Core Viewpoint - China Jinmao is transitioning from a loss-making state to a proactive land acquisition strategy, aiming to leverage new land to improve cash flow and profitability amidst a challenging real estate market [1][5][30]. Group 1: Company Strategy - The new chairman, Tao Tianhai, has initiated comprehensive reforms in organization, investment, product, and operations, summarized as the "three axes" of Jinmao's turnaround: organizational streamlining, aggressive land acquisition, and product optimization [2][5]. - Jinmao's land acquisition strategy has seen it become the top acquirer in the industry, with a reported land acquisition value of 356 billion yuan from January to April 2025, surpassing major competitors [3][4][20]. - The company aims to create a positive feedback loop where increased land acquisition leads to new cash flow and profits, which in turn supports further land purchases [2][5]. Group 2: Financial Performance - In 2023, Jinmao reported a significant loss of 6.9 billion yuan, but turned around to achieve a profit of 1.07 billion yuan in 2024, indicating a successful recovery [5][8]. - The company’s sales figures have shown a downward trend over the past four years, dropping from 235.6 billion yuan in 2021 to 98.3 billion yuan in 2024, highlighting the challenges faced [8][9]. - Jinmao's land acquisition intensity has been notably high, with a ratio of 1.4 in early 2025, indicating a strong commitment to expanding its land bank despite previous losses [4][5]. Group 3: Market Context - The real estate market is currently in a downturn, but Jinmao is focusing on core first- and second-tier cities where demand remains relatively strong, providing opportunities for growth [21][22]. - The company is strategically shifting away from lower-tier cities, which have higher inventory and lower sales rates, to focus on more profitable markets [23][24]. - Jinmao's approach to land acquisition is supported by recent policy changes that have lifted price restrictions, allowing the company to leverage its high-end product capabilities [22][30].
黑马金茂，又杀回来了！