Country Garden recorded a revenue of 44.1 billion yuan in the first half of 2026.
On August 28, Country Garden (02007.HK) released its 2026 interim report, recording an operating revenue of about 44.1 billion yuan. Although it still posted phased losses, the loss narrowed by about 16.3% year-on-year compared with the same period of last year. Its total assets stood at about 7.455 trillion yuan, and net assets at about 31 billion yuan, which remained positive on a sustained basis.
According to the interim report, the main factors affecting its profits are as follows: First, as the group entered the final stage of ensuring housing delivery, the significant reduction of current delivery volume led to a decline in operating revenue. Second, there is a lag in the revenue carry-forward of real estate enterprises. Projects with high land costs in the early stage were carried forward intensively in the environment of destocking at reduced prices, which had a negative impact on profits. Third, affected by multiple unfavorable factors such as the macroeconomic environment, the industry environment and the negative financial status of counterparties, the company made provision for inventory impairment of about 6.2 billion yuan, as well as impairment losses of about 3.8 billion yuan on financial assets and financial guarantees. Fourth, it recorded other income and gains of about 4.1 billion yuan, mainly from the fair value change of financial liabilities measured at fair value with changes included in profit or loss, and gains from debt restructuring. Meanwhile, the company strictly controlled expenditures, among which the sales and management expenses in the first half of the year continued to drop to about 3.2 billion yuan, down 19.7% year on year.
From January to June 2026, Country Garden's cumulative equity contracted sales amounted to about 14.25 billion yuan, with equity sales area of about 1.825 million square meters. Its sales trend is basically synchronized with the national sales of new commercial housing counted by the National Bureau of Statistics. Country Garden stated that its overall sales are relatively stable and are being promoted in an orderly manner in line with its business rhythm.
It is worth noting that according to data from CRIC, in the ranking of China's real estate enterprises by managed construction area from January to July 2026, Country Garden returned to the top ten of the industry.
Country Garden's "One Body, Two Wings" strategy is also being implemented smoothly. As one of the "two wings", Phoenix Smart Construction Management, relying on its advantages in the whole industrial chain, expanded a number of new whole-process entrusted management service projects in the first half of the year, including the residential development project of Badong Haituo Riverside Mansion in Hubei, the commercial land project in Xiao County, Suzhou, Anhui, and the Guangzhou AI Cloud Valley Industrial Park. At the same time, it extended its business to the field of urban supporting service renewal, and undertook the renovation project of a well-known international school and high school campus in South China, which efficiently completed the all-round functional upgrade of campus facilities within the 40-day window of summer vacation. Up to now, it has undertaken more than 200 entrusted management and construction projects in total.
Tengyue Construction Technology, the other "wing", continues to focus on building an intelligent construction system that deeply integrates construction robots, new prefabricated buildings and BIM digitalization. Up to now, 28 types of construction robots have been put into commercial application, with a total delivery of over 5,200 units and an application area of more than 40 million square meters.