Understanding the Market | MIDEA REAL EST rose over 4% after profit warning, expecting annual core net loss attributable to shareholders of approximately RMB 1.95 billion to 2.05 billion

Zhitong
2025.03.24 03:31
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After the profit warning, MIDEA REAL EST rose over 4%. As of the time of writing, it increased by 4.26%, trading at HKD 3.18, with a transaction volume of HKD 5.7433 million. In terms of news, on March 21, MIDEA REAL EST announced that for the year ending December 31, 2023, it expects a net profit of RMB 2.125 billion and a core net profit attributable to shareholders of RMB 1.0297 billion. In contrast, for the year ending December 31, 2024, the company expects a core net loss attributable to shareholders to be between RMB 1.95 billion and RMB 2.05 billion. The main reason for this change is that the group anticipates a core net loss attributable to shareholders of between RMB 2.4 billion and RMB 2.6 billion due to property impairments arising from physical distributions during the reporting period. After the distribution is completed on October 22, 2024, the group's continuing retained businesses, including property management services, commercial properties, and industrial parks (asset operations), real estate technology, and construction project management (collectively referred to as "retained businesses"), are expected to generate a core net profit attributable to shareholders of between RMB 450 million and RMB 550 million during the reporting period, maintaining stable growth. The group's overall financial performance, business layout, and operational status remain robust

According to Zhitong Finance APP, MIDEA REAL EST (03990) rose over 4% after issuing a profit warning. As of the time of writing, it increased by 4.26%, trading at HKD 3.18, with a transaction volume of HKD 5.7433 million.

In terms of news, on March 21, MIDEA REAL EST announced that for the fiscal year ending December 31, 2023, it expects a net profit of RMB 2.125 billion and a core net profit attributable to shareholders of RMB 1.0297 billion. However, it anticipates a core net loss attributable to shareholders for the fiscal year ending December 31, 2024, to be between RMB 1.95 billion and RMB 2.05 billion. The main reason for this change is the group's expectation of property impairment losses attributable to shareholders of RMB 2.4 billion to RMB 2.6 billion arising from the distribution of physical assets during the reporting period.

After the distribution is completed on October 22, 2024, the group's continuing retained businesses, including property management services, commercial properties, industrial parks (asset operations), real estate technology, and construction project management (collectively referred to as "retained businesses"), are expected to generate a core net profit attributable to shareholders of between RMB 450 million and RMB 550 million during the reporting period, maintaining stable growth. The group's overall financial performance, business layout, and operational status remain robust

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