Country Garden (02007) Revenue of 44.1 billion yuan in the first half of 2026, net assets of 31 billion yuan

The Zhitong Finance App learned that on August 28, Country Garden (02007) released its 2026 interim report, achieving operating income of about 44.1 billion yuan. Although it is still a phased loss, the loss was reduced by about 16.3% compared to the same period last year; total assets were about 745.5 billion yuan, and net assets were about 31 billion yuan, which continued to remain positive.

According to the interim report, the main reasons affecting profits were: first, as the group entered the final stage of housing insurance delivery, which led to a sharp reduction in operating income; second, there was a lag in income carry-over of housing enterprises, and early high-land price cost projects were concentrated in a price reduction environment, which had a negative impact on profits; third, it was affected by multiple adverse factors such as the macroeconomic environment, industry environment, and negative financial situation of counterparties. Fourth, inventory impairment of about 6.2 billion yuan and financial asset and financial guarantee losses were recorded; fourth, about 41 billion yuan of other revenue was recorded 100 million yuan, mainly from fairness Changes in the fair value of financial liabilities and debt restructuring gains whose value is measured and changes are included in profit and loss. At the same time, spending was strictly controlled. Among them, sales and management expenses continued to drop to about 3.2 billion yuan in the first half of the year, a year-on-year decrease of 19.7%.

From January to June 2026, Country Garden's cumulative equity contract sales amount was about 14.25 billion yuan, and the equity sales area was about 1.825 million square meters. Its sales trend is basically in sync with sales of newly built commercial housing across the country under the caliber of the National Bureau of Statistics. Country Garden said that its overall sales are relatively stable and are progressing in an orderly manner according to the business pace.

It is worth noting that, according to Kerry data, Country Garden returned to the top ten in the industry in the trading area rankings of Chinese housing enterprises from January to July 2026. This also shows its resilience under the double pressure of securing housing delivery and stabilizing sales.

Driven by the dual drive of policy support and the release of backlog demand, the structural underpinning of regional markets is showing. Provinces such as Guangdong, Jiangsu, and Henan were particularly prominent and became an important support for Country Garden's performance in the first half of the year. Among them, projects in Shaoguan, Huizhou, Taiyuan, Suzhou, and Haikou received market recognition due to their product strength.

Credit restructuring also ushered in a critical breakthrough. After the overseas debt restructuring came into effect, Country Garden completed two consecutive payments of cash and initial interest payments on schedule in December of last year and June of this year, respectively — with a cumulative total of over 2.8 billion yuan in real money payments, in an effort to repair its overseas credit fundamentals and improve overseas market valuation expectations.

Country Garden's “two wings in one” strategy has also been successfully implemented. As one of the “two wings”, Fenghuang Zhituo Construction and Management relies on the advantages of the entire industry chain. In the first half of the year, it developed full-process commissioned management service projects such as Hubei Badong Haituo Binjiang Housing Development, Anhui Suzhou Xiaoxian Commercial Land, and Guangzhou AI Cloud Valley Industrial Park. At the same time, it also extended its reach to the field of urban supporting service updates, undertook well-known international schools and high school campus renovation projects in South China, and efficiently completed the full functionality upgrade of campus facilities using the 40-day summer vacation window. Up to now, we have undertaken more than 200 managed construction projects.

Tengyue Construction Technology, the “other wing”, continues to be deeply involved in building intelligent construction systems that deeply integrate construction robots, new prefabricated buildings, and BIM digitalization. Up to now, 28 construction robots have been put into commercial use, and more than 5,200 units have been delivered, with an application area of over 40 million square meters.

While businesses such as “Two Wings” are expanding outward, Country Garden is also taking root inward and building a pivot point.

Under the leadership of Country Garden Chairman Yang Huiyan, Country Garden successively set up a Product R&D and Design Task Force (PMO) and an AI Quality and Efficiency Task Force (PMO) in the first half of the year. After more than half a year of intensive construction, quantifiable answers were handed over for both major projects.

Among them, product development and design PMO has formed an R&D ecosystem covering the six core sectors of “working mechanism establishment, material library renewal, new project review, modular research and development, case library and product power AI, and product power activation for old projects”, and completed 10 special space module studies in the first half of the year, and pilot projects have already been launched in Guangdong and Yunnan.

Relying on Country Garden's long-term investment in digital capacity building, PMO successfully built an AI Agent underlying technology architecture and basic development platform with autonomous expansion capabilities, initially achieved deep integration with enterprises, and incubated and implemented the first batch of high-value AI agent applications in full-cycle core scenarios such as design, engineering, operation, marketing, customer service, finance, legal affairs, and manpower, to achieve cost reduction and efficiency.

Analysts said that in the past few years, Country Garden has fought two key battles — a bid to secure housing, which has delivered more than 1.85 million units over the past four years, and debt restructuring with an overall debt reduction of more than RMB 90 billion. With the gradual completion of the housing guarantee task and the smooth implementation of debt restructuring, the most important and urgent pressure on Country Garden's shoulders has been relieved. Country Garden's move from “risk mitigation” to “operational repair” is expected to provide an important sample for private housing enterprises to get through the cycle during the industry clean-up phase, boost market confidence, and inject key impetus into the steady recovery of the real estate market underpinned by the policy.