In the pain of the industry's cyclical reconstruction, the real estate market in China is undergoing a deep reshaping of the value chain. Over the past year, the continuously evolving liquidity dilemma has accelerated the reshuffling of the industry landscape, putting continued pressure on traditional development models in the wave of supply-side reform.
Recently, the central bank's reduction in reserve requirements and interest rates, along with structural tools, has injected a dose of "strong medicine" into the industry.
In this transformation, the release of liquidity is continuously activating the demand for real estate agent construction, which not only addresses the practical needs for real estate companies to relieve financial pressure but also echoes the policy's focus on ensuring affordable housing and urban renewal, allowing the light asset model to welcome expansion opportunities once again.
Among them, Greentown Management, as an industry leader with a market share exceeding 20% for nine consecutive years, showcases strategic strength and growth momentum at the intersection of old and new energy transformation within the industry, relying on the credit backing of state-owned enterprises, full industry chain service capabilities, and the first-mover advantage of government-enterprise cooperation.
In the resonance of policy warm winds and model dividends, Greentown Management's business growth logic is becoming increasingly clear.
1. The precise drip irrigation of policy combinations leads to structural expansion in the agent construction track.
The central bank announced the implementation of ten financial policies in three categories to support market stability and expectations. Among them, lowering the reserve requirement ratio by 0.5 percentage points is expected to release about 1 trillion yuan of long-term funds into the market. The decision to simultaneously lower the policy interest rate by 0.1 percentage points will also guide the loan market quote rate (LPR) to decrease by about 0.1 percentage points, forming a policy combination of "loose currency + loose credit."
This series of policies not only alleviates the financing constraints of real estate companies but also activates market demand by lowering the credit costs for home buyers and optimizing the interest rates of structural tools, achieving a synergy between supply and demand.
In the author's view, this actually reshapes the industry ecosystem through a triple transmission mechanism.
Firstly, on the financing side, the central bank's 0.5 percentage point reserve requirement cut releases about 1 trillion long-term liquidity and, combined with the reduction in policy interest rates, the financing channels for real estate companies are gradually "breaking the ice." Although light-asset construction enterprises do not directly bear land acquisition costs, the overall easing of funding pressures in the real estate industry helps developers prefer to advance projects through the construction mode, thereby expanding business demand for construction enterprises.
Secondly, the release of liquidity provides a lifeline for the industry's rescue, while the simultaneous efforts on the demand side create endogenous momentum for market recovery. The reduction in LPR leads to a decline in the first mortgage rate by 0.1 percentage points to a historical low of 3.85%, alleviating pressure on homebuyers' monthly payments, thus stimulating demand recovery in core cities and accelerating the liquidation efficiency of construction projects.
Finally, on the supply side, the interest rates of structural tools such as loans supporting agriculture and small businesses and PSL are simultaneously reduced by 0.25 percentage points, and policy banks are increasing credit support for the "three major projects." Policy support for affordable housing, urban renewal, and other areas will further activate construction demand for government-enterprise cooperation, injecting certainty into cooperative construction projects.
This highlights the strategic intent of decision-makers to guide resources towards housing and people's livelihood through structural tools, aligning closely with Greentown Management's deep cultivation in government construction, affordable housing development, and urban support, promoting the industry's value chain upgrade towards specialization and refinement.
While traditional real estate companies are still struggling to maneuver through the repair of their balance sheets, construction enterprises have already taken the lead in accessing the rapid release of policy dividends through the light asset model.
This differentiation not only confirms the inevitability of industry transformation but also highlights Greentown Management's unique value in resource integration and risk isolation, as its business essence has become a key converter connecting policy direction with market efficiency, securing a first-mover advantage in the structural reshaping of the industry.
2. The light asset model's moat is solidifying, with Greentown Management's multi-dimensional advantages resonating together.
As policy benefits open up incremental space for the construction agency industry, whether the opportunities can be transformed into sustained growth momentum depends on the depth of the company's inherent competitiveness.
The resilient performance of Greentown Management's 2024 earnings announcement precisely confirms the strategic resilience of its light asset model. Against the backdrop of a 5% year-on-year decline in new contract area in the industry, the company not only achieved steady revenue and profit but also built a multi-maintenance city river through business structure optimization and deepening national layout.
The annual report shows that in 2024, the company achieved revenue of 3.441 billion yuan, a year-on-year increase of 4.2%, with a net income of 0.801 billion yuan attributable to the parent company. This achievement stems from the natural 'immunity' of its light asset model to industry cycles, which avoids land costs and development leverage, allowing the company's gross margin to maintain at 49.6%, significantly higher than traditional development companies.
This financial health directly translates into the ability to provide shareholder returns. According to Wind data, in 2024, the company distributed cash dividends of 0.482 billion yuan, with cumulative dividends exceeding 2 billion yuan over the past three years. During the interest rate reduction cycle, the demand for stable income asset allocation by Insurance funds and REITs has increased. Therefore, companies like Greentown Management, which have steady revenue growth, stable profitability, and emphasize shareholder returns, may become the preferred choice for long-term capital.
Deeper competitiveness comes from the strategic adaptability of its business model.
Leveraging industry-leading construction management capabilities, Greentown Management can efficiently undertake project development demands from central state-owned enterprises, local city investment agencies, and other entities, forming differentiated competitiveness in key policy areas such as Indemnificatory Apartments and urban renewal.
