21st Century Business Herald Reporter Wu Shuying
Country Garden released its 2025 financial report. Benefiting from the gains from debt restructuring, Country Garden has become one of the private real estate companies that have completed systematic debt restructuring and achieved a profit on the books.
According to the announcement, in 2025, Country Garden achieved an operating income of approximately 154.9 billion yuan and a net profit of 1.5 billion yuan. In terms of sales, Country Garden achieved a contract sales amount of approximately 33.01 billion yuan and a sales area of approximately 4.02 million square meters; after the debt restructuring, interest-bearing liabilities decreased by approximately 105.5 billion yuan compared to the end of 2024; as of the end of 2025, total assets were approximately 812.1 billion yuan, and net assets were approximately 44.3 billion yuan. At the same time, during 2025, a total of approximately 170,000 houses were delivered, with nearly 1.15 million houses delivered cumulatively from 2023 to 2025.
Country Garden's latest financial report marks a decisive achievement in its three-year active self-rescue efforts. Analysts say that as a leading private real estate company, Country Garden's performance serves as a barometer for the stabilization of the real estate industry.
Debt Restructuring Repairs Performance
According to the financial report, in 2025, Country Garden achieved a turnaround from loss to profit on the books. The core driving force behind Country Garden's turnaround comes from the systematic financial repair brought about by the implementation of debt restructuring.
On December 30 last year, Country Garden's overseas restructuring officially took effect, and new debt and equity instruments have been issued. In addition, the domestic restructuring plan of Country Garden has also been successfully approved, and cash buybacks, stock, and general creditor options will be initiated in order. Currently, a cash buyback program with a cap of 450 million yuan has been initiated and is expected to be completed in April this year.
Excluding the gains from debt restructuring, Country Garden's operational performance remains in a phase of loss, primarily due to significant asset impairments caused by the overall market conditions in the real estate sector. According to the financial report, Country Garden recorded a gross loss of 43.118 billion yuan in 2025.
According to the announcement, due to the ongoing uncertainties in the real estate market, Country Garden has made a provision of approximately 44.5 billion yuan for inventory (land and projects under construction) corresponding to existing projects throughout the year. Additionally, affected by multiple adverse factors such as the macroeconomic environment, industry conditions, and the negative financial status of partners, Country Garden has also recognized impairment losses of 10.5 billion yuan on financial assets and financial guarantees.
It is worth noting that last year, Country Garden's operating profit also returned to positive. In 2025, Country Garden's operating profit was 19.128 billion yuan, while the operating profit for the same period in 2024 was a loss of 17.698 billion yuan. This return to positive is mainly attributed to the reduction in financial expenses.
Analysts point out that the provisions for impairment and bad debt reserves for inventory and receivables are based on the principle of accounting prudence and are a prudent handling. The expansion of Country Garden's gross loss in 2025 should not be simply interpreted as a decline in operational level, but mainly due to its large impairment provisions for inventory. Excluding the impact of these impairments, its gross profit on the financial statements remains positive.
In any case, as once the largest private real estate company, Country Garden's achievement of turning losses into profits is still a positive signal for the current market environment, indicating the possibility of a turning point in its financial situation and is expected to boost market confidence in the credit repair and operational recovery of private real estate companies
Balance Sheet Reconstruction
The debt restructuring has not only repaired Country Garden's financial statements but also significantly improved its debt indicators. With the implementation of the debt restructuring, Country Garden has achieved a threefold improvement in the scale, term, and cost of its debt, marking a key transition in its financial aspect from &#34;risk mitigation&#34; to &#34;structural upgrade.&#34;
From the perspective of debt structure, Country Garden's total debt scale has significantly contracted. According to the announcement, by the end of 2025, Country Garden's total debt will be CNY 767.9 billion, a decrease of CNY 216.7 billion from CNY 984.6 billion at the end of 2024. It is worth noting that the contract liabilities included in this figure have special attributes in the real estate industry, representing payments received in advance but not yet recognized as revenue, which can be recognized as income upon delivery of the properties and are not real liabilities that require cash repayment.
More noteworthy is the substantial decrease in interest-bearing debt. According to the announcement, by the end of 2025, Country Garden's interest-bearing debt will be CNY 148 billion, sharply down by CNY 105.5 billion from CNY 253.5 billion at the end of 2024, a decrease of 42%.
In addition to the significant reduction in debt scale, Country Garden has greatly optimized its debt structure and financing costs through domestic and foreign debt restructuring plans. The term of Country Garden's offshore debt has been extended to a maximum of 11 years after restructuring, and the financing costs of most new debt instruments have significantly decreased to 1%-2.5%. This series of adjustments has constructed a &#34;low interest + long-term&#34; debt structure, providing Country Garden with a critical window to operate lightly in the next five years.
Unlike some distressed real estate companies, Country Garden has managed to maintain positive net assets up to now, which is a relatively rare indicator. According to the financial report, by the end of 2025, Country Garden's total assets will be CNY 812.1 billion, with net assets of CNY 44.3 billion. According to sources close to Country Garden, a small amount of debt will still be converted into equity as forced conversion bonds are executed, thereby enhancing equity.
Anticipating the Arrival of an Operational Turning Point
In addition to debt restructuring, the biggest good news for Country Garden in 2025 should be successfully navigating the peak of deliveries.
According to the announcement, in 2025, Country Garden will complete the delivery of approximately 170,000 housing units, with a cumulative delivery area of about 19.82 million square meters, covering 204 cities in 28 provinces. From 2023 to 2025, the total cumulative delivery will be nearly 1.15 million units. According to Country Garden, over the past three years, the company has allocated almost all resources to the &#34;guarantee delivery&#34; task, which has somewhat limited the pace of new project launches.
Moreover, although sales scale cannot match the peak period, Country Garden's sales foundation still shows resilience, thanks to the scale advantages accumulated over many years and its roots in various market segments. In 2025, Country Garden's equity contract sales amount will be approximately CNY 33.01 billion, with an equity sales area of about 4.02 million square meters.
In Country Garden's home base of Guangdong, it still holds market influence. Taking Shaoguan as an example, since its layout in 2006, Country Garden has developed over 30 large communities, covering three districts and seven counties. In 2025, Country Garden became the sales champion in Shaoguan with sales of CNY 2.146 billion
Country Garden stated that 2026 is the starting year of the &#34;14th Five-Year Plan&#34; and also the most critical year for the group to transition from &#34;ensuring housing delivery&#34; to normal operations. It will fully focus on core tasks such as &#34;high-quality delivery, risk resolution, asset-liability restoration, and sustainable operations.&#34;
Sources close to Country Garden analyzed that since this year's &#34;small spring,&#34; the early recovery of the real estate markets in first-tier cities like Beijing and Shanghai proves that genuine rigid and improved housing demand always exists. The market recovery in first-tier cities has become a clear signal of market stabilization. Under the &#34;dual bottom resonance&#34; of policy and market, the inflection point of Country Garden's fundamentals is almost synchronized with the cyclical turning point of the broader market environment, and it is expected to accelerate into a new phase centered on &#34;stabilization.&#34;
&#34;One Body, Two Wings&#34; Accelerating Transformation
In the face of a new industry cycle, Country Garden is accelerating its strategic transformation, reconstructing its growth logic with &#34;one body, two wings,&#34; and its &#34;light asset&#34; business development is gradually showing its effects.
Since 2021, Country Garden has proactively laid out the &#34;one body, two wings&#34; strategy, with real estate development as the core, and the two new businesses of technological construction and entrusted management are expected to inject new momentum into performance growth.
As one of the &#34;wings,&#34; Tengyue Construction Group has been deeply engaged in the construction industry for over 40 years, covering four major sectors: construction, leasing, home decoration, and robotics. Its business spans 26 provinces and cities across the country and overseas markets such as Malaysia, with a cumulative total of over 4,000 construction projects.
Among them, its subsidiary Bozhilin is researching nearly 50 types of construction robots, with 28 types already in commercial application. Intelligent construction services have achieved full coverage in 34 provincial-level administrative regions in China and are present in over 1,600 projects across 13 global markets. To date, it has delivered over 5,000 units, with an application area exceeding 40 million square meters, demonstrating outstanding performance in market share among industry robots.
As the other &#34;wing,&#34; Phoenix Zhituo Construction Management Company serves various clients, including government agencies, urban investment companies, and asset management companies, covering residential properties, urban facilities, park bases, and overseas projects, providing customized entrusted management and construction services. It has undertaken over 200 entrusted management and construction projects, managing an area of nearly 20 million square meters.
Looking to the future, Country Garden stated in its financial report that it will draw on the experience of &#34;ensuring housing delivery&#34; to promote a comprehensive transition in operations, gradually restore normal operations, and maintain positive operating cash flow, with the ultimate goal of achieving dual positives in overall cash flow and profits. &#34;Headquarters and regions will work together to promote this, improving mechanisms, systematically enhancing talent teams, reshaping core capabilities to navigate cycles, and ensuring that all measures are implemented, 'doing one thing at a time.'&#34;

