Country Garden’s January sales decreased by 59% to only 2.26 billion yuan.

China’s real estate giant Country Garden Holdings Co., Ltd. (referred to as “Country Garden”) continued to see a sharp drop in sales in January, with only 22.6 billion yuan (RMB, the same below), a 58.83% decrease compared to the same period last year when it was 54.9 billion yuan, and a 34% decrease from the previous month (December 2024) when it was 34.2 billion yuan. Some financial and economic self-media outlets lamented, “Country Garden is done for.”

On February 10, Country Garden (02007.HK) announced that in January, it achieved a total contracted sales amounting to about 22.6 billion yuan, attributable to the equity of the company’s shareholders, a decrease of 58.83% year-on-year; the sales area of contracted equity is approximately 270,000 square meters.

During the first monthly management meeting of this year, Country Garden stated that regular sales are the main source of the company’s current cash flow, and only through continuous sales growth can the company have enough funds to support the progress of property delivery projects.

The reality is that Country Garden’s sales continue to shrink significantly.

On the evening of January 7, Country Garden released unaudited operational data for December 2024, showing a contracted sales figure of approximately 34.2 billion yuan, a 50.51% decrease from the same period in 2023 when it was 69.1 billion yuan. The sales area of contracted equity was about 350,000 square meters, a 48.53% decrease from 2023.

For the full year of 2024, Country Garden achieved a contracted sales amounting to approximately 471.7 billion yuan, attributable to the equity of company shareholders, averaging 39.3 billion yuan per month; the cumulative sales area attributable to the company’s equity reached approximately 4.922 million square meters.

Previous data released by Country Garden showed that in the full year of 2023, the company achieved equity sales of 174.28 billion yuan, averaging 145.2 billion yuan per month. This indicates a sales decline of about 73% for Country Garden in the full year of 2024 compared to 2023.

The above data demonstrates that over the past two years, Country Garden’s sales performance has been rapidly declining.

On February 10, the Chinese financial self-media “Value Investing is King” posted on “Sina Finance” stating: “Country Garden is done for, with sales of only 22.6 billion in January this year, a 59% year-on-year decline! Looking at the downward trend, there has been no sign of a turning point yet!”