For stock trading, check the Jin Qilin analyst research reports — authoritative, professional, timely and comprehensive, helping you uncover potential thematic opportunities! Source: Wenxuan Finance © Network. Greentown has long upheld "sincerity and goodwill" as its core values, and the corruption scandal involving its former leader will deal a certain blow to the company's image. Observer丨San Wei Editor丨Wang Heng

On October 9, the Independent Commission Against Corruption (ICAC) of the Hong Kong Special Administrative Region announced that Zhang Yadong, then Chairman of the Board of Greentown China Holdings Limited (ASX: 03900), has been charged by the ICAC on suspicion of accepting bribes.

The HK$20 Million Bribe Mystery

According to the ICAC announcement, Zhang Yadong (58 years old) faces one count of conspiracy for an agent to accept advantages, violating Section 9(1)(a) of the Prevention of Bribery Ordinance and Section 159A of the Crimes Ordinance. The charge alleges that between January 2020 and March 2023, Zhang Yadong conspired with an intermediary, a shareholder of a Dalian real estate developer and the shareholder's son, among others, to allegedly accept HK$20 million in bribes from that shareholder, in exchange for Greentown China acquiring the developer's equity. ICAC investigations found that the shareholder had been pitching a Dalian real estate project to Greentown China since 2019. Zhang Yadong subsequently solicited bribes from the shareholder through the intermediary to facilitate Greentown China's acquisition of the project for RMB 440 million. The alleged bribes were suspected to have been deposited in multiple installments into Zhang Yadong's son's bank account via the intermediary. The case has already been mentioned at the Eastern Magistrates' Courts. The announcement also noted that Greentown China provided full assistance during the ICAC's investigation.

The charges did not come without warning. As early as June 17, 2026, the Hong Kong ICAC executed a search warrant at Greentown China's main office in Hong Kong, investigating corruption allegations related to an independent individual who had previously served as a company director. At that time, Greentown China announced it would fully cooperate and that daily operations were unaffected. From the search to the formal filing of charges, nearly four months elapsed, and the individual ultimately identified was Zhang Yadong.

From Dalian Vice Mayor to Greentown's Helmsman

Zhang Yadong's resume is rather unusual in China's real estate industry. He did not come from a real estate background, nor was he a longtime "CCCC insider," but rather transitioned from the local government system into a central state-owned enterprise before being parachuted into Greentown China. Public records show that Zhang Yadong holds a doctoral degree and spent many years in the party and government system in Dalian. He previously served as General Manager of Dalian Daqi Enterprise Group, Party Secretary and Director of the Dalian Urban Construction Bureau, Party Secretary and Director of the Dalian Construction Committee, Vice Mayor of Dalian Municipal Government, and Member of the Standing Committee of the Dalian Municipal Party Committee and Head of the United Front Work Department. During his tenure as Vice Mayor of Dalian, he was responsible for urban construction and management, overseeing departments including the Land and Resources and Housing Bureau, the Urban-Rural Construction Committee, and the Planning Bureau, accumulating rich experience in urban-rural construction and real estate management.

At the end of 2017, Zhang Yadong joined CCCC Group. In May 2018, he joined Greentown China as a representative of CCCC Group, serving as Party Secretary and Executive President. In August of the same year, he succeeded Cao Zhounan as Executive Director and Chief Executive Officer. In July 2019, following the resignation of founder Song Weiping, Zhang Yadong was promoted to Chairman of the Board, and Greentown China officially entered the "Zhang Yadong era."

The most notable label of Zhang Yadong's tenure was "scaling up." At the very start of his tenure, he proposed a "three-year performance plan," explicitly setting sales targets of RMB 200 billion, RMB 250 billion and RMB 300 billion for 2019, 2020 and 2021 respectively. Thereafter, Greentown China's contracted sales climbed from RMB 156.4 billion in 2018 to RMB 350.9 billion in 2021, achieving a remarkable "triple jump." To support scale growth, Greentown China launched a "shopping spree" in the land market. In 2019, it added 54 new projects with a total gross floor area of approximately 12.36 million square meters; in 2020, it added 85 new projects with a total gross floor area of approximately 20.41 million square meters, a year-on-year increase of 65%. Zhang Yadong further proposed the "Strategy 2025" plan, aiming to achieve RMB 450 billion in development sales, RMB 150 billion in agency construction sales, and RMB 40 billion in "Greentown+" emerging businesses by 2025. During his tenure, Zhang Yadong also carried out multiple organizational restructurings. In 2019, he consolidated 16 subsidiaries into 11 while establishing 4 new business divisions to improve management efficiency. In July 2020, he led the spin-off and listing of Greentown Management on the Hong Kong Stock Exchange, making it the "first agency construction stock." However, the massive expansion during Zhang Yadong's tenure also left far-reaching financial implications for Greentown China. In March 2025, Zhang Yadong resigned as Executive Director and Chairman of the Board due to work arrangements, with Liu Chengyun of the "CCCC system" taking over.

Greentown's Current Situation: Profit Pressure and Inventory Destocking

After Zhang Yadong's resignation, Greentown China came fully under the control of CCCC Group. However, the situation inherited by the new management team is not easy. According to financial reports: in 2025, Greentown China achieved revenue of RMB 154.966 billion, a year-on-year decline of 2.26%; net profit attributable to shareholders was only RMB 71 million, a year-on-year plunge of 95.55%, marking the lowest profit record since its listing on the Hong Kong Stock Exchange in 2006. The company made the decision not to pay dividends for the first time. One of the core reasons for the sharp profit decline is related to the pressure from existing assets formed by earlier large-scale expansion. According to official performance announcements, impairment losses on related assets and net fair value changes of RMB 4.917 billion were recognized in 2024, and RMB 4.921 billion in 2025, with the level of provisions at its highest in recent years. As of the end of 2025, the company's remaining unsold inventory value was approximately RMB 230 billion, of which projects from 2021 and earlier still accounted for nearly half; as of the end of June 2026, the value of old inventory from 2021 and earlier dropped to RMB 106 billion, with its proportion falling below 50%. Entering 2026, Greentown China's operating pressure has not markedly eased. In the first half, the company achieved revenue of RMB 39.481 billion, a year-on-year decline of 26.0%; net profit attributable to shareholders was RMB 81.715 million, a year-on-year decrease of 61%. Full-caliber sales fell to RMB 94.7 billion, down 22.5% from RMB 122.1 billion in the same period of 2025, dropping out of the trillion-yuan threshold, with its industry ranking falling from second to fourth. Inventory destocking remains the core task of current management. Greentown China Executive Director and Executive President Jiang Feng acknowledged at a results conference that the revenue contribution from long-inventory projects has declined but still weighs on profits, and estimated that the full-year gross margin in 2026 will decrease by 1 to 2 percentage points compared with 2025. The Zhang Yadong case brings new problems to Greentown China as it strives to get back on track. The direct financial impact of the HK$20 million involved is limited, but the alleged acts all occurred during his tenure, and the internal risk control and governance issues exposed may have a more profound impact. It is worth noting that if the trial uncovers more related-party transactions or internal governance problems, the impact on the company could be even more far-reaching. Wenxuan Finance will continue to follow the progress of this case.

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