Gree Real Estate profit falls over 40 percent

Gree Real Estate posted revenue of 7.1 billion yuan (US$1.1 billion) last year, up 11.7 percent. However, the net profit attributable to the parent was only 321 million yuan, down 42.6 percent. 

The income from real estate development accounted for nearly 90 percent of the total, with operating revenue of 6.4 billion yuan. Gree Real Estate’s land reserve has been declining for years. Land sales in 2021 dropped by nearly 50 percent.

Since 2020, Gree Real Estate has made plans for consumption and health businesses, but neither worked out well. The merger with Zhuhai Duty Free, a crucial step of the consumption plan, was aborted when the securities regulatory commission began an investigation into Gree’s founder and CEO LU Junsi. 

Gree Real Estate’s investment in the health business is caught up in an equity dispute which won’t be settled any time soon.