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on the evening of august 30, gree real estate (sh600185, share price 4.81 yuan, market value 9.067 billion yuan) announced thatthe company plans to exchange its 100% equity in shanghai helian, shanghai baolian, shanghai tailian, sanya helian and chongqing liangjiang, as well as gree real estate's related external debts, for the 51% equity in the duty free group held by haito investment co., ltd.the difference between the valuation of the disposed assets and the valuation of the acquired assets will be made up in cash. this transaction constitutes a major asset reorganization.through this reorganization, the company will gradually withdraw from the real estate business and inject tax-free businessit will develop into a large listed company with duty-free business with a multi-format layout of cross-border industrial chain and promising consumer operations as its core business segments.

in the first half of 2024, the company achieved operating income of 1.893 billion yuan, a year-on-year increase of 2.05%;the net profit attributable to shareholders of the listed company was -777 million yuan, a year-on-year increase of 565 million yuan in losses;the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was -755 million yuan, a year-on-year loss increase of 548 million yuan; the net cash flow generated by operating activities was 447 million yuan, a year-on-year decrease of 89.47%. as of june 30, 2024, the company's total assets were 24.668 billion yuan, and the net assets attributable to shareholders of the listed company were 4.780 billion yuan, a year-on-year decrease of 14.13%.

according to gree real estate's 2023 annual report, real estate development business is the main source of the company's operating income and profits. in 2023, the company achieved operating income of 4.732 billion yuan, of which the real estate sector contributed 4.233 billion yuan, accounting for 89.45%. gree real estate's real estate business operation model is mainly based on independent development and sales. its main products are mid-to-high-end residential properties, and its projects are mainly concentrated in zhuhai, guangdong, shanghai, chongqing, and sanya, hainan. gree real estate "plans to dispose of the assets and liabilities corresponding to the relevant real estate development businesses held in shanghai, chongqing, sanya and other places and the relevant external debts of listed companies", which means that the company's real estate business may only be concentrated in zhuhai in the future.

it was disclosed thatgree real estate has not added any new residential real estate land since 2017. as of the end of the first quarter of 2024, the company's inventory balance was 17.352 billion yuan.

gree real estate's 2023 annual report shows that the company has residential and commercial projects under construction in zhuhai, with a total construction area of ​​533,600 square meters and a completed area of ​​0; it has residential projects under construction in shanghai, with a total construction area of ​​52,200 square meters and a completed area of ​​0; it has commercial projects under construction in sanya, with a total construction area of ​​168,700 square meters and a completed area of ​​0. in addition, the company has 339,100 square meters (note: the planned gross floor area is 688,700 square meters) of land to be developed in chongqing.

public information shows that gree real estate is a group enterprise integrating real estate, port economy, marine economy, modern service industry and modern finance. according to the official website, in march 2004, lu junsi, then vice president of gree group, was appointed as the leader of the real estate special working group, and the development positioning of gree's real estate sector was re-established. in february 2005, zhuhai gree real estate co., ltd. was re-established. in the same year, gree real estate's first real estate project was launched.in september 2009, gree real estate was successfully listed. at this time, gree real estate and gree electric appliances managed by dong mingzhu were both holding subsidiaries of gree group, and the two sides could be regarded as "brothers".

it is worth noting that both gree real estate and gree electric appliances were once controlled subsidiaries of gree group. however, in may 2015, gree group transferred its shares in gree real estate to zhuhai investment holding co., ltd.gree real estate has officially separated from gree group, and its relationship with gree electric appliances no longer exists.

image source: photo by reporter chen pengli

earlier, on may 11, 2022, according to cctv finance, when talking with dong mingzhu about the company's diversified development,she said she would never invest in finance and real estate, and said that gree real estate had nothing to do with her at all.

dong mingzhu believes that it is necessary to persevere and make gree's own products perfect, "money that is too easy to make should be given up." in fact, dong mingzhu has expressed her dissatisfaction with gree real estate many times before. previously, she emphasized thatgree real estate, which was separated from gree group, used gree's trademark, causing harm to gree.

daily economic news is compiled from cctv finance, gree real estate announcements, and public information

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