Core Insights - The new management team of Greentown China, led by Chairman Liu Chengyun, emphasizes the need for market-oriented support amid challenges in the real estate industry [2][3] - Liu Chengyun acknowledges the past lack of collaboration between China Communications Construction Company (CCCC) and Greentown, and outlines three areas for future cooperation [4] - Greentown's inventory management is a key focus, with a current inventory scale of approximately 200 billion yuan, of which 50 billion yuan is considered difficult to handle [6][7] Financing and Support - Greentown's financing costs are positioned between top-tier companies like China Overseas and Poly, and lower-tier firms like Vanke and Gemdale, with recent issuance of medium-term notes at a record low of 3.94% [5][6] - CCCC's backing is expected to help reduce Greentown's financing costs further, although Greentown remains an independent legal entity [5][6] - The management aims to maintain stable operations while balancing risk and development, with a focus on optimizing debt structure and reducing reliance on credit financing [7] Inventory Management - Greentown's inventory has decreased from 600 billion yuan to 200 billion yuan, with strategies in place to address difficult inventory through government negotiations and project optimizations [6][7] - The company has set ambitious targets for inventory reduction, with over one-third of annual marketing assessment weight dedicated to inventory clearance [6] Investment Strategy - Greentown prioritizes safety and prudence in its investment strategy, particularly in core cities like Beijing and Shanghai, where land prices are significantly high [7][8] - The company is exploring innovative sales models, drawing from international experiences, to enhance cash flow and investment logic [8] Long-term Vision - Liu Chengyun encourages shareholders to adopt a long-term perspective, emphasizing the importance of stability and strategic decision-making in the current market environment [9]

Core Viewpoint - The total inventory value of 50 typical listed companies reached 7.98 trillion yuan, a significant decrease of 15% compared to the end of last year [1]. Group 1: Inventory and Land Reserve Data - As of the end of 2024, the total land reserve value of the top 100 real estate companies amounted to 25.23 trillion yuan, down 13% year-on-year [15]. - The total land reserve area of the top 100 companies was 1.582 billion square meters, a decrease of 12% compared to the previous year [15]. - The threshold for the top 100 companies in terms of total land reserve value was 20.58 billion yuan, a decline of 16% [16]. Group 2: Company Performance and Trends - 96% of the top 100 real estate companies experienced a decline in land reserve value, with 15% of companies seeing a drop of over 20% [19]. - Vanke's total land reserve value decreased by over 340 billion yuan, a drop of approximately 25% [20]. - The inventory turnover cycle for the top 100 companies reached a historical high of 6.93 years, indicating increased pressure on inventory liquidation [25]. Group 3: Market Conditions and Challenges - The sales of new commercial housing in 2024 totaled 96,750 billion yuan, a decline of 17.1%, reflecting weak market demand [25]. - 94% of the 50 typical listed companies recognized inventory impairment losses totaling 167.7 billion yuan in 2024, marking a 26% increase from previous years [32]. - The proportion of completed inventory reached a record high, accounting for 27% of the total inventory value, indicating a shift towards liquidating completed projects [30]. Group 4: Strategic Focus and Policy Directions - The industry is transitioning from a "scale-oriented" approach to a "product-oriented" strategy, with companies focusing on core first and second-tier cities for new investments [35]. - Companies like Poly Development and China Resources Land are emphasizing inventory liquidation and optimizing land use to reduce capital occupation [36]. - The 2025 policy focus is expected to revolve around ensuring housing delivery, land reserve optimization, and urban renewal initiatives [37].

