CHINA OVERSEAS(00688)2025-04-28 08:43Financial Performance - Revenue decreased by 8.6% to RMB 1,851.5 million from RMB 2,025.2 million year-on-year[27] - Profit attributable to shareholders dropped by 38.9% to RMB 156.4 million, down from RMB 256.1 million[27] - Core profit attributable to shareholders decreased by 33.5% to RMB 157.2 million from RMB 236.5 million[27] - Basic earnings per share decreased by 38.9% to RMB 1.43 from RMB 2.34[27] - Total revenue for the fiscal year 2023 was RMB 202.5 billion, a 12.2% increase from RMB 180.3 billion in 2022[39] - Operating profit for 2023 was RMB 40.5 billion, up from RMB 34.9 billion in 2022, reflecting a 16.3% increase[39] - Net profit attributable to shareholders for 2023 was RMB 25.6 billion, compared to RMB 23.3 billion in 2022, marking a 9.8% increase[39] - The company's revenue for the audited year ending December 31, 2024, was RMB 185.15 billion, with a net profit attributable to shareholders of RMB 15.64 billion[78] Sales and Contracts - Contracted property sales amounted to RMB 3,106.9 million, a slight increase of 0.3% compared to RMB 3,098.1 million in the previous year[27] - The company achieved a contract property sales amount of RMB 310.69 billion, with a year-on-year growth of 0.3%, making it the only top ten real estate company in China to realize sales growth[73] - The average contracted sales price per square meter was RMB 27,047, representing a year-on-year increase of 16.6%[93] - The cumulative contract property sales amount for the Shenzhen Deep Bay project reached RMB 156.2 billion, with sales expected to commence in June 2024 and completion anticipated in 2026[120] - The cumulative contract property sales amount for the Shenzhen Time Horizon project reached RMB 45.8 billion, with sales starting in September 2023 and expected completion in 2024[122] - The company’s Shanghai project set a national record with a sales amount of RMB 196.5 billion on its opening day, totaling RMB 387.3 billion in cumulative contract property sales by December 2024, with completion expected in 2025[131] Land Acquisition and Reserves - Total land reserves decreased by 21.2% to 4,255,000 square meters from 5,403,000 square meters[27] - New land reserves added were 416,000 square meters, down 45.5% from 764,000 square meters[27] - The company has acquired 22 land parcels in 12 cities with a total purchase amount of RMB 80.61 billion, leading the industry in land acquisition[81] - The company acquired land in key cities with a total investment amount of RMB 636.2 billion, accounting for 91.4% of the total land acquisition, with RMB 511.6 billion in first-tier cities alone, representing 73.5% of the equity land price[100] - The total land reserve of the company's subsidiaries (excluding China Overseas Hong Kong) is 28.77 million square meters, with an equity construction area of 25.43 million square meters as of December 31, 2024[104] Financial Ratios and Debt Management - The interest coverage ratio fell to 2.8 times from 3.9 times, a decline of 1.12 times[27] - Net gearing ratio improved to 29.2% from 38.7%, a reduction of 9.53 percentage points[27] - The net debt ratio improved to 38.7% in 2023 from 42.9% in 2022, indicating better financial health[41] - The company maintained a debt-to-asset ratio of 55.8% and a net gearing ratio of 29.2%, reflecting a strong financial position[81] - The group’s total borrowings amounted to RMB 241.56 billion, with 11.8% due within one year[196] Dividends - The interim dividend was reduced by 14.3% to HKD 0.30 from HKD 0.35, and the final dividend decreased by 33.3% to HKD 0.30 from HKD 0.45[27] Market Position and Recognition - The company was rated A- by S&P Global, reflecting strong financial performance and governance[54] - The company was recognized as the top real estate developer in China for delivery capability in 2023 by CRIC[44] - The company’s market share in first-tier cities reached the top three, with sales in Shanghai amounting to RMB 70.45 billion, contributing to 60.6% of total sales from its series of companies[79] Commercial Property Development - The company’s commercial property revenue increased by 12.1% year-on-year, reaching RMB 7.13 billion, with a total operational area increase of 300,000 square meters[79] - The company is actively expanding its commercial property operations, with a focus on diverse product offerings and strategic urban positioning[170] - The company reported a total of 123 operational commercial projects, with a combined area of 758,000 square meters[174] - The shopping center business achieved a rental income growth of 34.6% year-on-year, reaching RMB 2.26 billion, with overall occupancy at a high level of 95%[177] Strategic Initiatives and Future Plans - The company aims to launch a series of "Good Houses" in major cities like Beijing and Shanghai by 2025, capitalizing on the opportunity for greater value creation[86] - The company plans to enhance its market presence in first and second-tier cities in mainland China through strategic property development[118] - The company is focusing on developing mixed-use projects in key urban areas, enhancing its market presence and product offerings[133] - The company is focusing on integrating supply chain resources to enhance service capabilities and reduce costs, aiming for a win-win ecosystem in the building materials industry[190]