As of October 22, has three of the Quarterly Bulletin of the disclosure of 215 companies in 14 belong to the real estate industry. Statistics show that, in addition to well-being of ST, Fuxing shares, the rest of this year's January-September operating activities generated net cash flow negative. Even if these two companies, the indicators also fell over the same period of last year. Then, in an emergency cash flow mean that the real estate industry chain capital problems? Indicate whether the real estate company really has entered a "cold winter" season? On this issue, researchers should be comprehensive and dialectical view.

2008, China's real estate industry as a whole than the degree of economic decline compared to last year. From now to disclose the Quarterly Bulletin of the 14 real estate companies first three quarters of profitability, Xu Fei only an investment company at a loss, and the remaining 13 are profitable. Results from the year-on-year rate of change, a profit of 13 companies in the year-on-year decline in the performance of 6, 7 show growth. However, the data chain, the majority of companies in the third quarter profitability significantly weakened, the world cotton stake in Shenzhen Ye in the third quarter or even a loss. The world cotton stock in the third quarter loss of up to 60,473,200 yuan, up 178.39 percent decline; Similarly, the Shenzhen Ye the first three quarters of profitability growth of 82% year-on-year, but in the third quarter of a loss of 210,000 yuan, over the same period last year rate of decline in more than 100 %.

In addition to the performance than the ring on a downward trend, another indicator of the downward trend in real estate is the company's operating cash flow. There are currently 12 companies in the first three quarters provided by operating activities cash flows were "lost", and the apparent decline in the same period last year. Real estate investment, Shenzhen Ye, Qixia construction company 1 to September cash flow situation is not optimistic that this phenomenon makes the real estate market, the company's future is expected to be rather pessimistic.

The analysis of the industry professionals said that although the real estate industry in the third quarter of the weakening profitability and cash flow this year, the situation there is a significant downward trend, but investors can not see on the air by virtue of the industry as a whole. Based on past experience, real estate cash flow decline may be due to shrinking real estate transaction volume, prices, poor sales of capital returns, it may be due to the project's development and a land bank to pay a large amount of cash. As a result, one should not be based on the indicators to judge the prospects for real estate companies.

The sources also pointed out that the analysis of cash flow from time to time so few have to know, first of all, negative cash flow and net profit has nothing to do, tight cash flow does not mean that the poor performance of the company. Second, the real estate industry to negative cash flow is a normal, because the industry is in expansion, a significant feature of the money went to buy assets than the current period to recover the money. Real estate investment company is now facing the next year or the year after the sale, if the next year than this year's big expansion, to come back for more money. Of course, when cash flow was negative, and a significant overall decline, and this is not a normal phenomenon, illustrated Days sales outstanding have encountered some problems. Third, because of the vast majority of these companies are not large scale in the industry is not representative, real estate investors in the prospects of the company need not be overly pessimistic.

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