Country Garden: Expected 2025 profit between 1 billion yuan and 2.2 billion yuan, attributed to non-cash gains from debt restructuring

How can AI and Country Garden’s debt restructuring help restore normal operations by 2026?

On March 23, Country Garden (02007.HK) released a profit forecast, expecting the company’s profit for 2025 to be between 1 billion and 2.2 billion yuan, compared to a loss of 35.145 billion yuan in the same period last year.

Regarding the turnaround, the announcement explained that it was mainly due to non-cash gains from the company’s debt restructuring. Excluding the impact of these restructuring gains, the company’s 2025 loss was primarily due to industry pressures, with the group’s development business margins under stress, and provisions for impairment of certain assets and property projects.

Debt restructuring not only improves financial statements but is also a key prerequisite for Country Garden’s operational recovery. As early as February last year, Chairman Yang Huiyan first proposed at an internal meeting that the second half of 2025 should focus on both delivering homes and maintaining core operations, preparing for normal operations in 2026. In an internal meeting on November 11 last year, Yang Huiyan further announced a second entrepreneurial venture.

Recently, there have been reports that Country Garden is “massively recalling former employees.” In response, the company clarified that there is no special plan involving a “large-scale recall of former employees.” Rehiring is only one of the routine channels to supplement key positions, and it is limited to specific roles with certain needs.

It is understood that in January this year, Country Garden revised and updated its internal document “Rehiring Management Measures for Former Employees,” which was not a new policy. The company further stated that some media interpretations are one-sided and exaggerated, with certain content not aligning with the actual situation.

While clarifying, Country Garden confirmed that it is steadily advancing core work such as operational recovery and ensuring project completion and delivery. Its talent strategy always aligns with actual business needs.

Regarding rehiring, the document also clearly states that it aims to ensure orderly business progress, match the development pace during the recovery phase, and support the development of new projects. It also seeks to gradually improve key personnel staffing and further regulate the management of re-employment of senior staff.