Country Garden Faces Record Loss Amid China’s Property Crisis

Country Garden Holdings, China's largest property developer by sales, has reported a staggering net loss of 178.4 billion yuan (approximately $24 billion) for the year 2023. The company's financial struggles highlight the severe impact of the ongoing property crisis in China, as it grapples with a significant cash crunch and seeks to stabilize its operations. This alarming figure marks a dramatic increase from the previous year's loss of 6.05 billion yuan.

The unaudited full-year report, which was released on January 15, 2025, came after a prolonged delay of several months. Investors and analysts had been awaiting insights into the company's financial health, and the release provided a sobering glimpse into the depths of the challenges facing not only Country Garden but the broader real estate sector in China.

In 2023, Country Garden's total revenue shrank to 401 billion yuan, down from 430 billion yuan in 2022. The decline in revenue reflects a broader trend impacting many developers in the region, exacerbated by regulatory changes and a general slowdown in the property market. As the company continues to navigate this tumultuous landscape, it remains focused on strategies to alleviate its financial burdens and restore investor confidence.

Country Garden's struggles are emblematic of the ongoing property crisis that has affected numerous developers across China. The company has consistently ranked as one of the country's top builders, but it now finds itself embroiled in significant financial difficulties. This situation raises concerns not only for Country Garden but also for the economic stability of China's real estate market as a whole.

The release of the financial report took place in Hong Kong, drawing attention from media outlets and investors alike. Nikkei staff writer Stella Yifan Xie reported on the findings, emphasizing the magnitude of Country Garden's losses and their implications for the industry. The report was updated on January 15, 2025, at 11:48 JST, underscoring the urgency with which stakeholders are monitoring developments related to the company.