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Country Garden, once China’s largest property developer, has moved back into profitability following three years of losses, assisted by debt restructuring efforts. For the period ending December 31, the company’s net profit reached approximately 3.26 billion yuan (around $472 million), a significant turnaround from a net loss of 32.8 billion yuan the previous year, according to its annual financial report. Revenue declined by 39%, totaling 155 billion yuan (about $22.5 billion).
Excluding gains from debt restructuring—implemented on December 30—the company remained in the red, primarily due to substantial asset impairments driven by the challenging state of the property market.
Shares of the company closed today at 32 Hong Kong cents (roughly 4 cents USD), representing a 1.6% decrease. Since the end of last year, the stock has dropped nearly 25%. The company reported an 85.8 billion yuan (around $12.5 billion) gain from offshore debt restructuring last year. Throughout 2025, provisions of approximately 44.5 billion yuan were made for projects owned by the firm, along with an additional 10.5 billion yuan in impairments on financial assets and guarantees.
In 2025, the company’s sales of equity contracts amounted to about 33 billion yuan, with a total sales area of around 4.02 million square meters and the delivery of 170,000 homes. As of the end of last year, total assets reached approximately 812 billion yuan, and net assets stood at 44.3 billion yuan. Interest-bearing liabilities totaled 148 billion yuan, a reduction of 105.5 billion yuan, or 42%, from 253.5 billion yuan at the end of 2024.
The offshore debt restructuring was effective from December 30, with new debt and equity instruments already issued. Post-restructuring, offshore debt maturities have been extended to a maximum of 11 years, and the cost of most new financing has significantly decreased to between 1% and 2.5%.
Onshore restructuring has also received approval, allowing the company to proceed with share buybacks, stock options, and options for creditors. A buyback program valued at up to 450 million yuan is currently active, with completion expected next month.
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