Greentown sets its 2026 goals, plans to add 100 billion in land reserve value, and admits that “profits will still face pressure.”

Image source: Greentown China’s official WeChat account

On the afternoon of March 31, Greentown China (03900.HK) held its 2025 annual results press conference. Attending were management members including Liu Chengyun, Chairman of the Board of Greentown China; Geng Zhongqiang, Executive Director and Acting President; Li Jun, Executive Director and Vice President; and Zhou Changjiang, Executive President and Secretary to the Board, among others.

Notably, this results press conference was missing “veteran” Guo Jiafeng. Just the evening before the earnings call took place, Greentown China announced that Guo Jiafeng stepped down as Executive Director, Administrative President, and other roles within the Group; meanwhile, the Administrative President position would be handled by Mr. Geng Zhongqiang on an acting basis.

According to the earnings report disclosed by Greentown China in the morning of March 31, in 2025, Greentown China’s total contracted sales amount reached RMB 251.9 billion, further rising year-on-year from 2024 to become the country’s No. 2. Among them, the contracted sales amount for self-invested projects was approximately RMB 153.4 billion, and the attributable sales amount was RMB 104.3 billion; both rankings improved to the country’s No. 5.

For the performance on the operations side over the past year, Chairman Liu Chengyun offered a positive assessment, saying the company delivered an outstanding answer in the midst of deep industry adjustments.

Looking ahead, Liu Chengyun believes that the real estate industry is still in a critical stage of bottoming out and stabilizing, and the ongoing transition between old and new models and drivers continues; the industry’s restructuring has not been completed yet. “But we firmly believe that demand for high-quality living will always exist. For Greentown, the process of the industry bottoming out is both a challenge and an opportunity for excellent enterprises to strengthen their internal capabilities and build up strength.”

Profit will still face some pressure

Data show that in 2025, Greentown China achieved revenue of RMB 154.97B, down 2.3% year-on-year; net profit of RMB 2.29B, down 44.9% year-on-year; and net profit attributable to shareholders of RMB 71 million, down 95.6% from RMB 1.5966 billion in 2024—also the first time in nearly ten years that Greentown China’s net profit attributable to shareholders fell below RMB 100 million.

Regarding the sharp decline in profit, Acting President Geng Zhongqiang stated that since the real estate market is still in an adjustment period, in order to promote long-term development, the company continued to actively push for de-stocking of long inventory, which led to a decline in the gross profit margin recognized upon revenue settlement in 2025 as well as the performance share attributable to joint ventures and associates. In addition, the company recorded asset impairment provisions of RMB 4.92B in 2025; these factors together affected the company’s profit.

In addition, the huge gap of more than RMB 2.2 billion between Greentown China’s net profit and net profit attributable to shareholders has also drawn market attention.

In response, at the results conference, Geng Zhongqiang stated plainly that the company does not have a situation where most of the profit is given to a small number of minority shareholders or other counterparties. He explained that the main reasons for the large difference between net profit and net profit attributable to shareholders include: in the projects delivered in 2025, some were cooperative projects where Greentown China’s equity share is not high; secondly, the joint venture and associated companies in 2025 incurred losses. The financial statements show that during the reporting period, the losses from entities accounted for by the company as associates and joint ventures reached RMB 536M and RMB 598M, respectively.

Geng Zhongqiang further pointed out that, affected by factors such as de-stocking of long inventory and asset impairment, the company expects its profit in 2026 will still face some pressure. In the future, as long-inventory projects gradually get cleared out—projects prior to the end of 2021—net profit attributable to shareholders will certainly improve.

While profit indicators remain under pressure, the company’s financial safety is especially critical.

Judging from the financial report, Greentown China has stayed within the safety bottom line. Data show that as of the end of December 2025, Greentown China’s total liabilities were RMB 344.15B, down 12.7% year-on-year; interest-bearing liabilities were RMB 133.39B, down 2.8% year-on-year; debt due within one year was approximately RMB 24.74B, accounting for 18.6%, down 4.5 percentage points from 23.1% in 2024, reaching a historical low for the past years, and further optimizing the debt structure.

As for cash, as of the end of the reporting period, the company’s bank deposits and cash (including pledged bank deposits) totaled approximately RMB 63.2 billion, 2.6 times the balance of borrowings due within one year, reaching a record high.

In addition, regarding financing, Greentown China’s total borrowing weighted average interest cost in 2025 was 3.3%, down 0.6 percentage points from 3.9% in 2024.

Plan to add RMB 100 billion in land reserves; strive to complete self-invested sales of RMB 130 billion

At the results conference, Greentown China’s land acquisition and sales targets for the coming year have always been a topic that cannot be avoided.

In 2025, Greentown China added a total of 50 projects, with a total GFA of approximately 3.18 million sq.m. The Group assumed costs of about RMB 51.1 billion, with expected saleable value of about RMB 135.5 billion. The average equity ratio for newly added projects was approximately 69%. Among them, the added land value for first- and second-tier cities reached RMB 116.8 billion, accounting for 86%.

However, in terms of land acquisition timing, Greentown China’s land acquisitions mainly concentrated in the first eight months of 2025; afterward, the frequency of taking actions in the land market clearly slowed.

When discussing its view on the current overall land market, Acting President Geng Zhongqiang believes that compared with the same period in previous years, the supply-side pace in the land market this year has slowed significantly; the total supply has decreased, while high-quality land parcels are also relatively fewer. This is mainly affected by multiple factors, including the government’s land supply pace, the market de-stocking and development companies’ land acquisition funding for commodity housing.

“In 2026, I think it will be the most difficult year for investment work in recent years.” He said that Greentown China’s target for newly added land reserve value this year is RMB 100 billion. Regarding investment strategy, the company will continue to hold the safety bottom line, with “getting it right on the 10% rate” as the first principle, and will go deeper and make thorough investments into cities and the corresponding segments. In evaluating projects, the company cares more about the quality of the projects themselves rather than simply looking at the city.

As for the real estate market in 2026, Vice President Li Jun believes that first, sales of commodity housing will accelerate in stabilizing; the declines in transaction area and transaction amount for commodity housing may further narrow. Second, de-stocking remains the top priority at this stage, and most cities’ de-stocking cycles are still at historical highs. Third, the scale of new starts at the beginning of the year still shows a certain decline; while reducing quantity, it is also achieving optimization of the supply structure. “Based on the above three points, sales in core cities are expected to stop falling and return to stability in the second half of 2026.”

As he disclosed, as of the end of 2025, the saleable value of Greentown China’s self-invested projects was RMB 163.1 billion, with a saleable area of 5.23 million sq.m. Of that, the saleable value of existing inventory under sale was RMB 80.1 billion, and the planned new launch saleable value was RMB 83.0 billion.

“Combined with our inventory and the saleable value we plan to newly add, we strive to complete a self-invested sales target of around RMB 130 billion in 2026,” Li Jun said.

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