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wrote a column · Mar 31 19:52

Country Garden (02007.HK) Releases 2025 Earnings: From Losses to Profit, Navigating Through the Real Estate Cycle?

On March 30, $COUNTRY GARDEN (02007.HK)$ The release of the 2025 annual performance shows that the company achieved a turnaround from losses to profitability during a period of deep industry adjustment. It has become one of the leading private real estate enterprises to complete systematic debt restructuring both domestically and internationally while achieving profitability, signaling an important clearance of risks. Annual report data shows that in 2025, Country Garden achieved total revenue of 154.89 billion yuan (RMB, same below), a year-over-year decrease of 38.7%; shareholder equity contract sales amounted to 33.01 billion yuan, with a sales area of 4.02 million square meters. Meanwhile, the company strictly controlled costs, reducing marketing and administrative expenses by 15.7% year-over-year in 2025, steadily improving operational efficiency. The net profit for the full year was 1.62 billion yuan, and the attributable net profit was 3.26 billion yuan, marking a significant reversal from the substantial losses incurred in 2024. In terms of operations, Country Garden adhered to its bottom line of ensuring delivery. In 2025, the company delivered approximately 170,000 housing units, covering a delivery area of 19.82 million square meters across 28 provinces and 204 cities; from 2023 to 2025, the cumulative deliveries over three years were nearly 1.15 million units, maintaining the top position in the industry in terms of delivery scale. Debt restructuring also achieved a historic breakthrough. In December 2025, the company's approximately 17.7 billion US dollars of offshore debt restructuring officially took effect, and all nine domestic bonds totaling 13.77 billion yuan were approved for restructuring. Country Garden stated that after the restructuring, the cost of new debt financing significantly decreased, with maturities notably extended. Significant progress in liability optimization: As of the end of last year...
On March 30, $COUNTRY GARDEN (02007.HK)$ The release of the 2025 annual performance shows that the company achieved a turnaround from losses to profitability during a period of deep industry adjustment. It has become one of the leading private real estate enterprises to complete systematic debt restructuring both domestically and internationally while achieving profitability, signaling an important clearance of risks.
Annual report data shows that in 2025, Country Garden achieved total revenue of 154.89 billion yuan (RMB, same below), a year-over-year decrease of 38.7%; shareholder equity contract sales amounted to 33.01 billion yuan, with a sales area of 4.02 million square meters. Meanwhile, the company strictly controlled costs, reducing marketing and administrative expenses by 15.7% year-over-year in 2025, steadily improving operational efficiency. The net profit for the full year was 1.62 billion yuan, and the attributable net profit was 3.26 billion yuan, marking a significant reversal from the substantial losses incurred in 2024.
In terms of operations, Country Garden adhered to its bottom line of ensuring delivery. In 2025, the company delivered approximately 170,000 housing units, covering a delivery area of 19.82 million square meters across 28 provinces and 204 cities; from 2023 to 2025, the cumulative deliveries over three years were nearly 1.15 million units, maintaining the top position in the industry in terms of delivery scale.
Historic breakthroughs have also been achieved in debt restructuring. In December 2025, the company's approximately $17.7 billion offshore debt restructuring officially took effect, with all nine onshore bond restructurings totaling 13.77 billion yuan approved. Country Garden stated that after the restructuring, the cost of new debt financing significantly decreased, and the maturity was substantially extended.
Outstanding results were seen in liability optimization: by the end of last year, the company’s total liabilities fell from 984.6 billion yuan to 767.9 billion yuan, with interest-bearing liabilities also dropping significantly.
On March 31, Country Garden’s share price slightly dropped by 1.56%, closing at HK$0.315 per share, with a market value of HK$13.44 billion.
Analysts noted that Country Garden’s turnaround from losses to profits marks a significant milestone in risk resolution for private real estate developers, with its restructuring experience offering industry-wide reference. However, book profits do not equate to full operational recovery; further reliance on sales recovery, asset revitalization, and meticulous operations is needed to rebuild stable cash flow and profitability to truly navigate through industry cycles.
Author: Flying Fish
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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