How Can Country Garden Survive and What is in Its Balance Sheet?
By Investmoolah  •  September 27, 2023

Mention the China Property Debt Crisis, 2 companies come to mind- China Evergrande and Country Garden. China Evergrande has fallen with its bankruptcy proceedings. Country Garden on the other hand is still in survival mode and lurching from repaying each month's interest trying to ensure no impairment or corporate action to dilute existing shareholders.

Currently Country Garden has a HKD$26.2 billion (RMB$24.5 billion) in market capitalisation)

Balance Sheet is Barely "Balanced"


Unlike the headline news which claims Country Garden has hundred billions in USD of debts, the truth is that developer has only RMB 257.9 billion (less than USD 100 billion) in debts. Below is the latest debt standing in its financial report as of end June 2023.


The developer has RMB 101.1 million in unrestricted cash (Net debt position = RMB 156.9 billion) with RMB 29 billion which wil be released if its
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By Investmoolah
A total otaku who loves anime, investing and the occasional K-drama. My financial journey begun at the age of 22 and has revolved around the concepts of "Working Hard", "Saving Well" and "Investing Wisely". Through my journey, I have realized that financial literacy is something we have learnt little during our school days but is one of the most useful and relevant skill that we have to be equipped to take on the real world. Concepts such as compounding and "common sense investing" are skills that will place us ahead of the race to retirement ...

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