Annual Report Insights | Veteran Departure, Parent Net Profit Not Reaching 1 Billion, How Can Greentown China Break the Deadlock?

How will AI·China Communications Construction’s全面掌控 affect Green City’s future profit recovery?

Under deep industry adjustments, even Greentown China (hereinafter referred to as “Greentown”), after becoming a state-owned enterprise, has not been able to remain unaffected.

On the last day of March, Greentown released its full-year 2025 performance, with revenue of 154.97B yuan, down 2.3% from 158.55B yuan in 2024; the company’s net profit attributable to shareholders was only 71M yuan, a 95.6% drop from 1.6B yuan in 2024, hitting a new low.

Regarding the sharp decline in net profit attributable to shareholders, Greentown attributed the cause in its announcement to industry adjustments, long-cycle inventory de-stocking, declining gross profit margin, losses from joint ventures and associates, and asset impairment provisions. However, a breakdown of the financial statements reveals a structural imbalance in profits.

Net profit attributable to shareholders falls below “one billion”

Data source: corporate announcements, Eastmoney.com. Reported by Duan Wenping, Beijing News Shell Finance. Chart by Beijing News Shell Finance

The annual report shows that in 2025, Greentown achieved revenue of 154.97B yuan, a 2.3% decrease from 158.55B yuan in 2024; the net profit attributable to shareholders was 71M yuan, down 95.6% from 15.96 billion yuan in 2024.

Regarding the reasons for the plunge in net profit attributable to shareholders, Greentown stated in its announcement that mainly due to the real estate market still being in a period of adjustment, and to promote long-term development, the company continued to actively push for long-term inventory de-stocking, leading to a decline in gross profit margin on revenue recognized in 2025 and performance from joint ventures and associates. At the same time, the company made asset impairment provisions and fair value change losses totaling 1.6B yuan in 2025 (compared to 4.92B yuan in 2024), which further affected shareholders’ net profit.

Looking through the income statement, Greentown’s revenue only slightly decreased by 2.26%, but gross profit fell by 8.7% to 4.92B yuan, which is the source of profit pressure. In 2025, Greentown’s gross profit margin was 11.9%, down from 12.8% in 2024, a decrease of 0.9 percentage points. Among them, property sales gross profit margin was 11.2%, down from 11.7% in 2024, a decrease of 0.5 percentage points.

In terms of asset impairment, impairment of non-financial assets was about 2.9 billion yuan, and expected credit impairment was about 2 billion yuan; both impairments remained high, continuously consuming profits rigidly.

More critically, the losses from joint ventures and associates widened significantly, further dragging down profits. In 2025, Greentown’s share of joint venture losses was 598 million yuan, and share of associate losses was 536 million yuan, totaling 1.13B yuan, an increase of 501 million yuan from the 633 million yuan loss in 2024.

In response, Greentown stated that mainly due to the rising proportion of rights in newly developed projects in recent years, and the reduction of new joint ventures and associate projects, leading to a decline in sales revenue; meanwhile, affected by industry downturn, gross profit margin also declined.

As a result, in 2025, Greentown achieved an annual profit of 2.29B yuan, down 44.9% year-on-year; among them, net profit attributable to shareholders was only 70.98 million yuan, a 95.6% decrease; non-controlling interests amounted to 2.22B yuan, accounting for as much as 96.9%.

This means that almost all the profits generated throughout the year were taken by non-controlling shareholders (small shareholders of cooperative projects), with the parent company’s shareholders only receiving a tiny share, which is the most direct reason for the cliff-like decline in net profit attributable to shareholders.

At the earnings conference, Greentown management stated that profit in 2026 is still expected to face certain pressure.

Management also revealed that the land acquisition scale for 2026 is preliminarily set at around 1 trillion yuan, with specific implementation to be adjusted according to market dynamics.

In 2025, Greentown added 50 new projects, with a salable area of about 3.18 million square meters, and the group承担成本约51.1B元, with an expected new value of 1.355 trillion yuan, ranking fourth in the industry. The average rights ratio of new projects remains high at about 69%.

Greentown veteran Guo Jafeng retires, China Communications Construction further consolidates control of Greentown

On the eve of the performance release, Greentown announced an important senior management change, as its veteran Guo Jafeng, who has served for nearly 30 years, retired.

The announcement shows that Guo Jafeng resigned from positions including Executive Director, ESG Committee member, CEO, and all other roles within the group; Zhou Anqiao resigned as Non-Executive Director; Zhu Yuchen resigned as Independent Non-Executive Director, member of the Audit and Remuneration Committees, and Chairman of the Nomination Committee.

Geng Zhongqiang was appointed as Acting CEO to oversee daily operations. Geng Zhongqiang is a typical China Communications Construction (CCCC) alumnus, appointed as Executive Director and CEO of Greentown in July 2019. Greentown management stated that once the CEO appointment process is completed, an announcement will be made promptly.

Guo Jafeng joined Greentown in May 1999 and is one of the last “old Greentown people.” With his retirement, the control of Greentown by the largest shareholder, China Communications Construction Group, is once again substantially strengthened.

This is not an abrupt change but the continuation of a two-year leadership transition. In March 2025, Zhang Yadong resigned as Chairman of the Board, and Liu Chengyun from CCCC took over; subsequently, Geng Zhongqiang was appointed as Non-Executive Director and Co-Chairman of the Board; in July 2025, former CEO Li Sen stepped down, and Zhao Hui from CCCC was appointed Party Secretary and CEO.

Currently, among Greentown’s 10 board members, 6 are either executive or non-executive directors, with 3 from CCCC, 2 from Wharf Holdings, and only 1 from Greentown itself.

From Chairman, CEO, to core directors, CCCC is gradually completing its comprehensive dominance over Greentown’s governance.

With veteran leadership stepping down and CCCC’s full control, whether Greentown can leverage its state-owned background to stabilize profits, restore net profit attributable to shareholders, and return to a steady growth track will be the biggest focus in 2026 and 2027.

Reported by Duan Wenping, Beijing News Shell Finance

Editor: Yang Juanjuan

Proofreader: Mu Xiangtong