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 developers, including Country Garden, Kaisa, Aoyuan, and Vanke, reported significant first-half 2024 losses due to fewer home deliveries, shrinking margins, and asset impairments.
Country Garden expects a net loss of ¥18.5–21.5 billion, Kaisa up to ¥11 billion, Aoyuan up to ¥9.5 billion, and Vanke ¥11.9 billion.
Vanke avoided default with asset sales and a ¥1.7 billion loan from Shenzhen Metro Group.

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Who’s Who

Country Garden Holdings Co. Ltd.: Country Garden Holdings Co. Ltd. is a Chinese property giant listed in Hong Kong. It anticipates a net loss between 18.5 billion and 21.5 billion yuan for the first half of the year, increasing from last year. This is due to fewer housing deliveries, shrinking margins, and asset value loss. The company defaulted on dollar bonds in October 2023 and is currently focused on restructuring offshore debts.

Kaisa Group Holdings Ltd.: Kaisa Group Holdings Ltd. is among the Hong Kong-listed Chinese property developers expecting significant first-half losses. The company predicted a net loss of up to 11 billion yuan, an increase from 9 billion yuan the previous year. Like other struggling developers, Kaisa cited challenges such as reduced housing deliveries, shrinking margins, and declining asset values.

China Aoyuan Group Ltd.: China Aoyuan Group Ltd. is a Hong Kong-listed Chinese property developer. It is among several such companies expecting significant first-half losses, projecting a net loss of up to 9.5 billion yuan. This downturn follows a net profit of 22.1 billion yuan in the previous year, attributed to similar issues affecting other developers like reduced housing deliveries and shrinking margins.

China Vanke Co. Ltd.: China Vanke Co. Ltd. is a Chinese property giant listed in Hong Kong. It reported a first-half net loss of 11.9 billion yuan attributable to shareholders, an increase from 9.9 billion yuan the previous year, primarily due to declining sales and narrowing gross margins. To prevent default, Shenzhen Metro Group Co. Ltd., Vanke's largest state-owned shareholder, has provided financial support, including a nearly 1.7 billion yuan loan.

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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.