CHINA OVERSEAS(HK:00688)2023-04-27 11:15Financial Performance - Revenue for the year ended December 31, 2022, was RMB 1,803.2 million, a decrease of 25.6% compared to RMB 2,422.4 million in 2021[15] - Profit attributable to shareholders decreased by 42.1% to RMB 232.6 million from RMB 401.6 million in the previous year[15] - Core net profit attributable to shareholders fell by 28.0% to RMB 244.2 million from RMB 339.2 million in 2021[15] - Contracted property sales amounted to RMB 2,947.6 million, down 20.2% from RMB 3,695.0 million in 2021[15] - Basic earnings per share dropped to RMB 2.13, down 42.1% from RMB 3.67 in 2021[15] - Operating profit for 2022 was RMB 34.88 billion, down from RMB 60.31 billion in 2021, representing a decline of 42.9%[20] - The net profit attributable to shareholders was RMB 23.26 billion, with a basic earnings per share of RMB 2.13[62] - The group's total revenue for 2022 was RMB 180.32 billion, with an operating profit of RMB 34.88 billion and a gross profit margin of 21.3%[62] Debt and Financial Ratios - Net gearing ratio increased to 45.2% from 32.3% in the previous year, reflecting a rise of 12.93 percentage points[15] - Interest coverage ratio decreased to 3.3 times from 7.2 times, a decline of 3.94 times[15] - The weighted average cost of capital slightly increased to 3.57% from 3.55%[15] - The group's net debt ratio is 45.2%, which is among the lowest in the industry, and the current ratio is 2.4 times as of December 31, 2022[157] - The total financing for the year reached RMB 94.32 billion, with RMB 20.04 billion in new overseas loans, including a significant HKD 12.11 billion syndicated loan[158] - The total borrowings amounted to RMB 1,048.3 billion in 2022, compared to RMB 796.1 billion in 2021, reflecting an increase of approximately 31.6%[165] Land Acquisition and Development - Total land reserves for property development decreased to 4,389,000 square meters from 5,100,000 square meters, a reduction of 13.9%[15][18] - The company secured land rights in Beijing for a total price of RMB 14.75 billion, with total land acquisition in first-tier cities amounting to RMB 45.88 billion[38] - The company completed 40 land acquisitions in 16 cities in mainland China, adding a total floor area of 7.39 million square meters, with a total land cost of RMB 110.72 billion[145] - As of December 31, 2022, the company's total land reserves reached 68.42 million square meters[145] - The company expanded its land reserves by acquiring 40 new land parcels across 16 cities in mainland China, with a total floor area of 7.39 million square meters and a total land cost of RMB 110.72 billion[149] Project Development and Sales - The company launched several projects in 2022, achieving sales of RMB 50.0 billion in Beijing Zhonghai Huide Li project and RMB 40.0 billion in Shenzhen Zhonghai Guanyuan project[25] - The group's contracted property sales amounted to RMB 294.76 billion, corresponding to a sold floor area of 13.87 million square meters[63] - The property development revenue for the year was RMB 174.51 billion, with a completion area of 14.45 million square meters[67] - The cumulative contracted property sales for the Shenzhen Zhonghai Guanyuan project reached RMB 5.71 billion by the end of 2022[74] - The cumulative contracted property sales for the Guangzhou Asian Games City project in 2022 reached RMB 6.47 billion, accounting for 73.3% of the project[78] Commercial Property Operations - The group's commercial property income reached RMB 5.26 billion in 2022, a year-on-year increase of 1.8%[58] - Rental income from investment properties reached RMB 4.74 billion, accounting for over 90.1% of total revenue, with a year-on-year increase of 1.6%[114] - The total built area of the group's commercial properties reached 10.55 million square meters, with operational commercial projects covering 6.65 million square meters[116] - The group operates 56 office buildings, 23 shopping centers, 18 star-rated hotels, and 17 long-term rental apartments, with a total operational area of 6.65 million square meters[117] - The shopping center business achieved rental income growth to RMB 1.20 billion despite the impact of frequent pandemic outbreaks, supporting overall performance for the year[124] Governance and Management - The company emphasizes the importance of independent directors in governance, with members holding various key positions in other listed companies[180] - The board includes members with extensive experience in risk management and corporate governance, enhancing the company's strategic oversight[181] - The company aims to strengthen its corporate governance framework, ensuring compliance and risk management are prioritized[179] - The group has a management team with extensive experience in real estate development and corporate management, including key executives with over 30 years in the industry[175][176] ESG and Sustainability Initiatives - The company has been recognized for its ESG initiatives, being selected as a constituent of the Hang Seng Sustainable Development Index for 13 consecutive years and included in the newly launched "Hang Seng Climate Change 1.5°C Target Index" this year[199] - The company has established a corporate governance committee at the board level to enhance oversight of ESG matters, with independent non-executive directors as key members[199] - The company has developed a "Four Good" ESG strategic framework to plan and achieve sustainable development goals[199] - The company has a strong focus on identifying and managing ESG risks, with a dedicated leadership team for ESG initiatives[199] - The company has received multiple awards for its ESG performance, including being named a Top 10 ESG Development Impact Company in 2022 and winning the Platinum Award for ESG from "Treasury" magazine[199]