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On 30 March 2006 – China Overseas Land & Investment Limited (“Company”), the listed arm of China Overseas Holdings Ltd., announced its audited consolidated results of the Company and its subsidiaries (the “Group”) for the year ended 31 December 2005. During the period, turnover increased by 31% to HK$7 billion, with PRC Property Development business making up the greatest proportion and increased to about 84% of the turnover. Business in PRC contributed 96% of the turnover. Profits attributable to shareholders increased by 43% to HK$1,534.7 million. Earnings per share increased by 40% to HK24 cents.  Final dividend proposed is HK4 cents per share. Together with the interim dividend of HK3cents, dividends declared for the year was HK7 cent per share. Due to the spin-off of the construction business, the Company had paid a special dividend to the shareholders (in the form of a distribution in specie of the consideration shares 1 China State share for every 18 shares held).

Mr. Kong Qingping, chairman and chief executive of the Company, stated that in line with the general trend of development, the Group underwent an overall consolidation of the Company’s businesses, focusing its resources on the property development business in the PRC, which attained robust growth with a rapid rise in profit. Profit of the Company sustained a growth of over 20% for three consecutive years as part of its promise to the investors, successfully enhancing the value for shareholders of the Company.

2006 will be a year filled with both opportunities and challenges. The Board is cautiously optimistic towards the future development of the Group. Looking ahead, the Group will persistent in reinforcing its nationwide branding strategy, focusing on the property development business and consolidating its cash flow management under the prudent financial management principal, thereby maintaining its pioneer position in the real estate industry of the PRC and leading the sector’s development. The existing land reserve of the Group is sufficient to support its development in the coming three to four years and is expanding at the target rate of over 20% per year. In response to the economic development of the PRC and requirements of the investors, the Group has set up a development plan and goals for a longer term, so as to expand its growth potential and provide higher return for investors. The Group will continue to acquire premium land resources at attractive prices in an efficient manner through various channels. It is intended that the expansion of land reserve for 2006 will not be less than 3,000,000 sq. m. The Group will aggressively adjust its development philosophy and accelerate the diversification of growth models for a higher growth speed. These models include joint venture, cooperation with funds and merger & acquisition. By working with leading strategic investors and enhancing its governance standard, the Group aims to acquire more market share and attain a higher rate of development