Country Garden: Focus on stabilising capital, debt

Country Garden: Focus on stabilising capital, debt

Country Garden Holdings Company Limited has issued a bourse filing indicating that it expects its losses to increase significantly in the first half of 2025. The company projects a loss ranging from $3.33 billion (RMB 18.5 billion) to $3.87 billion (RMB 21.5 billion), compared to the $2.72 billion (RMB 15.1 billion) loss in the same period last year [1].

The projected loss is primarily attributed to a reduction in the scale of settlement for real estate development projects, with gross profit margins remaining low. Additionally, there is an increase in asset impairments related to real estate projects, considering the changes in the industry, market, and business environment [1].

Country Garden has been actively working to stabilise its production and operations by implementing a strategy of extreme income and expenditure, optimising resource utilisation, and establishing diverse dynamic mechanisms to strengthen its planning and operational management system. During the reporting period, the group and its joint ventures and associates delivered 74,000 housing units [1].

The company's debt risk resolution remains a key concern. Country Garden is facilitating various proactive debt management initiatives to achieve a long-term, sustainable, and healthy capital structure. The company has been in talks with creditors to restructure $14.1 billion of offshore debt since its default in 2023. Recent restructuring terms agreed upon with key bank creditors may ease the path for an overall debt deal [2].

Country Garden's focus on stabilising its capital and debt position is crucial in the face of China's prolonged property crisis, which has been weighing heavily on the embattled developer. The company's strategy aims to accelerate the development of core competencies aligned with the new real estate model and facilitate its timely return to a sustainable development cycle [1, 2].

References:
[1] https://sbr.com.sg/news/country-garden-expects-higher-loss-h1
[2] https://www.bloomberg.com/news/articles/2025-08-22/country-garden-warns-first-half-loss-may-widen-to-3-billion