On the evening of March 30, Country Garden (02007.HK)’s 2025 annual report was officially released. After undergoing deep industry adjustment, in 2025 Country Garden achieved operating revenue of RMB 154.89 billion, attributable net profit of RMB 3.26 billion, becoming one of the privately owned real estate companies that was among the first to complete systematic debt restructuring and achieve accounting profitability.
Judging from Country Garden’s financial reports over the past four years, 2025 was also its best-performing year. In 2022, Country Garden’s annual report net profit turned negative for the first time since the listing, with attributable net profit losing RMB 6.052 billion. Thereafter, in 2023 and 2024 it recorded losses of RMB 178.400 billion and RMB 32.835 billion, respectively. This turnaround into profit is evidently a sign of improvement in financial performance.
Reducing interest-bearing liabilities by nearly 100 billion
Looking through Country Garden’s 2025 financial report, “debt restructuring” is undoubtedly the most core keyword.
Country Garden also stated in its announcement that the core reason for turning the performance from loss to profit this time is the non-cash gains recorded from completing its debt restructuring.
In 2025, Country Garden pushed forward debt restructuring both domestically and overseas with full force. Among them, an overseas debt restructuring proposal involving approximately USD 17.7 billion was approved by the High Court of Hong Kong, and officially took effect on December 30, 2025. Both new debt and equity instruments have been issued. The domestic restructuring also landed smoothly. It will sequentially initiate cash repurchases, stock options and general creditor options. Currently, the company has started the cash repurchase procedure with an upper limit of RMB 450 million, and the company expects to complete it in April this year.
Different from the common practice of extending debt maturities, the core operation of Country Garden’s current debt restructuring is to replace existing debt through the issuance of mandatory convertible bonds with a total amount of up to approximately USD 13.0 billion and capitalized shares of up to 15.5 billion shares. The total debt amount will be reduced significantly.
By the end of 2025, Country Garden’s total liabilities were RMB 767.9 billion, down significantly from RMB 984.6 billion at the end of 2024, a reduction of RMB 216.7 billion. Among them, the interest-bearing liabilities at year-end 2025 were RMB 148.0 billion, down RMB 105.5 billion from RMB 253.5 billion at year-end 2024, a decline of 42%.
“This is a very positive signal.” Yan Yuejin, deputy director of the Shanghai E-house Real Estate Research Institute, said, “From the report, this data is closely related to the accounting effects brought about by debt restructuring. Restructuring enabled the company to achieve accounting profitability. This has positive effects on the capital market operation, daily operations, and the company’s image.”
However, if the impact of restructuring gains is excluded, Country Garden still recorded a loss in 2025. “This is mainly due to industry impacts. The company’s development business gross margin is under pressure, and it also further makes impairment provisions for several assets and property projects.” Country Garden said.
For inventories (land and projects under construction) corresponding to existing projects, Country Garden made a full-year provision of approximately RMB 44.5 billion. At the same time, affected by multiple unfavorable factors such as the macroeconomic environment, industry conditions, and the negative financial conditions of counterparties, Country Garden also made impairment losses of RMB 10.5 billion on financial assets and financial guarantees.
Delivery volume over the past three years is close to 1.15 million units
Securing deliveries remains an important task for Country Garden. In 2025, the company cumulatively completed the delivery of approximately 170,000 housing units, with a cumulative delivered area of approximately 19.82 million square meters, involving 204 cities. From 2023 to 2025, the cumulative delivery total is nearly 1.15 million units, and the delivery volume has continued to rank at the top of the industry.
Over the past three years, Country Garden has almost reallocated all resources to focus on the task of “delivering properties.” The pace of issuing sales resources for new projects has, to some extent, also been affected. The annual report shows that in 2025, the amount of equity contract sales was approximately RMB 33.01 billion, and the equity sales area was approximately 4.02 million square meters.
Although the real estate industry as a whole is under pressure, Country Garden still has strong influence in its home base of Guangdong. Taking the Shaoguan market as an example, based on full-coverage data for 2025, Country Garden ranked first among local real estate developers by sales amount of RMB 2.146 billion.
Since 2026, the real estate market as a whole has also shown signs of stabilizing and recovering. According to data from China Index Academy (CRIC), in the rankings of China real estate developers’ equity sales amount and transaction/promotion area for January to February 2026, Country Garden has been included in the top ten.
Country Garden’s president Cheng Guangyu said that March to April this year will be an important observation window. He requires all staff to deploy and arrange around the key milestones of the “Spring Thunder Action” in March to April, and to systematically advance sales work.
