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Several listed companies announced plans to sell their own properties.

Recently, the listed company Turing Technology (300229.SZ) issued an announcement that the property the company plans to sell is located at No. 9 Heying Road, Changping District, Beijing, with a total construction area of ​​8,002.91 square meters, a total assessed value of RMB 99.6152 million, and a transfer price of RMB 99.3364 million.

This is not the first time that Torui has sold a property this year.

Previously on June 26, Torui disclosed that the company sold its property located in Fenglin Oasis, South of Science Park, Datun Road, Chaoyang District, Beijing, to Weifang Jiabo Education Service Co., Ltd. for RMB 20 million.

The property is the former headquarters of TRS, with a total construction area of ​​837.55 square meters and is used as an apartment. In 2022, TRS changed its office address to Building 3, Jinyuxisanqi Science and Technology Park, Haidian District, Beijing.

"Our offices were previously very scattered. After we moved to the new building, we almost brought all our branches and subsidiaries in Beijing together." An insider at TRS told 21st Century Business Herald.

In the first quarter of 2024, TRS achieved total operating revenue of 178 million yuan, a year-on-year decrease of 15.35%; net profit attributable to the parent company was 27.2527 million yuan, a year-on-year decrease of 9.74%; but its non-net profit was 14.1913 million yuan, a year-on-year increase of 10.16%. After the sale of the former headquarters, it is expected to bring a positive impact of about 6.22 million yuan on the net profit in the first half of the year.

Many companies sell houses to recover losses

Tors is not an isolated case.

According to incomplete statistics from a reporter from 21st Century Business Herald, since the beginning of this year, 12 A-share listed companies, including Torui, Dong-E-Erhu (000423.SZ), Weiye Group (300621.SZ), Dayu Water Saving (300021.SZ), Weihong Group (300508.SZ), Zhubo Design (300564.SZ), Longyuan Technology (300105.SZ), Nasda (002180.SZ), Jiejie Microelectric (300623.SZ), Tianchen Group (600620.SH), SiChuang Electronics (600990.SH), and Tianyuan Dico (300047.SZ), have planned to sell real estate.

In order to improve operational efficiency and reduce the company's operating pressure, on July 19, Zhubo Design announced that it plans to sign a real estate purchase and sale confirmation letter with five natural persons including Miao Shihua and Niu Shijie to sell the property (with a construction area of ​​2,286.65 square meters) located at No. 11 Yujinggang Road, Jing'an District (formerly Zhabei District), Shanghai.

On July 5, Dong-E-Erhu announced that it plans to sell some properties with a minimum listing price of more than 45 million yuan in batches in order to revitalize idle assets, improve asset utilization, and further enhance asset operating efficiency.

The announcement shows that the properties that Dong-E-Erhu intends to sell include residences such as Liaocheng New Oriental Celebrity Garden, the right to use parking spaces in Jinan Greenland Central Plaza, and office buildings such as Jinan Greenland Colorful City, totaling 13 residences, the right to use 12 parking spaces, and rooms in 3 office buildings.

Dong-E-E-Jiao said that the company has completed the batch listing and public announcement of residential buildings and parking spaces in April 2024, and the initial listing price is the assessed value. If the transaction is successful, it will have a certain impact on the company's current profit and loss, and the final impact amount will be calculated based on the results of the public listing transaction.

Dong-E-E-Jiao is mainly engaged in the research and development, production and sales of donkey-hide gelatin, donkey-hide gelatin series and other Chinese patent medicines. It owns a variety of products such as donkey-hide gelatin, compound donkey-hide gelatin paste, "Peach Blossom Princess" donkey-hide gelatin cake, etc. According to the first quarter report of 2024, its revenue was 1.453 billion yuan, a year-on-year increase of 35.95%; its net profit attributable to the parent company was 353 million yuan, a year-on-year increase of 53.43%.

