Exclusive | After paying 522 million yuan, the publicly listed bond of Gemdale is fully settled

China Financial News Network, April 7 (by reporter Li Jie) Former leading real estate developer, Gemdale, has shed the burden of publicly issued debt.

China Financial News Network reporter has learned exclusively that Gemdale Group completed the principal and interest payments on two corporate bonds on April 7. They are “21 Gemdale 03” and “21 Gemdale 04,” with a total payout of approximately RMB 522 million.

It is understood that both “21 Gemdale 03” and “21 Gemdale 04” involved in this repayment were issued in 2021. At that time, the real estate industry had already entered a period of deep adjustment, and the market was especially concerned about the creditworthiness of real estate developers.

Among them, “21 Gemdale 03” had an issuance size of RMB 2.5B, with a coupon rate of 3.91%, and an issuance term of 5 years. This bond includes, at the end of the 3rd year, the issuer’s interest rate adjustment and investors’ right to sell back. After exercising the option, the remaining principal would be significantly reduced. This repayment is the final settlement upon maturity.

“21 Gemdale 04” had an issuance size of RMB 500 million, with a coupon rate of 4.3%, and an issuance term of 5 years. Before this repayment, the remaining principal was RMB 500 million.

“After these two bond repayments, Gemdale Group’s outstanding publicly traded market debt has been fully cleared,” an insider told the reporter.

In fact, during the adjustment of the real estate industry over the past few years, Gemdale’s bonds and stock price saw violent fluctuations in the second half of 2023, and therefore its capital and debt situation has also attracted intense external attention.

The reporter learned that to ensure the repayment of publicly issued bonds and cash-flow safety, Gemdale Group has actively adjusted its overall market operating strategy in recent years. At one point, it even paused land acquisition. It also raised debt repayment funds through multiple methods, such as disposing of large-block assets and accelerating sales and destocking. It has cumulatively paid back more than RMB 20 billion of publicly traded market overdue debt on schedule.

By the end of 2025, Gemdale Group’s interest-bearing debt balance was approximately RMB 67.0 billion. Of this, 98.6% was bank borrowings. The weighted average cost of debt financing was 3.92%, down 13 basis points compared with the end of 2024. The asset-liability ratio was 64.25%. After deducting contract liabilities, the asset-liability ratio was 61.56%, and the net gearing ratio was 65.21%.

“Gemdale’s publicly issued bond clearance is fully completed, thoroughly eliminating the potential risk of public bond default that the capital markets care about most. Its credit rating and market confidence have been strengthened. Its management can also shift from keeping bond obligations under control, to focusing on main business operations and strategic transformation.” A real estate industry analyst told the reporter.

According to Gemdale Group’s disclosed 2025 annual report, it is in a period of adjustment characterized by shrinking scale and financial optimization. The annual report shows that in 2025, Gemdale Group realized operating revenue of RMB 35.86B, down 52.41% year over year; and achieved contracted sales of RMB 30 billion.

With easing cash-flow pressure, the company began to “replenish its land inventory” in the land market in 2025. However, unlike in previous years’ large-scale moves, Gemdale adopted a more prudent and precise investment strategy. In 2025, it acquired two land parcels in Shanghai and Hangzhou.

In terms of project reserves, as of the end of the reporting period, Gemdale Group’s total land reserve was about 24.72 million square meters, and its equity land reserve was about 10.59 million square meters, of which the proportion of first- and second-tier cities reached 79%.