china overseas development co., ltd. announces 2020 interim results | 中國海外集團-pg电子(中国)官方网站

go against the trend and strive for high-quality development: property sales and operating income grow against the trend
group companies achieved sales contract value of rmb 172 billion, a year-on-year increase of 4.2%
the total profit remains stable, the net profit margin is 23.2%, and the industry leader
interim dividend of 45 hk cents per share remains stable and is committed to creating stable value returns for shareholders

(hong kong, august 24, 2020) china overseas land & investment limited ("china overseas land & investment" or "the group", stock code: 0688.hk) is pleased to announce its 2020 interim results today.

overcome difficulties and grow against the trend. in the first half of 2020, in the face of the impact and impact of the epidemic, all colleagues of the group worked hard with strong execution, and the main operating indicators achieved quality growth despite the adverse trend. the group’s series of companies achieved sales contract value of rmb 172.01 billion in mid-2020, an increase of 4.2% year-on-year; the group achieved operating income of rmb 88.63 billion, profit attributable to shareholders of rmb 20.53 billion, net profit margin of 23.2%, and profit margin continue to maintain industry leadership. at the end of the period, the equity attributable to shareholders of the group was rmb 295.09 billion, an increase of 5.2% compared to the end of last year, and the net asset value per share was rmb 26.93. the group’s basic earnings per share were rmb 1.87, and it plans to pay an interim dividend of 45 hk cents per share, which is the same as last year’s interim dividend per share, and is committed to creating a stable value return for shareholders.

the group adheres to the development concept of mainstream cities, mainstream locations, and mainstream products to effectively match market trends and effectively meet the needs of mid- to high-end customers for improving residential quality. during the period, the average sales price of the group's series of companies exceeded rmb 18,000 per square meter, which was much higher than the average sales price of commercial housing in the mainland. sales in beijing, chengdu, guangzhou, and shanghai all exceeded rmb 10 billion.

be cautious, steady and prudent. the group adheres to a prudent and prudent financial strategy. at the end of june 2020, the debt-to-asset ratio is 59.77%, and the net loan ratio is 32.95%. it maintains the lowest debt ratio among real estate companies with annual sales of more than 100 billion yuan; the weighted average borrowing cost for the first half of the year was 4.01% , financing costs are in the lowest range in the industry, holding cash of rmb 111.38 billion. three major international organizations have given the group's industry-leading credit ratings, moody's baa1, standard & poor's bbb , and fitch a-. the group's ability to resist risks has a significant comparative advantage.

deeply cultivate mainstream cities, give full play to their competitive advantages, obtain super-large projects, and strengthen their advantages in land reserves. in the first half of 2020, the group added a total of 21 pieces of land in 13 cities in mainland china, with a total floor area of ​​5.82 million square meters, an equity area of ​​5.62 million square meters, and an equity purchase amount of rmb 52.28 billion. since the beginning of 2020, the group has acquired a number of super large projects such as the shanghai hongqi village project, wuhan hanyang bridge construction project, taiyuan comprehensive reform zone project, and shanghai jianguo east road project. the development construction area of ​​each project exceeds one million square meters. the average value is tens of billions of rmb. by the end of the mid-term of 2020, the group's series of companies have a total land bank of 90.06 million square meters, about 87% of which are located in first- and second-tier cities.

optimize asset structure, continue to accumulate energy, and improve commercial asset management and operation capabilities. during the period, the total revenue of commercial properties held by the group reached rmb 2.03 billion, a year-on-year increase of 1.1%. in response to the impact of the epidemic on the market's integration effect and the window opportunity for revaluation of commercial assets, the group promotes the full-cycle management of the "investment, financing, management, and retirement" of commercial assets, sells and acquires high-quality commercial assets on a periodic basis, optimizes the tenant structure, and strengthens commercial operating costs control and improve business service innovation and service quality. at the end of june 2020, the total area of ​​commercial properties held and put into operation by the group's series of companies has a total area of ​​4.5 million square meters, including 45 office buildings, 14 shopping centers, 12 star hotels, and 2 parents rented apartments. as the largest single-ownership office development operator in mainland china, the group has now more than 260 fortune 500 companies settled in china overseas office. relying on the scale advantages of office properties, the group's free office product officezip has been stationed in seven cities including beijing, shanghai, and chengdu. there are 15 officezip projects with a total office area of ​​approximately 74,000 square meters. in 2023, it is estimated that the total operating income of commercial properties held by the group will exceed hk$10 billion.

actively embrace changes, innovate business models, and accelerate the cultivation of new growth points. on the basis of cultivating new businesses such as elderly care, education, logistics, etc., during the period, the group newly established a supply chain management company, aiming to integrate the advantageous resources of material gathering and build a first-class b2b building materials trading and integrated service platform for the whole industry; the establishment of a technology company will provide technology products and services around the digital management of residential development and commercial operation, smart communities, smart homes, smart commercial buildings and other real estate development and operation scenarios, and invest in upstream and downstream technology companies to establish a technology ecosystem.

the group continues to practice corporate social responsibility and adhere to the path of sustainable development. the group continues to practice corporate social responsibility. adhere to the path of green development. in the first half of the year, the group established the "four goods" environmental, social and corporate governance (esg) strategic framework, and identified 29 sustainable development issues as the basis for setting the sustainable development goals. under the framework of the "four goods" plan and achieve qualitative and quantitative targets for sustainable development from 2019 to 2023. the target content includes green building area, air quality testing, customer satisfaction, employee satisfaction, employee training, carbon emissions and energy consumption density.

the group will add 21 green building certification projects in mid-2020, with a certified construction area of ​​2.57 million square meters; and 315 green building certification projects, with a cumulative area of ​​58.04 million square meters. the group's "haihui wanjia" continued to carry out targeted poverty alleviation actions in kangle county, gansu, and created the "kangle mushroom" characteristic agricultural product brand for the local area. the group participated in the entire process from product inspection to online sales, and also gave free "kangle mushrooms" to customers, guiding them to pay attention to product online stores, helping to build brands and open up sales. the group has been included in the "hang seng sustainable enterprise index" for 11 consecutive years, and the msci msci esg rating has also been rated bb. in july 2020, it was included in the hang seng esg50 index newly launched by the hang seng index company.

facing the future, the group has full confidence in the chinese economy. the group believes that with the strong resilience of the chinese economy, it will effectively respond to the epidemic and various external shocks, and achieve high-quality development after the epidemic. in 2020, the central government will continue to intensify counter-cyclical adjustments to ensure stable economic progress; the real estate policy guided by "housing to live without speculation" and "stabilizing land prices, stabilizing housing prices, and stabilizing expectations" will guide the steady and healthy development of the real estate industry ; the group is confident of achieving sustained and steady growth in 2020.