Country Garden narrows loss to $6.1 billion in 2024 after steep write-off

HONG KONG – China’s Country Garden Holdings reported a narrower loss in 2024 as the defaulted property giant seeks to build creditor support for its debt restructuring plan. 

The loss attributable to shareholders stood at 32.8 billion yuan (S$6.1 billion), compared with

a record 178 billion yuan loss in 2023,

according to an exchange filing on March 31. The annual reading indicated a 20 billion yuan loss in the second half of 2024, widening from the 12.8 billion yuan loss in the first half. 

Country Garden is continuing lengthy restructuring talks more than a year after

defaulting on its debt.

It made steep write-offs on properties under development and completed homes held for sale in 2023, laying the foundation for a smaller loss. 

“Profit warnings by more Chinese developers, including Country Garden, before their 2024 results announcements could be good news,” Bloomberg Intelligence analysts Andrew Chan and Daniel Fan wrote in a recent note.

“Developers could be looking to clean up their accounts now and position themselves for a better financing cycle later on.” BLOOMBERG