17 Years After Being the "King of Land", Dalong Real Estate Is Still Trapped in a Shell Company
On June 16th, Beijing Equity Exchange posted an asset transfer announcement. The target is a single - family villa located in the northern area of Jinbi Lakefront Garden in Renhe Town, Shunyi District.
Transfer Announcement
This single - family villa with an area of 454.23 square meters is listed at a price of only 9.5 million yuan. The average unit price is less than 21,000 yuan per square meter. As a riverside villa in Beijing with a floor area ratio of only 0.45, there are 8 listings for sale on Lianjia.com, and the average listed price is over 36,000 yuan per square meter. Among them, the lowest - priced 454 - square - meter unit is sold at 14.5 million yuan, with a unit price close to 32,000 yuan per square meter.
Actual View of the Villa
Location of the Villa
There are mainly two reasons why the price of this villa listed on Beijing Equity Exchange is so low. First, it is in a pure rough - cast state — it has been vacant since its completion in 2008. Second, this villa asset is under the name of an enterprise — Beijing Shunyi Dalong Urban and Rural Construction and Development Co., Ltd. (hereinafter referred to as "Dalong Real Estate"). The transfer of enterprise - owned real estate may incur additional taxes.
The northern area of Jinbi Lakefront Garden in Shunyi also has two other names: Yushu North Area and Yuhe No. 1 Manor. It was designed by the famous Singaporean SCDA Architects, featuring the concepts of "Asian villas" and "inner - courtyardism". All the buildings in the community are two - story single - family villas above ground. Its developer is Beijing Baishunda Real Estate Development Co., Ltd., in which Dalong Real Estate holds a 2% stake.
This is not the first time that Dalong Real Estate has transferred the villa assets in the northern area of Jinbi Lakefront Garden. Before this, at least the villas in Building 32 and Building 20 were listed for transfer. Together with the newly listed Building 21 (No. 311), the total transfer price is nearly 30 million yuan. These assets should have been retained by Dalong Real Estate through its shareholder status during the project development.
This listed real estate enterprise under the State - owned Assets Supervision and Administration Commission of Shunyi District has been having a tough time recently. Repeatedly transferring high - quality assets is just one part of a series of blood - replenishing actions by Dalong Real Estate in the near term.
1
The Aftermath of the 5.05 - Billion - Yuan Land King
Going back to 2005, Ningcheng Laojiao in Inner Mongolia was on the verge of collapse. This once - famous "Moutai beyond the Great Wall" had become *ST Ningjiao and was about to become the first listed company to go bankrupt in the A - share market.
At that time, Dalong Real Estate in Shunyi, Beijing, was seeking a chance to go public and targeted *ST Ningjiao as a "shell".
After that, the two parties hit it off. Dalong Real Estate put in the equity of three of its real estate companies and swapped out the liquor assets. A textbook - style backdoor listing was completed. The company's stock abbreviation changed from "Ningcheng Laojiao" to "Dalong Real Estate", and it became the first district - level real estate company in Beijing to enter the capital market.
In the year of listing, Dalong Real Estate's revenue was 278 million yuan, a year - on - year surge of 4551%. By 2009, the company's annual revenue was 1.748 billion yuan, and the net profit attributable to the parent company was 339 million yuan. Dalong Real Estate's ambition began to expand accordingly.
The turning point in Dalong Real Estate's fate was fixed on November 20th, 2009.
At the Beijing land auction site that day, the residential land No. 22 in Tianzhu Development Zone, Houshayu, Shunyi attracted more than a dozen leading real estate companies such as Poly, Longfor, and Sino - Ocean to participate. After 190 rounds of fierce bidding, Dalong Real Estate won the bid with 5.05 billion yuan. The equivalent floor price was about 29,000 yuan per square meter, and the premium rate was as high as 258.2%. It won the title of both the total - price and unit - price land king in the Beijing land market at that time.
Three months later, the plot took a sharp turn. Dalong Real Estate couldn't afford to pay the remaining land price. The Beijing Bureau of Land and Resources issued an announcement: the land plot was taken back, and the 200 - million - yuan deposit was confiscated.
Later, people found out that the cash on Dalong Real Estate's account was less than 1 billion yuan, not even enough to cover the down payment of the land transfer fee. The 5.05 - billion - yuan land acquisition amount was equivalent to the total revenue of the company in the past three years.
Source: Internet
The cost of this failure was far more than the 200 - million - yuan deposit. Dalong Real Estate was suspended from the qualification of acquiring land in other areas of Beijing for 15 years. It completely missed the golden expansion period of the real estate industry.
In the following more than a decade, while leading real estate companies were expanding nationwide through the high - turnover model and rapidly increasing their scale, Dalong Real Estate mostly had to slowly digest the existing projects in Shunyi, Beijing and never entered the land auction sites in other core urban areas of Beijing again. The halo of the land king eventually became a long - term shackle.
2
From Developer to Construction Team
After the land acquisition channel was closed, the business focus of Dalong Real Estate began to shift irreversibly.
Construction was originally a subsidiary business supporting the real estate business. Beijing Shunyi Construction Engineering Company under Dalong Real Estate has first - level construction qualifications and mainly undertook the engineering construction of its own projects in the early years. As the real estate development business continued to shrink, the construction business gradually came to the forefront and became the company's income pillar.