Firstly, the dual enhancement of scale effects and management efficiency corroborates the foresight of its strategic layout.
As of the end of 2024, the company's construction agency map has covered over 130 core cities in 30 provinces, municipalities, and autonomous regions nationwide, forming a grid-based business matrix. This nationwide layout not only effectively diversifies regional market volatility risks but also continuously optimizes marginal costs through the centralized allocation of management resources.
Specifically, in 2024, the company's total contract project construction area reached 0.1256 billion square meters, with a year-on-year growth of 5.0%. The area under construction of 53.96 million square meters demonstrates steady growth, confirming the certainty of project implementation. Particularly in new project expansions, the continuous increase in contract construction area of 36.5 million square meters ranks first in the industry, highlighting the market's recognition of Greentown's brand value and management system during the industry's adjustment cycle.
Secondly, the deep penetration of high-energy urban agglomerations has created a value moat.
The urban agglomerations of CNI Bohai Index and JING-JIN-JI, CNI Yangtze Index, CNI Zhujiang Index, and Chengdu-Chongqing city group, which Greentown Management focuses on, account for 77.3% of the estimated total sellable value of contract projects of 720.1 billion yuan, laying the foundation for performance release in the next 3 to 5 years. Among them, the construction area in first- and second-tier cities reached 55.3 million square meters, accounting for 44.0% of the total construction area, a 7.6% increase compared to the same period last year, and the structural optimization significantly enhances the resilience against cycles.
Thirdly, the dual-driven business structure of commercial construction and government construction forms a virtuous mechanism for risk hedging.
As a profit engine, commercial construction continues to exert its strength, contributing 80% of the income with 2.752 billion yuan in 2024, a year-on-year increase of 17.3%, confirming the continuous enhancement of market competitiveness. At the same time, government construction maintains a stable base at a scale of 0.626 billion yuan, ensuring consistent output in policy-oriented areas. This business structure of 'market-oriented projects securing profits and government projects stabilizing the base' not only ensures the stability of operational quality but also accurately positions the direction for policy dividend release, providing dual guarantees for the company's sustainable development.
3. From leading in scale to upgrading intelligent manufacturing, growth has received 'Grand Slam' certification from Institutions.
While consolidating existing advantages, Greentown Management is unlocking new growth spaces through multi-dimensional innovation, and its development potential continues to gain value reassessment from Capital Markets and professional Institutions.
According to the latest release from the China Index Academy, the '2025 China Real Estate Construction Enterprises Ranking for January-March' shows that Greentown Management, as the industry's top player, ranked first in the first quarter this year with a newly signed planned construction area of 8.82 million square meters, confirming the strong adaptability of the light asset model in the liquidity easing cycle.
Especially in the current environment of loose monetary policy, based on the characteristics of construction fee income linked to project value, Greentown Management, leveraging its brand premium ability to form pricing power, can also create a "rising tide lifts all boats" profit elasticity.
If scale expansion reflects the speed of development, then technological innovation determines the quality of growth.
Relying on years of deep cultivation in the Industry, Greentown Management has achieved a digital leap in the entire process of construction agency. From the early construction of a product digital management platform to the launch of the industry's first intelligent construction agency operating system "Greentown M" APP, the company successfully transformed traditional experience into an intelligent decision-making system that includes the "M Climbing Model."
This system can precisely match customer needs during the design phase by using machine learning on massive project data, and optimize resource allocation in real-time during the construction control phase, establishing a digital control closed loop covering the entire project life cycle.
The dual advantages of strategic foresight and execution capability have allowed Greentown Management to continuously lead in professional evaluation systems.
In 2024, the company consistently topped the agency-related rankings of authoritative institutions such as the China Index Academy and CRIC, completing a "grand slam" of industry certifications, including "Top 1 in Chinese Real Estate Construction Agency Operations in 2024," "Top 1 in Comprehensive Ability Rankings for Construction Agencies," "Top 1 in Comprehensive Strength of Construction Companies in China in 2024," and "No. 1 in Brand among Top Ten Construction Companies in Chinese Real Estate in 2024." Subsequently, it was once again recognized as the top company in the "2025 Excellent Construction Operation Enterprises of Listed Real Estate Companies in China."
Behind these honors is the recognition of the company's growth model in scale expansion, technological iteration, and quality output by industry professional institutions, indicating that in the context of accelerated concentration in the construction agency industry, Greentown Management is expected to continue expanding its leading position and initiate a new cycle of high-quality development.
4. Conclusion
When the policy direction and market mechanism form a synergy under the framework of "housing is for living, not for speculation", the light asset model, which embodies specialized division of labor, resource intensification, and technological empowerment, is driving the industry from debt-driven growth to a new paradigm of service value creation.
The practices of Greentown Management demonstrate that, amidst the intertwining of cyclical fluctuations and structural transformation, enterprises that truly possess model resilience and strategic determination can not only navigate through the industry's fog but also inject sustainable momentum for the high-quality development of the real economy during the process of reconstructing the industrial ecosystem.
As the policy easing cycle continues, the credit advantages brought by its state-owned enterprise background, the profit elasticity under low financing costs, and the collaborative capability with local governments and Financial Institutions will continue to translate into momentum for market share enhancement. The value of this transformation sample may transcend the growth of individual enterprises and become a key footnote for observing the secondary growth curve of China's Real Estate industry.
