Cai Jing Wang·2026-03-31 12:51Core Viewpoint - Country Garden has successfully turned a profit in 2025 after a significant debt restructuring, marking a recovery from previous losses and becoming one of the first private real estate companies to achieve this milestone in a challenging industry environment [1][3]. Financial Performance - In 2025, Country Garden reported a revenue of 154.89 billion yuan and a net profit attributable to shareholders of 3.26 billion yuan, making it the best-performing year in the last four years [1]. - The company experienced substantial losses in previous years, with net losses of 6.05 billion yuan in 2022, 178.4 billion yuan in 2023, and 32.83 billion yuan in 2024 [1]. - The total liabilities of Country Garden decreased significantly to 767.9 billion yuan by the end of 2025, down 216.7 billion yuan from 984.6 billion yuan at the end of 2024 [3]. Debt Restructuring - The core reason for the turnaround in performance is attributed to the non-cash gains from the completion of debt restructuring, which included a successful plan for approximately 17.7 billion USD of offshore debt approved by the Hong Kong High Court [3]. - The restructuring involved issuing up to 13 billion USD in mandatory convertible bonds and up to 15.5 billion shares to replace existing debt, leading to a significant reduction in interest-bearing debt, which fell by 1.055 billion yuan (42%) to 148 billion yuan by the end of 2025 [3][2]. Project Delivery and Sales - Country Garden delivered approximately 170,000 housing units in 2025, with a total delivery area of about 19.82 million square meters, maintaining its position as the industry leader in project delivery [5]. - The company achieved a contract sales amount of approximately 33.01 billion yuan in 2025, with a sales area of about 4.02 million square meters [5]. Market Position and Future Outlook - Despite the overall pressure on the real estate industry, Country Garden remains influential in its primary market of Guangdong, leading in sales in local markets such as Shaoguan [5]. - The company is preparing for a critical transition in 2026, focusing on normalizing operations and enhancing business recovery, as indicated by the chairman's emphasis on a "second entrepreneurship" following the debt restructuring [9][10]. Light Asset Business Growth - Country Garden's light asset businesses, including property management and commercial management, have shown significant recovery, with over 200 projects managed and nearly 20 million square meters under management as of the end of 2025 [7]. - The commercial management sector has also expanded, with the long-term rental apartment brand "Biji Apartment" adding over 2,400 new units, indicating a focus on profitability and operational efficiency [8].