China’s real estate market continues to struggle, with state-owned enterprises controlled by the Chinese Communist Party (CCP) seeing a significant decline in sales figures. From January to September this year, Huacheng Real Estate, a real estate giant controlled by the CCP, saw a 26.5% year-on-year decrease in sales, while another real estate company, Longfor Group, experienced a staggering 46.7% drop.
On October 14th, Huacheng Real Estate disclosed its sales performance for September.
According to the data, in September, Huacheng Real Estate and its subsidiaries achieved a total contract sales revenue of approximately 16.9 billion yuan, a decrease of 36.5% compared to the same period last year. The total contracted sales area was around 873,000 square meters, down by 16.7% year-on-year.
From January to September, Huacheng Real Estate recorded a cumulative total contract sales revenue of around 172.3 billion yuan, a 26.5% decrease compared to the same period last year. The total contracted sales area was approximately 7.548 million square meters, marking a 23.9% decline.
Huacheng Real Estate, a real estate developer under the Huacheng Group, a central state-owned enterprise of the CCP, primarily engages in real estate development business in China’s first and second-tier cities. It went public on the Hong Kong Stock Exchange in 2020.
On the same evening, another real estate company, Longfor Group, also released its unaudited operational status.
The data revealed that in September, Longfor Group achieved a total contract sales revenue of 8.16 billion yuan, with a contracted sales area of 487,000 square meters. The contract sales amount attributable to the company’s shareholders’ equity was 5.14 billion yuan, accounting for 62.99% of the total.
From January to September, Longfor Group accumulated a total contract sales revenue of 73.3 billion yuan, marking a 46.74% decrease from the same period last year, when it recorded 137.62 billion yuan. The contracted sales area was 523.2 million square meters, a year-on-year decline of 36.63%.
According to the rankings released by the All-China Federation of Industry and Commerce on October 12th, Longfor Group ranked 39th with a revenue of 180.737 billion yuan in the “2024 Top 500 Private Enterprises in China” and “Top 100 Private Enterprises in the Chinese Service Industry” lists.