Core ideas:

Low profit margin has always been the pain point of Greentown. In order to explore the reasons, we will start from the cost structure of Greentown and explore in depth why the profitability of Greentown, which is famous for its high-end quality, is lower than the industry average. In order to make the argument more convincing, we have introduced similar urban layout, the same high-end products and hundreds of billions of riverside as a comparative argument.

Finally, it is found that there are four main reasons for Greentown's weak profitability:

First, in the Song Weiping era, due to the requirements for product quality and the high proportion of projects in third-and fourth-tier cities, the high construction cost became the main reason for Greentown's low gross profit margin.

Second, in the Zhongjiao era, affected by the historical problems left over by Greentown around 2009, the long-term unde-capitalized or slow-down projects precipitated more and more capitalized interest and increased operating costs.

Third, compared with Binjiang, the management expense rate of Greentown needs to be reduced.

Fourth, the high-priced projects taken in the past are still a drag on the current development of Greentown, Greentown through a large amount of asset impairment losses, foreshadowing risks in advance, but also further diverting the net profit.