Country Garden (02007) released its 2026 interim results on August 28, recording total revenue of approximately RMB 44.1 billion. Although the company remains in a stage of periodic losses, the shortfall narrowed by about 16.3% compared to the same period last year. Its total assets stood at roughly RMB 745.5 billion, with net assets of approximately RMB 31 billion, maintaining a positive position.
According to the interim report, the main factors impacting profitability include: first, as the group enters the final phase of housing delivery guarantees, the sharp reduction in deliveries during the period led to lower revenue; second, the inherent lag in revenue recognition for property developers meant that projects with previously high land costs were booked in an environment of price cuts and inventory reduction, negatively affecting profits; third, amid multiple adverse factors such as the macroeconomic climate, industry conditions, and the negative financial status of counterparties, the company made provisions of approximately RMB 6.2 billion for inventory impairment and roughly RMB 3.8 billion for impairments on financial assets and financial guarantees; fourth, other income and gains of about RMB 4.1 billion were recorded, primarily from changes in fair value of financial liabilities measured at fair value through profit or loss and debt restructuring gains. Meanwhile, strict cost controls were maintained, with selling and administrative expenses falling to roughly RMB 3.2 billion in the first half, down 19.7% year-on-year.
From January to June 2026, Country Garden achieved cumulative contracted sales of approximately RMB 14.25 billion on an equity basis, with equity sales area of about 1.825 million square meters. This sales trend is broadly in line with national data for new commercial housing sales as reported by the National Bureau of Statistics. The company stated that its sales have remained relatively stable and are progressing steadily according to its operational pace.
Notably, according to CRIC data, Country Garden has returned to the top ten in China's property developer ranking by gross floor area under management for the January-July 2026 period. This reflects its resilience amid the dual pressures of ensuring housing delivery and stabilizing sales. Driven by both policy support and the release of pent-up demand, structural bottoming-out and recovery in regional markets are becoming evident. Provinces such as Guangdong, Jiangsu, and Henan stand out as key pillars supporting Country Garden's first-half performance, with projects in cities like Shaoguan, Huizhou, Taiyuan, Suzhou, and Haikou gaining market recognition for their product strength.
Credit restoration has also achieved a critical breakthrough. Following the effectiveness of its offshore debt restructuring, Country Garden completed two consecutive on-time payments in December last year and June this year, covering the first cash installment and the initial interest payment. In total, over RMB 2.8 billion in real cash has been disbursed, aimed at repairing its overseas credit fundamentals and improving valuation expectations in offshore markets.
The company's "One Body, Two Wings" strategy is also being implemented smoothly. As one of the "two wings," Phoenix Zhituo Construction Management leverages its full-industry-chain advantages, adding new full-process entrusted management service projects in the first half, including the Hubei Badong Haituo Binjiangfu residential development, a commercial land parcel in Xiaoxian, Anhui, and the Guangzhou AI Cloud Valley Industrial Park. It has also extended its reach into urban ancillary service upgrades, undertaking renovation projects for a well-known international school and high school campus in South China, efficiently completing comprehensive facility enhancements during the 40-day summer vacation window. To date, it has taken on more than 200 entrusted management and construction projects.
The "other wing," Tengyue Construction Technology, continues to deepen its intelligent construction system that integrates construction robots, new prefabricated construction, and BIM digitalization. Currently, 28 types of construction robots have entered commercial application, with cumulative deliveries exceeding 5,200 units and application area surpassing 40 million square meters. While the "two wings" and other businesses expand outward, Country Garden is also strengthening its internal foundation to build a pivot for transition. Under the leadership of Board Chairperson Yang Huiyan, the company established a Product R&D and Design Special Project Team (PMO) and an AI Efficiency Enhancement Special Project Team (PMO) in the first half of the year. After more than six months of intensive development, both initiatives have delivered quantifiable results.
The Product R&D and Design PMO has formed a research and development ecosystem covering six core areas: working mechanism establishment, materials library renewal, new project review, modular R&D, case library and product intelligence AI, and activation of legacy project product strength. In the first half, it completed 10 space module research projects, with pilot projects launched in Guangdong and Yunnan. The AI Efficiency Enhancement PMO, drawing on Country Garden's long-term investment in digital capability building, has successfully constructed an AI Agent underlying technology architecture and foundational development platform with self-expansion capabilities, achieving deep integration with the enterprise's collaborative office ecosystem. In the first batch, high-value AI Agent applications have been incubated and deployed across core lifecycle scenarios including design, engineering, operations, marketing, customer service, finance, legal, and human resources, delivering cost savings and efficiency gains.
Industry analysts note that over the past few years, Country Garden has fought two critical battles: ensuring delivery of over 1.85 million units over four years, and completing a debt restructuring that reduced overall debt by more than RMB 90 billion. With the housing delivery guarantee task gradually winding down and the debt restructuring successfully implemented, the most significant and urgent pressures on the company have been alleviated. Country Garden's transition from "risk resolution" to "operational recovery" could serve as an important reference for private developers navigating the industry cycle during the market clearing phase, boosting market confidence and injecting critical momentum into the stabilization and recovery of the property market under policy support.
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