Shen Zhen Shang Bao·2026-03-31 06:31Core Viewpoint - After three consecutive years of losses, Country Garden has finally returned to profitability, primarily due to non-cash gains from debt restructuring, despite ongoing revenue decline and operational challenges [1][2]. Financial Performance - In 2025, Country Garden reported revenue of approximately 154.9 billion yuan, with a net profit of 1.62 billion yuan and a profit attributable to shareholders of about 3.26 billion yuan [1]. - The company experienced a significant decline in revenue, with a 38.7% drop from 2024, continuing a trend of decreasing revenue from 523.1 billion yuan in 2021 to 154.9 billion yuan in 2025 [1]. - The net profit for 2022 to 2024 showed losses of 6.05 billion yuan, 178.4 billion yuan, and 32.83 billion yuan, respectively, indicating a challenging financial environment prior to 2025 [1]. Debt Restructuring - The core reason for the turnaround in performance was the completion of debt restructuring, with approximately 17.7 billion USD of offshore debt restructuring approved by the Hong Kong High Court, effective December 30, 2025 [2]. - Total liabilities decreased to 767.9 billion yuan by the end of 2025, down 216.7 billion yuan from 2024, with interest-bearing debt reduced by 1.055 billion yuan, a 42% decrease [2]. Operational Challenges - Despite the return to profitability, Country Garden continues to face significant challenges, including pressure on sales, ongoing legal disputes, and negative public sentiment affecting brand reputation [3]. - The company has implemented a comprehensive self-rescue strategy focused on "ensuring housing delivery, stabilizing finances, and maintaining operations," which has yielded some positive results [3]. Employee Management - Recent rumors regarding a "large-scale recall of former employees" have drawn public attention, although the company clarified that its internal policy for re-hiring former employees has been in place for years and was last revised in January [4].