Country Garden (02007) released audited 2025 results showing a headline turnaround to RMB1.62 bn profit after two years of heavy losses, driven mainly by an RMB85.82 bn gain from offshore and onshore debt restructuring. Profit attributable to shareholders reached RMB3.26 bn.
Revenue fell 38.70 % yoy to RMB154.89 bn as delivered gross floor area (GFA) dropped and unit prices softened. Contracted sales attributable to shareholders declined to RMB33.01 bn on 4.02 m sq m GFA. The average recognised selling price on delivered projects was RMB6,908 per sq m.
Cost-cutting helped trim selling, marketing and administrative expenses by 15.70 % to RMB9.09 bn, yet the company still posted a RMB43.12 bn gross loss after booking RMB44.51 bn write-downs on inventories and RMB10.53 bn impairment losses on financial assets.
Debt restructuring • Offshore plan covering USD17.70 bn became effective on 30 Dec 2025, cancelling existing notes, loans and convertible bonds in exchange for new instruments including senior notes, term loans, mandatory convertible bonds (MCBs) and warrants. • Onshore proposal covering RMB13.77 bn across nine bond tranches was fully approved; options for cash repurchase, share conversion or creditor claims begin in 2026. • Total borrowings fell to RMB147.96 bn (2024: RMB253.49 bn). About RMB107.61 bn is classified as current, and RMB74.05 bn remains in default or cross-default.
Liquidity and leverage Cash and restricted cash shrank to RMB18.65 bn (2024: RMB29.90 bn). Capital gearing improved to 74.5 % (2024: 81.4 %), helped by debt extinguishment. However, the auditor issued a disclaimer of opinion citing “material uncertainties” over the group’s ability to continue as a going concern, given reliance on asset sales, creditor negotiations and market recovery.
Operations Country Garden and its affiliates delivered roughly 170,000 housing units totaling 19.82 m sq m across 204 cities. The “One Core, Two Wings” strategy advanced, with over 5,000 construction robots delivered by tech arm Bright Dream Robotics.
Outlook Management will prioritise “high-quality delivery, risk mitigation, asset and liability restoration, and sustainable operations” in 2026, the first year of China’s 15th Five-Year Plan. Focus areas include completing debt-restructuring execution, maintaining positive operating cash flow, and expanding technology-driven businesses amid an industry shift toward quality-focused development.
No final dividend was proposed for 2025.
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