Annual Report 2024 年報 GREENTOWN CHINA HOLDINGS LIMITED 綠城中國控股有限公司 (incorporated in the Cayman Islands with limited liability) (Stock Code: 03900) （於開曼群島註冊成立的有限公司） （股票代碼：03900） GREENTOWN CHINA HOLDINGS LIMITED 綠城中國控股有限公司 2024 ANNUAL REPORT 二零二四年年報 核心價值觀 CORE VALUES 真誠 善意 精緻 完美 Sincerity Kindness Exquisiteness Perfection 六品協同 6 DEVELOPMENT SYNERGIES 品相 品質 品位 品牌 品行 品格 公司簡介 Corporate Profile 蘇州玫瑰園 Suzhou Rose Garden 綠城中國控股有限公司是中國領先的優質房產品開發及生活綜合服務供應商，以優秀的產品質 量、獨特的建築美學、以人為本的服務保持行業引領地位。公司連續二十一年榮獲「中國房地產 百強企業綜合實力Top ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][5][8] Core Views - The company is experiencing short-term performance pressure but is actively positioning itself in core cities [1][5] - Despite a cooling real estate market, the company reported a revenue increase of 20.7% year-on-year for 2024, reaching approximately RMB 158.55 billion [5] - The company's net profit attributable to shareholders for 2024 was RMB 1.60 billion, a decrease of 48.8% compared to 2023 [5] - The company has focused on acquiring land in core cities, with 92% of its new saleable value located in first and second-tier cities [5] - The average financing cost has decreased to 3.7%, down from 4.1% in 2023, indicating improved debt management [5] Financial Performance Summary - Revenue for 2023 was RMB 131.95 billion, with a projected decline to RMB 152.99 billion in 2025, reflecting a -4% year-on-year growth rate [1] - The net profit for 2023 was RMB 3.09 billion, with a forecasted increase to RMB 2.55 billion by 2027 [1] - Earnings per share (EPS) are projected to be RMB 0.74 in 2025, RMB 0.86 in 2026, and RMB 1.00 in 2027 [1][5] - The company's price-to-earnings (P/E) ratio is expected to decrease from 15.5 in 2024 to 9.7 by 2027 [1][5] Market Positioning - The company has maintained a strong sales performance, with a sales area of 14.09 million square meters in 2024, despite an 8.9% year-on-year decline [5] - The company has successfully launched 42 new projects in 2024, with a total saleable value of approximately RMB 108.8 billion [5] - The company’s gross margin for 2024 was reported at 12.76%, a slight decrease from the previous year [5]

Investment Rating - The report maintains a "Buy" rating for the company, with an expected price increase of over 15% in the next 6-12 months [4]. Core Insights - The company achieved a contract sales amount of approximately 363 billion yuan for self-invested projects in Q1 2025, with a cumulative total of 524 billion yuan for the group [2]. - In 2024, the company reported a revenue of 1585.46 billion yuan, representing a year-on-year increase of 20.7%, while the net profit attributable to shareholders was 15.96 billion yuan, down 48.8% year-on-year [2]. - The company's property sales revenue reached 1470.2 billion yuan in 2024, accounting for 92.7% of total revenue, with a year-on-year growth of 21.9% [3]. - The decline in net profit was primarily due to losses from joint ventures and increased impairment provisions [3]. Summary by Sections Sales Performance - The total contract sales amount for 2024 was 2768 billion yuan, a decrease of 8.1% year-on-year, with self-invested sales amounting to 1718 billion yuan, down 11.6% [3]. - The company maintained a high sales return rate of 104% in 2024, supporting cash flow and reinvestment [3]. Investment Strategy - In 2024, the company added 42 new projects with a land acquisition amount of 484 billion yuan, expected to generate a new value of 1088 billion yuan [4]. - The focus on core cities resulted in 92% of land acquisition value being in first and second-tier cities, with 51% in key cities like Beijing, Shanghai, and Hangzhou [4]. Financial Health - The company issued 125.31 billion yuan in domestic bonds in 2024 and completed an overseas financing swap of 820 million USD, maintaining a low financing cost of 3.7% [4]. - The projected net profit for 2025, 2026, and 2027 is adjusted to 18.3 billion yuan, 23.0 billion yuan, and 27.4 billion yuan, with respective year-on-year growth rates of 14.6%, 25.7%, and 19.1% [4]. - The current stock price corresponds to a PE ratio of 13.2, 10.5, and 8.8 for the years 2025, 2026, and 2027, respectively [4].