The annual report data for 2025 shows that the company's annual operating income was 665 million yuan, of which the income from the construction business was 482 million yuan, accounting for 72.5%; the income from the real estate development business was 151 million yuan, accounting for only 22.7%. The company's core identity has quietly changed from a real estate developer to a construction project contractor.
However, the profitability of the construction business is far lower than that of real estate development. In 2025, the gross profit margin of the company's construction business was only 6.03%, while that of the real estate development business was still 24.71%. A lower profit margin means that even if the revenue scale is similar, the profit level will be significantly compressed.
Main Accounting Data of Dalong Real Estate in 2025
What's more serious is the sustainability of orders. Dalong Real Estate's construction business highly depends on local government projects and related - party projects in Shunyi District. Against the background of tightened local finances and increasing debt - resolution pressure, the scale of government - related engineering orders has been continuously shrinking. In 2025, the newly signed order amount of the company's construction business was only 281 million yuan, showing a cliff - like decline compared with the completed project amount of the previous year, and there is a lack of support for subsequent revenue growth.
Unable to acquire land for real estate development and with shrinking construction business orders, Dalong Real Estate is caught in a dilemma of double - squeeze.
Maintaining the listed status has become one of the company's core tasks. Judging from the financial reports in recent years, the company shows a typical rhythm of shell - protection: it suffered a loss of 330 million yuan in 2023, achieved a slight book profit in 2024 through the reversal of asset impairment and asset disposal, and suffered a loss of 254 million yuan again in 2025.
The loss continued to widen in the first quarter of 2026. The revenue was 53.05 million yuan, a year - on - year plunge of 67.29%; the net profit loss was 15.73 million yuan, and the loss amplitude increased by 17 times year - on - year. The sales collection was only 25.03 million yuan, while 139 million yuan was spent on purchasing materials. The cash - flow hole is getting bigger and bigger.
To date, the core value of Dalong Real Estate is no longer its real estate development business, but its A - share listed shell resource. As of the end of June 2026, Dalong Real Estate's total market value is about 200 million yuan, which is more valuable than its business.
3
Survival
Dalong Real Estate has not failed to try to break through.
In the past 17 years, it has proposed the strategy of "returning the focus to Shunyi", expanded off - site projects in Zhongshan, Guangdong and Manzhouli, Inner Mongolia, and tried to acquire land indirectly through equity acquisition. However, each attempt was limited by its financial strength, management ability, and industry cycle, and failed to change the overall downward trend.
This is not an individual problem of a single enterprise. In the process of the real estate industry transitioning from the incremental era to the stock era, the living space of regional small and medium - sized real estate enterprises has been continuously shrinking. For district - owned state - owned enterprises lacking the ability of national layout, advantages in financing costs, and product competitiveness, retreat is almost an inevitable choice.
Therefore, it can only rely on different forms of continuous blood - transfusion to survive.
Step 1: Borrow money.
At the beginning of June this year, Dalong Real Estate issued an announcement, applying to its controlling shareholder, Dalong Urban and Rural Construction and Development Co., Ltd., for a loan of 600 million yuan — the loan scale of 600 million yuan is close to one - third of the company's current total market value. The annual loan interest rate is 3.7%, and the term is 3 years. This interest rate is significantly lower than the market level of real estate development loans during the same period, which is a typical low - cost blood - transfusion within the state - owned asset system.
Step 2: Sell assets.
This is the origin of the listing on Beijing Equity Exchange on June 16th. Similar operations have been staged many times before: it transferred the commercial assets on the 3rd - 7th floors of Building 27 in Yulong Third District (the transaction price was 101 million yuan) to a related party. It was a transfer between related parties. The listed company got the cash, and the controlling shareholder took over the assets, ultimately realizing the injection of funds into the listed company.
Step 3: Inject assets.
Shunyi District has also tried to inject high - quality land assets into it. At the beginning of 2025, Shunyi New City Development Consortium won the bid for the Dongfeng Commercial Land Plot in Shunyi at the reserve price. The market generally expected that the plot would eventually be injected into Dalong Real Estate, becoming an opportunity for it to return to the development track. Since both companies are brother companies under Shunyi State - owned Assets, the market was once optimistic about this transaction.
However, at the end of last year, Dalong Real Estate announced the termination of the transaction, and the asset injection failed to materialize. Behind the failure of the injection is the mismatch of financial strength. The development of a commercial and residential land plot in the core area requires billions of continuous capital investment, while Dalong Real Estate's book funds and financing ability are no longer able to support a project of such a scale.
4
The Past and the Future
The 5.05 - billion - yuan gamble 17 years ago completely changed the fate trajectory of Dalong Real Estate. It had the opportunity to grow into a leading real estate company in the Beijing area with its location advantage, but missed the entire upward cycle of the industry due to a radical decision beyond its ability.
Now, on the website of Beijing Equity Exchange, there are almost daily listings of real estate assets for sale. These long - held assets are being sold off, like long - lingering echoes, reminding people of how "rich" and glorious these companies once were. Now, countless "Dalong Real Estates" are silently consuming their remaining value in the ebb of the industry.
This article is from the WeChat public account "Future Habitat", author: Xiaowu Jiandawu. Reprinted with permission from 36Kr.