 31, 2021, Shimao Group’sThe cumulative total contracted sales amounted to approximately 269.11 billion yuan, and the group’s cumulative total contracted sales area was 15.2863 million square meters; the average sales price was 17,605 yuan per square meter. In addition, as of the first two months of 2022, Shimao Group’s cumulative contracted sales totaled about 14.78 billion yuan, the group’s cumulative contracted sales area was 911,400 square meters, and the average sales price was about 16,213 yuan/square meter.
As of the close on March 25, Shimao Group reported HK$4.49 per share, down 2.39%.