Key Takeaways:
- Net loss narrowed 18 percent to RMB 15.62 billion in H1 2026
- Revenue fell 39 percent to RMB 44.08 billion as deliveries slowed
- Auditor declined to express a conclusion on interim statements
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Country Garden narrows H1 loss to RMB 15.6 billion as sales slide
Country Garden Holdings reported a first-half net loss of RMB 15.62 billion, narrowing 18 percent from a year earlier as revenue fell 39 percent.
"The group has substantially reduced interest-bearing liabilities and significantly optimized the maturity profile of its outstanding debt," Country Garden said in its interim report, adding that it will focus on home deliveries and operations.
Revenue totaled RMB 44.08 billion in the six months ended June 30, down 39.3 percent year on year, while gross loss narrowed to RMB 5.99 billion from RMB 6.46 billion. Loss per share was RMB 0.37, and the board resolved not to declare an interim dividend. Contracted sales attributable to shareholders reached RMB 14.25 billion, corresponding to 1.825 million square meters of gross floor area.
The narrower loss stemmed primarily from reduced interest expenses and smaller asset impairment charges after debt restructuring, rather than any recovery in core profitability. The independent auditor declined to express a conclusion on the interim financial statements, citing material uncertainties over going-concern viability and balance-sheet transparency.
Country Garden's offshore debt restructuring plan covering about $17.7 billion took effect Dec. 30, 2025, and restructuring proposals for nine onshore corporate bonds with aggregate principal of about RMB 13.77 billion were approved during 2025. The group exercised a cash buyback option capped at RMB 450 million in February, completing the repurchase in April.
The developer, which defaulted on its U.S. dollar bonds in October 2023, has delivered more than 1.85 million units over the past four years and cut total debt by more than RMB 90 billion. Total assets stood at RMB 7.455 trillion, with net assets of RMB 31 billion remaining positive. Inventory impairment provisions reached about RMB 6.2 billion, alongside RMB 3.8 billion in impairment losses on financial assets and guarantees, while sales and management expenses fell 19.7 percent to about RMB 3.2 billion.
The results show Country Garden remains far from a core-profitability recovery, with revenue still contracting as China's property market stays subdued in the third- and fourth-tier cities where much of its portfolio sits. Investors will watch the company's full-year results and progress on remaining restructuring options, including equity and general creditor options, for signs of a durable turnaround.
This article is for informational purposes only and does not constitute investment advice.
