BBMG: the company is expected to achieve the net profit of 1.2-1.65 billion yuan in the first half o

Byzengjiaming12

Updated Thu, 13 Aug 2020 14:22:05 GMT

  BBMG Group Co., Ltd. released its 2020 semi-annual performance forecast. According to the report, the company is expected to achieve the net profit attributable to the shareholders of the listed company of 1.2-1.65 billion yuan in the first half of 2020(H1), with a year-on-year decrease of 46%-61%.

  During the reporting period, the company's total sales of cement and clinker were approximately 42.1 million tons (accounting caliber), a decrease of 7.02% from 45.28 million tons in the same period of last year; the sales of concrete were approximately 6.02 million cubic meters, a decrease of 26.16% from 8.15 million cubic meters in the same period of last year; the real estate carry-over area was approximately 621,000 square meters, an increase of 36.54% from 455,000 square meters in the same period of last year.

  The main reasons for the expected decrease in performance in H1 are:

  1. Affected by the COVID-19 pandemic, in the real estate carry-over projects, the proportion of affordable housing increased more, and the gross profit rate of the commercial residential housing carry-over projects in this period was low, resulting in the operating income and gross margin level of the real estate sector dropped significantly year-on-year during the reporting period.

  2. Due to the COVID-19 pandemic, downstream customers of cement companies resumed production rather late, and various construction projects were resumed slowly. Although the company strived to achieve year-on-year increase in the total sales of cement and clinker in the second quarter, there’s still a certain gap between the first half of this year and the same period of last year. At the same time, the selling price has decreased year-on-year, therefore, the operating income and profit level of the cement business have decreased year-on-year.

  3. Under the influence of the COVID-19 pandemic, the company reduced rents for some medium, small and micro enterprises in response to the government's call, so that the income and profits of investment properties decreased year-on-year.