Financial News
Written by: Zhang Weilun
2020-07-03 19:17
Last update date: 2020-07-03 19:17Chinese Real Estate (0127) pointed out that based on the closing price of China Evergrande (3333) as of the end of June this year, it is expected that an unrealized loss of 1.38 billion yuan with fair value changes in the first half of this year will be used as a comprehensive expense. As a result, the accumulated unrealized gains on the changes in the fair value of Evergrande’s shares held decreased from 4.98 billion yuan at the end of last year to 3.6 billion yuan, and were recorded in the financial asset reserve that was measured at fair value through other comprehensive income.
Huazhi emphasized that unrealized changes in fair value are non-cash items and have no impact on the company's cash flow.
The company pointed out that it has confirmed that the net dividend income from Evergrande is about 1.36 billion yuan, which will be recognized in the profit and loss in the first half of the year.
Loss of 359 million yuan from the sale of certain securities and investment and treasury products
Huazhi pointed out that the company sold certain securities investments and treasury products, mainly including equity securities and bonds. It is expected that the net realised loss from the sale will be 359 million yuan. It will be recognized in the first half of the profit and loss. The net realised gain is about 560 Ten thousand yuan will be confirmed in the reserve in the first half of the year.
As for the remaining securities investment and treasury products, a preliminary assessment is made based on the estimated quotation and fair value. It is expected that the unrealized loss of fair value changes during the period will be approximately 240 million yuan, which will be recognized in profit or loss in the first half of the year.
The company also pointed out that the net interest income/expenses from securities investment and treasury products and other investment income/expense income/expenses in the first half of the year will be disclosed in the interim results after determining these amounts.
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