Wolong Resources Group (600173.SH) issued a profit warning, with an estimated net profit for the year 2024 of 40-50 million yuan, a decrease of 69.59% to 75.67% year-on-year.

Wolong Resources Group (600173.SH) announced that the company is expected to achieve a net profit attributable to shareholders of the listed company of 40-50 million yuan in the year 2024, a decrease of 69.59% to 75.67% compared to the same period last year. During the reporting period, affected by the overall real estate market conditions and based on the market environment and supply-demand situation of the company's real estate projects in various regions, the company calculated the net realizable value of real estate inventory cautiously. This period, provision for inventory depreciation will be made, with the amount increasing compared to the same period last year. During the reporting period, the gross profit margin of some real estate projects where revenue was recognized increased, resulting in an increase in the provision for land value-added tax, leading to an increase in operating taxes and surcharges compared to the same period last year. During the reporting period, the company's affiliated company, Guangzhou Junhai Network Technology Co., Ltd. (referred to as "Junhai Network"), improved its overall profitability through measures such as streamlining organization, intelligent marketing deployment, and strengthening long-term operating capabilities. However, considering the overall operating situation and future development strategy of Junhai Network, provision for asset impairment losses will be made in this period, with the impairment amount decreasing compared to the same period last year.