Meng Xinzeng, a senior analyst at Centaline China Index (Centaline Research Institute), believes that entering 2026, a clear “stable expectations” signal has been released at the policy level. In early 2026, multiple specific measures have already been implemented, including extending the home-buying exchange tax refund policy, extending loans for whitelist projects and structural interest rate cuts, and supporting urban renewal, aiming to coordinate efforts from both the demand side and the financing side to boost market confidence. Overall, real estate policies have entered a new stage with the goals of “stabilizing expectations” and “shortening the adjustment period.”
Light-asset business warms up
The Securities Times reporter noted that amid pressure on the heavy-asset real estate main business, Country Garden’s light-asset businesses represented by asset management on behalf of others and commercial property management have shown a clear warming-up trend.
In the “golden era” of the real estate industry, the return on investment for asset management on behalf of others was relatively not high, making it a rather marginal business. Now, however, this business has instead become an important source of “blood production” for Country Garden.
“Up to December 2025, Phoenix Zhituo has cumulatively undertaken more than 200 asset management on behalf of others and projects it manages. The cumulative managed area is nearly 20 million square meters. Currently, there are nearly 20 projects under management for such management and development. The managed development area is nearly 3 million square meters, with an on-sale transaction value of about more than RMB 30 billion, covering 20 cities nationwide.” a person in charge of Phoenix Zhituo introduced.
In addition to asset management on behalf of others and projects it manages, Country Garden’s other light-asset commercial property management business has also made positive progress over the past one and a half years.
A person in charge of Country Garden’s commercial property management business introduced that from 2024 to date, Country Garden’s commercial property management added 231,000 square meters of managed area. Among them, the long-term rental apartment brand “Biju Apartment” added more than 2,400 units of new supply, and the management scale is close to 30,000 units.
“Looking at long-term rental apartments, currently almost all individual projects are in a profitable state. For the future, we will not focus on the number of projects. Instead, we will focus more on whether we can continuously do each project well, steadily improving our systematized operation capability.” the person in charge said.
“Second entrepreneurship” is underway
In November 2025, after Country Garden’s debt restructuring was settled, board chair Yang Huiyan first put forward the concept of “second entrepreneurship.” “Passing the restructuring is creditors’ recognition of the company’s future, and it will give the company more flexible space to restore normal operations. Next is to systematically advance the ‘transitional period.’ The transitional period is not only a transformation, but also Country Garden’s ‘second entrepreneurship.’” Yang Huiyan said.
In March of this year, Country Garden held a monthly management meeting, and the term “transitional period” was mentioned again. Yang Huiyan said, “Since March 2025, we have gone out, and through exchanges with companies in the same industry and across industries, we have deeply explored new development models under changes in the industry situation. We will also prepare for the key transitional period in 2026 by prioritizing delivering properties, focusing on debt restructuring, and putting securing main entities first.”
In 2026, Yang Huiyan has positioned it as “the most critical year for Country Garden to transition from delivering properties to normal operations.” Yang Huiyan said candidly, “Only by firmly implementing all work for 2026 can we lay a solid foundation for high-quality development over the next 3 to 5 years, and achieve Country Garden’s second growth.”
Recently, rumors in the market claimed that Country Garden “massively recalled departed employees.” Previously, the Securities Times reporter learned from Country Garden that the “Administrative Measures for Rehiring Resigned Personnel” has long existed within the company. It is revised every year according to policy developments. The latest revision took place in January this year, not a newly issued policy. In addition, according to information available to the reporter, Country Garden currently does not have major centralized hiring actions in the short term, either overall or focused on a particular business segment. The main work is filling positions as normal.
Yan Yuejin pointed out that this move by Country Garden has indicator significance. “This is a signal that, after its deep adjustment, the company’s business focus has undergone a substantive shift. It is currently working to add resources and support for existing businesses, and is gradually entering the reshaping stage of ‘operational recovery.’”
According to Country Garden’s 2025 annual report, as of the end of 2025, the company’s total number of employees was 14.1 thousand, down about 3.8 thousand from 17.9 thousand at the mid-point of 2025.
In addition, according to the adjustment results announced by MSCI, Country Garden was officially included in the MSCI China Small Cap Index, and it became effective on February 27. On March 20, Country Garden’s inclusion in the FTSE Russell Global Equity Index Series officially took effect. By March 21, the proportion of Country Garden held by mainland investors through the Stock Connect program had risen to 17.7%, up 2.4 percentage points from 15.3% at the end of 2025.
