China Evergrande releases Group profit warning

China Evergrande releases Group profit warning.

China Evergrande expects that there will be a decrease in the net profit for the six months ended 30 June 2021 as compared with the same period last year. The net profit is expected to be between approximately RMB9.0 billion and RMB10.5 billion, a decrease of approximately 29% to 39% from that of the same period last year. The profit composition consists of the loss from the property business of approximately RMB4.0 billion, the loss of China Evergrande New Energy Vehicle Group Limited of approximately RMB4.8 billion, and the gain from the sale of part of the shares of Hengten Networks Group Limited held by the Group and its holding of the remaining shares on a marked-to-market basis of approximately RMB18.5 billion. The decline in profit in the first half of 2021 was mainly due to the decrease in the selling price of properties and the increase in expenses in the first half of the year.