Greenland Holding Group, parent of Atlantic Yards developer, plunges to #291 (from #205) in Fortune Global 500. Revenues down, losses up. Stock falls.

Fortune magazine last week released its 2024 Global 500 list, with Greenland Holding Group, the Shanghai-based parent of (for now) main Atlantic Yards/Pacific Park developer Greenland USA, plunging to #291, after plummeting in 2023 to #205.

That reverses an ascent, in which Greenland had in 2022 reached #125, part of a steady rise. Greenland had closer to its stated (in 2014) ambition to reach the top 100 by 2020. Now, if the current trend continues, Greenland might exit the Global 500 in a few years.

Screenshot from Fortune

Like many property developers in China, Greenland overextended itself, piling on debt, and seeing its credit rating plummet.

Dropping revenue, new losses

The well-known Fortune Global 500 ranking relies solely on revenue in the past fiscal year. Greenland had $50.9 billion in revenue, a 21.5% decline from 2023's $64.8 billion in revenue, after reaching $84.5 billion in 2022.

Though not part of the ranking, it's worth noting that Greenland's profits, which in 2023 ranking were minuscule, this year went into the red, with losses of $1.35 billion.

Greenland's employee count continued to drop, to 59,970, a 10,207 (14.5%) decline from the 2023 figure of 70,177. The year before it was 79,999, while in 2021, the number of employee exceeded 86,000.

Fortune also reported $168.2 billion in assets, compared to nearly $198 billion in the previous year. Notably, the $2.73 billion in market value, as of July 15, was nearly half that of the $5.44 billion in 2023, a sign of Greenland's plunging stock price. See more below.

What now?

No wonder its U.S. subsidiary had no money to pay off EB-5 debt from immigrant investors, and seems likely to lose the collateral--the rights to build six towers over the Vanderbilt Yard--in a foreclosure process. 

It also suggests that Greenland USA, should it get state approval to move the bulk from the unbuilt flagship tower (B1, aka "Miss Brooklyn") across Flatbush Avenue to build a giant, two-tower project at Site 5, would likely partner with another developer or simply sell the parcel, rather than try to develop it itself.

Plunging stock

While last year I cited a current stock price of ¥3.07, today it's ¥1.42, as shown in the Google Finance screenshot below. The trendline over the past five years is ominous. 

Screenshot: Google Finance

Curiously enough, the one period the stock price spiked was in late spring 2015, when it hit an astounding ¥35.23, after rising from about ¥8 in September 2014. By July 2016 it was below ¥10. Greenland made the Atlantic Yards joint venture deal in 2013 and closed it June 30, 2014. 

By comparison: Forbes

The lesser-known Forbes Global 2000, which this year downgraded Greenland to #891, after a drop to #831 in 2023 from #415 in 2022, bases its assessment on four broad metrics: a composite score assessing sales (revenue), profits, assets, and market value.