Focus! Greentown China's "Precision Investment" Strategy

On March 31, 2026, Greentown China held its 2025 annual performance release conference. Against the backdrop of the real estate industry still in a bottoming adjustment phase with inventory reduction pressures running throughout the year, the management delivered a business report of “steady progress with quality improvement.”

The 2025 performance report shows that Greentown China’s full-year contracted sales reached 251.9 billion yuan, with new land value of 135.5 billion yuan, and a proportion of first- and second-tier cities accounting for 86%. At the end of the period, the available saleable land value was 230 billion yuan; cash-to-short-term debt ratio hit a record high, and financing costs decreased to 3.3%.

Behind this achievement is Greentown China’s precise insight into the land market. At the performance conference, management explicitly stated that the preliminary land acquisition target for early 2026 is about 100 billion yuan, continuing to prioritize “maintaining safety bottom line and doing 1+1,” balancing cash flow and profit, with the core logic being “focusing on the project itself rather than simply on city tiers.”

At a critical window of industry transformation from old to new momentum, Greentown China does not chase scale or gamble on hot spots, but instead adheres to project quality as the standard, risk prevention as the baseline, and product strength as an amplifier, continuously building high-quality, realizable land reserves. This investment logic is becoming an important example for observing the path of high-quality real estate development.

Not chasing hot spots, focusing on the project itself

In 2025, Greentown China added 50 land parcels throughout the year, with a salable area of 3.18 million square meters, an estimated saleable value of 135.5 billion yuan, equity land payments of 51.1 billion yuan, and a high proportion of equity. Among them, the value of first- and second-tier cities accounted for 86%, with core cities making significant contributions, reflecting the company’s investment strategy of “focusing on core + optimizing structure.”

At the performance conference, management analyzed that the current supply side of the land market is slowing down, with total supply decreasing, fewer quality land parcels, mainly affected by adjustments in land supply rhythm, increased market absorption pressure, and tighter developer funding conditions.

Specifically, in cities with large inventories and long absorption cycles, overall land acquisition willingness has significantly weakened; whereas in cities with low inventories, quick absorption, and strong demand fundamentals, they have become key targets for real estate companies.

In this context, Greentown China adheres to the investment principle of “maintaining safety bottom line and doing 1+1,” avoiding single-scale indicators as guidance, but instead considering cash flow safety and profit margins comprehensively. Management pointed out that 2026 may be the most complex investment environment in recent years, with further industry segmentation.

Going forward, Greentown China will continue to strengthen its investment research capabilities, deepen city and sector studies, and conduct systematic assessments from multiple dimensions such as demographic structure, industrial support, inventory cycle, and product matching. It will also focus on project quality, avoiding decisions based solely on city tiers or market heat.

While deeply cultivating core cities, Greentown China actively seeks structural opportunities in non-hot cities by precise analysis to select high-quality land parcels with long-term value.

This logic runs through the entire year’s investment actions. Greentown China adopts a “early entry, quick turnover” strategy during windows, improving project conversion efficiency to ensure that new land reserves can quickly generate sales and cash inflows.

Meanwhile, Greentown China continuously iterates its investment research system to improve precision, maintaining a high post-investment realization rate. Multiple projects have achieved rapid development, quick market entry, and fast absorption after land acquisition, with dynamic land value and profit margins significantly higher than initial estimates.

This investment approach effectively avoids high leverage expansion and high-risk investments. Despite the overall industry investment contraction and continuous decline in new residential construction area, Greentown remains among the leaders in new land value addition.

Data shows that in 2025, the scale of new commercial housing sales continued to shrink, real estate development investment declined for four consecutive years, and real estate development funds for property companies decreased by 13% year-on-year, with financing environment still under pressure.

Faced with such an industry environment, Greentown China adheres to the investment philosophy of “project quality first,” focusing resources on core development and agency construction businesses, strengthening cash flow creation. In 2026, it plans to add about 100 billion yuan in investments, adjusting the pace dynamically according to market changes, reflecting a “process control and dynamic calibration” investment strategy.

At the same time, Greentown China actively promotes inventory reduction, with the proportion of projects formed before 2021 continuously decreasing, and overall inventory structure continuously optimized, freeing up space for new investments. Through special assessments, resource tilts, key breakthroughs, and revitalization of old projects, the company achieves coordinated advancement of existing assets and new additions.

On one hand, it optimizes the quality of existing assets and releases cash flow; on the other hand, it provides a more efficient foundation for realizing new land reserves. This “lightweight” strategy allows Greentown to maintain steady expansion during the industry bottoming phase and accumulate momentum for future market recovery.

Not chasing scale, but holding resources

By the end of 2025, Greentown China’s available saleable land value was about 230 billion yuan, providing ample support for the 2026 sales target of approximately 130 billion yuan. Among them, the inventory formed before 2021 still accounts for a certain proportion, but has been declining for consecutive years, with the inventory structure continuously improving.

At the performance conference, Greentown China explicitly stated that in 2026, it will continue to increase efforts to reduce inventory through special assessment policies, resource tilts toward existing assets, key project breakthroughs, and activation of low-efficiency land value and old projects, promoting efficient conversion of existing assets.

