On January 26th, Greenland Holding Group Company Limited (Greenland Holdings, 600606.SH) released its 2024 earnings forecast.

The announcement revealed that Greenland Holdings expects to report a net profit attributable to shareholders of the parent company ranging from -RMB 13 billion to -RMB 11 billion for the 2024 fiscal year. It also anticipates a net profit attributable to shareholders of the parent company, excluding non-recurring profits and losses, to be between -RMB 11.2 billion and -RMB 9.2 billion for the same period.

Greenland Holdings attributed the losses primarily to several factors: Firstly, due to the decline in asset prices, the company’s increased efforts to promote sales, and the extended development cycles of some projects, based on the principle of prudence, the company plans to make impairment provisions for some real estate projects. Secondly, as a result of market downturns, both the revenue scale of the company’s real estate business and the revenue scale of its infrastructure construction business have decreased significantly compared to the previous year. Additionally, the gross profit margin of the company’s real estate business has also declined year-on-year, further pressuring its performance. Thirdly, the reduction in interest capitalization for real estate projects has led to an increase in interest expenses recorded in current financial expenses.

In terms of real estate project sales, in 2024, the company achieved a contract sales area of 6.54 million square meters, a decrease of 38.2% compared to the same period last year. The contract sales amount reached RMB 63.926 billion, a decrease of 42.7% compared to the same period last year.

In 2024, Greenland Holdings added two new real estate projects to its portfolio, with a total land area of 157,500 square meters, an equity land area of 97,700 square meters, a total gross floor area of 169,200 square meters, and an equity gross floor area of 108,200 square meters. The company accumulated 2,711 new construction projects, with a total project value of RMB 149.95146 billion, a year-on-year decrease of 47.83%.