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China Overseas Property Holdings Limited Announces Annual Results for 2017

Press time:2018-03-22    Author:China Overseas Property Holdings Limited

(Hong Kong, 22 March 2018) China Overseas Property Holdings Limited (hereinafter referred to as “China Overseas Property” or “the Group”, HKSE code: 02669.HK) is pleased to announce its unaudited interim results for the twelve months ended 31 December 2017.
During 2017, the Group extended its geographic coverage and business volumes through the acquisition of the subsidiaries of China Overseas Land & Investment Limited, engaged in property management businesses with approximately 120 property management contracts in the PRC at a consideration of RMB190.0 million (equivalent to approximately HK$228.9 million) (the “Acquisition”). Therefore, the GFA under our management increased by 37.3% to 128.3 million sq.m. from 93.5 million sq.m. in the last year, including the new business volumes from the Acquisition of 24.1 million sq.m.. New/renewed property management contracts secured during the year amounted to a total contract sum of approximately HK$828.4 million.
As a result of the Acquisition, the consolidated financial statements would be presented using the merger basis of accounting. The comparative figures of last year would be restated accordingly. Revenue increased by 1.9% to HK$3,357.8 million for the year ended 31 December 2017, comparing to HK$3,296.7 million (restated) in the last year. Stripping out the effect of the Acquisition under merger accounting, total revenue for the year would be HK$2,714.2 million, with an increase of 5.9% against last year. With the business volumes from the Acquisition, the gross profit further increased by 4.6% on the new foundation against the restated amount in last year to HK$802.4 million (affected by merger accounting, the gross profit in 2016 increased by 20.6% to HK$767.2 million (restated)). Gross profit margin improved to 23.9% for the year from 23.3% (restated) in the last year. Profit attributable to owners of the Company for the year ended 31 December 2017 increased by 29.1% to HK$306.8 million against last year (2016: HK$237.5 million (restated)). Basic and diluted earnings per share was HK9.33 cents (2016: HK7.23 cents (restated)), represented an increase of 29.0%. Average return on equity in 2017 was 36.7% (2016: 30.6% (restated)).The Board recommended the payment of a final dividend of HK1.5 cents per share (2016: HK1.1 cents per share) for the year ended 31 December 2017.
The Group is committed to the provision of quality management services to our clients, offering differentiated service products to suit different customer needs in order to establish a positive brand image. With a proven track record of 30 years in service, we have built up a comprehensive service quality monitoring system which has received international service standard certification. We have adopted information technology to improve our quality of service in an effort to enhance customer satisfaction continuously. We focus on market development for mid- to high–end residential and commercial properties, so as to maintain growth in our market share and operating scale. While endeavouring to maintain a high standard in the quality of service, we also strive to enhance labour productivity, control management overhead cost and boost efficiency with the establishment of IT-driven smart platforms.
In view of the potential spending power of the huge population living in residential communities, we are committed to the ongoing development of diversified value-added services to meet the needs of owners, tenants and users across the board for different types of services. Meanwhile, we have been making vigorous efforts to develop our online platform by employing new technologies, such as the mobile internet and the Internet of Things, so that we can offer quicker and more intuitive experience to customers and enhance our overall competitiveness in the property management sector.
As one of the leading property management companies in the PRC, it is our mission to lead the development of the industry continuously through our performance excellence, to provide perfect housing enjoyment to our customers on the back of high quality services, to preserve and enhance the assets value of clients’ properties with comprehensive assets management programs, to provide a pleasant working environment with opportunities for career development for our staff, to build our brand image upon word–of–mouth credentials, and to explore the property management market continuously for the growth of shareholder’s value.
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