CHINA OVERSEAS(HK:00688)2024-03-28 04:01Financial Performance - The group's revenue reached RMB 202.52 billion, representing a year-on-year increase of 12.3%[2] - Profit attributable to shareholders was RMB 25.61 billion, an increase of 10.1% year-on-year, while core profit attributable to shareholders was RMB 23.65 billion[2][3] - Basic earnings per share were RMB 2.34, reflecting a year-on-year increase of 10.1%[3] - The group's operating profit was RMB 40.53 billion, an increase from RMB 34.88 billion in the previous year[4] - Total revenue for the year ended December 31, 2023, reached RMB 210,315,650, an increase from RMB 188,625,841 in 2022, representing a growth of approximately 11.5%[14][15] - The company reported a net profit attributable to shareholders of RMB 25,609,837 for 2023, compared to RMB 23,264,747 in 2022, indicating an increase of about 10.0%[20] - The group's gross profit margin was 20.3%, with a net profit margin attributable to shareholders of 12.6%[31] Property Sales and Development - The group's property sales increased by 5.1% to RMB 309.81 billion, with a corresponding sales area of 13.36 million square meters, a year-on-year decrease of 3.7%[2] - The group's contracted property sales amounted to RMB 309.81 billion, representing a year-on-year increase of 5.1%[32] - The group's real estate development revenue for the year was RMB 192.88 billion, an increase of 11.8% year-on-year[34] - The segment profit for the real estate development business was RMB 33,146,004, while the commercial property operation business reported a profit of RMB 7,770,667, contributing to a total segment profit of RMB 41,169,374 for 2023, up from RMB 39,593,688 in 2022[14][15][17] - The company’s total segment revenue from external customers in the real estate development business was RMB 192,877,444, while the commercial property operation business generated RMB 6,361,835 in revenue for 2023[14] Land Acquisition and Reserves - The group acquired 43 new land parcels in 23 cities in mainland China and Hong Kong, with a total land reserve area of 7.64 million square meters, and the equity land cost increased by 42.0% to RMB 122.66 billion[2] - The total land reserve area for the group’s subsidiaries (excluding China Overseas Macro Yang) was 35.22 million square meters as of December 31, 2023[39] - The total land reserve area for China Overseas Macro Yang was 1.88 million square meters as of December 31, 2023[40] - The group acquired 43 land parcels in 23 cities in mainland China and Hong Kong, with a total land acquisition cost of RMB 134.21 billion, a 42.0% increase year-on-year[28] Financial Position and Debt Management - As of December 31, 2023, total borrowings amounted to RMB 257.66 billion, with cash and bank balances of RMB 105.63 billion, resulting in a net gearing ratio of 38.7%[2] - The group's net debt repayment amounted to RMB 15.58 billion, effectively controlling funding costs[29] - The group's weighted average financing cost for 2023 was 3.55%, among the lowest in the industry[29] - The group reported a sales area of 13.36 million square meters, a decrease of 3.7% year-on-year[32] - The group repaid RMB 98.49 billion in debts ahead of schedule, resulting in a net debt repayment of RMB 15.58 billion during the year[44] Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.45 per share, totaling an annual dividend of HKD 0.80 per share[2][3] - The total dividend for the year, including an interim dividend of HKD 0.35 per share, will be HKD 0.80 per share[26] - The board has proposed a final dividend of HKD 0.45 per share for the year ending December 31, 2023, amounting to approximately RMB 4,516,406,000, pending shareholder approval[21] Cash Flow and Receivables - Total operating cash inflow was RMB 231.69 billion, representing a year-on-year increase of 14.8%[44] - As of December 31, 2023, trade and other receivables amounted to RMB 6,987,106,000, a slight decrease from RMB 7,042,079,000 in the previous year[23] - The company closely monitors the credit quality and recoverability of receivables, ensuring minimal provisions for trade and other receivables[23] - The company has a low expected credit risk for trade and other receivables due to a diverse customer base and strong repayment history[23] Corporate Governance and Compliance - The company adhered to the corporate governance code as per the listing rules during the fiscal year ending December 31, 2023[54] - The company has adopted a code of conduct for directors' securities transactions, confirming compliance by all directors during the fiscal year 2023[55] - The audit and risk management committee reviewed the accounting policies and the audited consolidated financial statements for the year ending December 31, 2023[56] - Ernst & Young confirmed that the figures in the performance announcement are consistent with the audited consolidated financial statements for the fiscal year 2023[56] Sustainability and Community Engagement - The company aims to reduce carbon emission intensity by over 30% per unit area by 2030, based on 2019 levels, and achieve carbon neutrality by 2060[48] - The company has established a leadership group for carbon peak and carbon neutrality, and has published a "Carbon Neutrality White Paper" and an "Implementation Plan for Carbon Peak"[48] - The company actively participates in community building in Hong Kong, launching initiatives to improve living conditions for residents[48] - The company is involved in rural revitalization efforts in Gansu, helping to establish the "Zhuoni Mushroom" brand[48] - The company has implemented a comprehensive performance management system to fairly assess employee contributions[48] Market Strategy and Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency and drive future growth[14] - The group aims for a 25% growth in commercial property revenue for 2024, building on the previous year's growth[30]