China Overseas Land & Investment : Announces 2019 Interim Results

1H2019 profit attributable to shareholdersamounted to HK$24.94 billion Net profit margin 26.7%
Striving Ahead for 40 YearsStriding Confidently on the New Journey

(Hong Kong, 22 August 2019) China Overseas Land & Investment Ltd. ('COLI' or the 'Group', stock code: 0688.HK) announced its 2019 interim results today.

In 1H2019,the Group achievedabetter and faster development and maintained industry leadership in value creation. Contracted property sales of the Group Series of Companies in 1H2019 were HK$194.20 billion, representing an increase of 28.7% YoY, profit attributable to equity shareholders of the Company increased by 7.4% YoY to HK$24.94 billion; net profit margin amounted to 26.7%, remaining at a high level in the industry. The Group proposed an interim dividend of HK45 cents per share, an increase of 12.5% YoY. As at the end of 1H2019, equity attributable to shareholders were HK$302.39 billion, at industry-leading level, and net assets per share increased by 6.7% to HK$27.60.

Financially stable with ample cash. The Group continued to commit to the principle of prudent financial management. By the end of 1H2019, the net gearing was 35.0%, the liability to asset ratio was 60.1%, the cash on hand was HK$112.04 billion. It is well capitalized with industry leading liquidity to capture market opportunities.

Adhered to a land acquisition strategy of seeking steady progress amid stability. In 1H2019, the Group acquired 24 parcels of land in mainland China and Hong Kong, adding a total gross floor area ('GFA') of 4.64m sq m with an attributable interest of 4.42m sq m. The attributable land premium was HK$57.4 billion. The attributable land premium in first-tier cities (Beijing, Shanghai, Guangzhou and Shenzhen) and Hong Kong was HK$25.3 billion, accounting for 44.1%. As at the end of 1H2019, the Group Series of Companies' total land bank was 91.75m sq m.

Revenue from commercial properties rose steadily. The Group's total operating revenue from commercial properties increased by 15.6% YoY to HK$2.35 billion. As at the end of 1H2019, the total area of commercial properties held by the Group Series of Companies and under operations was 4.25m sq m, which comprised a total of 45 office buildings, 13 shopping malls and 12 premium hotels. The Group is the largest single ownership developer and operator of office buildings in mainland China. It is expected that the total operating revenue from commercial properties will exceed HK$10 billion in 5 years.

After 40 years of development, encompassing multiple economic cycles, the Group will stay on its course and is ever more focused on the development goal of becoming an Exceptional Global Property Development and Operation Corporation. In line with the development trend of the major business cycle, the Group has established three levels of business for today, tomorrow and the day after tomorrow:

With feet firmly grounded in the present, the Group invests about 90% of its resources in residential development, maintains its development positioning to target major cities, mainstream locations and mainstream products, and strategically focuses on first- and second-tier cities with greater economic and population growth potential, to achieve continuous increases in scale and profitability. With its eye on medium-term, for sustainable development, the Group allocates 7-8% of resources for commercial asset business, predominantly focuses in offices, while shopping malls being another focus, and develops hotel properties and long-term leased apartment in moderation. Fostering profit drivers for the day after tomorrow, the Group will deploy 1-2% of resources for new businesses, strategically exploring new profit drivers in areas such as education, elderly care and logistics.

In connection with the market trend, Mr. Yan Jianguo, Chairman of the Board and Chief Executive Officer of China Overseas Land & Investment Limited, said, 'The Group stays committed to long-term sustainable development, firmly adhering to becoming a company of 'Four Excellences', with its operating philosophy of 'good products, good services, good effectiveness and good citizenship'. The Group believes that in the current policy environment, the real estate industry will be promoted for long-term healthy development, and the development of the mainland real estate market will maintain steady in the second half of the year. The 2019 annual contracted sales target of the Group is HK$350 billion. The Group will draw on its 40 years of experience to advance effectively over the next 40 years, committed to improving quality of life and generating long-term and stable shareholder returns.'