(Yicai) March 31 -- Country Garden, once China’s biggest real estate developer, has returned to the black after three consecutive years of losses thanks to debt restructuring.

Net profit was CNY3.26 billion (USD472 million) for the 12 months ended Dec. 31, versus a net loss of CNY32.8 billion the year before, the Foshan-based company’s annual earnings report showed yesterday. Revenue fell 39 percent to CNY155 billion (USD22.5 billion).

Country Garden was still in the red if gains from its debt restructuring -- which took effect on Dec. 30 -- are excluded, mainly because of major asset impairments as a result of the country’s tough property market conditions, it said.

Shares of Country Garden [HKG: 2007], which did not provide any earnings guidance, closed 1.6 percent lower at 32 Hong Kong cents (4 US cents) apiece in Hong Kong today. The stock has fallen by almost a quarter since the end of last year.

The builder recorded a CNY85.8 billion gain from restructuring its offshore debt last year, the report showed. During 2025, the company booked provisions of about CNY44.5 billion against projects it owns, and recorded another CNY10.5 billion in impairment losses on financial assets and financial guarantees.

Equity contract sales came to about CNY33 billion, the equity sales area totaled roughly 4.02 million square meters, and the company delivered 170,000 homes.

Country Garden had total assets of about CNY812 billion as of the end of last year, with net assets of CNY44.3 billion. Its interest-bearing liabilities were CNY148 billion, down CNY105.5 billion or 42 percent from CNY253.5 billion at the end of 2024.

The offshore restructuring took effect on Dec. 30, and new debt and equity instruments have already been issued. Following the restructuring, the maturity of offshore debt has been extended to a maximum of 11 years, while the financing costs of most new debt has come down sharply to between 1 percent and 2.5 percent.

Its onshore restructuring plan has also been approved, and Country Garden will now proceed with cash buybacks, stock options, and general creditor options. A buyback program worth as much as CNY450 million is already underway and is expected to be completed next month, it said.

Editor: Tom Litting