Greentown sets its 2026 targets, planning to add 100 billion yuan in land reserve sales value, openly stating that “profits will still face pressure.”

Ask AI · What is the reason that the company’s net profit attributable to the parent company for nearly ten years has fallen below 100 million yuan for the first time?

This article source: Times Weekly Author: Zhang Yijing

Image source: Greenland China official WeChat

On the afternoon of March 31, Greenland China (03900.HK) held its 2025 annual performance release conference. Greenland China’s chairman of the board Liu Chengyun, executive director and acting CEO Geng Zhongqiang, executive director and vice president Li Jun, CEO and board secretary Zhou Changjiang and other management attended.

It is worth noting that this performance release conference was missing the “veteran” Guo Jiafeng. On the evening before the conference, Greenland China announced that Guo Jiafeng resigned from the positions of executive director, CEO, and other group roles; the CEO position was temporarily filled by Mr. Geng Zhongqiang.

According to Greenland China’s performance report disclosed on the morning of March 31, in 2025, Greenland China’s total contracted sales amounted to 251.9 billion yuan, further rising to the second place nationwide. Among them, the contracted sales of self-invested projects were about 153.4 billion yuan, with rights sales of 104.3 billion yuan, both ranking fifth nationwide.

Regarding the operational performance over the past year, Chairman Liu Chengyun gave a positive evaluation, believing that the company delivered an impressive answer sheet amid industry deep adjustments.

Looking ahead, Liu Chengyun believes that the current real estate industry is still in a key stage of bottoming out and stabilizing. The transformation of old and new models and driving forces is still ongoing, and industry restructuring is not yet complete. “But we always believe that high-quality housing demand always exists. The process of bottoming out in the real estate industry is both a challenge and an opportunity for excellent companies to strengthen their core capabilities and accumulate strength.”

Profit Still Under Certain Pressure

Data shows that in 2025, Greenland China achieved revenue of 154.97B yuan, down 2.3% year-on-year; net profit of 2.29B yuan, down 44.9% year-on-year; net profit attributable to shareholders was 71M yuan, a 95.6% decline from 1.6B yuan in 2024, marking Greenland China’s first time in nearly ten years that net profit attributable to the parent company fell below 100M yuan.

Regarding the sharp decline in profit, acting CEO Geng Zhongqiang stated that because the real estate market is still in adjustment, the company continues to actively promote long-term inventory destocking to facilitate long-term development, which led to a decline in gross profit margin of revenue recognized in 2025 and performance of joint ventures and associates. Additionally, the company recognized asset impairments of 4.92B yuan in 2025. These factors collectively impacted the company’s profits.

Furthermore, the market also paid attention to the huge difference of over 2.2 billion yuan between Greenland China’s net profit and net profit attributable to the parent company.

In response, Geng Zhongqiang directly stated at the performance meeting that the company does not allocate most of its profits to minority shareholders or other partners. He explained that the main reasons for the large difference between net profit and net profit attributable to the parent include that some projects delivered in 2025 involved cooperation projects where Greenland China’s equity share was not high; secondly, the joint ventures generated losses in 2025. The financial report shows that during the reporting period, the losses of joint ventures and associates were 536 million yuan and 598 million yuan, respectively.

Geng Zhongqiang further pointed out that affected by long inventory destocking and asset impairment factors, the company’s profit in 2026 is still expected to face certain pressure. In the future, as old inventory projects before the end of 2021 are gradually destocked, net profit attributable to the parent company will definitely improve.

While profit indicators are under pressure, the company’s financial security is particularly critical.

From the financial report, Greenland China has maintained a bottom line of safety. Data shows that as of the end of December 2025, Greenland China’s total liabilities were 344.15B yuan, down 12.7% year-on-year; interest-bearing liabilities were 133.39B yuan, down 2.8%; debts due within one year were about 24.74B yuan, accounting for 18.6%, down 4.5 percentage points from 23.1% in 2024, setting a new low, with further optimization of debt structure.

As for cash, at the end of the reporting period, the company’s bank deposits and cash (including pledged bank deposits) totaled about 63.2 billion yuan, which is 2.6 times the balance of short-term borrowings, reaching a new high.

In addition, in terms of financing, Greenland China’s total borrowing weighted average interest rate in 2025 was 3.3%, down from 3.9% in 2024 by 0.6 percentage points.

Planned New Land Bank Valuation of 100 Billion Yuan, Self-Developed Sales to Reach 130 Billion Yuan

At the performance conference, Greenland China’s future land acquisition and sales targets for the next year have been a recurring topic.

In 2025, Greenland China added a total of 50 projects, with a total construction area of about 3.18 million square meters. The group承担成本约51.1B元，预计可售货值约135.5B元，新拓项目平均权益比约69%。其中，一二线城市新增货值达116.8B元，占比达86%。

However, looking at the land acquisition pace, Greenland China’s land acquisitions mainly concentrated before August 2025, after which the frequency of land market transactions significantly slowed down.

Regarding the overall land market outlook, Geng Zhongqiang believes that compared to the same period in previous years, this year’s land supply has slowed significantly, with a decrease in total supply and fewer quality land parcels, mainly due to government land supply pace, market destocking of commercial housing, and developers’ land acquisition funds.

“I believe 2026 will be the most challenging year for investment work in recent years.” He stated that Greenland China’s new land bank valuation target for this year is 100 billion yuan. In terms of investment strategy, the company will continue to adhere to the safety bottom line, with “doing one-tenth” as the first principle, deepening city and sector research. When evaluating projects, the company pays more attention to the quality of the project itself rather than just the city.

Regarding the real estate market in 2026, Vice President Li Jun believes that first, sales of commercial housing will accelerate and stabilize, with further narrowing of declines in transaction area and amount; second, destocking remains the top priority at this stage, with most cities still in high inventory reduction cycles; third, the scale of new starts at the beginning of the year has also decreased, and while reducing volume, supply structure is being optimized. “Based on these three points, sales in core cities are expected to stabilize and rebound in the second half of 2026.”

He revealed that by the end of 2025, Greenland China’s self-invested projects had a salable value of 163.1 billion yuan, with a salable area of 5.23 million square meters, including 80.1 billion yuan of inventory on sale and a plan to push an additional 83 billion yuan of new projects.

“Combining our inventory and planned new sales value, we aim to achieve about 130 billion yuan in self-invested sales in 2026,” Li Jun said.