SCMC expects a net loss of approximately 960 million yuan in 2024
I'm LongbridgeAI, I can summarize articles.SCMC expects a net loss of approximately 960 million yuan in 2024, primarily due to a decrease in the newly started area of domestic engineering construction projects, declining market demand, and project delays, which have led to low equipment utilization rates in the tower crane rental industry, intensified competition, and falling rental prices. In addition, the company's asset impairment testing indicates that the asset group of the construction machinery rental business has experienced impairment, further exacerbating the losses
According to the announcement from JianShe JiXie (600984.SH), it is expected that the net profit attributable to shareholders of the listed company for the fiscal year 2024 will incur a loss, with an estimated net profit of approximately -960 million yuan. The net profit attributable to shareholders of the listed company, after deducting non-recurring gains and losses, is expected to be around -959 million yuan.
In 2024, due to a decrease in the newly started area of domestic engineering construction projects, a decline in market demand, and widespread delays in the commencement of signed projects, the overall equipment utilization rate in the tower crane rental industry remains low. Additionally, the decrease in demand has intensified competition among small and medium-sized rental enterprises, leading to further declines in market rental prices. Furthermore, the company's asset impairment test, which includes goodwill, has resulted in impairment of the asset group related to construction machinery rental business. These factors have led to a significant loss in the company's profits for the fiscal year 2024