Greenland stumbles in Fortune Global 500 before rising again; top 100 ranking by 2020 seems doubtful (now #277)
|Greenland's English-language logo|
That was a significant jump from 359 in 2013 and 483 in 2012. Since then, however, Greenland's rise has slowed, reversed, and then partly recovered, casting severe doubt on its goal--as of 2015--to rank among the world's top 100 companies in five years, by 2020.
Its assets have increased significantly, but revenues and profits have been much more variable. It remains owned significantly by the government of Shanghai, though since 2015 it's been listed on the Shanghai Stock Exchange, "part of Shanghai’s increasing efforts to make its state-owned enterprises more profitable, efficient and market-based, in keeping with China’s reform agenda," according to a February 2015 press release from Greenland Australia.
An unsteady path
In 2016, Greenland's Global 500 ranking reversed, declining to 311, behind both the 2014 and 2015 ratings. While profits rose 21.2%--from a low base--revenues went down 22.3%.
The just-released 2017 ratings indicate some progress, but not a full recovery for the Greenland. Fortune ranks the firm 277 on the 2017 Fortune Global 500, indicating a 12.8% increase in revenue, to $37.2 billion. That's a decent increase from 2016, but Greenland revenue remains below 2015 and 2014 levels.
|2017 chart of historical Global 500 ranking, via Fortune|
Could Greenland reach the top 100? Its revenues would have to grow 91% to exceed $71.2 billion, the current figure for the company ranked 100 (China Southern Power Grid). That's highly unlikely, given the past pattern.
Moreover, Greenland's 2017 annual ranking described a 1% decline in profit. So expansion does not provide a cash cushion from profit, as opposed to cash from borrowing, which typically comes with more constraints.
|2017 chart via Fortune|
Moreover, Greenland's peer developers, if not the company itself regarding Brooklyn, have reason to be cautious, as the Wall Street Journal reported 11/29/16:
Some Chinese real-estate developers are lowering their profit expectations on U.S. projects or shelving them entirely as frothy prices and rocky partnerships force them to rethink their strategies in the American market.Greenland was China’s "most aggressive” developer, said the Wall Street Journal in an 8/5/14 article, because it could buy into projects--like Atlantic Yards--with its own equity rather than seek loans. But it seems unlikely Greenland would put up its own money just to get another building started; each of the towers in Atlantic Yards/Pacific Park has required financing.