The year 2025 has been described by COUNTRY GARDEN as a crucial period for completing housing deliveries and normalizing operations. With this strategy in place, the company is pressing ahead with a sense of urgency.
Recently, COUNTRY GARDEN announced that in July 2025, it achieved contracted sales of approximately 2.26 billion yuan attributable to the company's shareholders' equity, with a contracted sales area of about 280,000 square meters. For the first seven months of the year, its cumulative attributable contracted sales stood at 16.51 billion yuan, a 15.42% decline from the 19.52 billion yuan recorded in the same period of 2024. The attributable contracted sales area reached 2.11 million square meters, down 10.71% year-on-year.
According to data from CRIC, COUNTRY GARDEN's operational sales from January to July 2025 totaled 18.81 billion yuan, ranking 19th. Its full-caliber sales amounted to 19.8 billion yuan, placing it 18th. The gap between operational and full-caliber sales figures, representing the "surface," and the attributable figures, representing the "core," is relatively narrow. This suggests that COUNTRY GARDEN currently has a high proportion of equity in its projects, indicating limited reliance on cooperative development or agency construction models. The high "quality" of the sales data implies that the conversion efficiency of its net operating cash flow attributable to the parent company is higher, enabling more effective allocation to debt repayment and project expenditures. This is a positive sign for both the company and its creditors. However, the decline in sales volume indicates that COUNTRY GARDEN still faces challenges amid the broader economic environment.
Where to Focus Next
COUNTRY GARDEN's current strategy emphasizes deep, hands-on control over projects at the grassroots level, employing various methods to boost efficiency. Leading the charge on project implementation is chairperson Yang Huiyan. Following a series of high-frequency property inspections and surveys, she has personally taken the lead in establishing a specialized Product Research and Design Task Force (PMO). This task force serves as a strategic project management body within the group, with its core responsibility being the systematic enhancement of product innovation and design quality. Yang Huiyan has instructed the PMO task force to coordinate comprehensive product optimization across all regional projects, covering aspects such as unit layouts and functionality, while simultaneously advancing supply chain restructuring and the iteration of new project development systems.
To ensure the efficiency of new project development, COUNTRY GARDEN is emphasizing the implementation of "three key meetings": the "Development Necessity Meeting," the "Product Planning Meeting," and the "Project Launch Meeting." These meetings are structured to be layered and tiered, with pre-established outcomes, to strengthen accountability at each stage. The company aims to "ensure every investment is used effectively," focusing on critical resources, fund utilization, and risk management. Under this strategy, the operation of many projects must be coordinated at the group level. For instance, potential "critical or difficult" projects must be promptly reported to the group for collective decision-making to prevent reactive responses that could escalate costs. Simultaneously, a "headquarters supervision plus on-site oversight" model is being implemented, with group senior management directly engaging at the frontline when necessary to create a unified force from top to bottom.
During the July management meeting, COUNTRY GARDEN's Co-Chairman Mo Bin reiterated that heads of business lines at the headquarters and regional project leaders must personally go to the frontline to "use specific points to drive the overall situation." Through on-site inspections, they must gain a true understanding of the status of each inventory and storage site. To proactively adapt to the transition, COUNTRY GARDEN has been deepening its organizational reforms since the first half of the year. This includes a deliberate effort to reshape organizational positioning and shift certain functions toward market-oriented, entity-based platforms. Concurrently, the company is reconstructing the evaluation system for its subsidiaries. Guided by a strategic focus, it is conducting multi-dimensional, dynamic assessments of systems such as its construction and management divisions to support the optimization of the main entity landscape.
Why the Urgency is Rising
This sense of urgency at COUNTRY GARDEN is likely driven by real-world pressures. Despite the formal activation of its $17.7 billion offshore debt restructuring plan at the end of last year, and the full approval of its 13.77 billion yuan onshore debt restructuring plan, these steps are not a permanent solution. The true implementation of debt resolution requires progress in the details. Its onshore issuing entity, "Country Garden Real Estate Group," publishes monthly updates on litigation and debt changes. According to its recent disclosure, in June, Country Garden Real Estate Group was involved in 27 new pending litigation or arbitration cases with individual subject amounts of more than 50 million yuan, with a total subject amount of approximately 3.913 billion yuan. However, during the same month, its default debt decreased by 742 million yuan (including defaults due to overdue principal or interest, litigation, non-performing status, or triggered cross-default clauses), reversing the trend of net debt increases seen over the previous five months.
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