Financial Services Association, January 30 (Reporter Ren Chaoyu) Red Star Macalline (601828.SH) disclosed its 2023 performance forecast this evening. Net profit is expected to change from profit to loss year on year, with a significant drop. Since the company officially changed its ownership of C&D shares in June of last year, the capital market has high expectations for business collaboration between the two parties. However, judging from performance, this expectation has yet to be fulfilled.

According to financial data, Red Star Macalline expects a net profit loss of 2.38 billion yuan to 1.98 billion yuan in 2023, a year-on-year decrease of 364.5% to 417.9%. After deducting non-net profit, the loss was 1.39 billion yuan to 1 billion yuan, a year-on-year decrease of 262.2% to 325.5%.

Red Star Macalline's net profit in 2022 was 750 million yuan, after deducting non-net profit of 616 million yuan.

According to the announcement, on the one hand, the loss in performance was affected by the real estate boom, which led to a phased decline in shopping mall occupancy rates over the same period last year. Based on this, the company made a series of adjustments, resulting in a phased decline in rental income and management fee revenue, and as a result, the annual investment property valuation was reduced by more than 800 million yuan.

On the other hand, the company has made preliminary estimates of the recoverable amount of various assets. The total annual impairment reserve is estimated to be about 1.7 billion yuan, of which it plans to add about 1 billion yuan in corresponding impairment provisions in the fourth quarter.

Matters involving impairment mainly include: impairment of accounts receivable and contract assets from early brand consulting services, construction and design services, leasing and management, etc., impairment of transactions relating to individual partners and related parties, impairment preparations for individual projects that are not progressing as expected or assets with slow turnover, and other non-current asset impairment provisions due to the inability to continue to fulfill individual home furnishing mall repurchases.

The company also stressed that it is estimated that compensation of more than 250 million yuan may be brought in for individual projects that are estimated to be less than expected and decided to terminate continued investment. Furthermore, due to matters involving asset repurchase obligations, it is estimated that future compensation expenses of more than 60 million yuan may be incurred, and the company confirmed the estimated losses within 2023.

In fact, from 2023 to January 2024, Red Star Macalline issued a number of “indicative announcements regarding the decline in rental and management fee revenue from its own shopping malls compared to the previous month”. According to the January 6 announcement, management believes that the current boom in the industry still needs to gradually recover, and that rent concessions may affect the valuation of the company's investment properties to a certain extent.

Seen from this perspective, the strategic goal of “seeking stability” proposed by the company management in 2023 has already fallen short. After changing ownership of C&D shares in 2023, the business collaboration expected by investors has yet to reverse the company's decline.

A Financial Services Association reporter observed that listed companies in the “pan-home” industry will intensively embrace state-owned shareholders in 2023. Among them, after waiting to receive orders related to state-owned shareholders, the stock price of Baoying Co., Ltd. closed for two consecutive days on December 28 and 29, 2023, and closed on the 29th. As can be seen, the increase in performance after embracing state-owned assets is the focus of investors' attention to such companies.

At the September 2023 results meeting, Red Star Macalline said that the synergy with C&D shares is mainly reflected on the business side and financing side. Among them, the business side is mainly development in the automotive field.