Country Garden posts its first profit after debt restructuring, and Yang Huiyan's second entrepreneurial venture enters a crucial turning point year

Country-private enterprise Country Garden, after experiencing long-term financial difficulties, has finally reached a critical moment of performance turnaround. According to the latest 2025 earnings forecast, the company expects to achieve a net profit of 1 billion to 2.2 billion yuan, contrasting sharply with the massive loss of 35.145 billion yuan in the same period last year. This shift marks substantial progress in debt restructuring efforts and a significant improvement in the company’s financial condition.

Financial data shows that Country Garden has suffered losses for three consecutive years since 2022, with total losses exceeding 210 billion yuan. The core driver of this turnaround is the completion of domestic and overseas debt restructuring in December last year. By issuing approximately $13 billion in mandatory convertible bonds and 15.5 billion shares of capitalization to replace existing debt, the company successfully reduced its debt by over 90 billion yuan. The overseas debt restructuring plan was approved by the Hong Kong High Court, and all nine domestic bond restructuring plans in the open market have been approved.

The capital market has responded positively to Country Garden’s recovery. On February 27, the company was officially included in the MSCI China Small Cap Index, prompting increased demand from global passive funds. As of March 21, the shareholding ratio through the Hong Kong Stock Connect rose to 17.7%, up 2.4 percentage points from the end of 2025, indicating continued southbound capital inflows. Yan Yuejin, Deputy Director of the Shanghai E-House Real Estate Research Institute, pointed out that as the first private real estate enterprise to complete debt restructuring and restore profitability, Country Garden’s transformation sets a benchmark for the industry.

Following the debt restructuring, Country Garden has launched a strategic transformation. Chairman Yang Huiyan defined 2026 as a “key year for transition” and proposed that the next 3-5 years will focus on “building core competitiveness.” The company’s management structure has been adjusted accordingly, with existing business segments consolidated into the “Large Property Management Segment” and the “Incubation Business Segment,” and Tian Tian appointed as CFO. Regarding the market’s concern about the “re-hiring of former employees” plan, insiders revealed that this is part of an internally ongoing revision of the “Resigned Staff Rehiring Management Measures,” aimed at optimizing talent structure.

Work on the debt restructuring continues. According to the share issuance report disclosed on March 5, approximately 14.233 billion new shares were issued after the restructuring, accounting for 51% of the pre-restructuring share capital. The company has paid about $398 million in cash to creditors in the first week of operation, indicating that the overseas restructuring plan is rapidly being implemented. From debt reduction to performance recovery, from organizational restructuring to strategic upgrading, Country Garden has completed a series of key actions within four months. However, how to achieve sustainable high-quality development remains an unresolved challenge.