China Overseas Property Holdings Limited Announces Annual Results for 2022

China Overseas Property Holdings Limited Announces Annual Results for 2022

Adhere to Quality Development and Strive to Achieve Long-Term Sustainable and Steady Growth for Shareholders

Profit Attributable to Shareholders Increased by 29.4%

Annual Dividend Per Share Increased by 33.3% YoY

China Overseas Property serves more than 200 projects in Hong Kong, with a wide range of business types.

The picture shows the supervisors of China Overseas Property on duty at the Hong Kong Port of Hong Kong-Zhuhai-Macao Bridge.

 (Hong Kong, 23 March, 2023) China Overseas Property Holdings Limited ("COPL" or the "Group", HKSE code: 2669) is pleased to announce its annual results for the year of 2022.

*The interim dividend was 4 cents per share, and final dividend is 8 cents per share.

In 2022, the Group had a cumulative presence in 144 cities, covering Hong Kong and Macau. The business types include residential premises and non-residential premises, covering business complexes, office buildings, commercial complexes, hotels, industrial parks, logistics parks, aviation, high-speed rail, hospitals, schools, government properties, urban services, parks, ports, roads and bridges, bus terminuses and other public facilities. Through providing high-quality and sophisticated services to the customers and maximising customer satisfaction, we strive to preserve and add value to the properties under our management and to solidify our strong brand recognition as a renowned property management service provider for mid- to high-end properties in our core stream business.

During the year ended 31 December 2022, total revenue increased by 34.4% to HK$12,689.0 million. The above upsides have deducted the impact of the average exchange rate depreciation of Renminbi in the past twelve months.

Property Management Services

We continued to diversify our property management portfolio, expand the coverage of non-residential areas, and further diversify our product portfolio consisting of commercial complexes, offices, shopping centers, hotels, industrial parks, logistic parks, aviation, high-speed rail, hospitals, schools, government properties, urban services, parks, ports, roads and bridges, bus terminuses and other public facilities. Now we have 1,643 property management projects with service area of nearly 320.3 million square meters. During the year ended 31 December 2022, revenue from property management services increased by 42.9% from last year to HK$9,448.5 million. The increase was mainly arisen from (i) the increase in GFA under our management from lump-sum basis contracts; and (ii) additional revenue arisen from Hong Kong community isolation facilities management, which were restrained by the impact of depreciation of Renminbi during the past twelve months.

We secured new contracts of Chengdu China Overseas Jinjiang City (成都中海錦江城), Shenzhen Guanshan Court (深圳觀山苑 ), Guangzhou Development Center ( 廣州發展中心 ), Deshun Building in Guangzhou Wanbo Commercial District (廣州萬博商務區德舜大廈), Dongguan Songshan Lake Production Scheduling Center and its subsidiary buildings (東莞松山湖生產調度中心及附屬樓), Suzhou Zilang Park (蘇州紫瑯公園), Shenzhen Xili Park (深圳西麗公園), Xi'an Happiness Forest Belt (西安幸福林帶), Peking Union Medical College Hospital (West) (北京協和醫院西單院區), Suzhou Nantong First People's Hospital in Suzhou (蘇州南通市第一人民醫院) and other projects, and tapped into the "Property City" project. In Hong Kong and Macau regions, we successively won the tenders for property management of Police Headquarters Building, Hong Kong Hua Hai Building under China General Administration of Customs, as well as extended our services to over 50% hospital projects under Hospital Authority and the headquarters building of Hospital Authority.

Value-Added Services - Residents Sub-segment

In respect of value-added services to residents sub-segment, our services cover (i) community asset management services (such as rental assistance, agency and custody for real estate transactions, common area rental assistance, one-stop shop asset management services to the property owners and rental of self-owned properties); (ii) living service operations (to meet the various needs of residents of the properties, including housing ecology, home improvement, decoration supplies sales agency, new retail, home services, tourism and leisure, education and training, health and elderly care, automotive services, platform services, etc.); and (iii) commercial service operations (to meet the needs of business users).

For the year ended 31 December 2022, revenue from the residents sub-segment increased by 8.5% to HK$880.1 million.

Value-Added Services - Non-Residents Sub-segment

Value-added services to non-residents sub-segment cover engineering, vetting of building plans, facilities and equipment evaluation proposals, pre-delivery, move-in assistance, delivery inspection, engineering service quality monitoring and consulting services, etc.

For the year ended 31 December 2022, revenue from the non-residents segment increased by 18.0% year-on-year to HK$2,111.3 million.

Car parking space trading

Through acquiring unfettered rights and ability to control and coordinate the sales of the car parking spaces at the properties under the Group's management, the Group can create greater ease and value to the residents of such properties, and thereby enhance the Group's overall management of the amenities within such properties. This in turn also enable the Group to take advantage of its existing abundance of cash balance and increase the shareholders' value.

During the year ended 31 December 2022, revenue from the car parking spaces trading business segment raised by 7.9% to HK$249.1 million from last year.

The Group adopts prudent financial policies, with effective financial and cash management under centralised supervision, and maintains appropriate leverage with sufficient cash balances. As at 31 December 2022, net working capital amounted to HK$3,170.5 million. Bank balances and cash increased by 9.5% to HK$4,691.1 million from last year.

COPL's confidence in achieving sustainable and steady growth in the long run also stems from the accelerated urbanisation in China, which has pushed the property management industry entering a period of rapid development, industrial growth and stability. With the gradual recognition of the value of quality services in the market, the Group's market expansion and service product development capabilities have been enhanced significantly. Looking ahead, we will pass on the spirit of "Leading the Trend", and we must learn, take responsibility, and strive hard amidst the fierce market-oriented competition to foster the "Modernisation of China Overseas Property Management". We pursue balanced, sustainable, healthy, and high-quality development and regard it as "Sole Core", and we are devoted to revitalising our "No.1 Butler" gilded signboard.

About China Overseas Property Holdings Limited

China Overseas Property Holdings Limited is a subsidiary of China Overseas Holdings Limited under China State Construction Engineering Corporation and an avant-garde in the property management industry in China with first-class qualifications. COPL started its property management services in Hong Kong in 1986, and have gained over 30 years of cultivation in Hong Kong and Macau, COPL set foot in the Mainland China market in 1991. On 23 October 2015, COPL was listed on the Main Board of the Stock Exchange of Hong Kong Limited (Stock Code: 2669.HK).

For further information, please contact:

China Overseas Property Holding Limited

Corporate Communication Department

Tel: (852) 2988 0600 | Email: copl.ir@cohl.com

Website: http://www.copl.com.hk