China Overseas records nearly 19pc decline in net profit last year

China Overseas Land & Investment (0688) saw its net profit drop 18.8 percent to 12.69 billion yuan (HK$14.39 billion) last year, and declared a final dividend of 25 HK cents per share, bringing the total to 50 HK cents per share.

Its revenue declined 9.2 percent to 168.09 billion yuan, with revenue from property development at 156.77 billion yuan, and revenue from commercial properties at 7.2 billion yuan.

Core profit, which excludes such effects as after-tax revaluation gains from investment properties and net foreign exchange gains and losses, was 13.01 billion yuan. 

The developer’s contracted property sales dropped 19.1 percent to 251.23 billion yuan and the corresponding sales area was 10.56 million square meters.

Contracted sales of 22.23 billion yuan were achieved in Hong Kong, ranking fifth by sales in the Hong Kong market for the first time.

The company’s net gearing was 34.2 percent and the average borrowing cost was 2.8 percent, among the lowest in the industry. 

The company said that it has acquired 35 land parcels in 15 Chinese mainland cities and Hong Kong, mentioning that although the property market is still adjusting, looking ahead, the company is confident that the property market will remain supported and stabilised.