Investment Rating - The report maintains a "Buy" rating for the company, with an expected price increase of over 15% in the next 6-12 months [4]. Core Insights - The company achieved a contract sales amount of approximately 363 billion yuan for self-invested projects in Q1 2025, with a cumulative total of 524 billion yuan for the group [2]. - In 2024, the company reported revenue of 1585.46 billion yuan, a year-on-year increase of 20.7%, but the net profit attributable to shareholders decreased by 48.8% to 15.96 billion yuan [2]. - The decline in net profit is attributed to losses from joint ventures and increased impairment provisions totaling 49.17 billion yuan, which is 28.82 billion yuan higher than the previous year [3]. - The company’s property sales revenue reached 1470.2 billion yuan in 2024, accounting for 92.7% of total revenue, reflecting a year-on-year growth of 21.9% [3]. - The company’s total contract sales amount for 2024 was 2768 billion yuan, a decrease of 8.1% year-on-year, with self-invested sales down 11.6% [3]. - The company has a strong market presence in core cities, with 79% of sales coming from first and second-tier cities, and it ranks first in market share in eight cities [3]. Financial Performance - The company’s total land reserve consists of 146 projects with a total buildable area of 27.47 million square meters, of which 18.43 million square meters are for sale [4]. - The company’s financing channels remain robust, with domestic bond issuance of 12.531 billion yuan in 2024 and a total interest-bearing debt financing cost of 3.7%, down 40 basis points year-on-year [4]. - The projected net profit for 2025, 2026, and 2027 is adjusted to 1.83 billion yuan, 2.30 billion yuan, and 2.74 billion yuan, respectively, with year-on-year growth rates of 14.6%, 25.7%, and 19.1% [4]. - The company’s current stock price corresponds to a PE ratio of 13.2, 10.5, and 8.8 for the years 2025, 2026, and 2027, respectively [4]. Market Conditions - The report notes that the real estate market continues to face challenges, including lower-than-expected policy implementation and ongoing sales sluggishness [5].

Core Viewpoint - The leadership transition at Greentown China marks a new era under Liu Chengyun, following the resignation of Zhang Yadong after nearly seven years, amidst mixed financial results for 2024 [2][3]. Financial Performance - In 2024, Greentown China achieved a total contract sales amount of 276.8 billion yuan, ranking third in the real estate industry, with a significant increase in project acquisitions [2]. - The company reported a revenue of 158.55 billion yuan, a 20.7% increase from 131.38 billion yuan in 2023, but the net profit attributable to shareholders fell by 48.8% to 1.596 billion yuan [8]. - The increase in impairment provisions contributed to the decline in net profit, with impairment and fair value changes rising from 2.035 billion yuan in 2023 to 4.917 billion yuan in 2024 [9]. Leadership Transition - Liu Chengyun, previously a senior executive at the parent company China Communications Construction Company, has taken over as chairman of Greentown China [2][4]. - Zhang Yadong's tenure saw significant growth in sales from approximately 156.4 billion yuan in 2018 to about 276.8 billion yuan in 2024, with the company’s industry ranking improving from 17th to 3rd [3]. Strategic Focus - Liu emphasized the importance of safety in investment strategies for 2025, aiming to balance safety, liquidity, and profitability while enhancing project evaluation and bidding capabilities [6][10]. - The company plans to continue its aggressive land acquisition strategy, focusing on high-quality projects in first and second-tier cities, while also exploring opportunities in smaller cities [7][10]. Inventory Management - Greentown China faces challenges with high inventory levels, with total inventory amounting to approximately 250 billion yuan, representing about half of total assets [9]. - The company aims to accelerate inventory reduction efforts, with a focus on improving project quality and efficiency in sales strategies [10].

