Since its high point on July 27, Gemdale Group has lost 16% of its market value and over $1.33 billion (nearly 9 billion yuan) so far.
Chinese real estate giant Gemdale Group recently released its sales report for July 2022, achieving a contracted area of 741,000 square meters, a 39% year-on-year decrease, and a contracted amount of $2.75 billion (18.55 billion yuan), a 28% year-on-year decrease.
In the first seven months, Gemdale’s accumulated contracted area was 4.93 million square meters, a 43.6% year-on-year decrease. The accumulated contracted amount was over $17 billion (about 119 billion yuan), a year-on-year decrease of 36.78%.
According to the 6th report of “City World,” the share price of Gemdale Group had previously fallen and harvested 7 consecutive daily K-line negatives.
Meanwhile, investors in Gemdale Group have also declined from 55,000 investors in September 2021 to 48,000 investors in March 2022, showing three consecutive quarters of decline.
Gemdale’s gross profit margin has been reduced from 42.68% in 2018 to 21.18% in 2021, which was a direct “cut” in three years.
According to the data, Gemdale started its real estate business in 1993. The company was officially rated as a AAA unit of China Construction System Enterprise Credit and a National Class-A Qualification Unit for Real Estate Development Enterprises.
It is worth mentioning that in recent years, many Gemdale projects have been exposed to quality problems.
As previously reported by Quality Weekly, the owners of a project jointly developed by Gemdale and Xi’an Qujiang Construction Group in Xi’an.
They found that the rough workmanship of the facade was not as advertized, and the floor and walls of the public areas were cracked in many places when they took possession of the project.
In addition, Gemdale Zizai City, located in Dadukou, Chongqing, has had repeated complaints by the owners—quality problems such as water leaks and cracking.