Country Garden reports significant half-year loss amid debt restructuring

Country Garden Holdings Company Limited reported a net loss of 19.65 bn yuan for the six months ended 30 June 2025, with a loss attributable to owners of the company of 19.08 bn yuan. This marks a significant increase from the 15.064 bn yuan loss in the corresponding period of 2024. Revenue decreased by 28.9% year-on-year to 72.57 bn yuan. The group and its joint ventures and associates achieved contracted sales attributable to shareholders of 16.75 bn yuan, delivering approximately 74,000 housing units.

As of 30 June 2025, the group's total assets stood at 909.328 bn yuan, down from 1,035.843 bn yuan at 31 December 2024. Net current liabilities amounted to 43.657 bn yuan, and total borrowings reached 254.583 bn yuan, of which 222.354 bn yuan were current liabilities. The capital gearing ratio rose to 90.6% from 81.4% at 31 December 2024.

The company is actively pursuing an offshore debt restructuring, with key terms agreed upon and holders representing over 77% of the aggregate principal amount of public notes acceding to the restructuring agreement as of 18 August 2025. This aims to reduce debt by up to $11.7 bn and extend maturities by up to 11 years.