Text | Jin Wei
On February 18, Greenland Holdings closed at 5.39 yuan, an increase of 2.67%, with a total market value of 65.5 billion yuan, after February 4, Greenland Holdings closed at 5.15 yuan, falling to 5.08 yuan during the session, and the stock price hit a new low.
Behind the sluggish market value is the reality that Greenland Holdings' "three red lines" are at the top and the debt exceeds trillion yuan, and recently Greenland Holdings has been caught in the "tens of billions of projects" illegal construction storm.
During the Spring Festival, Xinhua News Agency published an investigative article entitled "The Great Construction of 'Empty City' at the Mouth of the Yangtze River" Who Has Such a Boldness?" It refers directly to the Long Island project of Greenland Holdings in Qilong Town, Qidong City, Chongming Island, which violates the Yangtze River Protection Law and is inconsistent with the overall requirements of Chongming Island to build a world-class ecological island.
Greenbelt Long Island is a super big plate. In 2016, the first Chongming Island Tourism Development Forum and Greenland Long Island Global Investment Conference reported that Greenland spent 200 billion yuan to settle in Chongming, and the project planning area was 23,500 mu.
According to the project promotion data at that time, the Long Island project is located in the north estuary of the Yangtze River Delta, south of Chongming Island, and back of Jiangsu Qidong and Haimen. With a total planning area of about 23,500 mu, the project is a project integrated with business, accommodation, tourism, tourism and purchase built by Greenland Group, and has four major theme areas, including resort areas, leisure areas, sports areas and tourism areas.
However, Greenland Holdings' 2019 annual report discloses that the start date of the Greenland Long Island project was October 31, 2014, and the expected completion date was 2020, with an estimated total investment of 22.256 billion yuan.
At present, dozens of buildings have been built in the Greenland Long Island project. According to Xinhua News Agency, in Area B of the Greenland Long Island Project, rows of 17-storey tall buildings stand on the Yangtze River, with a total of more than 40 such high-rise buildings.
According to the "13th Five-Year Plan" for Chongming to build a world-class ecological island, Chongming adheres to and implements the principle of "ecological island", resolutely does not engage in large-scale development, controls the size of the permanent population at about 700,000 people, and controls the height of new buildings below 18 meters.
In other words, the height of the Greenland Long Island project has exceeded the control height by nearly 2 times.
In addition, the Greenland Long Island project is said to introduce a population of more than 200,000 people, close to one-third of chongming's planned permanent population to build a world-class ecological island. The permanent population of Shanghai Chongming District is planned to be controlled at 700,000 people, and a project of Greenland Holdings accounts for 1/3 of the island's population.
In fact, Greenland Holdings' project is quite special. Chongming Island is divided into three, although most of it belongs to Shanghai, but there are still some marginal areas in the north that belong to Nantong, Jiangsu, and the other part belongs to Qilong Town, Qidong City, and the Greenland Long Island Project happens to be in Qidong.
According to the "Qidong City Master Plan (2012-2030)", Qilong Town, where Greenland Long Island is located, is a "tourist resort land". Projects such as "Knight Park", which are related to tourism and vacation, have the owners of the community as the main customers.
Public reports disclosed that in 2014, companies under Greenland Holdings successively obtained a large area of land in Xincunsha, Qilong Town, and the cost of obtaining land was very low, and the floor price was about 1,000 yuan. The Long Island project in the sale of the external declaration "Shanghai, Linjiang, European style, luxury" and other words, due to the low price has caused the owner to pursue, some promotional texts are even claiming that the green long island project or will be included in Shanghai.
Whether it is the height of the project or the construction plan, the Greenland Long Island project has a place to rub the edge. After Xinhua's name, Greenland Holdings has not yet responded to this.
In December 2020, China's first river basin protection law, the Yangtze River Protection Law, which was voted by the Standing Committee of the National People's Congress, will be implemented from March 1, 2021, and the "Yangtze River Protection Law" will comprehensively strengthen the ecological environmental protection and restoration of the Yangtze River Basin and further consolidate the legal foundation of the "Great Protection of the Yangtze River".
Guangming Network commented on this that a large number of buildings have been built, whether the project is compliant, whether it meets the requirements of the "Yangtze River Protection", whether it can continue, the relevant departments should give an authoritative conclusion as soon as possible, giving all parties a reassurance. On the one hand, it is a threat to the ecological environment, on the other hand, the investment of developers and the interests of home buyers are overshadowed, neither of which is a small matter.
Under the continuous attention of the central media, the direction of the Greenland Long Island project has also attracted attention from all walks of life.
<h1>He was also publicly collected for debts</h1>
During the Spring Festival, greenland holdings companies are still caught up in the old topic: being publicly collected debts.
On the evening of February 2, the real estate media in the northeast joined hands to collect debts from Greenland: "Greenland Group Northeast Region, please pay your arrears." From the perspective of debt collection units, Harbin Leju and Weike Alliance totaled 1.916 million yuan, Harbin Fangtianxia asked for 908,000 yuan, Phoenix.com real estate asked for 844,000 yuan, Anjuke Harbin Station asked for 176,000 yuan, and Sina Heilongjiang asked for 100,000 yuan, with a total of nearly 4 million yuan in arrears.