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Country Garden announced a "second entrepreneurship," releasing its 2025 financial report, which shows operating revenue of approximately 154.9 billion yuan and a net profit of 1.5 billion yuan. Through debt restructuring, Country Garden has become one of the private real estate companies that have completed systematic debt restructuring and achieved profitability. In 2025, approximately 170,000 houses will be delivered, with a cumulative delivery of nearly 1.15 million units. Despite turning losses into profits, it still faces uncertainties in the real estate market, with inventory impairment provisions of approximately 44.5 billion yuan and financial asset impairment losses of 10.5 billion yuan

- Country Garden's 2025 financial report shows a turnaround with revenues of approximately 154.9 billion yuan and net profits of 1.5 billion yuan, following a significant debt restructuring.  
- The company's total assets reached about 812.1 billion yuan, while total liabilities decreased to 767.9 billion yuan after the restructuring, improving financial stability.  
- Analysts view Country Garden's recovery as a positive signal for the real estate sector, and anticipate that the company will gradually shift towards normal operations while maintaining cash flow and profitability.

腾讯新闻 - 财经

COUNTRY GARDEN

China Southern CSI All Share Real Estate ETF

Yinhua CSI Interior Real Estate Theme ETF

CG SERVICES

Guotai FTSE China China Enterprises Open All-Win ETF

The operational turning point is approaching, and COUNTRY GARDEN announces "second entrepreneurship"