China’s Country Garden set to post up to US$320 million profit after debt overhaul
The developer – once China’s largest home builder by sales – poised to swing from US$5 billion loss in 2024 to profit in 2025 on debt deal
The Guangdong province-based company may have posted net income between 1 billion yuan (US$145 million) and 2.2 billion yuan in 2025, according to a filing with the Hong Kong stock exchange on Monday night. That compares with a loss of about 35.2 billion yuan a year earlier.
Shares of the Chinese developer rallied 6.7 per cent to HK$0.32 in Hong Kong on Tuesday, paring its decline this year to 23 per cent. The Hang Seng Index has dropped 2.2 per cent in 2026.
The turnaround in earnings may signal that the worst is already behind what was once one of China’s biggest property companies. Country Garden rapidly fell from grace alongside China’s real-estate industry over the past few years after Beijing’s curbs on home prices and a worsening jobs market crippled demand for home purchases.
Excluding the factor of the debt revamp, Country Garden would still have reported a net loss last year, according to the filing. The loss was mainly due to pressure on gross profit margins in its development business, battered by industry conditions and further impairment provisions for certain assets and property projects, it said.