In 2024, the performance of Chinese real estate listed companies saw a general decline. On the evening of January 26, Greenland Group Co., Ltd. (“Greenland Group”) disclosed its performance forecast for 2024, expecting a substantial loss in performance for the previous year.
According to the announcement by Greenland Group, it is estimated that the net profit attributable to the parent company for 2024 will be a loss of 11 to 13 billion yuan (RMB), compared to a loss of 9.556 billion yuan in the same period of the previous year. The non-net profit is expected to be a loss of 9.2 to 11.2 billion yuan, compared to a loss of 10.238 billion yuan in the same period of the previous year.
Greenland Group stated that due to the downward trend in the market, both the turnover scale of the real estate industry and the revenue scale of the infrastructure industry saw a significant decline year-on-year. The gross profit margin of the real estate industry of the company also decreased year-on-year, further pressuring the performance.
The announcement indicated that in 2024, Greenland Group achieved a contract sales area of 65.40 million square meters, a decrease of 38.2% compared to the same period last year; and achieved a contract sales amount of 63.926 billion yuan, a decrease of 42.7% compared to the same period last year.
As of the end of December 2024, the company’s rental property area was 4.3065 million square meters with an occupancy rate of 83.6%; the number of hotel rooms was 9,738, with an occupancy rate of 49.1%.
Greenland Group is a mixed-ownership listed company with state-owned assets and is headquartered in Shanghai.
In addition to Greenland Group, several A-share real estate development companies have recently issued performance forecasts for 2024.
On the evening of January 26, the Shenzhen-headquartered real estate developer, Jindi Group, disclosed its performance forecast for 2024, expecting a net loss of 5.6 to 7 billion yuan; non-net profit loss of 3.9 to 5.3 billion yuan.
Another Shenzhen-based real estate developer, Huaqiao City A disclosed its 2024 annual performance forecast, indicating an expected net loss of 7 to 9 billion yuan for the previous year, compared to around 6.492 billion yuan in the same period of 2023. After excluding non-recurring gains and losses, the net profit loss is expected to be 7.3 to 9.2 billion yuan, compared to around 6.456 billion yuan in the same period of 2023.
Furthermore, Zhong Jiao Real Estate is projecting a net loss of 5.3 billion yuan for 2024; Jinke Real Estate expects a net loss of 20.5 to 28.5 billion yuan; Rongsheng Development predicts a net loss of 7.2 to 9.5 billion yuan. Additionally, other real estate companies such as Daming City, Gree Real Estate, China Fortune Land Development, and Huayuan Real Estate are all projected to incur losses in their 2024 performance.
The overall performance of Chinese listed real estate companies is on the decline. Even Poly Developments, a leading enterprise in the Chinese real estate industry, is expected to achieve a net profit of 5.016 billion yuan in 2024, a decrease of 58.43% compared to the previous year.
According to data released by the China Index Research Institute earlier this month, in 2024, the total sales of the top 100 real estate enterprises in China decreased by 30.6% year-on-year. The sustained low demand in the Chinese real estate market has hindered the sales plans of numerous real estate companies, leading to serious inventory backlog.