CHINA AOYUAN(03883) Earnings Summary
Bullish Points:
1. The Group is focusing on accelerating pre-sales and sales of properties under development and completed properties, and speeding up the collection of outstanding sales proceeds and other receivables.
2. The Group is prioritizing the delivery of property development projects, with the majority of projects progressing according to schedule.
3. The Group has adjusted its organizational structure to reduce management levels, enhance management efficiency, and effectively control costs and expenses.
4. The Group is proactively seeking ways to settle outstanding litigations and is confident in reaching amicable solutions for claims and disputes.
5. The Group is working on a Holistic Restructuring plan to address liquidity issues and enhance credit profile.
Bearish Points:
1. In the first half of 2022, China's property market weakened due to recurring COVID-19 outbreaks and economic pressure.
2. The Group's revenue, gross profit, and gross profit margin decreased significantly compared to the same period in 2021.
3. Loss attributable to shareholders was RMB 2,921 million, a 239.8% decrease compared to the profit of RMB 2,089 million in the same period of 2021.
4. The Group faces cash flow interest rate risk due to floating-rate borrowings.
5. Contingent liabilities relating to guarantees for mortgage facilities and banking facilities granted to joint ventures and associates amount to approximately RMB 101,286 million as of 30 June 2022.
In conclusion, CHINA AOYUAN(03883) faced challenges in the first half of 2022, with weakened property market conditions and decreased financial performance. However, the Group is taking measures to improve its operations and address liquidity issues through a Holistic Restructuring plan. For more information, you can read the original text of CHINA AOYUAN's financial report: https://static.tigerbbs.com/da4101007fe54a9ab2e1afa0df392d34
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