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China Overseas Land & Investment Ltd. announced its 2022 annual results today Author:China Overseas Land and Investment Ltd.

(Hong Kong, 31 March 2023) China Overseas Land & Investment Ltd. (“COLI” or the “Group”, stock code: 0688.HK) announced its 2022 annual results today.

Despite sustained market downturn, the Group’s operation remained steady in 2022. The Group Series of Companies achieved contracted sales of RMB294.76 billion in 2022, ranking top 5 and top 3 in the industry in terms of gross sales and attributable sales respectively. The profit attributable to the shareholders of the Company amounted to RMB23.26 billion, and the profit attributable to the shareholders of the Company excluding elements such as net gains after tax arising from changes in fair value of investment properties and net foreign exchange gains or losses, amounted to RMB24.42 billion (2021: RMB33.92 billion, a reduction of 28.0% year on year). Core net profit margin attributable to shareholders was 13.5%, which remained at an outstanding level in the industry. The Board proposed a final dividend of HK40 cents per share, and together with the interim dividend of HK40 cents per share, the total amount of dividend for the year reached HKD8.76 billion.

Amid the significant downward in the overall property market in 2022, the Group faced challenges in sustainable growth. The Group leveraged its strengths of financial soundness and abundant capital, remained prudent in pursing investment opportunities, strengthened its competitive advantages and proactively accumulated resources for sustainable and high-quality development in the future.

In 2022, the Group continued to strengthen and elevate its competitive advantages.

Firstly, the Group bolstered its competitive advantage of strategic land bank and quality saleable resources to increase market share. The Group leveraged on its long-term focus on its investment exposure in major cities and mainstream locations, to boost market share counter-cyclically. In 2022, the contracted sales of the Group Series of Companies accounted for 2.21% of national sales of residential properties, an increase from 2.03% in year of 2021. The average selling price of the Group Series of Companies was RMB21,251 per sq m, a year-on-year increase of 8.7%.

Secondly, the Group further strengthened its financial capital advantages. Adhering to the principle of prudent financial strategy, the Group remained as a “green category” enterprise with excellent performance in all indicators. At the end of 2022, the Group’s liability-to-asset ratio excluding pre-sales proceeds was 53.69% and net gearing based on total equity was 42.91%, which was in the lowest range in the industry. Cash on hand was RMB110.31 billion, accounting for 12% of the total asset, and the proportion of cash on hand to total asset has continuously remained above 10%. The three major international credit rating agencies have awarded the Group industry-leading and stable credit ratings – Fitch A-/Stable, Moody’s Baa1/Stable, and Standard & Poor’s BBB+/Stable. The Group’s annual weighted average borrowing cost was 3.57%, which was among the lowest in the industry.

Thirdly, the Group enhanced the advantage of cost control. In 2022, the Group’s selling, general and administrative expenses (SG&A) as percentage of revenue was 3.6%, comparatively better than peers.

Facing 2023 and the years ahead, the Group has accumulated strong growth momentum.

Firstly, the Group led the industry in the acquisition of new land parcels and saleable resources, and retained strong momentum for future quality development. In 2022, the Group Series of Companies acquired 50 land parcels with a total land premium of RMB120.9 billion and corresponding newly acquired saleable resources of RMB240.3 billion, of which over 40% were in the first-tier cities (Beijing, Shanghai, Guangzhou and Shenzhen). The total saleable resources of the Group Series of Companies will reach RMB790 billion in 2023, ranking among the top in the industry with strong growth momentum.

Secondly, the Group’s rental income growth is expected to accelerate with an increasing number of commercial projects into operation. In 2022, amidst the challenges from the pandemic, the Group’s commercial properties operated steadily, with revenue reaching RMB5.26 billion, an increase of 1.8% compared with last year. From 2021 to 2023, the Group’s newly launched commercial properties reached new heights, with 18 new commercial properties in operations in 2021, 15 in 2022 and 20 more new commercial projects to be launched in 2023, a grand total of 53 projects in three years. By estimate, the number of the Group’s owned new commercial properties from 2021 to 2023 will account for 39.6% of the total number of commercial projects owned by the Group, and the operating construction area will account for 40.4%, as of the end of 2023. With the end of the pandemic impact and the gradual maturity of commercial projects entering the market, the Group’s commercial revenue will increase rapidly.

During the year, the Group invested RMB10.66 billion in M&A projects in three major cities, Guangzhou, Shanghai and Chengdu. Next, the Group will seize the opportunity of a realignment in the industry, and actively seek acquisition opportunities.

The Group continues to fulfill corporate social responsibility and progress along the path of green development. As at the end of 2022, the Group had accumulated 569 green building certifications, including National Green Building Star Certifications, US LEED certification, US BOMA certification, US WELL certification and UK BREEAM certification, corresponding to an accumulative GFA reaching 98.69 million sq m.

The Group’s ESG initiatives and management achievements have been highly recognized by the capital markets. COLI was admitted into index constituents of the “Hang Seng Corporate Sustainability Index” for 13 consecutive years (Top 30 Hong Kong-listed companies with the best ESG performance), and was included in the newly launched “Hang Seng Climate Change 1.5°C Target Index” in May 2022.

Established for more than 40 years, the Group has also been listed in Hong Kong for 30 years. Through various economic cycles and fluctuations in the property market, the Group has maintained its leading position in the industry. Looking ahead, the Group is cautiously optimistic about the bottoming up of the real estate market, and will make the utmost effort to create a better operating performance. The Group will firmly adhere to the “Four Excellences” philosophy namely “Good Products, Good Services, Good Effectiveness and Good Citizen, upholding the long-term principle, embracing innovation to achieve high-quality development in steady progress.


Group photo of China Overseas Land & Investment Ltd.’s management, (from left to right) Chief Financial Officer Mr. LUI Sai Kit, Eddie, Chief Executive Officer Mr. ZHANG Zhichao, Chairman Mr. YAN Jianguo, Vice Chairman Mr. LUO Liang and Vice President Mr. GUO Guanghui.

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