Core Viewpoint - In 2024, Greentown's contract sales decreased, with a record high proportion of construction management sales, increased land acquisition equity, and a recovery in gross profit margin, indicating overall financial stability [2]. Group 1: Sales Performance - In 2024, Greentown achieved contract sales of 276.8 billion yuan, with a sales area of 14.09 million square meters, representing a year-on-year decrease of 8.1% and 8.9% respectively [3][7]. - The construction management business saw a smaller decline, with sales of 105 billion yuan, down 1.7%, contributing 37.9% to total sales, a historical high [3][7]. - The overall destocking rate improved from 60% to 62%, but still lags behind the disclosed 82% initial destocking rate, indicating ongoing pressure on inventory [3][7]. Group 2: Land Acquisition and Investment Strategy - In 2024, Greentown acquired 42 new land parcels, with a total area of 4.18 million square meters, down 25% year-on-year, and the new land value decreased by 23.6% to 108.8 billion yuan [4][12]. - The equity ratio of new projects increased by 5.4 percentage points to 80.5%, while the equity land sales ratio dropped from 0.47 to 0.4, reflecting a conservative investment strategy to maintain cash flow stability [4][12][15]. - The company focuses on high-quality projects, primarily in second-tier cities, and is exploring investment opportunities in strong third and fourth-tier cities [15]. Group 3: Financial Performance - Greentown's total revenue for 2024 was 158.55 billion yuan, a year-on-year increase of 20.7%, with recognized revenue of 147.02 billion yuan, up 21.9% [21]. - The comprehensive gross profit margin was 12.8%, a slight decrease of 0.2 percentage points, while the property sales gross profit margin increased by 0.4 percentage points to 11.7% [21]. - Net profit margin decreased by 2.5 percentage points to 2.6%, primarily due to losses from associated businesses and a provision for impairment losses of 4.9 billion yuan [21]. Group 4: Financial Stability - In 2024, Greentown issued 12.531 billion yuan in domestic bonds, with an average cost slightly rising to 3.88% [5][22]. - The bank loan scale reached 104.6 billion yuan, with interest-bearing liabilities increasing to 76.3%, indicating a shift towards lower-cost bank loans [5][22]. - The cash coverage ratio for short-term debt was 1.41 times, maintaining a relatively low short-term repayment pressure [24].

Core Viewpoint - In 2024, Poly Real Estate achieved a total contract sales amount of 54.2 billion yuan, with a contract sales area of 2.121 million square meters, marking a year-on-year increase of 1.1% and a decrease of 5.8% respectively, indicating a counter-trend growth amidst a general decline in sales among most real estate companies [3][7] Sales Performance - The company recorded a sales recovery amount of 54.8 billion yuan, with a sales recovery rate of 101%, which is an increase of 1 percentage point year-on-year [8] - The average contract sales price reached 25,546 yuan per square meter, up 7.3% from 2023, driven by a 15.1% sales contribution from the Hong Kong region, which is a 7 percentage point increase compared to 2023 [8] - The number of ongoing sales projects increased to 147 from 135 in 2023, while the number of projects under construction and awaiting construction decreased to 55 from 70, indicating a growing inventory pressure [8][6] Inventory and Land Acquisition - The company faced increased inventory pressure, with the value of completed and available properties rising by 40% year-on-year to 45.22 billion yuan, and the proportion of inventory value increasing from 24% to 36% [3][8] - In 2024, Poly Real Estate added 6 new projects in Jinan, Ningbo, Shenzhen, and Shanghai, with a total land acquisition area of 964,000 square meters and a total land cost of approximately 19.9 billion yuan, maintaining a land acquisition-to-sales ratio of 0.37, below the strategic target of 40% [9][11] Financial Performance - The company's operating revenue for 2024 was 40.21 billion yuan, a decrease of 1.8% year-on-year, while gross profit fell by 21.1% to 6.6 billion yuan, leading to a gross margin decline of 4 percentage points to 16.4% [4][16] - The core net profit attributable to shareholders plummeted by 80.6% to 342 million yuan, with a core net profit margin dropping by 3.5 percentage points to 0.8% [4][16] Financing and Debt Management - Poly Real Estate completed the issuance of 5 corporate bonds totaling 5 billion yuan in 2024, with interest rates below 3%, resulting in a reduction of the average financing cost by 0.5 percentage points to 3.38% [5][18] - The company's cash holdings increased by 8.8% to 34.67 billion yuan, while interest-bearing liabilities due within one year decreased by 6% to 19.54 billion yuan, improving the cash-to-short-term debt ratio to 1.77 [5][19] - The total interest-bearing debt decreased by 4.7% to 70.45 billion yuan, leading to a net debt ratio reduction of 16.2 percentage points to 76.9% [19]