February 7，Announcement issued by 188bet best bookmaker Chengtou Real Estate Co., Ltd.，Reply to the "Letter of Inquiry Regarding the Preliminary Loss in the Performance of 188bet best bookmaker Chengtou Real Estate Co., Ltd." previously received from the Shanghai Stock Exchange。

As understood，Previous January 29，188bet best bookmaker announced that it expects to achieve a loss of 27 in net profit attributable to shareholders of listed companies in 2020.500 million to 2.3 billion yuan；It is expected that the net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses in 2020 will be a loss of 36.300 million to 31.800 million yuan。

After January 29th，188bet best bookmaker Chengtou announced that it received the "Letter of Inquiry from the Shanghai Stock Exchange Regarding the Preliminary Performance Loss of 188bet best bookmaker Chengtou Real Estate Co., Ltd."。

It is reported，Shanghai Stock Exchange pointed out，188bet best bookmaker’s third quarterly report for 2020 shows，Net profit loss attributable to parent company in the first three quarters 10.3.9 billion yuan，Contrary to the estimated net profit loss attributable to the parent company for 2020 disclosed this time.00-27.5 billion yuan is a big difference。Require it to be combined with the project carryover and other operating conditions of the real estate business，Explain the specific reasons and rationality for the company’s large losses in the fourth quarter of 2020；Whether there are any profit adjustments in the costs and expenses in the first three quarters of 2020 that should be carried forward but not carried forward。

To this，Yunnan City Investment Reply，Starting in the second half of 2020，The real estate market financing environment is tightening，Affected by the superimposed epidemic，Market competition continues to intensify。In order to speed up sales，Relieve financial pressure，188bet best bookmaker has made price adjustments for some projects with long decommissioning cycles，A large amount of impairment provision has been made；The company has no new completed and delivered projects in the fourth quarter of 2020，There is no income from project equity transfer，Making the company’s losses in the fourth quarter of 2020 larger than those in the first three quarters。

Specifically，In the first three quarters, 188bet best bookmaker completed the acquisition of Kunming Xinjiang Heda Urban Construction Co., Ltd.、Xishuangbanna Yuncheng Real Estate Co., Ltd.、Equity transfer matters of 7 projects including Xishuangbanna Cangjiang Cultural Tourism Development Co., Ltd.，Realized transfer income of 1.4 billion yuan。

In order to adapt to the leverage reduction、The market trend of rapid decentralization，Accelerate sales payment collection，Based on the reference market sales price，188bet best bookmaker made provision for inventory impairment in the first three quarters3.5.6 billion yuan，Provision for inventory impairment was made in the fourth quarter 6.9.2 billion yuan。

In summary，188bet best bookmaker Group’s net profit loss attributable to the parent increased in the fourth quarter of 2020，Mainly due to the significant decrease in project transfer investment income in the fourth quarter compared with the first three quarters，And provision for inventory impairment due to price reduction promotion，There is no profit adjustment situation in which the costs and expenses in the first three quarters should have been carried forward but were not。

Shanghai Stock Exchange also pointed out，Announcement display，Yunnan City Investment has a large scale of interest-bearing liabilities、Financial expenses are high and rising significantly，It is one of the reasons for the company’s performance losses。Because the Shanghai Stock Exchange requires 188bet best bookmaker to combine the financial expenses of the first three quarters 22.4.3 billion yuan、41 year-on-year increase.33% of cases，Explain the specific reasons and rationality for the significant increase in financial expenses in 2020。

188bet best bookmaker City Investment expressed this，The main reason for the significant increase in the company's financial expenses in 2020 is the increase in financing costs，Project due to completion and suspension，Stop capitalizing interest，This processing complies with the requirements of the Accounting Standards for Business Enterprises。

Due to the overall tight financing environment，The impact of the successive introduction of real estate regulatory regulations，The company’s financing scale has dropped significantly，Financial institution financing amount for the whole year is 2.7 billion yuan，A significant decrease of 75% compared with the same period last year。2020，188bet best bookmaker comprehensive financing cost from 8.39% increased to 9.12%，The rise in financing costs will cause a corresponding increase in financial expenses in 2020；At the same time，Increase due to completed and suspended projects，The company’s interest expense ratio in 2020 is approximately 57%，An increase of 7 percentage points compared with 2019。

In addition，mentioned by Shanghai Stock Exchange，Yunnan City Investment expects its net assets attributable to the parent to be negative at the end of 2020，According to Shanghai Stock Exchange's "Stock Listing Rules" and other relevant regulations，The company’s stocks are at risk of being issued a delisting risk warning，In this regard, the Shanghai Stock Exchange requires 188bet best bookmaker to combine the current assets and liabilities、Operation Finance、Cash flow and other aspects，Fully assess the current sustainable operating capabilities，And fully disclose the relevant risks；Additional disclosure that the company’s current net worth is negative、Situation of large performance losses，Solutions and countermeasures taken and planned。

To this，188bet best bookmaker Chengtou replied，2020，Affected by both the epidemic and real estate control policies，The company’s real estate income and rental income decreased，As a result, the company is currently facing greater performance pressure and debt repayment pressure。Fully evaluated，The company is under great short-term pressure，But it still has the ability to operate sustainably。

mentioned as of now，The land area it holds for development projects reaches 3547 acres，The planned building area is 2.81 million square meters，Mainly located in Kunming、Dali、Xishuangbanna、Xi’an、Chengdu、Haikou and other domestic hot spots。At the same time，The company’s existing first-level development project will also obtain approximately 1,839 acres of land 188bet best bookmaker future。

Solutions and countermeasures adopted and planned，188bet best bookmaker Group proposed to continue to promote major asset restructuring，Optimize capital structure；Steady advancement of strategic transformation，Expand and cultivate new projects；Increase the company’s cash flow，Saving funds and interest expenses；Strengthen internal management，Improve competitiveness。

In addition，The inquiry letter also contains the specific amount of impairment provision for each item 188bet best bookmaker inventory，In combination with the development status of the project、Sales Progress、Market supply and demand and other factors，Explain the reasons and rationality for impairment。

*This 188bet best bookmakerComeSource: Guandian 188bet best bookmaker Network, original title:《188bet best bookmaker Chengtou’s reply to the inquiry letter: The loss in the fourth quarter was mainly due to the provision for inventory impairment, etc.》.