碧桂园債務再編成功扭虧為盈，有息負債下降逾1000億
The Securities Times reporter Li Yingquan
On the evening of March 30, Country Garden (02007.HK)’s 2025 annual report was officially released. After undergoing deep industry adjustment, in 2025 Country Garden achieved operating revenue of RMB 154.89 billion, attributable net profit of RMB 3.26 billion, becoming one of the privately owned real estate companies that was among the first to complete systematic debt restructuring and achieve accounting profitability.
Judging from Country Garden’s financial reports over the past four years, 2025 was also its best-performing year. In 2022, Country Garden’s annual report net profit turned negative for the first time since the listing, with attributable net profit losing RMB 6.052 billion. Thereafter, in 2023 and 2024 it recorded losses of RMB 178.400 billion and RMB 32.835 billion, respectively. This turnaround into profit is evidently a sign of improvement in financial performance.
Reducing interest-bearing liabilities by nearly 100 billion
Looking through Country Garden’s 2025 financial report, “debt restructuring” is undoubtedly the most core keyword.
Country Garden also stated in its announcement that the core reason for turning the performance from loss to profit this time is the non-cash gains recorded from completing its debt restructuring.
In 2025, Country Garden pushed forward debt restructuring both domestically and overseas with full force. Among them, an overseas debt restructuring proposal involving approximately USD 17.7 billion was approved by the High Court of Hong Kong, and officially took effect on December 30, 2025. Both new debt and equity instruments have been issued. The domestic restructuring also landed smoothly. It will sequentially initiate cash repurchases, stock options and general creditor options. Currently, the company has started the cash repurchase procedure with an upper limit of RMB 450 million, and the company expects to complete it in April this year.
Different from the common practice of extending debt maturities, the core operation of Country Garden’s current debt restructuring is to replace existing debt through the issuance of mandatory convertible bonds with a total amount of up to approximately USD 13.0 billion and capitalized shares of up to 15.5 billion shares. The total debt amount will be reduced significantly.
By the end of 2025, Country Garden’s total liabilities were RMB 767.9 billion, down significantly from RMB 984.6 billion at the end of 2024, a reduction of RMB 216.7 billion. Among them, the interest-bearing liabilities at year-end 2025 were RMB 148.0 billion, down RMB 105.5 billion from RMB 253.5 billion at year-end 2024, a decline of 42%.
“This is a very positive signal.” Yan Yuejin, deputy director of the Shanghai E-house Real Estate Research Institute, said, “From the report, this data is closely related to the accounting effects brought about by debt restructuring. Restructuring enabled the company to achieve accounting profitability. This has positive effects on the capital market operation, daily operations, and the company’s image.”
However, if the impact of restructuring gains is excluded, Country Garden still recorded a loss in 2025. “This is mainly due to industry impacts. The company’s development business gross margin is under pressure, and it also further makes impairment provisions for several assets and property projects.” Country Garden said.
For inventories (land and projects under construction) corresponding to existing projects, Country Garden made a full-year provision of approximately RMB 44.5 billion. At the same time, affected by multiple unfavorable factors such as the macroeconomic environment, industry conditions, and the negative financial conditions of counterparties, Country Garden also made impairment losses of RMB 10.5 billion on financial assets and financial guarantees.
Delivery volume over the past three years is close to 1.15 million units
Securing deliveries remains an important task for Country Garden. In 2025, the company cumulatively completed the delivery of approximately 170,000 housing units, with a cumulative delivered area of approximately 19.82 million square meters, involving 204 cities. From 2023 to 2025, the cumulative delivery total is nearly 1.15 million units, and the delivery volume has continued to rank at the top of the industry.
Over the past three years, Country Garden has almost reallocated all resources to focus on the task of “delivering properties.” The pace of issuing sales resources for new projects has, to some extent, also been affected. The annual report shows that in 2025, the amount of equity contract sales was approximately RMB 33.01 billion, and the equity sales area was approximately 4.02 million square meters.
Although the real estate industry as a whole is under pressure, Country Garden still has strong influence in its home base of Guangdong. Taking the Shaoguan market as an example, based on full-coverage data for 2025, Country Garden ranked first among local real estate developers by sales amount of RMB 2.146 billion.
Since 2026, the real estate market as a whole has also shown signs of stabilizing and recovering. According to data from China Index Academy (CRIC), in the rankings of China real estate developers’ equity sales amount and transaction/promotion area for January to February 2026, Country Garden has been included in the top ten.
Country Garden’s president Cheng Guangyu said that March to April this year will be an important observation window. He requires all staff to deploy and arrange around the key milestones of the “Spring Thunder Action” in March to April, and to systematically advance sales work.
