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summary: operation, profit and sales all underperformed the market (welcome to follow leverageestate）

written by | gan jie & edited by | alice

there is no sign of recovery, and no one knows when the dawn of real estate will come. recently, i heard another piece of "bad news" about greenland holdings.

screenshot source | internet (special thanks)

according to public disclosure, greenland holdings' subsidiary greenland holdings group co., ltd. and its legal representative and chairman zhang yuliang were restricted from high consumption by the huangpi district people's court of wuhan city for failing to fulfill the payment obligations determined by the effective legal documents. the applicant for execution is china railway shanghai engineering bureau group co., ltd.

1. being restricted in height or being inspected

greenland holdings group co., ltd. was established in july 1992. its legal representative is zhang yuliang. its registered capital is approximately rmb 22.65 billion. it is jointly held by greenland holdings group co., ltd. and greenland jinchuang technology group co., ltd.

a reporter from southern finance express called the securities department of greenland holdings as an investor, and the relevant staff said, "this is a dispute involving a smaller engineering project under the company, which will be dealt with in the next two days." leverage real estate saw from public disclosures that the case involved an amount of approximately 15.519 million yuan, the case was filed on october 8, 2021, and the case was closed on december 29, 2021, which means that greenland has dragged it on until now and has not yet executed it.

in addition, there are more than ten cases involving greenland holdings group co., ltd. as the party being executed, as shown in the figure below, covering shanghai, jiangsu, guangdong, hubei, shaanxi, chongqing, jiangxi, and inner mongolia, with a total amount of execution of approximately 2.75 billion yuan.

screenshot source | enterprise early warning (special thanks)

greenland seems to have had a lot of bad things this year. in july, greenland holdings returned to the public eye because its vice chairman was investigated. at that time, the shanghai commission for discipline inspection and supervision reported that hu xin, vice president of shanghai chengtou (group) co., ltd., was under disciplinary review and supervision investigation by the shanghai commission for discipline inspection and supervision for suspected serious violations of discipline and law. shanghai chengtou is the third largest shareholder of greenland holdings and currently holds 20.55% of the company's shares.

greenland holdings as a whole currently has no actual controller. the top three shareholders are shanghai greenland investment enterprise (limited partnership) with a 25.88% stake; shanghai real estate (group) co., ltd. with a 25.82% stake; and shanghai urban investment.

regarding the investigation of the vice chairman, greenland holdings said: hu xin is an external director appointed by the company's shareholder unit and does not participate in the company's daily operations and management. the above matters will not have a significant impact on the company's production and operation activities.

2. operation, profit and sales all underperformed the market

greenland’s misfortune in 2024 is also reflected in its performance.

public data shows that the decline in greenland holdings' operating and profit indicators in the first half of the year widened. revenue fell 33.74% year-on-year to 115.4 billion yuan, significantly higher than the 14.91% decline in 2023. this is also the company's largest year-on-year decline in revenue in at least the past nine years.

slightly different from other real estate companies, greenland holdings, in addition to real estate and related industries, is also involved in construction and related industries, commodity sales and related industries, among which the first two businesses account for the vast majority of revenue sources. the real estate and related industries have experienced the most severe decline this year, with revenue falling 46.27% year-on-year, while the construction-related industries saw a slightly smaller year-on-year decline of 28.03%.

screenshot source | eastmoney (special thanks)

as stated in greenland holdings' financial report, the reason for the company's revenue decline is that "the real estate and infrastructure industries are still sluggish." this is indeed true, but it seems not entirely true? because in a horizontal comparison, greenland holdings' revenue and profit declines are higher than the average level of the top 100 real estate companies.

according to monitoring data from china index academy, in the first half of the year, the average operating income of 105 a-share and h-share listed real estate companies (excluding defaulting real estate companies) was 11.591 billion yuan, a year-on-year decrease of 13.00%; the average net profit was 145 million yuan, a year-on-year decrease of 82.05%.

in the first half of 2024, greenland holdings' net profit attributable to shareholders fell 91.97% year-on-year, from 1.932 billion yuan in the same period last year to 110 million yuan. the decline was also the largest decline in the same period in at least the past nine years.

however, greenland holdings was profitable in the first half of the year, while many other real estate companies were also loss-making.

screenshot source | eastmoney (special thanks)

in terms of sales, greenland holdings did not perform well in the first eight months of 2024. leverage real estate saw from the cric list that in the first eight months, greenland holdings' full-caliber sales amount was 43.64 billion yuan and its equity amount was 38.37 billion yuan; in the same period of 2023, these two figures were 74.32 billion yuan and 66.89 billion yuan, respectively, down 41.3% and 42.6% year-on-year.

previous data showed that the total sales of the top 100 real estate companies from january to august 2024 was 2.68324 trillion yuan, a year-on-year decrease of 38.5%. from this perspective, greenland holdings' sales this year also underperformed the market.

screenshot source | cric (special thanks)

in the remaining four months of 2024, it will be quite difficult for greenland holdings to catch up. it depends on the results of the "golden september and silver october".

3. debt pressure

in terms of assets and liabilities, leverage real estate found that the changes in greenland holdings in the first half of the year were very subtle. on the one hand, the company's monetary funds decreased significantly year-on-year, from 47.01 billion yuan in the first half of 2023 to 28.45 billion yuan, a decrease of more than 18.5 billion yuan. on the other hand, its short-term debt did not seem to decrease much, but increased a little.

in the first half of the year, greenland holdings' short-term loans increased from 29.37 billion yuan in the same period last year to 35.61 billion yuan; non-current liabilities due within one year increased from 67.76 billion yuan to 69.09 billion yuan; the main items that decreased were notes payable and accounts payable, which decreased from 329 billion yuan at the end of june 2023 to 311.8 billion yuan. it has to be said that greenland has a lot of accounts payable...

because of the decrease in contract liabilities of about 87.5 billion yuan year-on-year, coupled with the decrease in notes payable, greenland holdings' overall liabilities decreased by more than 100 billion yuan year-on-year, from 1.033 trillion yuan in the first half of 2023 to 926.7 billion yuan. greenland holdings' total assets decreased by about 130 billion yuan year-on-year to 1.070 trillion yuan. in addition to the decrease in monetary funds, there was a decrease in notes receivable and accounts receivable of about 18.5 billion yuan, and a decrease in inventory of about 83.1 billion yuan.

in the first half of the year, greenland holdings' debt-to-asset ratio rose to 86.63%, which is difficult to deal with under the current macroeconomic situation.

of course, greenland holdings has also thought of a way. as early as the end of 2021, greenland holdings sold 30% of the equity of shanghai real estate xinghong real estate development company to shanghai real estate and shanghai urban investment group respectively, with a total transaction amount of 3 billion yuan, a term of 2 years, an annual yield of 8%, and a repurchase after maturity;

in august 2022, greenland holdings received another 1.5 billion yuan in entrusted loans from shanghai real estate and shanghai urban investment group, totaling 3 billion yuan, with a term of 2 years and an annual interest rate of 6%.

greenland is also trying to explore other businesses, such as medical care, health care, etc., but these industries are still far from "blood transfusion".

in the end, if the sales of the key business remain weak, many real estate companies, including greenland, will probably have a hard time. in the future, there will probably be fewer and fewer companies that can sit at the dinner table...

the financial charts and graphs not marked in this article are all from the relevant announcements of the company. we hereby explain and thank you.

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