Xinji Shaxi Group Co., Ltd Provides Earnings Guidance for the Year Ended 31 December 2020
March 02, 2021 at 04:53 am EST
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Xinji Shaxi Group Co. Ltd. provided earnings guidance for the year ended 31 December 2020. For the year, the company announced that based on a preliminary review of the Group's unaudited consolidated management accounts, it is expected that the net profit attributable to the Shareholders for the year 2020 is likely to decrease by not less than RMB 65.0 million but not more than RMB 75.0 million as compared to the net profit attributable to the Shareholders of approximately RMB 102.9 million in the corresponding period in 2019. The Board considers that such expected decrease is primarily attributable to the decrease in the fair value gains on investment properties held by the Group mainly as a result of (i) the adjustment made in the valuation of Xinji Hotelex Hospitality Supplies Center as it had been temporarily unable to generate revenue due to partial property alterations in 2020; and (ii) the adjustment made in the valuation of the two shopping malls in Shenyang, the PRC due to the overall decrease in demand in the market caused by the COVID-19 pandemic in 2020. Notwithstanding the above, by eliminating the effects of certain one-off or non-recurring items including the changes in fair value of investment properties, government grants, listing expenses and income tax expenses in relation to above reconciled items, which the Board believes are not indicators for assessing the actual performance of the Group's business, the Group's core net profit in 2020 is expected to decrease by not less than RMB 20.0 million but not more than RMB 25.0 million as compared to the core net profit of RMB 109.8 million in the corresponding period in 2019.
Xinji Shaxi Group Co., Ltd. is a China-based company principally engaged in the operation of shopping malls for hospitality supplies. The Company operates through three segments. Shopping Malls segment leases or acquires pieces of land or property for shopping mall operation business with a principal focus on shopping malls for hospitality supplies and home furnishings. The Managed Shopping Malls segment provides shopping mall operation services to other shopping mall owners. The Online Shopping Mall segment provides an alternative trading platform to hospitality suppliers and home furnishings providers to sell their products. The Exhibition Management Business segment provided exhibition management services for the annual The China (Guangzhou) International Hospitality Supplies Fair (HOSFAIR) in China. The Company mainly operates in the domestic market.