Country Garden expects higher loss for H1

Blame it on lower scale of settlement for real estate, amongst others.

Country Garden Holdings Company Limited expects its losses to jump in the first half (H1) of 2025.

In bourse filing, the company said its loss is expected to range from $3.33b (RMB 18.5b) to $3.87b (RMB 21.5b) as compared to the $2.72b (RMB 15.1b) loss in the same period last year.

The projected loss is attributable to a reduction in the scale of settlement for real estate development projects, with gross profit margin remaining at a low level. The company alsi said there is an increase in asset impairments related to real estate projects, taking into account the changes in industry, market and business environment.

“The Group has maintained stable production and operation by implementing a strategy of extreme income and expenditure, optimising resource utilisation, and establishing diverse dynamic mechanisms to strengthen its planning and operational management system,” Country Garden said.

During the reporting period, the group and its joint ventures and associates together delivered 74,000 housing units.

When it comes to debt risk resolution, the company is facilitating various proactive debt management initiatives for a long-term, sustainable and healthy capital structure.

“By systematically adjusting its organisational structure and resource allocation, the Group is dedicated to reaching strategies and objectives in phases, accelerating the development of core competencies aligned with the new real estate model, and facilitating the Company’s timely return to a sustainable development cycle,” the company said.

RMB1 = $0.18