Country Garden: Achieves Profitability After Three Consecutive Years of Losses

On the evening of March 30, Country Garden Holdings Co., Ltd. released its annual performance report for 2025.

During the reporting period, Country Garden achieved a total revenue of approximately 154.89 billion yuan, a year-on-year decrease of about 38.7%, marking a continuous decline for four consecutive years. The equity contract sales amount was approximately 33.01 billion yuan, and the equity sales area was approximately 4.02 million square meters.

The company's business revenue mainly comes from real estate development and technological construction. Among them, the real estate development business, which accounts for as high as 97.2%, had an income of approximately 150.49 billion yuan in 2025, a decrease of 38.8%.

The remaining 2.8% comes from technological construction and other segments. In 2025, due to the downturn in the real estate market leading to a decrease in new business volume, the income from technological construction decreased by 45.8% year-on-year to 1.86 billion yuan. The income from other businesses such as property investment and hotel operation was approximately 2.543 billion yuan, with a year-on-year decline of about 29.5%.

Although the revenue has been continuously declining, Country Garden has turned the tables in terms of profit.

In terms of the net profit attributable to the parent company, from 2022 to 2024, Country Garden recorded losses of 6.052 billion yuan, 178.4 billion yuan, and 32.835 billion yuan respectively. In 2025, its net profit attributable to the parent company turned positive for the first time, with an income of approximately 3.261 billion yuan, and the group's net profit also reached 1.62 billion yuan.

Country Garden, which had been trapped in the whirlpool of losses for as long as three years, finally achieved a turnaround from losses to profits.

Image source: Country Garden's annual report

01. Debt Restructuring Implemented

The core reason for Country Garden's profitability this time lies in debt restructuring.

The annual report shows that on December 30, 2025, the overseas debt restructuring plan involving a total amount of approximately 17.7 billion US dollars officially took effect. At the same time, the domestic debt restructuring plans involving 9 domestic bonds with a scale of approximately 13.77 billion yuan were also all approved.

Country Garden mentioned in the annual report that the company's net other income and gains mainly from debt restructuring were approximately 82.13 billion yuan, offsetting 44.507 billion yuan in inventory impairment, 10.525 billion yuan in impairment losses on financial assets and financial guarantees, as well as 15.352 billion yuan in marketing expenses, net financial expenses, and losses from joint ventures and associated companies.

According to official information from Country Garden, its overseas debt restructuring plan is being rapidly implemented. According to the share issuance statement disclosed on March 5, the number of newly issued shares after the restructuring is approximately 14.233 billion, approaching 51% of the issued share capital before the restructuring. Since the restructuring took effect on December 30, 2025, Country Garden has completed the payment of approximately 398 million US dollars in cash consideration to creditors in the first working week.

The domestic restructuring plan has also been successfully approved, and the cash repurchase, stock, and general creditor options will be launched in sequence. Currently, the cash repurchase program with an upper limit of 450 million yuan has been launched and is expected to be completed in April.

However, if the impact of restructuring gains is excluded, Country Garden was still in a loss state in 2025. In 2025, Country Garden recorded a gross loss of approximately 43.118 billion yuan (1.687 billion yuan in 2024), mainly due to the group's provision of a net impairment of approximately 44.507 billion yuan for properties under construction and completed properties held for sale. Excluding the impact of the net impairment of these properties on the gross loss, Country Garden's gross profit in 2025 was approximately 1.389 billion yuan.

While the net profit increased, Country Garden's liabilities also decreased significantly. As of the end of 2025, Country Garden's total liabilities were 767.861 billion yuan, a decrease of 216.728 billion yuan compared with the end of 2024. Among them, the interest-bearing liabilities were approximately 147.959 billion yuan, a decrease of 105.529 billion yuan compared with 2024, a decline of about 42%. Its capital - liability ratio decreased from about 81.4% in 2024 to about 74.5% as of December 31, 2025.

In addition, in terms of the borrowing structure, among bank and other borrowings, approximately 107.184 billion yuan, 16.233 billion yuan, and 1.408 billion yuan are due for repayment within one year, one to five years, and more than five years respectively. Most of its borrowings are secured by certain properties, plants and equipment, investment properties, properties under construction, and financial assets of Country Garden.

From the perspective of assets, as of the end of 2025, Country Garden's total assets were 812.12 billion yuan, and its net assets were 44.3 billion yuan. In terms of asset revitalization, since 2022, Country Garden has actively promoted the disposal of various assets, with a cumulative cash - back of more than 70 billion yuan, covering core and non - core assets, equity investments, etc.

02. Ensuring Housing Delivery

As Country Garden's main business, the real estate development business showed a significant decline in performance in 2025.

The annual report shows that the revenue from this business decreased from approximately 245.719 billion yuan in 2024 to 150.49 billion yuan in 2025, a decline of nearly 40%. Country Garden explained that the main reason was the decrease in property delivery volume. In addition, in 2025, the average selling price (excluding value - added tax) of the properties delivered by Country Garden for revenue recognition was approximately 6,908 yuan per square meter.

From the company's own perspective, Country Garden's delivery volume has shrunk. However, in the industry as a whole, Country Garden's performance in ensuring housing delivery is significantly leading. In 2025, Country Garden completed the delivery of approximately 170,000 housing units, with a cumulative delivery area of approximately 19.82 million square meters, covering 204 cities in 28 provinces across the country. From 2023 to 2025, its cumulative total delivery volume was nearly 1.15 million units, and its delivery volume has continuously ranked first in the industry in third - party lists.

Looking at Country Garden's next - step plan, ensuring housing delivery is its top priority.

Yang Huiyan, the chairman of Country Garden's board of directors, proposed at the company's annual meeting in February this year that 2026 be defined as the "final year for ensuring housing delivery" and put forward a clear schedule, aiming to complete most of the housing delivery tasks by the middle of 2026, so as to free up more energy to repair the balance sheet and resume normal operations. The sign of resuming normal operations is that the operating cash flow turns positive, and the ultimate goal is that both the company's overall cash flow and profit are positive.

At the same time, Country Garden is gradually shifting its energy and resources to other businesses.

At the management meeting in early March, Yang Huiyan pointed out that in the next 3 - 5 years, the core of Country Garden's strategy will focus on "building core competitiveness". For the main real estate development business, it will promote the iteration of the fourth - generation residential buildings, implement product designs that meet the needs of different groups such as aging - friendly and pet - friendly, and at the same time rely on Country Garden's full - industrial - chain advantages to integrate product design, property services and other links.

In this context, the agency construction business, one of Country Garden's "two wings", has also made new progress. On March 21, Country Garden officially signed an ecological cooperation framework agreement with the Government Affairs Service and Data Management Bureau of Baiyun District, Guangzhou. In the future, it will integrate the core resources and capabilities of its business segments such as agency management and construction, construction technology, and property services, and deeply integrate into the construction layout of the "Smart City" in Baiyun District. Driven by the "technology + industry" dual wheels, it will help Baiyun District build a leading application demonstration benchmark in the country.