This is not the first time that Greenland Holdings has been publicly called for debt. At the end of October 2020, an advertising company in Chengdu publicly solicited 75,000 yuan of advertising money from the southwest business department of "Greenland Group".
In addition to the media's public debt collection, there are also migrant workers, suppliers and other groups. Before the Spring Festival in 2021, migrant workers and suppliers repeatedly surrounded the building where the Jiangxi Business Department of Greenland was located, triggering local netizens to watch.
In the past two years, it has not been easy for migrant workers to ask for wages from the green area, and some local governments have set up special teams to help migrant workers get wages. On February 2, the Hunan Provincial Public Security Department held a press conference to crack down on the crime of refusing to pay labor remuneration, and Changsha Greenland Rongcheng was announced as a typical case. According to the disclosure: The legal representative of Changsha Greenland Rongcheng Real Estate Co., Ltd., Huang Salary, owed 5.13 million yuan to the migrant workers of the two teams of Tang Mouqun and Liu Mouhong contracted the project. After mediation, the company paid more than 5.13 million yuan in arrears to migrant workers.
At present, in addition to the construction party, suppliers, media, and migrant workers collecting debts, there are also government departments in the debt collection army of Greenland Holdings. On August 4, 2020, the Shenyang Municipal Bureau of Natural Resources disclosed a case of arrears in the land transfer fee of Shenfu New Town, and the land transfer fee of the two parcels of "Shenyang Greenland Real Estate" was 146 million yuan. This is a debt that has been outstanding for nearly 10 years.
The large amount of arrears of debt shows the pressure on The debt of Greenland Holdings. As of the third quarter of 2020, the total debt of Greenland Holdings reached 1.03 trillion yuan, and the asset-liability ratio reached 88.6%.
In 2020, the new crown epidemic, real estate regulation, green space sales, cash repatriation are facing greater pressure. On January 21, Greenland Holdings disclosed data: in 2020, the contracted sales area of Greenland Holdings reached 29.093 million square meters, a decrease of 10.7% over the same period of the previous year; the contract sales amount was about 358.353 billion yuan, a year-on-year decrease of 7.7%. Sales area and sales showed a double decline.
As one of the top three Chinese real estate enterprises in the past, Greenland Holdings has not performed satisfactorily in recent years, and when the housing enterprises that originally belonged to the same echelon have impacted the scale of 700 billion to 800 billion, Greenland Holdings is still struggling to hover at the threshold of 400 billion.
For the whole year of 2020, Greenland Holdings achieved revenue of 481.29 billion yuan, an increase of 12.43% year-on-year, and net profit attributable to shareholders of listed companies was 13.72 billion yuan, down 6.93% year-on-year.
<h1>The pressure on green space is not small</h1>
As of the end of the third quarter of 2020, the asset-liability ratio of Greenland Holdings after excluding pre-collection was 82.38%, the net debt ratio was 183.45%, and the cash short-term debt ratio was 0.78, which belonged to the red file housing enterprises that stepped on the "three red lines" and had huge financial pressure.
Performance declined, debt was high, and Greenland's stock price performance was sluggish in recent years. As of the close of trading on February 18, Greenland Holdings closed at 5.39 yuan, with a total market value of 65.5 billion.
In 2015, Greenland Holdings completed the first mixed reform and realized the overall listing of the enterprise, and the market value of Greenland once exceeded 300 billion yuan when it was listed, becoming the first stock in the real estate sector at that time. However, after that, Greenland's stock price fell and fell endlessly, from 300 billion to more than 60 billion at the lowest, evaporating more than 200 billion, and countless shareholders were covered and cut meat.
Zhang Yuliang mentioned the market value of Greenland Holdings more than once, and he believes that in addition to the environment in which the real estate industry is undervalued by the capital market, the low valuation of greenland Holdings capital market also has factors such as the liquidity of shareholders' shareholding and insufficient dividends.
On July 26, 2020, Greenland Holdings announced a paper that unveiled the prelude to a new round of deep mixed reform. In January this year, Zhang Yuliang, chairman and president of Greenland Holdings, said at the 2020 annual media exchange meeting that the second mixed reform of Greenland Holdings is still in progress, and the current intention enterprises are basically financial institutions with two central enterprise backgrounds. However, despite the benefits of the second mixed reform, the market value of Greenland Holdings still hovers around 70 billion.
In 2021, the challenges and difficulties for Greenland Holdings are still severe, and the 10% growth target is not easy according to Greenland Holdings' past experience. On the other hand, Greenland still has a large number of debt problems, especially the continuous performance of public debt collection, which has a direct impact on the reputation of Greenland Holdings and will further affect its foreign cooperation.
In addition, for Greenland Holdings, which is undergoing a second mixed reform, the capital market is more concerned about its stock price and market value, and whether Greenland Holdings can break the "curse" of market value through the secondary mixed reform has also attracted much attention.