Group 1: Housing Services - Guangzhou Anju Group has launched its first one-stop housing service center in Yuexiu District, providing various housing services including policy consultation, rent payment, and hotline services for citizens [1] Group 2: Company Announcements - Greentown China announced the resignation of independent non-executive director Qiu Dong, effective April 4, 2025, due to his focus on academic research and publishing [2] Group 3: Sales Performance - Sunac China reported a contract sales amount of approximately 1.46 billion yuan in March, with a sales area of about 86,000 square meters and an average contract sales price of approximately 17,000 yuan per square meter [3] - China Overseas Development disclosed a contract sales amount of approximately 21.2 billion yuan in March, representing a year-on-year decline of 48.6%, with a corresponding sales area of approximately 947,100 square meters, down 8.5% year-on-year [4] - Zhengrong Real Estate reported a contract sales amount of approximately 421 million yuan in March, with a sales area of about 20,500 square meters and an average contract sales price of approximately 20,500 yuan per square meter [5]

Investment Rating - The report maintains an "Outperform the Market" rating for the company [5][3][20] Core Views - The company experienced a 49% decline in net profit, primarily due to asset impairment and fair value reductions totaling 4.9 billion [1][9] - The company's sales and land acquisition performance is better than the industry average, ranking among the top three in the sector [1][11] - The company focuses on high-energy cities, with 79% of sales coming from first and second-tier cities, and maintains a high repayment rate of 104% [1][11] Financial Performance - In 2024, the company achieved revenue of 158.5 billion, a year-on-year increase of 20.7%, while net profit was 1.6 billion, down 49% [1][4] - The company’s total sales area in 2024 was 1,409 million square meters, a decrease of 9%, with total sales amounting to 276.8 billion, down 8% [1][11] - The company’s cash flow remains robust, with cash and cash equivalents of 73 billion and a cash-to-short-term debt ratio of 2.3 times [2][17] Project and Land Acquisition - In 2024, the company added 42 new projects with a total construction area of 4.18 million square meters, corresponding to a new value of 108.8 billion, a 24% decrease year-on-year [2][11] - The company’s land reserves focus on first and second-tier cities, with 76% of total land reserves located in these areas [2][11] Debt and Financial Structure - As of the end of 2024, the company had a total debt of 317 billion due within one year, accounting for 23% of total debt, with a financing cost of 3.7%, the lowest on record [2][17] - The company’s debt structure has improved, with bank loans now making up 76% of total debt [2][17] Earnings Forecast - The revenue forecasts for 2025 and 2026 are set at 142.1 billion and 146.4 billion, respectively, with net profits expected to be 1.7 billion and 1.8 billion [3][4] - The estimated EPS for 2025 and 2026 is projected to be 0.66 and 0.71, corresponding to PE ratios of 13.8 and 12.9 [3][4]

Core Viewpoint - Greentown China faces a significant profit decline despite achieving record sales, indicating a challenging transition under new leadership from Liu Chengyun, who is expected to strengthen the influence of the parent company, China Communications Construction Company (CCCC) [1][3][10]. Group 1: Leadership Changes - Liu Chengyun, a veteran from CCCC, has taken over as chairman of Greentown China following the resignation of Zhang Yadong, marking a shift in management that reflects CCCC's increasing control over the company [2][3]. - Liu Chengyun's appointment is seen as a move to reinforce CCCC's dominance, with his lack of salary indicating a different approach to leadership compared to his predecessor [3][4]. Group 2: Financial Performance - Greentown China's revenue for 2024 reached 158.5 billion yuan, a 21% increase year-on-year, but the net profit attributable to shareholders plummeted by 49% to 1.596 billion yuan, nearly halving [4][6]. - The company's net profit margin fell to 1% in 2024, down from 2.4% in 2023, highlighting ongoing profitability issues despite high sales figures [6][8]. Group 3: Profitability Challenges - The decline in profit is attributed to significant impairment losses, with credit loss provisions increasing by 346% to 1.025 billion yuan and non-financial asset impairment losses rising by 191% to 4.039 billion yuan [7][8]. - Greentown's strategy of acquiring high-priced land for luxury projects has not translated into higher profit margins, as evidenced by a consistent decline in net profit margins over recent years [5][8]. Group 4: Market Position and Future Outlook - Despite not achieving its sales target of 300 billion yuan, Greentown remains the third-largest real estate company in China, reflecting its strong market position [9]. - The transition to Liu Chengyun's leadership comes amid uncertainties regarding the company's strategic direction and operational management, raising questions about future performance [10][11].

Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company is expected to lead the industry in performance stabilization due to significant impairment provisions, despite a decline in earnings for 2024 [1]. - The company has a healthy debt structure and maintains smooth financing channels, with a total interest-bearing debt of RMB 137.19 billion, down 6.1% [2]. - The company's sales performance remains strong, with a contract sales amount of RMB 276.8 billion in 2024, showing a decline of only 8.1% compared to the industry [3]. Financial Performance - For 2024, the company is projected to achieve revenue of RMB 158.55 billion, a year-on-year increase of 20.7%, while net profit is expected to decline by 37.9% to RMB 4.15 billion [1][5]. - The gross profit margin for the period is reported at 12.8%, with a slight increase in property development gross margin to 11.7% [1]. - The company’s earnings per share (EPS) for 2024 is projected at RMB 0.63, with a price-to-earnings (P/E) ratio of 14.7 [5][12]. Sales and Land Acquisition - The company added 42 new projects in 2024, with a land acquisition amount of RMB 48.4 billion, focusing on core cities [3]. - The total land reserve area at the end of 2024 is expected to be 27.47 million square meters, with a total land value of RMB 449.6 billion, of which 76% is located in first and second-tier cities [3]. Future Projections - Revenue forecasts for 2025, 2026, and 2027 are RMB 153.3 billion, RMB 152.9 billion, and RMB 154.3 billion, respectively, with corresponding net profits of RMB 1.57 billion, RMB 2.11 billion, and RMB 3.05 billion [4][5].

Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company is expected to lead the industry in performance stabilization due to significant impairment provisions, despite a decline in earnings for 2024 [1]. - The company has a healthy debt structure and maintains smooth financing channels, with a total interest-bearing debt of RMB 137.19 billion, down 6.1% [2]. - The company's sales performance remains strong, with a contract sales amount of RMB 276.8 billion in 2024, showing a decline of only 8.1% compared to the industry [3]. Financial Performance - For 2024, the company is projected to achieve revenue of RMB 158.55 billion, a year-on-year increase of 20.7%, while net profit is expected to decline by 37.9% to RMB 4.15 billion [1][5]. - The company reported a gross margin of 12.8% for the period, with property development gross margin slightly improving to 11.7% [1]. - The forecasted revenues for 2025, 2026, and 2027 are RMB 153.3 billion, RMB 152.9 billion, and RMB 154.3 billion, respectively, with corresponding net profits of RMB 1.57 billion, RMB 2.11 billion, and RMB 3.05 billion [4][5]. Sales and Land Acquisition - The company added 42 new projects in 2024, with a land acquisition amount of RMB 48.4 billion, focusing on core cities [3]. - The company's land reserve at the end of 2024 is projected to be 27.47 million square meters, with a total land value of RMB 449.6 billion, of which 76% is located in first and second-tier cities [3]. Debt and Financing - The company has successfully optimized its debt structure, with a net debt ratio of 56.6% and a cash-to-short-term debt ratio of 2.3 times, indicating financial stability [2]. - The company issued bonds totaling RMB 12.53 billion in 2024, with an average issuance rate of 3.88% [2].