BUSINESS

Chinese Developers Expect Greater First Half Losses

Published: Aug. 25, 2025 7:11 p.m. GMT+8

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Country Garden predicts its net loss will be as high as 21.5 billion yuan for the first half, compared with a 15.1 billion yuan deficit last year. Photo: Country Garden

Several Hong Kong-listed Chinese property giants said they expect deepening losses for the first half of the year, as they delivered fewer houses, saw their margins shrink, and their assets lost value.

Country Garden Holdings Co. Ltd. predicts its net loss will come in between 18.5 billion yuan ($2.6 billion) and 21.5 billion yuan, compared with a 15.1 billion yuan deficit last year, according to a Friday exchange filing.

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Major Hong Kong-listed Chinese property firms, including Country Garden, Kaisa, Aoyuan, and Vanke, forecast deeper first-half losses in 2024 due to fewer deliveries, shrinking margins, and asset impairments.
Country Garden expects a net loss of 18.5–21.5 billion yuan and delivered 74,000 housing units, down from over 150,000 last year.
Vanke's net loss widened to 11.9 billion yuan, and Shenzhen Metro provided a 1.7 billion yuan loan to support its debt management.

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Who’s Who

Country Garden Holdings Co. Ltd.: Country Garden Holdings Co. Ltd. anticipates a net loss between 18.5 billion yuan and 21.5 billion yuan for the first half of the year, an increase from last year's 15.1 billion yuan deficit. The company delivered fewer homes and faced asset impairments. It officially defaulted on dollar bonds in late October 2023 and is working on restructuring its offshore debts.

Kaisa Group Holdings Ltd.: Kaisa Group Holdings Ltd. is a Hong Kong-listed Chinese property developer. The company anticipates a widening net loss, reaching up to 11 billion yuan, for the first half of the year, up from 9 billion yuan in the previous year. This mirrors challenges faced by other developers, including fewer housing deliveries, shrinking margins, and declining asset values.

China Aoyuan Group Ltd.: China Aoyuan Group Ltd. is a Hong Kong-listed Chinese developer. The company anticipates a first-half net loss of up to 9.5 billion yuan, a significant decline from the 22.1 billion yuan net profit reported in the previous year. This expected loss is attributed to similar challenges faced by other developers, such as delivering fewer houses, shrinking margins, and asset value depreciation.

China Vanke Co. Ltd.: China Vanke Co. Ltd. (万科企业股份有限公司) reported a first-half net loss of 11.9 billion yuan, widening from the previous year. This was attributed to declining sales and narrowing gross margins. Its interest-bearing liabilities reached 364.2 billion yuan, 30.5% of total assets. Shenzhen Metro Group, Vanke's largest shareholder, has provided loans and Vanke has sold assets to avoid defaulting.

Shenzhen Metro Group Co. Ltd.: Shenzhen Metro Group Co. Ltd. is the largest state-owned shareholder of China Vanke Co. Ltd. To prevent Vanke from defaulting, Shenzhen Metro has infused cash into the developer. Earlier this month, Vanke announced that Shenzhen Metro would provide a loan of almost 1.7 billion yuan to help it manage its debt.

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What Happened When

August 2023：: Country Garden missed interest payments on two offshore U.S. dollar bonds, marking the onset of its prominent financial woes.

Late October 2023：: Country Garden logged its first formal default on dollar bonds.

First half of 2024：: Country Garden delivered more than 150,000 units of housing.

First half of 2025：: Country Garden delivered about 74,000 units of housing, significantly fewer than the previous year.

By end of June 2025：: China Vanke’s interest-bearing liabilities reached 364.2 billion yuan, accounting for 30.5% of its total assets.

Early August 2025：: Vanke announced Shenzhen Metro will provide a loan of nearly 1.7 billion yuan to assist with debt management.

Thursday, August 21, 2025：: Kaisa Group Holdings Ltd. predicted a net loss of up to 11 billion yuan for the first half of 2025.

Thursday, August 21, 2025：: China Aoyuan Group Ltd. projected a first-half net loss of up to 9.5 billion yuan for 2025.

Friday, August 22, 2025：: Country Garden announced its expected net loss for the first half of 2025 (between 18.5 and 21.5 billion yuan) in an exchange filing.