On June 11, Weiye Co., Ltd. issued an announcement stating that in order to revitalize the company's existing project payment-backed property assets, increase the company's cash income, and save management costs, the company intends to entrust a property rights trading platform with relevant qualifications to sell the company's existing project payment-backed properties through public bidding. The initial listing price will be no less than the assessed value of RMB 45,234,664 (tax included) in the asset appraisal report (Zhongrui Appraisal Report No. (2024) 300529) as the reserve price, including 34 property assets such as Room 2101, Unit 2, Building 16, Lanxi Valley Community on the east side of Lijing North Street, Xingqing District, Yinchuan City, Ningxia, with a total area of ​​5,497.59 square meters.

These property assets are located in Yinchuan City, Ningxia, Chongqing City, Pengze County, Jiangxi Province, and Heyuan City, Guangdong Province. The property asset owner and seller is Weiye Co., Ltd. Taking into account the convenience of subsequent transactions and property division, it is planned to divide the above 34 property assets into 20 portfolio targets.

The company said that the proceeds from the disposal of the property will be used to supplement the company's working capital, which will help optimize its asset structure and improve management efficiency.

On the evening of May 24, Dayu Water Saving disclosed an announcement stating that its wholly-owned subsidiary Beijing Yusheng Smart Technology Co., Ltd. plans to sell 7 properties and 10 underground garages located at No. 78, Baiziwan South 2nd Road, Chaoyang District, Beijing to Jiangsu Liquor Group for 148 million yuan.

Among the target assets sold this time, the building area of ​​the property is 2,416.17 square meters (used as supporting public buildings), and the building area of ​​the garage is 323.84 square meters (used as an underground garage).

Dayu Water Saving said that the purpose of this asset sale is to revitalize the company's assets and improve asset operation efficiency. According to preliminary calculations, it is expected that the impact of this transaction on the company's current profit and loss will be approximately 31.6283 million yuan.

Relieve performance pressure

In the current economic environment, replenishing working capital by selling non-core assets (such as real estate) can help companies better respond to market challenges or invest in more growth-oriented business areas.

At the same time, some companies may face certain financial or performance pressures. By selling real estate, the company's non-recurring gains and losses can be quickly increased, thereby improving the current profit level and alleviating performance pressure.

According to a review by a reporter from 21st Century Business Herald, among the 12 A-share listed companies that plan to sell real estate, some companies saw a year-on-year decline in performance in the first quarter of this year.

In the first quarter of this year, Zhubo Design achieved operating income of 66.8686 million yuan, a year-on-year decrease of 48.92%; net profit attributable to shareholders was -53.4956 million yuan, a year-on-year decrease of 262.77%; non-net profit was -60.6886 million yuan, a year-on-year decrease of 155.55%.

In the first quarter, Tianchen Co., Ltd. achieved operating income of 3.9789 million yuan, a year-on-year decrease of 93.97%; net profit attributable to shareholders was -19.8815 million yuan, a year-on-year decrease of 365.71%; non-net profit was -22.0405 million yuan, a year-on-year decrease of 238.57%.

In an interview with a reporter from 21st Century Business Herald, Bai Wenxi, vice chairman of the China Enterprise Capital Alliance, said that the two situations of A-share listed companies selling real estate can be viewed from the following two perspectives.

First, the sale is due to idleness: In this case, the listed company sells the property mainly to revitalize fixed assets and improve asset operation efficiency. This practice helps the company to use resources more effectively, reduce unnecessary costs, and thus improve overall operational efficiency.

The second reason is to optimize performance: listed companies, due to performance pressure, improve their financial statements by selling real estate. This practice may boost the company's performance in the short term, but it is not a long-term sustainable development strategy.

"In general, the sale of idle properties can be seen as a resource optimization measure, while the sale of properties for the purpose of optimizing performance requires a more prudent assessment of its impact on the company's long-term development. For listed companies, it is more important to achieve sustainable development by improving the profitability and market competitiveness of their main businesses," said Bai Wenxi.