Country Garden Holdings (Country Garden) released its 2026 interim report, highlighting a challenging first half marked by steep revenue contraction, persistent losses and continued liquidity stress despite progress on on- and offshore debt restructurings.
Revenue and Profitability • Consolidated revenue fell 39.30% year-on-year to RMB 44.08 billion, driven by a 39.50% drop in property-development turnover to RMB 42.36 billion and a 67.70% decline in technology-enabled construction revenue to RMB 0.47 billion. • Group gross loss narrowed slightly to RMB 5.99 billion (H1 2025: RMB 6.46 billion) after a RMB 6.17 billion net write-down on inventories. Excluding this write-down, gross profit would have been RMB 0.18 billion. • Net finance costs rose 45.24% to RMB 2.39 billion, reflecting lower capitalised interest and higher foreign-exchange gains of RMB 0.92 billion. • Net loss attributable to shareholders stood at RMB 15.62 billion, versus RMB 19.08 billion a year earlier.
Operating Metrics • Attributable contracted sales totalled RMB 14.25 billion, representing 1.83 million sq.m. of gross floor area. Roughly 64% of mainland sales originated from projects in lower-tier cities. • Mainland landbank (attributable GFA) reached 87.96 million sq.m.; 76% is located outside Guangdong province. • Technology-enabled construction subsidiary Bright Dream Robotics has delivered 5,200+ robots covering 40 million sq.m. across 1,600 projects. Phoenix Management Company manages nearly 20 million sq.m. under 200+ projects.
Balance-Sheet and Liquidity • Total cash (cash & restricted deposits) declined to RMB 16.68 billion from RMB 18.65 billion at year-end 2025; unrestricted cash was RMB 5.74 billion. • Total borrowings dropped 3.58% to RMB 142.66 billion; current portion represents 71.19% of total debt. • Capital gearing ratio (net debt to total capital) increased to 80.30% (31 Dec 2025: 74.50%). • RMB 82.40 billion of borrowings were in default or cross-default as of 30 June 2026.
Debt Restructuring Progress • Offshore restructuring of USD 17.70 billion became effective on 30 December 2025; subsequent conversions cut MCB (A) by USD 3.78 billion and MCB (C) in full. • Onshore bondholders approved restructuring of RMB 13.77 billion across nine issues in 2025; a RMB 0.45 billion cash repurchase of RMB 3.75 billion principal completed in April 2026. • Fair-value gains of RMB 3.23 billion from re-measurement of financial liabilities and RMB 1.62 billion from onshore bond repurchase supported other gains in H1 2026.
Going-Concern and Audit Review • Auditor Zhonghui Anda issued a disclaimer of conclusion on the interim results, citing material uncertainties around liquidity, debt-repayment ability and reliance on successful execution of management’s mitigation plans. • Management maintains a going-concern assumption based on expected cash generation, further debt extensions, asset disposals, cost controls and resolution of litigation cases.
Operational Priorities for H2 2026 Country Garden will: 1. Prioritise project completion and property delivery. 2. Continue executing onshore and offshore debt restructuring options. 3. Pursue asset disposals and revitalisation to bolster liquidity. 4. Strengthen product, service and cost competitiveness while advancing AI-driven construction technologies.
No interim dividend was declared for H1 2026.