Meng Xinzeng, a senior analyst at Centaline China Index (Centaline Research Institute), believes that entering 2026, a clear “stable expectations” signal has been released at the policy level. In early 2026, multiple specific measures have already been implemented, including extending the home-buying exchange tax refund policy, extending loans for whitelist projects and structural interest rate cuts, and supporting urban renewal, aiming to coordinate efforts from both the demand side and the financing side to boost market confidence. Overall, real estate policies have entered a new stage with the goals of “stabilizing expectations” and “shortening the adjustment period.”
Light-asset business warms up
The Securities Times reporter noted that amid pressure on the heavy-asset real estate main business, Country Garden’s light-asset businesses represented by asset management on behalf of others and commercial property management have shown a clear warming-up trend.
In the “golden era” of the real estate industry, the return on investment for asset management on behalf of others was relatively not high, making it a rather marginal business. Now, however, this business has instead become an important source of “blood production” for Country Garden.
“Up to December 2025, Phoenix Zhituo has cumulatively undertaken more than 200 asset management on behalf of others and projects it manages. The cumulative managed area is nearly 20 million square meters. Currently, there are nearly 20 projects under management for such management and development. The managed development area is nearly 3 million square meters, with an on-sale transaction value of about more than RMB 30 billion, covering 20 cities nationwide.” a person in charge of Phoenix Zhituo introduced.
In addition to asset management on behalf of others and projects it manages, Country Garden’s other light-asset commercial property management business has also made positive progress over the past one and a half years.
A person in charge of Country Garden’s commercial property management business introduced that from 2024 to date, Country Garden’s commercial property management added 231,000 square meters of managed area. Among them, the long-term rental apartment brand “Biju Apartment” added more than 2,400 units of new supply, and the management scale is close to 30,000 units.
“Looking at long-term rental apartments, currently almost all individual projects are in a profitable state. For the future, we will not focus on the number of projects. Instead, we will focus more on whether we can continuously do each project well, steadily improving our systematized operation capability.” the person in charge said.
“Second entrepreneurship” is underway
In November 2025, after Country Garden’s debt restructuring was settled, board chair Yang Huiyan first put forward the concept of “second entrepreneurship.” “Passing the restructuring is creditors’ recognition of the company’s future, and it will give the company more flexible space to restore normal operations. Next is to systematically advance the ‘transitional period.’ The transitional period is not only a transformation, but also Country Garden’s ‘second entrepreneurship.’” Yang Huiyan said.
In March of this year, Country Garden held a monthly management meeting, and the term “transitional period” was mentioned again. Yang Huiyan said, “Since March 2025, we have gone out, and through exchanges with companies in the same industry and across industries, we have deeply explored new development models under changes in the industry situation. We will also prepare for the key transitional period in 2026 by prioritizing delivering properties, focusing on debt restructuring, and putting securing main entities first.”
In 2026, Yang Huiyan has positioned it as “the most critical year for Country Garden to transition from delivering properties to normal operations.” Yang Huiyan said candidly, “Only by firmly implementing all work for 2026 can we lay a solid foundation for high-quality development over the next 3 to 5 years, and achieve Country Garden’s second growth.”
Recently, rumors in the market claimed that Country Garden “massively recalled departed employees.” Previously, the Securities Times reporter learned from Country Garden that the “Administrative Measures for Rehiring Resigned Personnel” has long existed within the company. It is revised every year according to policy developments. The latest revision took place in January this year, not a newly issued policy. In addition, according to information available to the reporter, Country Garden currently does not have major centralized hiring actions in the short term, either overall or focused on a particular business segment. The main work is filling positions as normal.
Yan Yuejin pointed out that this move by Country Garden has indicator significance. “This is a signal that, after its deep adjustment, the company’s business focus has undergone a substantive shift. It is currently working to add resources and support for existing businesses, and is gradually entering the reshaping stage of ‘operational recovery.’”
According to Country Garden’s 2025 annual report, as of the end of 2025, the company’s total number of employees was 14.1 thousand, down about 3.8 thousand from 17.9 thousand at the mid-point of 2025.
In addition, according to the adjustment results announced by MSCI, Country Garden was officially included in the MSCI China Small Cap Index, and it became effective on February 27. On March 20, Country Garden’s inclusion in the FTSE Russell Global Equity Index Series officially took effect. By March 21, the proportion of Country Garden held by mainland investors through the Stock Connect program had risen to 17.7%, up 2.4 percentage points from 15.3% at the end of 2025.