Yuzhou Group (01628) expects total annual revenue of 9.716 billion yuan

According to the Zhitong Finance App, Yuzhou Group (01628) announced that it expects the Group to obtain total revenue of approximately RMB 9.716 billion during the reporting period, a decrease of about 55% compared with the total revenue of approximately RMB 21.477 billion for the year ended December 31, 2023. The decrease is mainly due to the continued downturn in the real estate industry in China, and a decrease in revenue from property sales due to reduced property deliveries. Furthermore, the Group is expected to have net losses of approximately RMB13.5 billion to RMB15 billion and net losses attributable to shareholders of approximately RMB10.6 billion to RMB12.1 billion during the reporting period, while in 2023, net losses of approximately RMB14.309 billion and net losses attributable to shareholders will be approximately RMB10.521 billion.

The Board of Directors believes that the estimated losses during the reporting period were mainly due to an unfavorable macro-market environment and the downturn in the real estate industry, which led to a decrease in gross profit from the Group's delivered projects during the reporting period; due to the market environment, some of the Company's real estate projects showed signs of impairment, increased inventory and other asset impairment provisions calculated based on prudential principles, and fair value losses in investment properties; large financial costs could not be capitalized; and the continuous depreciation of RMB against the US dollar. The Group's overseas US dollar notes caused exchange losses. The increase in net losses attributable to shareholders during the reporting period was due to a decrease in sales revenue and a decrease in net losses attributable to non-controlling interests.