Country Garden's revenue in 2025 is 154.9 billion yuan, successfully turning losses into profits

On March 30th, Country Garden (02007.HK) released its 2025 annual report, showing that in 2025, Country Garden achieved operating revenue of approximately 154.9 billion yuan and a net profit of 1.6 billion yuan, successfully turning losses into profits and signaling a key breakthrough. The rights contract sales amount was about 33.01 billion yuan, with a rights sales area of approximately 4.02 million square meters; after debt restructuring, interest-bearing liabilities decreased by about 105.5 billion yuan compared to the end of 2024; by the end of 2025, total assets were approximately 812.1 billion yuan, and net assets were about 44.3 billion yuan. Meanwhile, a total of about 170k houses were delivered during 2025, and from 2023 to 2025, nearly 1.15 million houses were delivered cumulatively, with delivery volume consistently ranking first in third-party industry lists.

Analysts pointed out that provisions for inventory and accounts receivable allowances for impairment and bad debts were made based on the principle of accounting prudence, representing a cautious approach. Although Country Garden’s gross loss widened in 2025, this should not be simply interpreted as a decline in operational performance; mainly, it was due to large impairment provisions for inventory. Excluding these impairment impacts, the company’s gross profit remained positive.

In February and March this year, Country Garden was successively included in the MSCI China Small Cap Index and the FTSE Russell Global Small Cap Equity Index, two major global indices, gaining recognition from international capital markets, while the proportion of southbound funds holding shares continued to rise. These developments are seen as key votes of confidence from investors regarding a turnaround and revaluation of Country Garden’s challenges.