Regarding new land reserves, of the 135.5 billion yuan worth added in 2025, 86% was in first- and second-tier cities, with clear core city layouts.

Regionally, the Yangtze River Delta remains a high proportion, with Hangzhou, Shanghai, Beijing, and other core cities making prominent contributions, reflecting Greentown China’s strategy of “deeply cultivating core cities and moderately expanding into quality regions.” Meanwhile, the company also acquires quality projects in some non-hot cities, demonstrating a “structural opportunity first” investment approach.

These new projects have multiple advantages. First, strong absorption capacity. In 2025, Greentown China achieved sales of 251.9 billion yuan, with self-operated sales of 153.4 billion yuan. Most core city projects ranked among the top in local sales, with 21 cities entering the top ten in local sales, and market share continuing to grow. The repayment rate reached 101%, maintaining a high industry level, reflecting the risk resistance of high-quality land reserves amid market segmentation.

Second, high product matching. Greentown China has maintained leading product strength for years and continues to upgrade its “good house” standards. New projects are designed at the planning stage according to high-quality standards, emphasizing living experience and product differentiation, which enhances premium and absorption capabilities. This strong product strength and land reserve match provide a solid guarantee for project profit realization.

Third, enhanced risk control. Greentown maintains a high proportion of equity, with a safe cash-to-short-term debt ratio, low financing costs, and a continuously optimized debt structure. The company enforces strict review mechanisms during investment decisions to ensure controllable project risks and avoid legacy projects that could drag on cash flow.

Moreover, the future saleable land value structure will be more optimized. If the 2026 investment target of 100 billion yuan is achieved, combined with the existing 230 billion yuan inventory, Greentown China will form a stable land value pool capable of supporting future sales targets and increasing the proportion of core city projects.

In the context of the industry entering a destocking phase, most cities’ inventory cycles remain high, and market recovery shows clear segmentation. Greentown China ensures each land parcel has strong realization potential through a “deep city + sector research + project screening” three-layer filtering mechanism.

Always, Greentown China does not pursue the largest total volume but emphasizes optimal structure, minimal risk, and maximum value, embodying the core logic of precise investment.

This strategic optimization allows Greentown China to release project value first during market recovery and reduce the impact of cycle fluctuations on operating performance. As demand in core cities gradually improves, its land reserve advantages are expected to further manifest.

Not gambling on the market, letting products speak

The current real estate industry remains in a bottoming phase, with ongoing adjustments to market models, and high-quality development becoming a consensus. Against this background, Greentown China builds a “dual-wheel” model centered on high-quality land reserves and product strength, forming a core competitive advantage capable of crossing cycles.

In 2025, most new projects are in first- and second-tier cities, accounting for 86%, mainly located in core sectors with strong population attraction, industrial support, and upgrading demand. These projects not only have a relatively stable customer base but also provide space for high-quality product implementation.

Unlike relying on market heat, Greentown China emphasizes project quality itself, including location maturity, customer matching, product positioning, and absorption rhythm. Through upfront analysis and precise calculations, it forms high certainty on future sales and profits at the investment stage.

This risk-control approach from the source ensures that new land reserves are not only significant in scale but also realizable in value, providing stable support for subsequent operations.

Based on this, Greentown China continuously enhances its product system, improving product strength from living experience, space design, community functions, to service support, and achieves precise matching across different cities and customer groups through standardization and customization.

This product strategy makes projects easier to recognize in the market, improves absorption efficiency, and enhances premium value. In an environment of increasing price competition, the value advantage brought by product strength is an important guarantee for maintaining stable sales and profit margins.

In recent years, Greentown China has dynamically adjusted its land acquisition scale according to market changes, accelerating turnover, increasing sales pace, and strengthening cash collection during project development, forming a closed loop of cash flow. The safety of funds and operational efficiency are simultaneously improved, enhancing resilience against market fluctuations and providing room for continued investment.

In response to industry destocking pressures, Greentown China actively promotes upgrading and revitalizing old projects through product remodeling, marketing adjustments, and resource reallocation, improving inventory absorption efficiency.

As the proportion of historical inventory gradually declines and the overall land value structure continues to improve, the contribution of new projects keeps rising. This “elimination of old, addition of new” structural adjustment allows the company to maintain stable scale while improving overall asset quality and strengthening future profitability.

Strategically, Greentown China advances a “development + agency construction” dual-core main business layout, emphasizing customer orientation and product advantages, while optimizing organizational structure and investment systems, elevating risk control to a strategic level. Limited resources are concentrated on core businesses to improve operational efficiency and investment returns.

The core competitiveness of Greentown China does not stem from a single factor but from a combination of precise investment, product capability, and sound management. Accurate land investment ensures a realizable land reserve base, enhanced product strength boosts market competitiveness, and prudent management provides safety for sustainable development.

The “precise investment” path of Greentown China is not only a strategic choice for its own high-quality development but also offers a development model for the industry—balancing scale and quality, maintaining rationality between risk and growth, and building long-term competitive advantages through products and services.