Greentown China's 2025 Performance Announcement: Three Advantages and Two Potential Concerns

In the macro - context of the in - depth industry adjustment in 2025, Greentown China is not only facing the severe challenge of a significant decline in profits but also maintaining a certain level of resilience in terms of sales volume, financial stability, and business structure optimization.

On March 31, Greentown China released its annual performance for 2025. The announcement data shows that in 2025, Greentown China achieved an operating income of 154.966 billion yuan, a slight year-on-year decrease of 2.26%; the net profit reached 2.286 billion yuan, a year-on-year decline of 44.9%; the profit attributable to shareholders was only 70.989 million yuan, a year-on-year decrease of 95.55%, hitting the lowest value since the company's listing.

Greentown stated in the announcement that the decline in profit was mainly affected by factors such as the long - term inventory liquidation strategy during the adjustment period of the real - estate market, asset impairment provisions, and the decline in the performance of joint - venture and associated enterprises. In 2025, Greentown made provisions for net losses from relevant asset impairments and changes in fair value of 4.921 billion yuan (2024: 4.917 billion yuan).

While facing pressure on profits, Greentown China maintained a stable sales scale, and its debt situation continued to improve. The proportion of short - term debt dropped to 18.6%, a record low, and the cash - to - short - term debt ratio reached 2.6 times.

Core data of Greentown's 2025 performance

After the performance release, Greentown China's stock price fell below 9 yuan per share, with a decline of more than 4%, mainly affected by the significant drop in profit.

01 Three Advantages

In 2025, the real - estate industry continued to be in a deep adjustment cycle. Multiple pressures such as weak market demand, high inventory, and compressed profit margins were superimposed. However, Greentown China maintained continuous advantages in three aspects.

Stable at the forefront in sales scale with steady cash collection

In 2025, against the backdrop of an overall decline in sales in the real - estate industry, Greentown China maintained its leading position in the industry in terms of sales scale, which became one of its core competitiveness. The annual report shows that the company's total contract sales reached about 251.9 billion yuan for the whole year, ranking second in the industry, a slight increase of 2.8% compared with 245 billion yuan in 2024, showing a slight increase against the trend and highlighting strong market competitiveness.

From the perspective of the sales structure, self - invested projects and agency - construction projects worked together, becoming the two wheels for Greentown to consolidate its scale advantage. Among them, the sales of self - invested projects reached 153.4 billion yuan, and the equity sales reached 104.3 billion yuan, both ranking fifth in the industry. Relying on the brand reputation accumulated over the long term, a stable liquidation level was maintained; the sales of agency - construction management projects reached 98.5 billion yuan, accounting for nearly 40% of the total sales, a year - on - year increase of 15.3%, and it has become an important supplementary force for revenue growth, effectively alleviating the pressure brought by the decline in the revenue of development business.

While achieving scale growth, Greentown also ensured the stability of cash collection, providing strong support for the company's cash - flow safety. In 2025, the company's sales collection rate reached 101%, maintaining the industry's benchmark level, a slight increase from 99% in 2024. The stability of the collection rate is mainly due to two factors: First, the regional layout is concentrated in first - and second - tier high - energy - level cities and the core areas of the Yangtze River Delta. In such areas, the housing purchase demand is relatively stable, and the cash - collection ability is relatively strong; second, the company strengthened collection management, optimized the payment process, and accelerated the speed of capital recovery.

Safer debt structure and lower financing cost

In the past few years, Greentown lowered its profit requirements and focused more on inventory liquidation and debt safety. The annual report data shows that as of the end of 2025, Greentown's total borrowing balance was about 128.7 billion yuan, a slight decrease of 4.7% compared with 135 billion yuan at the end of 2024, indicating a steady contraction in the debt scale.

The continuous optimization of the debt structure effectively reduced the short - term debt - repayment pressure. As of the end of 2025, the proportion of short - term debt dropped to 18.6%, a record low, and the proportion of long - term debt increased to 81.4%. The long - and short - term debt structure became more reasonable, effectively avoiding the risk of short - term capital chain tension.

From the perspective of financing channels, the company established a diversified financing system, mainly relying on bank loans, medium - term notes, corporate bonds and other financing methods. The financing sources are stable. Among them, bank loans account for 65% of the total borrowing balance, medium - term notes and corporate bonds account for 28%, and other financing methods account for 7%. The diversified financing channels reduced the dependence on a single financing method and improved the financing stability.

Meanwhile, with the endorsement of the major shareholder CCCC, Greentown's financing cost continued to decline. In 2025, the weighted average financing cost of the company's total borrowing dropped to 3.3%, a significant decrease of 60 basis points compared with 3.9% in 2024, which is at a relatively low level in the industry.

