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China Overseas Land & Investment Ltd. Announces 2021 Annual Results Author:China Overseas Land and Investment Ltd.

Revenue and revenue from commercial properties achieved double-digit growth against market headwinds
Steady dividend growth in the year, full-year dividend payout ratio over 30%

(Hong Kong, 31 March 2022) China Overseas Land & Investment Ltd. (“COLI” or the “Group”, stock code: 0688.HK) announced its 2021 annual results today.

Despite the uncertainty in the external environment, the Group in 2021 achieved substantive growth.

The Group Series of Companies achieved contracted property sales of RMB369.5 billion, an increase of 2.4% as compared to last year. Revenue of the Group increased by 30.4% to RMB242.24 billion. Profit attributable to the shareholders of the Company amounted to RMB40.16 billion, profit attributable to the shareholders of the Company after deducting net gains after tax arising from changes in fair value of investment properties, amounted to RMB36.38 billion; basic earnings per share was RMB3.67, net profit margin reached 16.6%, which were at an outstanding level in the industry. As at the end of 2021, net assets per share was RMB31.39, return on equity was 12.2%. The Board proposed a final dividend of HK76 cents per share, together with the interim dividend, total cash dividends for the year were HK121 cents per share, an increase of 2.5% as compared to last year, and dividend payout ratio was 30.1%.

Financially stable and with ample cash on hand, average borrowing cost remains at the lowest range in the industry. The Group is committed to the principle of prudent financial strategy, indicators such as liability to asset ratio were much lower than those required by the controlling measures under the “three red lines”, thus qualifying as a “green category” enterprise. As at the end of 2021, the Group’s liability to asset ratio was 58.9%, net gearing 32.3%; cash on hand was RMB130.96 billion; during the year, the weighted average borrowing cost was 3.55%, which was in the lowest range in the industry. The three major international credit rating agencies assigned to COLI the highest grade ratings among mainland property developers: A- (Fitch), Baa1 (Moody’s), and BBB+ (S&P). With the ongoing tightening of financial policies in the real estate industry, the advantage of the Group’s financial strength has become more prominent.

Strategically focuses on major cities, ensuring high-quality operation. The market share in major cities continued to rise. In 2021, the contracted sales in first-tier cities Beijing-Shanghai-Guangzhou-Shenzhen and Hong Kong exceeded RMB100 billion. The Group Series of Companies ranked top three in market share in 31 cities. The contracted sales in each of 10 cities, including Beijing, Shanghai, Guangzhou and Nanjing, exceeded RMB10 billion, with contracted sales of more than RMB40 billion in Beijing.

Increases market penetration in first- and second-tier cities, promoting “blue ocean strategy”. During the year, the Group Series of Companies added 98 land parcels with a total attributable land premium of RMB161.02 billion and corresponding newly added saleable resources of RMB382.21 billion. Among these, the Group acquired 57 land parcels with total attributable land premium of RMB129.75 billion and corresponding newly added saleable resources of RMB288.22 billion. Among which, attributable land premium of metropolitan areas in Beijing-Tianjin-Hebei region, Yangtze River Delta and Greater Bay Area reached RMB100 billion, accounting for 73%. In the first half of the year, the Group maintained its rational investment rhythm – pursuing only quality investments proportionate to strategic need, invested cautiously, and in the second half of the year, the Group obtained a number of quality land parcels. The Group continued to strengthen the promotion of the “blue ocean strategy”, and successfully secured a batch of mega-sized projects including Suzhou Zhongtai Project, Suzhou Super Skyscraper Project and Changchun Runde Project. Since 2022, the Group has seized the opportunity of mergers and acquisitions and successfully acquired the Guangzhou Asian Games City Project and the Shanghai Yangpu Project. As at the end of 2021, the total land bank of the Group Series of Companies reached 80.77 million sq m.

The Groups owned commercial assets achieved quality growth. In 2021, a number of commercial projects of the Group Series of Companies opportunely entered the market at its peak. 18 commercial projects commenced operations, including Beijing China Overseas Fortune Center, Zhuhai Unipark and Ningbo Unipark. The GFA of commercial projects held by the Group Series of Companies for operation increased by 940,000 sq m. During the year, the Group’s revenue from commercial properties was RMB5.17 billion, an increase of 17.4% as compared to last year. 22 commercial projects held by the Group Series of Companies are planned to be put into operation in 2022, with GFA of 1.35 million sq m expected to be added. The Group Series of Companies will continue to ready its commercial projects for market as fast as possible, with diversified growth driving business momentum.

Growing from the main business of real estate development, steps further into upstream and downstream on diversified businesses. The Group’s companies including Hua Yi Design, Tianshan Door business and Lingchao Supply Chain Management Company, all of which achieved promising business growth. Among them, in the first year of its establishment, Lingchao Supply Chain Management Company achieved internal and external contracts sales of RMB11.8 billion.

The Group continues to fulfill corporate social responsibility and progress along the path of green development. In 2021, 80 projects of the Group had obtained green building certification with a certified GFA of 12.73 million sq m. As at the end of 2021, the Group has obtained 490 certifications in total, including National Green Building Star Certifications, US LEED Certification, US BOMA Certification, US WELL Certification and UK BREEAM Certification, and its green GFA with certification reached 89.27 million sq m, ranking first in China green building property in a row of three years. This year, breakthroughs have been made in green buildings and zero-carbon buildings, and a number of green building benchmark projects have been successfully established. Among them, The U World, Chongqing has obtained the first national Three-Star Green Building Label in Chongqing, and Beijing China Overseas Fortune Center OFFICEZIP has also obtained WELL V2 CORE platinum certification, which is the first platinum-level non-traditional office project in the world. In 2022, China Overseas Building in Shenzhen is planned to be the first 5A-level high-rise office building with near-zero energy consumption in China.

In 2021, the Group continuously facilitated rural vitalization of three counties in Gansu Province, namely Kang County, Kangle County and Zhuoni County. The Group assisted Zhuoni County in creating a quinoa brand “Vale of Clouds”. And the Group donated to build the China Overseas Wenjia River Hope Primary School in Kangle County and three ‘Future Experimental Classes’ in Kang County, Kangle County and Zhuoni County.

The Group’s various ESG initiatives have also been recognized by the market, and was admitted into “HSI ESG Screened Index” and “HSI Low Carbon Index” newly launched by Hang Seng Indexes Company Limited in November this year. The Group has a higher weighting in these two indices than that of HSI due to lower ESG risk and carbon emission than other peers. The Group also continued to be admitted into index constituents of the Hang Seng Corporate Sustainability Index and the Hang Seng ESG 50 Index, and was awarded a low risk rating by Sustainalytics.

In 2022, the Group will enter its 43rd year of enterprise development and usher in the 30th anniversary of its listing on the Hong Kong Stock Exchange. Looking ahead, as a pillar industry of the national economy, the real estate market will remain substantial, and the phased decline does not detract from that high essential value. The Group will adapt and actively respond according to the situation, commit to being “a Company of Four Excellences” through “Good Products, Good Services, Good Effectiveness, Good Citizen”, maintain focused on the long term and grow steadily.



(From left to right: Mr. ZHANG Zhichao, CEO; Mr. YAN Jianguo, Chairman, Mr. LUO Liang, Vice Chairman, Executive Vice President, Chief Operating Officer and Chief Architect; and Mr. GUO Guanghui, Vice President)

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