China Overseas Property Holdings Limited Announces Interim Results for 2023

China Overseas Property Holdings Limited Announces Interim Results for 2023

Build on Past Achievements and Open up the Future, Focus on Steady Growth Push forward the modernization of China Overseas Property Management Profit Attributable to Shareholders Increased by 39.2% Interim Dividend Per Share increased by 5.5 cents

King Yin Li, Hong Kong landmark historic site

Macao Grand Prix Museum

(Hong Kong, 21 August, 2023) China Overseas Property Holdings Limited ("COPL" or the "Group", HKSE code: 2669) is pleased to announce its interim results for the year of 2023.

In the first half of 2023, the Group had a cumulative presence in 154 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 six months ended 30 June 2023, total revenue increased by 23.2% to HK$7,163.0 million comparing with the corresponding period last year (2022: HK$5,813.9 million), which mainly arisen from the increase in GFA under our management dominated by lump-sum basis contracts; and (ii) business growth on value-added services to both non-residents and residents. The revenue denominated in RMB increased by 30.7% to RMB6,274.8 million (2022: RMB4,802.3 million).

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 1,818 property management projects with service area of nearly 363.3 million square meters. Revenue from property management services for the six months ended 30 June 2023 increased by 17.7% from last corresponding period to HK$5,163.2 million (2022: HK$4,387.4 million), which was mainly arisen from the increase in GFA under our management from lump-sum basis contracts, which was partly offset by the translation effect of average depreciation of Renminbi against Hong Kong dollar during the past twelve months.

We secured new contracts of Kunming China Overseas International Centre (昆明中海國際中心), Chengdu Minsheng Bank Chengdu Headquarter Building (成都民生銀行成都總部大樓), Xi'an Longi Green Energy Ordos Industrial Park (西安隆基綠能鄂爾多斯產業園), Zhongshan S.F. Express South China Industrial Park (中山順豐華南產業園), Shenyang Heping Universal City (瀋陽和平環宇城), Guangdong Dragonsea Zhuhai Base (廣東海龍珠海基地), Hebei Xiongan Jinhu Future City (河北雄安金湖未來城), Guangzhou Jinbi Yushui Villa (廣州金碧禦水山莊 ), Taiyuan China Overseas Metropolis Times Phase Two ( 太 原 中 海 寰 宇 時 代 二 期 ), Chengdu Shudao (成都蜀道), Shenzhen Tanglangshan Park (深圳塘朗山公園), Shenzhen Yuanke Park (深圳園科公園) and other projects. In Hong Kong and Macau regions, we successively won the tenders for property management of Hong Kong Housing Authority Headquarter Office Building, Building of the Office of the Government Chief Information Officer of HKSAR and Macao Grand Prix Museum, enhanced cooperation with the Hong Kong Leisure and Cultural Services Department as well as extended our services to over 50% hospital projects under Hospital Authority and the headquarters building of Hospital Authority.

VALUE-ADDED SERVICES - VALUE-ADDED SERVICES TO RESIDENTS 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, 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 six months ended 30 June 2023, revenue from the residents sub-segment increased by 56.9% to HK$711.4 million (2022: HK$453.3 million).

VALUE-ADDED SERVICES - VALUE-ADDED SERVICES TO NON-RESIDENTS 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 property developers and other property management companies. For the six months ended 30 June 2023, revenue from the non-residents sub-segment increased by 39.3% to HK$1,205.5 million (2022: HK$865.6 million). 

For the six months ended 30 June 2023, revenue from the non-residents sub-segment increased by 39.3% to HK$1,205.5 million (2022: HK$865.6 million).

CAR PARKING SPACES TRADING BUSINESS

The business of buying and selling parking spaces continued to be reduced. During the period, the sales pace was reasonably controlled, with 898 parking spaces sold and inventory reduced. Revenue was HK$83.0 million.

The Group adopts prudent financial policies, with effective financial and cash management, and maintains appropriate leverage with adequate cash balances. As at 30 June 2023, net working capital amounted to HK$3,466.0 million. Bank balances and cash amounted to HK$ 4,265.4 million.

2023 is a critical year inherits the past and leads to the future within the Group's "14th Five-Year strategic plan". We have clearly adopted the "1155" pathway to actualise the Group's medium- and long-term strategic objectives: by steadfastly revitalizing the "No.1 Butler" gilded signboard, we continue to define industry standards and strive to become the leading brand in the industry. We pursue sustainable, balanced, healthy and high-quality development and regard it as "One Core", and we build "Five Benchmarks", including customer satisfaction benchmark, city and property project benchmark, operational results growth benchmark, subbrand benchmark, and employee market value and team capability benchmark, as well as aim for "Brilliance in Five Competencies", in respect of service, product, market, technology and organization. With the corporate vision of "To be an Outstanding Global Service Provider in Asset Management" and the corporate mission of "We Manage Happiness", COPL adheres to the performance pledge of "Property Assets to be Entrusted" while leading a new journey with "The China Overseas Proprietary Methodology in the Modernisation of Property Management" ("COPMPM") strategic objectives.

Looking ahead, we will pass on the spirit of "Leading the Trend", and we must learn, take responsibility, and strive hard amidst the fierce perfect market competition to comprehensively push forward COPMPM in terms of the modernised development on the ecosystem cooperation, service system, IT application, brand building, and human resources team and basic management.

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