The high - efficiency of sales collection, combined with the decrease in the proportion of short - term debt and the continuous decline in financing cost, make Greentown's cash - flow safety margin higher.

Significant decline in inventory, and new land reserves concentrated in first - and second - tier cities

In recent years, the total land reserves of Greentown China have been continuously shrinking, from 37.2 million square meters in 2023 to 23.71 million square meters in 2025, a decrease of 36.3% in two years. This is mainly due to the company's active disposal of inefficient inventory and contraction of investment scale, which is in line with the industry's development trend of "reducing inventory and stabilizing cash - flow".

At the same time, Greentown continued to increase its investment in the Yangtze River Delta region. Last year, the company added 50 new projects with a total construction area of 3.18 million square meters, and the expected new value of goods reached 135.5 billion yuan. Among them, the value of goods in the Yangtze River Delta region accounted for 81%, and the proportion of Hangzhou alone was as high as 38%. The heavy investment in the Yangtze River Delta is because since the real - estate downturn, the Yangtze River Delta has been the most stable region for real - estate liquidation, which will provide stable support for scale and cash - flow.

As of the end of last year, the number of Greentown's land reserve projects remained at 146 (including under - construction and to - be - constructed projects), with a total salable area of about 15.67 million square meters and an equity salable area of about 9.72 million square meters. After the proportion of high - energy - level cities slightly dropped to 76% in 2024, it increased again to about 80% at the end of 2025.

02 Two Pressure Points

Against the backdrop of the deep adjustment of the industry, Greentown China's operation also faces many challenges, especially in terms of profit performance and inventory disposal, where the pressure is obvious.

Significant decline in profit, and multiple profitability indicators hit record lows

The significant decline in profit is the most prominent operating pressure point for Greentown China in 2025. All profitability indicators have shown significant declines, and some indicators have reached the lowest values since the company's listing, reflecting the severe impact of the industry adjustment on the company's profitability. The annual report shows that Greentown achieved a net profit of 2.286 billion yuan in 2025, a year - on - year decline of 44.9%; after deducting non - recurring gains and losses, the net profit was 2.013 billion yuan, a year - on - year decline of 47.2%; the profit attributable to shareholders was only about 71 million yuan, a sharp drop of 95.55% compared with 1.596 billion yuan in 2024, hitting the lowest value since the company's listing, and the profitability level was almost zero.

According to the content clearly disclosed in Greentown's annual report, there are mainly three core reasons for the significant decline in profit: First, the market adjustment led to a decline in the gross profit margin of the transferred projects. To accelerate the liquidation of long - cycle inventory, the company adopted a price - cut promotion strategy in some cities, which continuously squeezed the profit margin of the current transferred projects. The annual gross profit margin was about 11.9%, further lower than 12.8% in 2024. The continuous decline in the gross profit margin directly led to a decline in the profitability level; second, the pressure of asset impairment provisions continued. The net loss from asset impairment provisions and fair - value changes for the whole year reached 4.921 billion yuan. The huge impairment directly eroded a large amount of profit, mainly involving the asset impairment of some inventory projects with difficult liquidation and joint - venture and associated projects, reflecting the company's pressure on inventory disposal; third, the performance of joint - venture and associated enterprises declined. Affected by the overall industry environment, the company's share of investment income from joint - venture and associated companies decreased compared with the previous year, further dragging down the net profit performance and also reflecting the overall impact of the industry adjustment.

Greentown's 2025 financial data

Inefficient inventory may still drag down profits

Being dragged down by old inventory and making large - scale impairment provisions are the common reasons for the sharp decline in the profits of real - estate enterprises in recent years. Since 2022, Greentown has made a total of 13.375 billion yuan in net provisions for asset impairments and fair - value changes in four years. Among them, 2024 and 2025 were the peak years of provisions, with 4.917 billion yuan and 4.921 billion yuan respectively.

In the impairment provisions and fair - value changes in 2025, the net impairment loss under the expected credit loss model was about 2.035 billion yuan, and the net impairment loss of non - financial assets was about 2.901 billion yuan. Most of the latter was due to the losses caused by the disposal of projects acquired in 2021.

From 2021 to the present, during the real - estate downturn, although Greentown has reduced its land acquisition amount, in terms of investment intensity, Greentown has been in a peak period of land acquisition. Its equity land acquisition amounts from 2021 to 2025 were: 96.9 billion yuan (ranked sixth), 45.1 billion yuan (ranked sixth), 63.3 billion yuan (ranked fifth), 52.9 billion yuan (ranked fourth), and

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