On January 20, Greenland Holdings (SH: 600606) disclosed the real estate business briefing for the fourth quarter of 2020 and the announcement of the 2020 annual results bulletin. The briefing report shows that its contracted sales amount in 2020 is 358.353 billion yuan, a decrease of 7.7% compared with the same period in 2019.
In 2020, Greenland Holdings achieved a contracted sales area of 29.09 million square meters, a decrease of 10.7% from the same period in 2019. Previously, Zhang Yuliang, Chairman and President of Greenland Holdings, once stated that 2020 is a critical year for Greenland Holdings to reach its “double trillion” scale goal.
Earlier, Greenland Holdings had proposed an annual sales target of more than 400 billion yuan. In other words, Greenland Holdings has not completed its proposed sales target. According to data, its contracted sales in 2019 was 388.042 billion yuan, a slight increase of 0.1% year-on-year, and in 2020 it was down 7.7% year-on-year.
It is also understood that Zhang Yuliang put forward in an interview with the media that "annual sales will be maintained at 500 billion yuan." After failing to complete the target, Zhang Yuliang stated that "the 500 billion target was proposed the year before and based on the judgment of the real estate industry at that time."
In terms of performance, according to the 2020 annual performance report, Greenland Holdings achieved a total operating income of 481.3 billion yuan in 2020, an increase of 12.43% year-on-year; a total profit of 30.8 billion yuan, an increase of 0.52% year-on-year; a net profit of 13.72 billion yuan, compared with the same period in 2019 14.74 billion yuan decreased by 6.93%.
As of the end of December 2020, the total assets of Greenland Holdings were 1,349.1 billion yuan, the owner's equity attributable to shareholders of listed companies was 83.4 billion yuan, and the debt-to-asset ratio was 88.28%. Greenland Holdings stated that the main financial data for 2020 are preliminary accounting data, which may differ from the data disclosed in the 2020 annual report.
It is worth mentioning that on January 8 this year, the Beijing Municipal Commission of Housing and Urban-rural Development issued a notice, investigating a number of violations of laws and regulations in the real estate market. The real estate companies involved include Tahoe Group, Vanke, Greenland Group (Greenland Holdings), Shoukai shares, China Resources Land, Agile, CIFI Group, etc.
Among them, Beijing Greenland Jinghan Real Estate Development Co., Ltd., a subsidiary of Greenland Holdings (SH: 600606, Greenland Group), was notified. According to the report, the company's violation of laws and regulations was investigated and dealt with incomplete sales information. Previously, the company was fined 3.32 million yuan by the Beijing Municipal Commission of Housing and Urban-rural Development.
Recently, due to a dispute over a decoration contract between its two subsidiaries, the People’s Court of Yuehu District, Yingtan City, Jiangxi Province ruled in the first instance to freeze the bank deposits of the respondent Shanghai Greenland Group Jiangxi Shenjiang Real Estate Co., Ltd. and Greenland Holding Group of 481,600 yuan or seal it , Seize other property of corresponding value.
Among them, Shanghai Greenland Group Jiangxi Shenjiang Real Estate Co., Ltd. was established on June 4, 2008 with a registered capital of 500 million yuan and is a wholly-owned subsidiary of Greenland Holding Group. Greenland Holding Group was established on July 17, 1992 with a registered capital of 22.649 billion yuan. It is a wholly-owned subsidiary of Greenland Holdings.