China Merchants Shekou expects profit dip after asset write-downs

China Merchants Shekou Industrial Zone Holdings (SZSE:001979) announced it has made provisions for asset impairments totaling 594.387 million yuan for the year 2024. This move is projected to reduce the net profit attributable to shareholders of the listed company by 434.403 million yuan. The impairments include provisions for credit losses (146.106 million yuan), inventory write-downs (357.454 million yuan), long-term equity investment impairment (72.572 million yuan), and goodwill impairment (15.956 million yuan). The company attributes the inventory write-downs to lower-than-expected sales prices on some real estate projects. Alongside this, the company released a preliminary earnings report indicating a 36.09% year-over-year decrease in net profit attributable to shareholders. This is partially offset by a modest 2.25% increase in total operating income.