MOOMOO.COM: Country Garden (02007) reported revenue of RMB 44.1 billion and net assets of RMB 31.0 billion for the first half of 2026
2026.08.28
Pageviews：106According to Zhitong Finance APP, on August 28, Country Garden (02007) released its interim report for 2026, reporting operating revenue of approximately RMB 44.1 billion. Although the company remained in a phase of loss, the deficit narrowed by approximately 16.3% year-on-year. Total assets stood at approximately RMB 745.5 billion, with net assets of approximately RMB 31.0 billion, remaining positive.
According to the interim report, the main factors affecting profits were as follows: First, as the group entered the final stage of ensuring housing delivery, the significant reduction in current delivery volume led to a decline in operating revenue. Second, due to the lag in revenue recognition for real estate enterprises, projects with high land costs acquired earlier were recognized for revenue in a concentrated manner amid a price-cutting destocking environment, negatively impacting profits. Third, influenced by multiple adverse factors including the macroeconomic environment, industry conditions, and the negative financial status of counterparties, inventory impairment provisions of approximately RMB 6.2 billion were made, along with impairment losses of approximately RMB 3.8 billion for financial assets and financial guarantees. Fourth, other income and gains of approximately RMB 4.1 billion were recorded, primarily derived from changes in the fair value of financial liabilities measured at fair value through profit or loss, and gains from debt restructuring. Meanwhile, expenditures were strictly controlled, with selling and administrative expenses continuing to decline to approximately RMB 3.2 billion in the first half of the year, a year-on-year decrease of 19.7%.
From January to June 2026, Country Garden's cumulative contracted sales attributable to equity holders amounted to approximately RMB 14.25 billion, with attributable sales area of approximately 1.825 million square meters. Its sales trend was broadly synchronized with national new commercial housing sales as reported by the National Bureau of Statistics. Country Garden stated that its overall sales performance remained relatively stable and was progressing in an orderly manner according to operational rhythms.
Notably, according to data from CRIC, Country Garden returned to the top ten in the ranking of Chinese real estate developers by managed floor area from January to July 2026. This also reflects its resilience under the dual pressures of ensuring housing delivery and stabilizing sales.
Driven by both policy support and the release of pent-up demand, structural bottoming-out and recovery in regional markets are becoming evident. Provinces such as Guangdong, Jiangsu, and Henan have been particularly prominent, serving as important supports for Country Garden's performance in the first half of the year. Projects in multiple locations, including Shaoguan, Huizhou, Taiyuan, Suzhou, and Haikou, gained market recognition due to their product quality.
Credit restructuring has also achieved key breakthroughs. Following the effectiveness of its offshore debt restructuring, Country Garden successfully completed two scheduled payments—principal repayment and the first interest payment—in December last year and June this year, respectively. These on-time repayments, totaling over RMB 2.8 billion in actual cash, demonstrate its commitment to repairing its overseas credit fundamentals and improving valuation expectations in offshore markets.
Country Garden's "One Body, Two Wings" strategy is also being implemented smoothly. As one of the "Two Wings," Phoenix Zhituo Construction Management leveraged its full-industry-chain advantages to secure new whole-process entrusted management service projects in the first half of the year, including residential development at Tuojiang Binjiang Mansion in Badong, Hubei; commercial plots in Xiao County, Suzhou, Anhui; and the AI Cloud Valley Industrial Park in Guangzhou. It also extended its reach into urban ancillary service updates, undertaking renovation projects for well-known international schools and high school campuses in South China, efficiently completing comprehensive functional upgrades of campus facilities during the 40-day summer vacation window. To date, it has cumulatively undertaken over 200 agency management and construction projects.
The other wing, Tengyue Construction Technology, continues to deepen its efforts in building an intelligent construction system featuring deep integration of construction robots, new prefabricated buildings, and BIM digitalization. To date, 28 types of construction robots have been deployed for commercial application, with cumulative deliveries exceeding 5,200 units and an applied area of over 40 million square meters.
While expanding outward through businesses such as the "Two Wings," Country Garden is also rooting itself internally to build pivots for its transitional phase.
Under the leadership of Yang Huiyan, Chairwoman of Country Garden's Board of Directors, the company established special project management offices (PMOs) for product research, development, and design, as well as for AI-driven quality improvement and efficiency enhancement in the first half of the year. After more than six months of intensive development, both special projects have delivered quantifiable results.
Specifically, the Product R&D and Design PMO has established an R&D ecosystem covering six core areas: establishment of working mechanisms, revitalization of material libraries, new project reviews, modular R&D, case libraries and AI-driven product competitiveness, and activation of product competitiveness for legacy projects. In the first half of the year, it completed ten special studies on spatial modules, with pilot projects implemented in Guangdong and Yunnan provinces.
The AI Efficiency Enhancement PMO, leveraging Country Garden’s long-term investment in digital capability building, has successfully constructed an underlying technical architecture and basic development platform for AI Agents with autonomous scalability. It has achieved preliminary deep integration with the enterprise collaborative office ecosystem, incubating and deploying the first batch of high-value AI Agent applications across core full-cycle scenarios—including design, engineering, operations, marketing, customer service, finance, legal, and human resources—thereby realizing cost reduction and efficiency improvement.
Analysts noted that over the past few years, Country Garden has fought two critical battles: the concerted effort to ensure housing delivery, with cumulative deliveries exceeding 1.85 million units over four years, and debt restructuring that reduced overall debt by more than RMB 90 billion. As the housing delivery mandate winds down and debt restructuring is successfully implemented, the most significant and urgent pressures on Country Garden have been alleviated. Country Garden’s transition from "risk resolution" to "operational recovery" is expected to provide an important reference for private real estate enterprises navigating the cycle during the industry consolidation phase, boost market confidence, and inject key momentum into the stabilization and recovery of the real estate market under policy support.