In the first half of 2020, during the epidemic, the real estate industry was affected to a certain extent.

Recently, Gree Real Estate released its 2020 semi-annual financial report.

The financial report shows that in the first half of 2020, Gree Real Estate's operating income was 2.978 billion yuan, a year-on-year increase of 11.61%, and the net profit attributable to shareholders of the listed company was 422 million yuan, a year-on-year increase of 3.50%.

As soon as the financial report came out, people were even more curious about Gree Real Estate.

01 Gree Real Estate: The main business is shrinking and the debt is heavy. Looking at the financial report specifically, in the first half of 2020, Gree Real Estate’s real estate sector achieved operating income of 2.655 billion yuan, a year-on-year increase of 111.66%.

At the same time, in the first half of 2020, in its marine economic sector, Gree Real Estate's fishing transaction sales amounted to 179 million yuan, an increase of 367.92% compared with the same period last year.

Compared with Evergrande’s performance of 348.8 billion yuan in the first half of the year, Gree Real Estate’s revenue does not seem to be satisfactory.

However, this is Gree Real Estate’s best revenue for the same period in recent years.

Quzhi Finance learned that from the first half of 2017 to the first half of 2020, Gree Real Estate’s total operating income was 1.524 billion yuan, 1.189 billion yuan, 2.668 billion yuan, and 2.978 billion yuan respectively.

Just looking at the semi-annual report, Gree Real Estate's performance seems to be good. Although there was a decline in the first half of 2018, it increased linearly in the first half of 2019.

It is worth noting that Gree Real Estate’s liabilities are also increasing year by year.

Public information shows that in 2017, 2018, and 2019, Gree Real Estate's liabilities were 19.018 billion yuan, 19.504 billion yuan, 21.464 billion yuan, and 24.8 billion yuan respectively; in the first half of 2020, the liabilities were 26.43 billion yuan.

As a real estate company with heavy debts, why has its stock price more than doubled since the beginning of 2020, far outperforming leading companies such as its peers Vanke?

According to media reports, Gree Real Estate has launched four rounds of repurchases since November 2018, and the balance of treasury shares on the balance sheet increased from 47.6843 million yuan at the end of 2018 to 1.006 billion yuan in the first quarter of 2020.

Previously, Gree Real Estate planned to make a strategic investment in Kehua Biologics to accelerate the layout of the big health industry chain.

Not only that, Gree Real Estate is also planning to purchase 100% of the equity of Zhuhai Duty Free Group, and due to this matter, it has applied for a trading suspension from the opening of the market on May 11.

Although Gree Real Estate's total revenue increased by 11.61% year-on-year in the first half of 2020, as Gree Real Estate's real estate business shrank and its diversified businesses accelerated its expansion, it is still unknown whether the full-year performance in 2020 can rely on diversified businesses to achieve growth.

02 Gree Electric Appliances: Widely cross-border, net profit dropped by half In addition to being involved in real estate, Gree Electric Appliances, a subsidiary of Gree Group, has also continued to cross-border in recent years.

In 2016, Dong Mingzhu joined forces with JD.com, Wanda and others to jointly invest 3 billion yuan in Yinlong New Energy, of which Dong Mingzhu personally invested 1 billion yuan.

In 2018, Dong Mingzhu announced his dream of making cores.

In 2019, Gree Group participated in the private placement of Sanan Optoelectronics, one of the giants in the semiconductor industry, for 2 billion yuan.

Although Gree Group is involved in semiconductors and new energy, as well as intelligent equipment and services, precision molds, etc.

However, most of these projects ultimately failed.

Not only that, Gree also entered the mobile phone market, which eventually ended hastily.

During this year's epidemic, Gree Electric diversified its development and took the opportunity to enter the medical industry.

Tianyancha information shows that on February 21, Gree Electric invested 20 million yuan to establish Zhuhai Gejian Medical Technology Co., Ltd.

As a diversified development company, what is the operating status of Gree Electric?

The 2019 annual results show that total revenue was 200.508 billion yuan, a year-on-year increase of 0.24%; net profit was 24.672 billion yuan, a year-on-year decrease of 5.84%.

In the first half of 2020, Gree Electric's revenue was 69.502 billion yuan, a year-on-year decrease of 28.57%; net profit was 6.362 billion yuan, a year-on-year decrease of 53.73%.

However, Midea Group's revenue in the first half of 2020 was 139.067 billion yuan, a year-on-year decrease of 9.56%; net profit was 13.928 billion yuan, a year-on-year decrease of 8.29%.

From the perspective of stock price, Gree fell by nearly 14% in 2020. During the same period, the Shanghai Composite Index rose by nearly 10%, the Shenzhen Stock Exchange Component Index rose by nearly 30%, and Midea Group rose by nearly 20%.