China Overseas Property Holdings Limited Announces Annual Results for 2023

China Overseas Property Holdings Limited Announces Annual Results for 2023

Well Poised for Future Success, Strive Forward with Stability

Profit Attributable to Shareholders Increased by 22.8%

Annual Dividend Per Share was 14 cents

(Hong Kong, 26 March, 2024) China Overseas Property Holdings Limited (“COPL” or the “Group”, HKSE code: 2669) is pleased to announce its annual results for the year of 2023.

In 2023, the Group had a cumulative presence in 164 cities, and had 1,999 property projects under management, 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 2023, total revenue increased by 19.7% to RMB13,051.3 million (2022: RMB10,899.8 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 1,999 property management projects with service area of nearly 401.5 million square meters. Revenue from property management services for the year ended 31 December 2023 increased by 16.0% from last year to RMB9,414.9 million (2022: RMB8,116.3 million). 

We secured new contracts of Chengdu Panda Reserve (成都大熊貓基地), LONGi Green Energy Multi-Land Industrial Park (隆基綠能多地產業園), Zhuhai Guangdong Hailong Zhuhai Base (珠海廣東海龍珠海基地), Chengdu Minsheng Bank Chengdu Headquarters Building (成都民生銀行成都總部大樓), Hebei State Energy Group Huanghua Port (河北國能集團黃驊港碼頭), Hebei Xiong'an Jinhu Future City (河北雄安金湖未來城), Chongqing Hikvision Base (重慶海康威視基地園), Beiling Park, Shenyang (瀋陽北陵公園), Taiyuan China Overseas Universal Time Phase Two (太原中海寰宇時代二期), The Central Hospital of Wuhan (武漢市中心醫院), Shenyang Fourth People’s Hospital (瀋陽第四人民醫院), Shenzhen Tanglangshan Country Park (深圳塘朗山公園), Shenzhen Yuanke Park (深圳園科公園), Shenzhen Honghu Park (深圳洪湖公園) 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, Hong Kong Multi-welfare Services Complex in Kwu Tung North, Macao Grand Prix Museum and other projects. We enhance our cooperation with the Hong Kong Development Bureau and the Hong Kong Leisure and Cultural Services Department and extended our property management services to over 60% of the hospital projects under the clusters of the 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 year ended 31 December 2023, revenue from the residents sub-segment increased significantly by 70.9% to RMB1,291.8 million (2022: RMB756.0 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 year ended 31 December 2023, revenue from the non-residents sub-segment increased by 18.3% year-on-year to RMB2,144.7 million (2022: RMB1,813.6 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 3,109 parking spaces sold and inventory reduced. Revenue was RMB199.9 million.

The Group adopts prudent financial policies, with effective financial and cash management under centralised supervision, and maintains appropriate leverage with adequate cash balances. As at 31 December 2023, net working capital amounted to HK$3,565.6 million. Bank balances and cash amounted to RMB5,130.7 million.

2023 is a critical year that inherits the past and leads to the future within the Group's “14th Five-Year strategic plan”, in which we are determined to promote “The China Overseas Proprietary Methodology in the Modernisation of Property Management” (“COPMPM”) to consolidate the foundation of high-quality development and market orientation, and sets quadruple roles on serving a better living as our core. Firstly, as an explorer for city services, we combine various property management portfolios that are managed separately into an integrated service capability. Secondly, as a promotor for the development of the entire industry chain, we actively integrate internal and external resources. Thirdly, as a guardian who safeguards a better living, we promote renovations of old community buildings and supporting facilities, improve urban micro-space and stimulate residents’ public service consumption. And, fourthly, as a developer of co-construction, co-governance and co-usage, we build a community ecology with owners and a project fulfilment ecology with suppliers. Entering into a new phase of industry development, the coverage of service targets of property management enterprises have been extended from small communities or neighbourhoods (being the basic units of urban construction) to large cities of countless basic units. We will vigorously develop the integrated operation of urban space, and co-existence with the logic of urban system. We will strive to become not only the manager of urban buildings, but also the operator of urban basic services and a dedicated participant in upgrading urban services with a view to promoting the unity of the three dynamics: the grassroots governance of the government, the management of owners’ rights and interests, and the commercial behavior of enterprises.

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